Making Your Offer
Let's take a look at how you actually make your offer. So when you're making your offer, you want to reiterate the job description and expectations just like Patrice told us to do. You also want to reiterate the structure and schedule of the job just like Patrice told us to do. You want to make your compensation offer clear, plus any additional benefits that you are committing to and none of the other stuff just like Patrice told us to. (laughs) Also like Patrice told us to, don't include any language that hints at ownership, partnership, or guaranteed employment. Guaranteed employment is huge but also that ownership and partnership. You don't want to tell people you're looking for a partner in your business. You might know in your head, you know what I really need is someone who could feel like a partner to me, don't say that. Keep it in your head, okay, because that can establish an implied contract of ownership. When you say I'm looking for a partner for my business or I'm so glad t...
o have you on board as a partner with me they can sue you for ownership of your company- partial ownership of your company. Don't put yourself in that position. Don't do that, okay, don't do that. (laughs) Then finally, be enthusiastic. You are giving somebody a job. This is not a time for apologies, this is not a time for hesitation, qualification, this is a really exciting time. Let yourself be excited, and let them be excited, and enjoy the process of making an offer. There anything else you'd add to that? No, I love that, yeah Okay, cool. (laughter) Keep it simple, and the last thing then to do is to set a start date, oh I got ahead of myself, set the start date, alright, now do you have questions? No, did we cover everything awesome (mumbles) I mean, this is a whole other section, but negotiations. Yeah, so we decided not get super duper into negotiation because it could be a whole nother class
A whole nother class, yeah You know who has some really great resources on negotiation, Vanessa van Edwards
Yes, perfect So, I would check it out I don't think she has a Creative Live class on it
She does She does have a creative live- yes.
Okay, so only three hours Go buy Vanessa van Edwards' negotiation class on Creative Live. (laughter)
Perfect I'm sure it's a great price, I have no idea what it is off the top of my head but I guarantee you it's a phenomenal price. But, she has resources for it on her blog, too. I think maybe we touched on it in an interview here or there as well, but yeah she would be the person I would go to for negotiation for sure, yeah, excellent What are common expectations in the benefits plan? What do people typically look for or expect? Yeah, welcome to the United States. (laughter) So, that to me is where so much of the negotiation happens because as a small business owner, you pretty much know what you can pay and what you can't pay. You have a set budget and I think a lot of people understand that, and often, even on a small business level, medium business, large business, enterprise level business, the negotiation really happens around benefits, and this is where you actually have a lot of opportunity. You have a lot more power here than you think you do. So yes, the expectation if you're getting hired by a fortune 50 company is that you get two weeks of vacation, or three weeks of vacation, or four weeks of vacation. You may not be able to say I'm going to give you four weeks of paid vacation, but you can say I'm going to give you two weeks of paid vacation for a full time employee, and you're going to get a flexible schedule, which means if you want to take a whole bunch of three-day weekends because you get your job done in four days a week, be my guest, just maybe check your email while you're gone. (laughs) You know? But I'm not going to expect you to sit at your desk for 40 hours a week just to say you sat at your desk for 40 hours a week. That's a big perk for a lot of people. Health insurance obviously in this country is another huge perk of full-time employment, and there are a few different ways that you can handle that, you can purchase a plan for your company. I don't personally have experience with that, but it can be done and finding a health insurance broker is probably the best way to do that. There are only certain types of insurance companies that are willing to work with companies as small as ours. Another option is called an HRA plan, and I cannot remember off the top of my head right now what HRA stands for, but it's designed for business just like ours, businesses I believe with less than 50 employees that need to provide health benefits, or want to provide health benefits, but don't want to buy into, like, get stuck choosing a plan for their employees, and so what an HRA allows you to do is set a certain amount per month, per year, that each employee gets for reimbursement of health expenses, either personally purchasing health insurance or actual medical needs. And so that's what we do, Shannon's enrolled in that HRA- we're enrolled in the HRA program and we reimburse her through that. Unfortunately, the HRA program does not apply to the business owner. So, that is only for your employee, so if any of you were thinking wow that sounds great, no, it doesn't work that way. But, you get to write off your insurance in other ways. So, you're thinking about paid time off, you're thinking about flexible schedule. I tend toward flexible schedule over like, sick time. Like, what is sick time? Sick time tends to be time that we use for other things anyhow, like, I'm going take a sick day, right? So, I'd rather say no your schedule is flexible. If you're sick, you're sick, and we can talk about it if you're going to be sick for weeks, and you're not going to be able to fulfill your job, but instead of sick- and there are different states where that might be required of you or having some sort of policy on that might be required of you, but that's how I have approached that is the flexible work or the flexible schedule is the benefit as opposed to a particular amount of sick time off, or PTO instead of vacation. Trying to think of anything else that I'm missing
Retirement Retirement (gasps) this is a fun thing I literally learned like three weeks ago. It's super easy to set up a 401K for your company now. So, we use a piece of software called Gusto, I mentioned it yesterday as well, and Gusto is amazing because they are as much an information company as they are a software company, so they're going to run your payroll, but they're also going to- and you can rent contractors through there too, so it may be something that's good for you even if you're not ready to hire employees yet, but they're going to help you set up all of those benefits, but they also have agreements with other companies like for workman's comp. I get my workman's comp policies through an insurance company that is associated with Gusto and has agreed to work with businesses like mine- very tiny ones, right? But, they have also an agreement with a company that provides 401K programs. It's not the awesomest, you know, it's not like the most- I can't customize this, that, and the other thing as far as I can tell yet. But, all I really had to do was push a button and agree to pay a very small amount per employee per month. I don't have to do an employer match or employer contribution, but we can start putting money aside in that benefited, tax deferred account, which I haven't been able to do before. I mean, I've got an IRA, and the normal self-employed things to do, but now we have 401Ks. This is very exciting, it's like a real thing. (laughter) I felt very, very grown up when I set up a 401K for my company. Am I missing anything else, person who enjoys benefits? (laughter) Those are the big ones. I think those are the top- top line Yeah, so then the next piece of the puzzle really is to schedule your start date, and get these people in the door.