Subscribe
The insider's edge on job search & hiring™

Monthly archive for April 2012

Can an employer charge you for quitting?

In the May 1, 2012 Ask The Headhunter Newsletter, an employer is out $6,000 when a new hire found through an agency jumps ship after 15 days. Can the employer charge the next employee for quitting?

We recently hired an employee using an agency through which he was temping for us. We paid the temp agency a fee of $6,000 (20%) of the person’s salary. After 45 days, the new employee resigned to move out of state. The temp agency says that he was here for more than 15 days, so they are not going to do anything about their fee.

We have a policy for encouraging continuing education. If an employee in good standing wants to take a course or go back to school at night or weekends, we will pay 70% of the costs, providing successful completion of the courses. If the employee leaves before two years, the employee must reimburse our company for the education expenses.

Because of this disagreeable experience with the agency, we are contemplating a similar policy: “If you leave before your second anniversary, you will need to reimburse some portion of the headhunter fee.”

What are your thoughts on this approach? It would make us feel more confident about using a placement service. Thank you in advance for your thoughts.

My Advice

Suppose you hired that employee without an agency’s involvement, and he quit after 45 days. Would you require him to refund part of the salary you paid him?

Of course not. Yet that’s what you’d be asking someone to do if you hired him through an agency: To pay you back out of their salary. Did you pay a fee to the employee so he’d come work for you? Of course not. So there’s nothing for the employee to refund.

(I’m not a lawyer, but my guess is it would be illegal for you to take back salary because someone quit a job.)

The agency, on the other hand, earned a fee for finding an employee for you. It’s up to you to work out a reasonable contract and financial arrangement with the agency, for the work it does for you (recruiting). The underlying problem is that you as the employer make the hiring decision — not the agency. The agency’s job is to deliver viable candidates. It’s duty ends there, or after some agreed-upon guarantee period. I don’t think any agency would guarantee a placement for two years, one year, or even six months.

I don’t like your idea at all because you’re making the employee responsible for your contract with the agency.

So what are your options as an employer? Let’s start with typical placement agreements, though of course they vary greatly. Commonly, a headhunter’s (or recruiter’s, or agency’s) fee is about 20% of the employee’s starting salary. Please note: The fee is not deducted from the employee’s pay. It’s merely calculated based on that salary. So it’s an additional cost to the employer. Employers that routinely use external recruiters usually budget for such fees. Negotiate the best fee you can.

It’s common for temporary placement agency agreements to permit you to change from “temp to hire” — that is, to hire the temp permanently. The fees and any guarantee period should be spelled out in the contract. To control your costs, you might negotiate a permanent placement fee that is progressively lower based on how long you’ve already been paying temp fees to the agency for that particular employee.

Whether it’s a temp agency or a headhunter you’re working with, the contract usually includes a guarantee period. Many recruiting firms offer guarantees for between 30-90 days. (Some offer no guarantee at all.) If the new hire “falls off” in that time, the agency will either replace the hire, or refund a prorated portion of the fee, or the fee is refunded completely. I’ve never heard of a 15-day guarantee period. It seems too short to be meaningful. But if that’s what you agreed to, it was your choice.

You might be able to negotiate a more aggressive refund guarantee with recruiters. Please keep in mind that it’s pretty unusual for a new hire to leave so quickly. (If it happens to you often, then you’ve got another problem!) Check a recruiter’s (or agency’s) references: Do they have a reputation for placements quitting early?

I want to caution you about charging placement fees back to your employees. If it’s not illegal, I think it’s unethical. It comes out of the employee’s salary, but (unlike education) the employee gets nothing in the bargain. I suggest you work this out with your agency or headhunter instead.

Has an employer ever charged you to quit your job? If you’re an employer, have you ever recovered a placement fee from a departing employee? Headhunters: How do you handle “fall offs?” How long is the typical “guarantee” on a placement?

: :

Open Mic: What’s your problem?

Every week in the Ask The Headhunter Newsletter I answer one question from a reader in the traditional Q&A format. From time to time, we have an “open mic,” where you pose the questions on the fly here on the blog.

This week, I will do my best to answer any and all questions you post. As always, I welcome everyone to contribute their best advice to the questions, and to add their comments to the discussion. The more input, the better!

  • Lost your job and don’t know how to start hunting for a new one?
  • The employer wants you to do a stress interview?
  • Wondering how to deal with a headhunter who just called you?
  • They want your salary history, but you don’t want to share it?
  • Your company posted a job and you got 5,000 applicants. What now?
  • The manager made you a good offer, but HR just called to rescind it?
  • What’s your problem? Please post it and we’ll tackle it.

