1. Offer Negotiation Candidate Experience Presented by Blake Cai June 13, 2009

2. Schedule Introduction of Win-Win Offer Negotiation Scenario Study I Offer Negotiation-Preparation Scenario Study II Offer Negotiation-Engagement Scenario Study III Offer Negotiation-Closing Q&A

3. What means Negotiation? Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. -”Wikipedia” During offer negotiation process, staffing consultant helps to reach a trust based “Win-Win” situation between employer and candidate by focusing on his/her circle of influence.

4. Win-Win Offer Negotiation Model Trust

5. I. Offer Negotiation-PreparationUnderstand Employer’s and Candidate’s Offers and Needs Scenario: we find a simple profile on LinkedIn. It probably fits for a L62/L63 SDE position for Beijing Healthcare team. The candidate has more than 8 years exp. in healthcare industry, both oversea and domestic. He just came back from US 2 years ago. Currently is working for a start-up company which is located in SH. Question: What will you explain to candidate? What will you ask candidate in the phase of HRPS to help you close the deal someday?

6. Preparation-Understand Employer’s Offers & Needs An offer negotiation process does not start after a hire decision is made, it actually starts from the Requisition Review meeting with your client. Understand Employer’s (Hiring Team) Needs Core Value Level (CSP) Technical Requirements Target Company Ideal Candidate Profile Team structure/project situation Understand Employer’s (Hiring Team) Offers Budget for International Candidate Budget for Relocation Budget for Soft Landing Package Pay (Salary, Variable Pay, Recognition, Stock) Benefits & Perquisites Learning & Development Work Environment Product & Technology Job Scope & Impact Culture People Quality

7. Preparation-Understand Candidate’s Offers & Needs Understand Candidate’s Offers Check candidate’s background and ask core value based questions to decide whether he/she is worth further probing. Let candidate talk about what value they can bring into Microsoft and the team during initial screen. The exact offering from candidate will be evaluated through interview process. Understand Candidate’s Needs Do we understand what candidates want? How can we get to know the real needs of candidates?

8. Ask yourself in mind, according to your observationwhy Chinese local senior talents join Microsoft? In a recent survey, L62+ employees who were hired locally chose top 3 factors which motivate them to accept Microsoft offer. We might have the stereotypes such as Chinese talents, esp. senior talents are very compensation sensitive when considering an offer, however, the survey result shows that only 1/3 think compensation is among the top factors to be considered. We might think work life balance is not that important for those who are considering Microsoft offer, but a significant 12.5% join Microsoft partly because of this! The top motivators are diversified with none taking the dominance. Thus it’s important to know your candidate’s motivators before making, presenting and negotiating an offer. NEVER take any ASSUMPTION!

10. What is missing among these candidate’s complaints? My recruiter is lying sometimes anddisrespectpeople at low level which pissed me off. Ensure that the initial exhilaration and enthusiasm from first level phone interviews is somehow maintained. The first level interviews went very well and therefore I am greatly surprised that the final job offer was such a complete disappoint. Would be cool if they can advise interviewee on things like reasons for delay of delivery of an offer. The interview duration take too longtime, it took 1 month from the initial HR call till I got the final offer. I found out that some promises from the recruiter during offering stage turned out to be liesafter my on-boarding. There will be no win-win between candidate and Microsoft if TRUST is not built between candidate and the ambassador of Microsoft, staffing consultant, during offer negotiation process.

11. How to build TRUST with candidate? Set expectations, make commitments and keep them Be Knowledgeable Mastery of all relevant information, processes, policies etc. Be Honest Never exaggerate and over promise, be real. Let them know what we can do and what we cannot. Be Consistent Same attitude and passion through whole process regardless of results. Be Prompt Follow up within 24 hours, always keep candidate posted. Be Helpful Be candidate’s confidant and counselor. Be Empathic Be nice, show empathy to candidate’s concerns and needs. If candidate trust you, they are more likely to tell you their real needs and concerns, and less likely to play any under table trick.

12. Offer Strategy & Closing Techniques III. Offer Negotiation-Closing Scenario: Hiring manager decided to offer candidate L63 Sr. SDE position. Given his current expatriate package , offer a soft landing package in the relocation benefit. But even including soft landing, the total package is still less than 5% of his current on a rough number. But 40% of his current package comes from bonus. Question: what’s your strategy to close this deal?

13. Offer Strategy-Prioritize Needs & Focus on the Circle of Influence Circle of Influence Understanding of Microsoft compensation guidelines Understanding of local tax regulations Understanding of work environment & culture Understanding of learning & development opportunities Hiring manager’s influence Relevant employee’s influence Industry celebrity’s influence Escalation to staffing manager/director for exceptional approval Category of Needs Compensation Benefits Perquisites Learning & Development Product & Technology Family Location International Exposure People Quality Find out what are the TOP NEEDS of candidates through probing, and work out an OFFER STRATEGY focusing on the area of influence accordingly. Example, if the candidate is compensation driven, take advantage of the wide pay scale and strengthen the Pay For Performance philosophy. If the candidate is family driven, introduce more about the flexible working hours and comprehensive benefit system. We are not going to meet all their needs but only those matter most to them! And leverage on Microsoft most valuable asset, PEOPLE, to help you close the offer.

15. Q&A Thanks for Attending! Welcome Questions!