David Cummings on Startups

The Critical Time Between Employee Offer Letter and Commitment

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David Cummings

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Recruiting great employees who are corporate culture fits is one of the most rewarding, and most difficult, aspects of building a startup. Creating the best place to work with strong, aligned values does wonders for the recruiting process. Even so, there’s a part of the recruiting process that doesn’t get the attention it deserves: the critical time between employee offer letter and commitment.

Here are some ideas to increase the chance of that great potential hire accepting their offer:

  • Provide a deadline in the offer to create a timeframe and expectations for a response
  • Talk on the phone and describe how excited you are for them to join your team before sending the written offer (delivering the message in person or over the phone is much more impactful)
  • Maintain an open and continuous dialogue while working hard to address any concerns they might have
  • Allow for negotiation of compensation but be weary of too much back and forth

Changing employers, especially when joining a startup, is a big decision. Once an offer is sent to a potential employee, it’s critical to work hard to see the process through to a commitment to come aboard.

What else? What are some other best practices around the time between an employee is given an offer letter to them signing on?

Comments

2 responses to “The Critical Time Between Employee Offer Letter and Commitment”

  1. Kyle Porter Avatar
    Kyle Porter

    While at RP, I got to the point where I would not extend a formal offer without having verbal buy-in. We’d reach agreement on all points and the paperwork would become a formality.

    Top talent have limitless options, not only does the company need to be unique, but so does the hiring process/personalities. It’s often not a numbers game.

    Additionally there should be a process for the time after the offer is accepted & before the start date. Top talent will get counter offers & competitive interests. There are a handful of things a company can do to mitigate them.

    Reply
    1. Pete Franconi Avatar
      Pete Franconi

      I completely agree with Kyle — reaching agreement on all points before sending the paperwork is key. And just as a startup company has to understand the needs of the client before creating a product, so too does a company need to understand the desires of the talent they’re hiring before putting together an offer letter. Does the employee care about: vacation, compensation, title, upward mobility, the opportunity to work on specific projects, working with specific people, etc. No two people weigh the above criteria exactly the same so take the time to understand the prospective hire, tailor the offer letter, and paint the right long-term picture tailored to prospect’s goals.

      Reply

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