Learn why your 401K plan is meaningless, and what matters more. Learn how to negotiate fair salaries, without destroying trust.
- You found the perfect young person, and now, you're ready to negotiate the salary. You might think it's only about the money, but with millennials, it's not just about the cash. You see, 64 percent of millennials say it's a priority for them to make the world a better place, so don't underestimate the power of your company story, and non-cash items when you're negotiating with a millennial, so here are four tips that you can use. First and foremost, create goodwill.
Now, I remember, I had an early boss tell me, "I don't just want you to come to work here, "I want you to be thrilled to come to work here." Now, at the time, I only had two weeks of vacation. I was going from a very big company to a much smaller company, and so my boss had the flexibility to offer me three weeks of vacation. That one gesture was the biggest deal in the world to me. It said, "You're not just a number to us, "we want you to be happy," and that extra week of vacation, that cost them nothing, because I was in sales, so I was still responsible for hitting my number.
That leads me to the second thing. Use those non-cash incentives. If you offer flex time, or extra vacation, or the chance to do one afternoon a month at a charity, bring it up. Tell your millennial hire, "I'd like to go over "the entire package with you." Even if the young person is just thinking about the salary, your role as a leader is to help them look at the opportunity in a more holistic way. Now, the third thing, this is really important, you need to spell out the true payoff of any benefit plan that you might have.
Here's what I mean. It's easy to say, "We have a 401k matching program," but that might not mean that much to a 20 something. They may have an MBA, but they probably haven't thought through the emotional impact of compound interest. So, show them, a chart. Tell them, "If you save $2,000 a year, and we match it, "by $1,000, over time, you will have $100 thousand. "What would you do with that kind of money?" That's the kind of cash reserve that can give you the freedom to travel around the world.
You want them thinking about the impact. Now, the fourth thing is, when you're negotiating, give them time to think about it. Don't try to close the deal on the spot. There are two reason. One, it's always a good negotiation practice to let the other person walk away from the table, and think. The second reason, if they're a millennial, they're probably gonna wanna call their parents. Yes, it's true. A recent Wall Street Journal article referenced the increase in millennial parents who are involved in their kids' careers.
Now, before you start to say, "Whoa, I never got my parents involved," think about this. Wouldn't it have been nice to have an older, wiser person giving you backstage advice? Now, sometimes, their parents go a little crazy, and they might be the kind that actually call you, the boss. This happens more than you might think. If it happens to you, be polite, but tell the parent, "You know, I need to deal with Susan on this. "This is her job," and don't hold it against the millennials if their parents call you.
Even people my age cannot control their parents. The way you negotiate with a millennial on salary and other things, it sets the tone for your entire working relationship. You want to keep it positive, and you want to show that potential employee that you are excited that they are coming onboard, and if it doesn't work out, try to remember this. The millennials are the biggest demographic in the workforce, so that means there's a lot of them to choose from.
- Identify information that should be included in job expectations.
- Determine the best ways to engage millennials in face-to-face meetings.
- Explain how to provide effective performance feedback.
- Recognize incentives that will increase retention rates.
- List three signs of employee disengagement.