Counter Offer Blues

I can offer solid statistics around this. But, the plain and simple fact is, once you accept a counter offer, the odds of you getting booted go up by seventy percent (70%) /1.

What is a counter offer, you ask?

Example:

“Bob”, a Sales Manager, gets recruited from outside his current employer for a lateral move in the same State. In this particular case, Bob knew his company could be acquired. However, Bob decides to approach his current employer before he accepts the new offer of employment. Bob goes to current boss with the news that he (Bob) has an offer in writing. Boss negotiates a better deal in an effort to retain Bob.

Four months later Bob is terminated by his employer.

Obviously there are many variables under this scenario. But, regardless of many facts, most of the time the employee that accepts a counter offer is amongst the first to be cut if there is any perceived need by his superiors.

NOTE: It’s rarely for performance reasons. Justification for terminations under this broad scenario usually fall under Reduction In Workforce (“RIF”). This is most common in and around mergers and acquisitions /2. Employees up-and-down the entire food chain feel vulnerable when there are discussions of mergers and acquisitions in the air. So, this can represent a “catch 22″. But, if you accept a counter offer within six months of your employer being acquired, it looks like the statistics put you at a whopping ninety-five percent (95%) likelihood of beineg terminated.

Brian Patrick Cork
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1/ This information is based on a survey of one hundred (100) candidates across three (3) disciplines (Sales, Operations and IT) in transition over a nintey (90) day period.

2/ It should be noted that merger and acquisition activity happens to be quite significant this year. And, there is little indication for a slow down – especially with the tremendous amount of Venture Capital on the sidelines looking for opportunities.

Filed under: Articles By Brian Cork, Business, Coaching , Brian Cork, Layoff's, Work Force Reduction

Sales Compensation

There is a set of unspoken rules that are understood (perhaps instinctively) /1 by successful decision-makers when it comes to compensating sales people and/ or sales leadership.

For the purpose of this Blog entry, lets focus on Sales Leadership.

Employment Status

As many of you know, I represent some of the top companies around the world looking for best of breed sales leadership. There are always terrific exceptions, but I typically focus on “passive” candidates. This is a person that is gainfully employed and not looking for outside opportunities.

Job Description/ Clear Communication/ Appropriate Expectations

I always work off of a carefully considered set of criteria that my clients and I develop together around expectations (Credentials, Character and Culture). But, I also look for copies of W2’s, the house on the lake, the kids in private school, and other tangible examples of success. This is evidence of personal standards. I believe the best sales people want to evangelize a product or service they can sell with integrity because they know it can be delivered. All they have to do is find the appropriate target customer that wants it, and can pay for it. Simply put, the sales leaders that represent this view typically have an abundance of evidence that demonstrates all of this.

Salary

At an absolute minimum, the base salary /2 should reflect what is required to cover their monthly expenses to include mortgage, tuition, automobile payments, country club fees, etc. They have clearly earned this lifestyle. It does not make sense to ask them to reduce it. And, it may sound crass; but the truth is – you always get what you pay for with sales people.  NOTE: It really is like Ikea and Ethan Allen. CEO’s often think they need to hire sales leaders that “earn it”. They might believe that focusing purely on performance bonus makes them appear strong and exacting leaders. However, the best-of-breed sales leader will actually evaluate the company and its products, and tell you if they can leverage them to maintain their historic lifestyle. They will always earn it. And, in doing so, greatly improve a company’s bottom-line.

It’s okay if the top sales leader makes more money than anyone else in the company (this includes the CEO). Their income is a direct and clear indication of the revenues and profits of the company. Top sales leaders know how to manage margins to benefit both the company and the customer. Math can’t lie.

Bonus and Commission

Bonus and commission fees should always be a simple as possible. Many CEO’s try to create a scalable and complicated commission structure that most sales leaders only view with suspicion. Give a sales leader a clear target with simple math and they will hit it – or, quit if they can’t because they won’t make their boat payments if they don’t produce. Never put a ceiling on a sales leaders bonus potential.

Sales Projections and Quotas

Don’t make a promise to Wall Street or investors and hold a sales leader accountable for unrealistic expectations. Gut check your sales leader and reward Wall Street and investors with informed decision making.

In summary, focus on Credentials, Character and Culture. And, hire sales leaders that will reflect and represent the value of your company’s products and services.

Brian Patrick Cork
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1/ This is, in part, the Law of Natural Selection.

2/ If you are using a search and recruiting firm, go ahead and request that the recruiter be paid a flat fee to reduce any concern that they might be pushing the salary to increase their fee. In fact, most recruiters don’t do this. But, do what you must to reduce your anxiety.

Filed under: Articles By Brian Cork, Business, Coaching

Job Search Tip 6: Be “On Target”

Whether you are considering a career transition, or in transition – you need a solid foundation at home that enables you to be bold and fearless. Example: Our wives are typically our greatest supporters. But, a career transition (it does not really matter if it is considered or forced) makes them vulnerable. They can try to conceal it. But, you can see it in their eyes, body language – and, the bedroom /1.

I coach many professional people through career transitions. A terrific exercise is building your target. This is part of a “plan”. And, if the wife can offer legitimate input into the plan; and, that input is values and utilized, home life is stable. “Happy Wife, Happy Life”.

Phase I

Over dinner one evening ask your family to identify things and events in their lives that would make home life and their individual lives ideal. Next, envision the bullseye of a target. Divide the bullseye by the number of people in your immediate family. Each person has three (3) to five (5) things they can list. Examples: A job title, promotion, finding a job, moving to a specific state or city, making the Lacrosse team, better grades, philanthropic/ volunteer work, etc.. This helps get the family started on the same page. It opens everyone up and gives you a sense of how to maintain equilibrium during what MIGHT be a challenging time.

Phase II

Next, discuss what you are willing to do individually, and, as a family to achieve the group goals – and, help one another achieve individual goals. Envision the white circle around the bullseye. This is called the “concessions” circle. Examples: Making more sales calls, getting an MBA, relocating, joining a volunteer group, studying, training, etc.. List these items withthe name of each member of the family around the concessions circle.

Phase III

Discuss and carefully consider what you don’t want in your life. Examples: NOT relocating, not willing to travel for work, not willing to work extra hours, pornography, wife working outside the home, etc.. Place these “things” around the out red band of the target. This is simply stated, the “NO” circle.

You now have a very clear picture of what the family needs and wants. Create a copy (Adobe Photoshop is a good way) /2 You can now manage this with love, conviction and purpose. Blow up the bullseye and place the image on your homes refrigerator. This is a place where everyone in the family will go at least once a day. The bullsye is a bold and graphic reminder of what the family needs and wants. You can now condust your career search with this important criteria in mind. Along the way the family should discuss the target at least once a week. Every thing on the list is “open season” for discussion. This allows and enables the entire family to be part of the solution.

Here is something to consider… If Dad is out of work, this can be a very stressful time for the family. However, if elements of this are on the target you have an opportunity to discuss the situation and steps taken to make the right changes. This means the kids can ask how the job search is going – or, what is happening with MBA classes (or, how Dad is handling the new boss). If you are out of work, rally your family by including a new or better job (and, the other things on the bullsye) in the prayer. This is a terrific opportunity for Dad to show his children that he can navigate a difficult situation with integrity while loving them in ways that never change.

Having a plan always works. This process enable the family to pull together and adjust as necessary.

Call me with questions at 404 451 4799 or email me at brian@bchcroi.com.

Brian Patrick Cork
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1/  This is a real fact of life and must be addressed; and,

2/ It helps if someone in your family is handy with a computer (shameless pug for Apple)

Filed under: Articles By Brian Cork, Business, Coaching