In the September 6, 2016 Ask The Headhunter Newsletter, a reader is frustrated with employers who are looking for top talent at discounted salaries to fill positions with fudged titles — but who won’t negotiate.
I am a director-level, doctoral-level employee at a large healthcare company with over 15 years’ broad experience on the science side of medicine. I have been approached by several companies about potential positions. Some of the positions are extremely interesting and have broad organizational impact and a much larger sphere of influence than my current position.
However, when offers are made, they seem to all be at a “comparable” level — essentially lateral moves — with excuses of “We have eliminated the Senior Director level” or “We don’t implement the same titles at our company.” The compensation packages have been fairly anemic as well, with almost no increase in cash value and modest increases in stock or pension values.
What gives? Are these companies trying to get VP-level work for a Director level salary? When to push and when to walk? Thanks!
Manipulation of salaries and titles is common — and I think your conclusion is correct. Even in a “talent shortage” employers think they can discount people and work, and some of the time they get a ridiculous bargain. The problem is LinkedIn and the job boards, which convince HR that the perfect candidate is available at a low price… now here’s the sales pitch… “if you just keep searching our database to find them!”
That’s how job boards make money: by selling silly ideas that suckers buy. That includes getting employers to keep paying to keep searching for that purple squirrel at bargain-store prices. The further problem, of course, is that many job seekers will fall for this manipulation.
We discussed negotiating recently in Negotiate a better job offer by saying YES. Now let’s go a bit deeper into this approach.
Don’t tolerate lousy deals.
A top-level manager I know was downsized, and after a lengthy unemployment, he took a job for 20% less than he’d been making to do exactly the kind of work he’d been doing for five years. Two years later, he was downsized again, and took a 15% cut on the next job. Downsized yet again, he figured it out and got fed up after yet another employer tried to buy him at yet another ridiculous discount. He’s starting his own business while looking for a job suited to him that pays what he’s worth.
The explanations for reduced pay and titles that you’ve been given are self-serving excuses. Smug employers believe in Junk Profitability: “If we cut our costs when we fill a critical position, our profits will go up!” Then they act shocked – shocked – when the person they hire at such a discount bolts the first chance they get. “Disloyal, unreliable, over-qualified scoundrel!”
Force the other guy to negotiate.
Yes, IF: How to negotiate better deals
I showed the manager in the story above how to negotiate such job “opportunities.”
When an employer brings up a lower salary or lower title, don’t say no. Step back and ask yourself, Under what circumstances would you actually take this job? What salary? What authority? What responsibilities? What kind of work?
That’s called a term sheet. It’s the terms under which you’d take the deal.
Then say, “Yes, I’ll take the job IF…” and present your requirements to the employer as your counter-offer.
Include enough negotiable terms that you don’t come across as arrogant or unreasonable. But make sure you’re respecting what’s really important to you. Then let the employer consider what you’ve offered. If they want you and really need you, and they’re rational, smart business people, they’ll negotiate.
The aforementioned manager learned that many employers are not rational or smart — or they don’t really need to fill that job with a good candidate. Given the chance to negotiate, any savvy employer will do it, sometimes with a knowing smile. They’ll never agree to terms that are bad for them, but they’ll try to work out a compromise that’s good for you and for them.
The thing is, few candidates ever try this. They just skulk away or get angry. Don’t go away and don’t get angry. Open a negotiation. Know what you want. Ask for it.
If the employer won’t negotiate, then you will be glad you did more than hold your ground. You offered alternative terms that could lead to YES, but the employer walked away. (See The Bad-Business Job Offer: Negotiating not allowed!)
If they do negotiate, you’ve helped yourself and you’ve helped them fill a job under mutually good terms.
Negotiate even the worst job offers
I borrowed this advice from my own lawyer, who is also my best business advisor. He taught me long ago that, unless it’s a job or gig you really don’t want to do, never walk away over terms you don’t like. Offer terms you do like, and see where it goes. It’s a very empowering experience. (See “Am I unwise to accept their first job offer?” in Fearless Job Hunting, Book 9, Be The Master of Job Offers.)
You can control the terms of any job negotiation. Don’t be afraid or intimidated, especially if you’re going to walk away from the lousy offer they’ve already made you. You have little if anything to lose.
Whatever the outcome, you’ll feel like a million bucks because you managed the situation assertively and on your terms. If the employer balks, the rest is the employer’s problem, because they’re left with a vacant job that’s costing them every day.
Don’t say no. Say, “Yes, if…”
How do you turn job negotiations to your advantage? Do you negotiate just salary, or everything? Or do you just decide yes or no?