(You don’t have to include any identifying information.)

I’ve answered over 30,000 questions from Ask The Headhunter readers since 1995. This week I’ll answer as many as you post — and I’m sure you’ll get lots more great advice and commentary from the rest of our community. So… please ask away!

: :

My boss is a liar

In the April 17, 2012 Ask The Headhunter Newsletter, a reader laments that the boss — uh — doesn’t tell the truth:

My boss lies about the availability of projects, about giving bonuses, and about promised help. I suppose the high road is the best and I should keep quiet, but I hate giving into this behavior. What can I do?

My Advice

Bosses sometimes make commitments, then conveniently forget about them. What matters is the frequency and the intent of their forgetfulness. It seems your boss forgets a lot, and it’s clear you don’t like the intent.

A long time ago, I learned the value of the internal memo. When your boss commits to something, go back to your desk, write a thank-you e-mail, and send it to the boss along with a clear “cc” to yourself. (I would not copy the note to anyone else. That would be a clear threat, and I don’t think you want to do that as a first step.) It’s like money in the bank. You don’t just make a deposit; you keep a copy of the deposit slip. That cc is evidence of how much money you have in the bank. Meanwhile, your boss should get the message.

This approach to making people pay off on promises works pretty well. When you’re ready to make a withdrawal, present that “deposit slip” you kept in your file. Be very polite and matter-of-fact.

How to Say It

“Hey, Boss: I’m ready for that bonus (or promotion) you promised six months ago. Here’s the memo I sent you re-capping our discussion. Thanks very much for making that very valuable commitment to me way back then. You’re quite a boss, and that’s why I like working for you. I’ll take that bonus in tens and twenties, please.”

(No, don’t use those exact words. I sprinkled some sarcasm to amuse you, not to get you into trouble. Pick your own words carefully!)

One of three things is likely to happen.

  • Your boss may never forget again (success!).
  • Your boss may never make another promise (another problem altogether).
  • Or, your boss might just ignore you. Then it’s time to take your deposit slip to the “bank president” (your boss’s boss or the personnel manager) and explain that you want to close your account — unless the “bank” settles up with you.

While one person’s lying is another person’s forgetfulness, I don’t cut any slack to liars, and I accept “I forgot” as an explanation only once or twice. If people don’t do what they say they’re going to do — again and again — then they’re jerks and not worth working with.

How do you deal with this kind of problem? Do we need to hang the culprits out to dry? Or can we discuss good ways to make people more accountable without having to hang them at all?

: :

How long does the headhunter control me?

In the April 10, 2012 Ask The Headhunter Newsletter, a job hunter asks how to cut the cord to a headhunter:

If a recruiter gives a company your resume, how long are you tied to that recruiter concerning that company?

For several reasons, I recently lost what I consider to be a great opportunity with a small company, A. I am now accepting another good position at another company, B, but not the one I really wanted. In the situation with company A the recruiter was not very helpful and virtually non-responsive when I had questions, which I am learning is not unusual. I would like to approach company A again at a later date under my own representation. (Perhaps that is not the best attitude to have going into a new position, but my long-term career goal would be better served at company A.)

Can you please tell me how long this recruiter controls my resume at company A, and at what point the company may consider me without the original recruiter’s involvement?

My Advice

People get it into their heads that headhunters have some sort of magical powers, or that they control companies and jobs. It’s not true. The headhunter may have no rights at all if you contact company A on your own. A lot depends on what kind of headhunter or recruiter you’re dealing with.

To understand how to work effectively with headhunters, it’s important to know the differences between retained and contingency headhunters, employment agencies, job shops and career management firms. Also relevant are the kinds of contracts employers and headhunters use. Perhaps most important in this case is knowing how employers routinely deal with headhunters. It’s not complicated, but if you don’t know how employers manage headhunters you’ll never be able to manage them yourself. I cover all these issues and more (including how to find headhunters and how to leverage them to negotiate the best salary offers) in How to Work with Headhunters… and how to make headhunters work for you.)

How long company A would respect the recruiter’s involvement depends on a few things.

Did the recruiter send you to an interview with the company?
If no interview took place, I think you could reapply at any time without a conflict, though I’d probably wait a few months to avoid irritating the headhunter. If you had an interview, it depends on the company’s policy and on the contract it has with the recruiter–if there is one at all.

Did the headhunter give the company your resume?
Companies usually rely on an actual interview as proof of the recruiter’s referral. If the headhunter submitted your resume but there’s no interview, the headhunter probably has no claim to you. However, if the personnel office read and tagged your resume REJECT, and you then reapply on your own, the initial rejection may be invoked and you’re toast.

I don’t think it’s ethical to go around a headhunter who introduced you to a job and a company. But if that headhunter was not able to get you in the door for an interview, then he probably has no claim on you. You could approach the company anew on your own.

How about if the headhunter got you an interview, but you were not hired? The headhunter’s contract with the employer might earn him a fee if you are hired within a certain period of time. Here’s what I’d do to test the waters. Have a friend call the company’s personnel manager to find out what the policy about headhunters is.

How to Say It:

“I’d like to ask about your headhunter policy, but I’d rather not disclose my name. If I interviewed with you through a recruiter at one time [don’t say when–the less info the better], and then I came back to apply for a job myself, would you consider me without the recruiter’s involvement? What are your rules about that?”

Don’t make this call yourself. There is no telling how the personnel manager might react, and you don’t want this to backfire. (I see nothing inappropriate or unethical about someone calling a company to ask about its policy.)

Where confusion might arise is if the headhunter (or recruiter) works for a “job shop” or “consulting firm.” These businesses will recruit and hire you, put you on their own payroll, and assign you to do work at their clients’ offices. A contract protects the recruiter from company A “poaching” you without a fee, after the recruiter made the initial introduction. And that’s as it should be. The contract probably locks you out of company A for one or more years, unless the recruiter is involved. (There’s an entire section in the aforementioned book about job shops and how to protect your options when working with them. There’s also a section that answers the question, Can I fire the headhunter?)

The best way to settle this might be to notify the headhunter that you consider his involvement with you terminated. (While this is a powerful move, it might end your relationship completely.) There’s a special How to Say It section in How to Work with Headhunters about how to handle this effectively.

Know what you’re doing when you work with headhunters. A good headhunter can boost you into the next phase of your career. An inexperienced headhunter might frustrate you by being unresponsive, and your misunderstanding of his role could cost you a great job.

Have you ever had to cut the cord to a headhunter? What happened? Were you able to “get back in the door” at a company where a headhunter failed to get you an interview (or to get you hired)?

: :

Don’t Get Hired, Get Acquired: Audio from Cornell workshop

The April 3, 2012 Ask The Headhunter Newsletter is a SPECIAL AUDIO EDITION.

(This is no April Fool!)

On Sunday, April 1, I conducted a workshop for a group of Executive MBAs at Cornell’s Johnson School of Management. (These guys attend the EMBA program on weekends!) The topic was the differences between applying for a job and delivering profit to a company.

The presentation ran almost two hours, and the discussion and debate were lively. One of the key points we explored was about how we view employers and jobs when we go job hunting, and how employers view us.

  • Are you being interviewed to help a company fill out its open headcount?
  • Or are you more like a business the company is considering acquiring or merging with?

The difference in these two approaches is profound.

I don’t think anyone should behave like “the next hire.” I think every time you approach a company about working together, you should be prepared to show that you are a profit-making operation unto yourself.

Are you ready to get acquired? Please listen to this brief section of the Cornell presentation:

Now here’s an excerpt from the Answer Kit: How Can I Change Careers? (p. 9) that explains how to Create your next job, rather than just get a pre-made job:

How do you inspire a company to create a new job for you? Forget about your credentials, your history and your past jobs. They are irrelevant. If that’s what you focus on when searching for a new job, you’ll shoehorn yourself into the same kind of job you just left.

Decide where you want to work. Study your target company. Explore the problems and challenges it is facing and figure out how you can help the company tackle them profitably. Apply your skills and abilities in new ways to re-define your qualifications. Think in terms of what the company needs but doesn’t have: That’s your new job. That’s the business plan you need to present.

The job you want to create is essentially a new business. But don’t expect your target company to figure out whether this “new business” is justified. You must be ready to explain it to them. Show how you’ll deliver profit in new ways. That’s what may prompt the company create a new job just for you.

(How Can I Change Careers? isn’t just for career changers — it’s for anyone who wants to stand out from their competition.)

I think we’ll find the value in this topic in the discussion more than in what I have to say.

What does it mean to get acquired or to merge with a company?

  • How does this change the way you’d approach a new gig?
  • Does it change salary negotiations?
  • Do you even need to apply for a job — or what’s the new alternative this approach suggests?
  • Have you ever felt like you were acquired — or merged — rather than just hired?

: :