The 30% PLUS Solution

To get a top person to accept an offer, you will need to offer at least a 30 percent increase, but it doesn’t need to all be in compensation. The biggest part of the 30 percent should be in job stretch (a bigger job now) and part can be in job growth (potential for a bigger job in the future). If the job is 15 percent bigger, you are halfway to the 30 percent objective. You can get another 5 percent to 10 percent in long-term job growth by demonstrating realistic future opportunities. That leaves 5 percent to 10 percent, which can be in the form of compensation increase. This is quite reasonable. The PLUS factor represents the hiring manager’s total commitment and involvement in the hiring and recruiting process. This is critical. Top people want to work for a strong leader who can help employees grow and become better. This requires managers to personally commit to the process, staying involved from beginning to end. Managers must not delegate the recruiting and hiring process to HR. This is a strategy doomed to failure. Hiring managers must take personal responsibility for hiring the best people, involving HR, but not ceding the task to them. Collectively, this is what I call the 30% PLUS Solution. Here’s the formula: