2 Rules About Working for Start-Ups

On July 20, 2015

In the July 21, 2015 Ask The Headhunter Newsletter, a reader is in a pickle — er, start-up — without a salary, and without protection on the upside or the downside.

Question

Your advice in the newsletters is brilliant. However, I haven’t seen you say much about start-ups. I’m in my 50s and enjoy the chaos of a new company. I have been doing it for nine months, and I love it. I am not getting paid, or receiving any benefits. The company has been getting exposure, and a few small projects, but no investment backing. That means no money. The CEO continues to tell the development team, the editors, and writers that “we are so close.”

bait-and-switchShe also mentioned they are moving to Silicon Valley, but will be using distributed-teams software to push more projects out.

The problem is that my budget and time are expanding. I am worried that my “job” will be lost by their move. I have only a handful of e-mails outlining the stock certificates, with promises of full-time employment when investors come through. However, I have nothing legal or tangible to suggest they are serious.

I’m ready to quit, but need some guidance. How do I approach her about my concerns without questioning her integrity? Should I suggest several options that have some legal teeth that protect me? So far I have all the risk while she continues to pump out projects. Thanks!

Nick’s Reply

There are two good reasons to work at a start-up:

Why work for a start-up?

One, you’re an owner with ironclad shares that cannot be diluted without your approval. If the company takes off, you’ll get your reward. If it doesn’t, you at least had a deal that protected your upside.

Two, you’re an employee being paid a fair (if not good) salary, and you’re expected to work hard over and above anything resembling “reasonable” — because you have some shares and stock options as a reward if the business takes off. Your salary protects your downside.

If you’re working at a start-up under other circumstances, I’m sorry to tell you that you’re probably a chump — unless you’re independently wealthy and love that kind of work.

I’ve got two rules for working at start-up companies.

Rule #1: Don’t get screwed

star-wars

I love start-ups. Been there, done that, had great experiences… except the time I got screwed because I had nothing in writing. When the founder decided to bring in other investors, my 250,000 shares were instantly diluted down to virtually nothing. (See Start-Up Stock: What’s it “sort of” worth?) The first rule when joining a start-up is don’t get screwed. Invest in legal and accounting advice to protect your up- and downside.

Let’s discuss how to handle your boss. You’re being naively nervous about offending a founder that you’re giving free work to. It’s time to make it legal.

I’d sit her down without any apologies and without hesitation in your voice.

How to Say It
“I’m excited about what we’re doing and I love the work. However, this is a business proposition — I’m working for free for equity and the promise of a full-time job. I think it’s time we put this in writing for our mutual protection.”

If she indicates any problem with that, then I think you’re being taken for a ride, and that you’ll be summarily dumped by the side of the road. She should be apologizing to you and extending every courtesy — you’ve been working for free with no written assurance of any reward!

You might want to talk with other “employees” to see how they feel — and to find out whether they have contracts. You all need them. You may want to speak with her as a group. But in my opinion this has already gone too far. You’d be pretty upset if she took advantage of all of you at this point — so don’t fret about having this discussion.

Rule #2: Don’t get screwed

Before you do that, I’d talk with an attorney. (See Employment Contracts: Everyone needs promise protection.) Equity deals and contracts with start-ups are complicated and fraught with risk. If it’s not worth the legal fee, then how can the promise of this job be worth anything? Please take this seriously.

The other issue is that if and when investors come in, your boss will have very little to say about your equity share. Investors don’t like seeing their shares diluted. You could wind up with very little, if anything, if you don’t have a solid contract now — and the right kind of shares.

I don’t mean to scare you, but I’ve seen this again and again. Even a well-intentioned founder can wind up hurting the team that poured its blood and sweat into the business. Working with no contract is totally imprudent and un-businesslike. I’d get to it asap. Did I caution you not to get screwed?

Don’t forget about IP (Intellectual Property) rights. Have you signed an NDA or NCA? Have you signed over any IP rights to anything you’ve developed? Your boss could be screwed, too, without these. It’s another reason you need a good employment lawyer.

Get compensated

My philosophy is, get value for value. Your work is valuable. Ask for salary, and ask for equity. I don’t think suggesting “several options that have some legal teeth” will help you unless you talk to a lawyer first. This is easy: Just tell her it’s time for a written, signed agreement — and stock certificates. Something tells me that’s when she’ll tell you you’re not part of the move — though I hope I’m wrong.

Before you quit, give your boss a chance to protect your investment in this business by compensating you fairly for the risk you’re taking. Get compensated. That’s not a rule; that’s good business. Do your best to prepare yourself in advance. These Ask The Headhunter PDF books will help you with your “boss”:

Fearless Job Hunting, Book 6: The Interview – Be The Profitable Hire. This works even when discussing salary with your current employer!

Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer), especially “The Pool-Man Strategy: How to ask for more money,” pp. 13-15. Sometimes it helps to ask casually!

Fearless Job Hunting, Book 8: Play Hardball With Employers, especially “Due Diligence: Don’t take a job without it,” pp. 23-25. This is a must when considering a job at a start-up, though this section applies to established companies, too.

Fearless Job Hunting, Book 9: Be The Master of Job Offers, especially “Non-Compete: Did I really agree to that?”, pp. 5-7.

There’s a lot more to start-ups, of course. (See Ben Slick’s excellent article, Evaluate a Start-Up Job Opportunity Like a Venture Capitalist.) If something I’ve said is helpful, I’m glad. I’d love to know what you decide to do and what comes of this. Thanks for your kind words about Ask The Headhunter!

For those considering the excitement of working at a start-up, if it’s what you really want to do, don’t be dissuaded by risk. As this reader points out, it can be an exciting experience. Just follow my two simple rules, and make sure you protect yourself on both the upside and the downside. I hope you get rich, but don’t end up losing your shirt.

(If you’re thinking about making the leap to starting your own start-up, learn more about Trading Your Job For Venture Funding.)

Have you ever worked for a start-up? How did it turn out? Did you protect yourself? (Did you get rich?) How would you advise this reader?

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Don’t let employers always call the shots

On July 6, 2015

In the July 7, 2015 Ask The Headhunter Newsletter, a reader gets fed up with a company president who dawdles.

Question

I just had my first — and I think best — “Nick C. ATH” interview with a start-up. I communicated only with the president — two interviews, one phone, one in person. At the end I said, “I want this job!”

All seemed well — he discussed salary (we are both on target — he spoke first about their salary intentions, I congratulate myself on this) and then… it happened. A total regression to stupid, pointless, time-wasting, moronic game-playing.

call-the-shotsHere I am, hoping, praying to the employment gods that the offer is imminent. But it wasn’t. He said, “Well, I have one more person to interview. What I’d like to do is maybe have you come into the office to fill out an application so we can run your background check.”

Floored and disappointed (and I’m sure it showed), I struggled to remember what Nick says to say in this situation. Couldn’t remember, then calmly asked, “When do you intend to make a decision?”

“About three weeks,” he tells me. Three weeks? WTF?

Shook hands, yada yada, I went home like a stunned bunny. By the time I got there, I was feeling furious!

My take is, it’s over. He’s not going to offer, and I’ve decided I will only fill out paperwork and do the background check when I have a firm offer on the table in writing. If it’s contingent upon a drug test and references, no problem, I’m aces. But I gotta have the offer.

Later that day, I got an e-mail from a previous employer (HA!) asking me to apply for a particular position. I intend to use this to get the first employer’s best-best offer on the table, if by chance I should get a call back from him. My sister suggests I call him personally to let him know that “something suddenly came up” and that this prior employer tagged me for a job. I think she’s right.

Any insights? Thoughts about this employer’s behavior? Is he gaming me?

Nick’s Reply

No one bats an eye when an employer lays down the rules and says they’re going to talk to more candidates, or makes an offer and says you’ve got three days to make a decision about it.

Employers do this to maintain control over the hiring process, and because they control the purse strings. But, in today’s “talent shortage,” good job candidates control an important asset, too — the talent. Without good talent, employers can’t run their businesses.

Of course, no matter who is calling the shots, it’s always a risk. There are no sure things in this process. Jobs disappear, but so do great job applicants. The question is, are you always on the receiving end of ultimatums, or do you give ultimatums, too? (We discussed this once before in Why & how you should give employers an ultimatum.)

It’s time to show some control. I’d let the employer know you want the job, and that if they’d like to make an offer within five business days, you’d welcome it. (Of course, you’re still free to reject it if you don’t like the terms.) Explain that, past five days, you respectfully withdraw your application. If they ask why, tell them you’re discussing a job with one of their competitors — and remind them there’s a talent shortage.

(Caution: Do not disclose who the other employer is. It’s not hard for one disgruntled employer to nuke your offer from another.)

Who’s always in charge?

The problem for job seekers is, employers feel no pressure to make a decision. They drag out the interview process beyond what’s reasonable. Give them a friendly, reasonable deadline, and you’ll find out how serious they are. If they’re not serious, why bother getting frustrated with them?

Of course, you must decide what’s reasonable. Do you think your interviews are really sufficient for this employer to make a hiring decision? Since he’s the president of the company, it might well be. That call is yours to make. Is five days to make a hiring decision adequate, or should you ask for a decision on the spot? Again, only you know best.

Call some shots!

The point is, sometimes you should be the one calling the shots. If your gut tells you it’s a waste of time to stretch out the waiting process, then get it over with so you can pursue other opportunities with a clear mind. Waiting on a dawdling employer can be incapacitating.

Let them see that you made the decision, and that you ended the engagement. Let them go figure out what just happened. Meanwhile, there’s a good employer out there that will deal with you candidly and quickly, whether they hire you or not. Someone actually understands that talent can quickly disappear.

Learn to say “We’re done!” to indecisive employers who think they hold all the cards.

Have you ever told an employer to fish or cut bait? Do you think that’s an unreasonable position to take in some situations? Or do you think employers always hold all the cards?

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This classic is available only while the limited supply lasts!

“Thanks for making The New Interview Instruction Book available.  I bought a copy as soon as you announced it, it arrived quickly, and I finished it in two days. I have been following you and recommending ATH for some time. Even so, The New Interview is right now helping me as I am trying to find a new position — glad I ordered it! Also, thanks for the hand-written note on the shipping document.  Nice to know that you still take that kind of personal interest. If I had ordered The New Interview Instruction Book about three days earlier, I think I may be having a different outcome on my most recent job interview.”  – Chris Hogg

 

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Why & how you should give employers an ultimatum

On April 20, 2015

In the April 21, 2015 Ask The Headhunter Newsletter, a reader meets an employer who is losing the best job candidates to the competition because he uses interviews to reject applicants — not to hire them.

This week’s story is long, but it puts a sharp focus on the trouble with employers these days. It just seems that, no matter how motivated a manager might be to hire, the actual process to hire has gone haywire. Demoralized by such experiences, job seekers often go along with silly demands from employers. In my reply, I offer a solution that more folks need to learn how to use.

Question

I had an interview with a VIP at a huge local tech company looking to hire a designer with video/animation experience. Our initial phone interview started with him sounding very disinterested. After briefly explaining what he’s looking for, he said he’s disappointed with the candidates he’s getting because they are all print designers. As he spoke I uploaded a few of my videos to my website and told him to take a look. His demeanor completely changed. “This is exactly what I’m looking for! I’ve gotta run to this meeting but do you have time again today to talk more?” He came right back from that meeting to continue our call.

wasting-my-timeYou would think this would have a happy ending, no? No.

First, he ends the call not by inviting me in for an interview, but by saying, “I think I’ll have all the candidates look at the stuff we’ve had done by an agency (which he wasn’t happy with) and see what you all would do to redesign it.”

Oh, great, the “test,” that is, work for free. The call ended and I wrote the place off. Then HR e-mailed, saying he’d like to schedule an interview. It lasted 90 minutes. I have never had a better interview experience. More than once he said that I’m the only candidate who appears qualified. Again, it ended a bit sour with him saying, “I’ll probably have the final candidates come back and meet with the team”: the dreaded “approval by committee.” But I left feeling good.

The following week, I get an e-mail from him: ”You have offered examples of your work, however, I am asking all candidates to take a shot at creating something for us.” And he listed not one but three design projects he wanted to see redesigned. One was a video. “Just re-do the first 30 seconds.” WTF? This guy clearly has no clue as to how much work and effort goes into something like this. So, I did a few story board sketches, made a few recommendations and ended the e-mail by saying I have received an offer for another opportunity and hence am no longer available.

And that was the end of that. No doubt he will either continue to struggle to find the “perfect” candidate or he’ll just send my comps to the agency he’s currently contracting with. And I have gone through this exact scenario more times than I care to recall over the years.

Initially, I blamed my field of design, but I don’t think it’s that anymore. I met a guy over on StinkedIn, a systems analyst with a Ph.D. who’s in his 40s and unemployed for two years. He flew out of state for an interview, met with twelve people over two days, showed that he knew his stuff (“here’s your problem, here’s what I recommend”), they were clearly excited and he thought for sure he’d get the job. He didn’t. When he asked why, the hiring manager told him the two twentysomethings on the team didn’t like him because he “came across as arrogant.”

So, who’s to blame for these scenarios? HR’s only job here was to schedule the meetings. Do they send a brochure to all who put in a hiring request with tips on how to disqualify your best candidate? I dunno…

Nick’s Reply

Thanks for sharing your story. (Readers may have noticed this “Question” was no question!) You should have just given that VIP an ultimatum. I’ll explain why and How to Say It.

While I advocate a “show what you can do” approach to interviewing, there’s no guarantee that any method will lead to a hire — or that an employer won’t abuse the candidate who’s ready to show he or she can do the work profitably. You must know where to draw the line with greedy, unreasonable employers like the manager in this story.

And if you manage to get a meeting with a manager who’s also a jerk, jerk-ness spoils any intelligent interview activity of the job seeker. Anyone who wastes your time is a jerk. (See Work for free, or no interview for you!)

This manager will keep looking for the “perfect” hire — while his competitors eat his lunch. They will jump to hire people like you, rather than concoct yet one more exercise to get free work out of you.

There are two important lessons here. One is to use the ultimatum, and the other is to survive and thrive if it doesn’t work.

First, never get bogged down in just one job opportunity. Really, really wanting one particular job is a dead-end strategy. You took the wise route. You controlled your outcome by developing other opportunities in parallel, so you wouldn’t get sucked into waiting and wishful thinking. You put that greedy VIP into healthy competition with another employer, so you won. He lost.

I’m a big believer in showing how you’ll do the work in order to get hired, but when employers demand free work during the interview process, tell them to take a hike. (By the way, I think you made a big mistake in delivering those story boards, having already seen what the VIP was up to.)

Second, force the manager to decide now. You handled this well, but I’d have given the VIP an ultimatum. After he told you that you were the only qualified candidate, you could have told him you wanted a decision on the spot.

commitHow to Say It: “I’d like to work on your team. With the right offer, I’m ready to start in two weeks. You can keep looking for other candidates, but I agree I’m the best for this job. I can do it for you profitably. Either hire me, or let’s end this process, because if you don’t hire me, your competitors will. You need to decide now.”

Sometimes the strongest position a candidate can take is to draw a line and insist on a decision. Be ready for NO, but also be ready to walk away from an indecisive manager who probably doesn’t know what he wants — and who routinely loses his best candidates to competitors, which is probably where you should be working.

Congratulations on a successful job search. I hope others consider the lessons from your story. Employers lose their best candidates all the time because they think their mission is to hire perfection and to ensure they reject anything less. It’s how they wind up with weak candidates who will do anything for a job.

I discuss more methods for “Playing hardball with slowpoke employers” and how to “Line up your next target,” in Fearless Job Hunting, Book 8: Play Hardball With Employers. You don’t need to be the one left holding the bag!

Do you have the guts to issue an ultimatum to an interviewer? Or am I nuts? Where do you draw the line with a greedy employer?

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Reddit’s Ellen Pao: Your pay is what I say

On April 9, 2015

ellen-paoReddit CEO Ellen Pao sounds like an HR manager whose goal is to save salary dollars: If you interview with her, you’re not allowed to ask for more money than she offers you. See Reddit CEO Ellen Pao bans salary negotiations.

Well, I’ve got a simple answer to that: I’ll go interview somewhere else, where candid dialogue is welcome.

Pao’s purported aim is to help women avoid discrimination. According to studies she cites, male and female managers reject women who negotiate assertively. But changing the rules the way she has at Reddit will likely result in lower compensation packages for men and women — something CEOs get patted on the back for by shareholders.

I don’t think much of anyone who doesn’t negotiate assertively, male or female. Curtailing negotiating hurts everyone and avoids the real problem. Here’s an analogy: Certain people are not allowed to sit at the lunch counter. So the lunch counter is removed to eliminate discrimination.

Is that a solution? Of course not. Neither is Pao’s policy.

If the studies Pao bases her action on are correct, the way to create salary parity is to change the way men and women respond to women who negotiate. Pao’s solution cheapens women who dare to negotiate — but in the end, it’s those women who will change the system. Shutting them down accomplishes nothing in the long term but to save money for employers.

Is Pao’s policy really going to make getting a job more fair for women? Or does it make dumbos of us all — men, women, job seekers and hiring managers alike?

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My boss won’t deliver a promised raise

On March 9, 2015

In the March 10, 2015 Ask The Headhunter Newsletter, a reader complains that the boss laughs off a “small” raise.

Question

underpaid-crumbI work for the CFO of a huge company and I am grossly underpaid. When I brought this to his attention (several times) he finally thanked me and laughed it off, saying that I was slightly underpaid. He promised to work with HR to get me the small difference. That was in January. We are now in March. He even pointed out it wouldn’t really affect the budget for the year. It’s so small — yet he has no time to follow up on the paper work. I’ve been in contact with the compensation manager, who said they are waiting on my boss to make the next move. My boss keeps saying “it’s in process.” A “slight increase” to me is enough to cover gas for the week. I’m sure if he’s measuring it up to his $500k salary, it would be considered slight. What should I do?

Nick’s Reply

I’ve been in your situation myself, and I rationalized that “these things take time.” They do, but it’s incumbent on your boss to keep you apprised of progress — and to get it done. Or why is he the boss?

It sounds to me like he’s not on the same page about this, no matter what he says.

I see two disconnects:

  • You think you’re grossly underpaid, but he thinks the difference is slight.
  • He says he’s taking care of it, but the comp manager says that’s not true.

These are not good signs. You must decide whether these are signals that you need to be working for a company and boss that value you the way you think you should be valued.

I’m not suggesting you should stir up trouble. If you press this, you could get under your boss’s skin. Because this seems to be a trifling matter to a man who’s paid handsomely, it might be more of an irritation than he thinks you’re worth. In other words, it might cost you your job — and I don’t want to contribute to that if it’s not worth it to you.

But if your boss doesn’t come through with a reasonable increase, you should perhaps hedge your bet by having other options ready to go.

When I went through this once, I waited and negotiated for months. Nothing came out of it. But I finally lined up another job elsewhere. When my boss once again delayed a resolution, thinking he’d just keep me hanging, I submitted my resignation — and I let him figure out what happened.

Nothing makes you more powerful; nothing lets you make intelligent choices; and nothing keeps your spirits up — like having a good option B when option A doesn’t work out.

Because my option B was ready to go, I didn’t even vent my spleen on my jerk of a boss when I quit. I just smiled and moved on. It wasn’t worth explaining it to him because, thanks to the existence of option B, I really didn’t care and mentally I had already moved on! If I wasn’t worth an honest effort at correcting my salary, then my employer wasn’t worth a worry on my way out the door.

We came across a more extreme example of your problem last year: What to say to a stingy boss. While your boss doesn’t sound as bad, you’re still stuck without a raise after a lot of talk. Three months is plenty of time to be patient.

My advice: Even if you don’t need to use it, get yourself an option B. It will free you to look at this in an entirely different way. It’s not good to be under someone else’s thumb with nowhere to go.

For your next job, try this approach to compensation: How to decide how much you want.

How long would you wait for your boss to do what he promised? What else could this reader do?

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Should I take a big counter-offer?

On March 2, 2015

In the March 3, 2015 Ask The Headhunter Newsletter, a reader considers a big, fat counter-offer not to leave a job she hates for one she really wants.

Question

counter-trapI work in the financial services industry. For a year and a half, I was promised project management work but never got it. Recently I landed another job in another company — something I’ve wanted for two years. But it comes with a $6k pay cut. Then my boss made me a counter-offer, promising everything he had promised before, plus an $18k raise and a promotion to Project Manager.

It’s a big pay difference and a major promotion, and that’s the only reason I’m considering it. I could live off the lower salary with some lifestyle changes, in exchange for having a job I really want. The reason I was looking in the first place was that I am miserable at my job. It’s the wrong culture in the wrong industry working for a narcissist boss. Of course, the extra money would really help. Please help me figure this out.

Nick’s Reply

Far be it from me to tell anyone to reject an extra $18k. But I will tell you what every good headhunter knows: A counter-offer usually has hidden strings.

I discuss this at length in “What’s the truth about counter-offers” in Parting Company | How to leave your job, (pp. 50-52):

“To a company, a counter-offer is sometimes a purely pragmatic tactic that enables it to sever a relationship on its own terms and in its own good time. That is, companies use counter-offers defensively. A company would rather have a replacement employee lined up, and a counter-offer buys time. The extra salary offered may be charged against the employee’s next raise, and the work load may increase. The employee is a marked man (or woman).”

In other words, there’s a good chance your boss is keeping you until he can find a replacement.

Of course, I could be wrong. Your boss may have seen the light. Even so, you must ask yourself, why didn’t your boss do the right thing before you announced you’re leaving?

You refer to lots of things that make you unhappy with your employer. The extra money would be nice — and I’d never blame you for taking it. But if this deal is designed to cover the job until they find someone new for less money, will you be on the street soon without another job waiting for you?

Again: Why didn’t your boss do this before you signaled you were leaving? Will any of the other problems you describe be corrected by this counter-offer?

I don’t get the feeling you went looking for a new employer because you wanted your boss to counter. But if you had, here’s the strategic advice I’d have given you, also from Parting Company:

“Before considering a job change, ask yourself if you would consider a counter-offer. If the answer is yes, identify exactly what changes you would want in your current employment and compensation and try to negotiate these with your boss before you step out. If there’s nothing you really want, then you’re ready to move on. (See “Learn to Move On,” p. 31.)”

It seems you already tried this, when you asked your boss for a job change and a raise. I know this is a very loaded question, but, why didn’t he give you what you asked for when you asked for it?

I think you know what you should do. The hard part will be deciding whether you can forgo all that extra money to have a job you really want, working with people you respect, in a healthier environment.

These are all things to consider. I wish you the best.

Would you take the counter-offer, or the job you really want? Am I too heavy handed with the risks of counter-offers? Have you ever gotten burned by one — or has a counter paid off for you? More important, what other factors would you advise this reader to consider?

(The reader who submitted this question has let me know what she decided to do and why. I’ll post the outcome as the discussion takes off! UPDATE: After letting our community post comments for a while… I’ve posted what the reader told me she decided to do, in bold down below in the comments… along with some additional information that she shared about her boss… Gotta give her credit for handling this so well!)

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The 6 Gotchas of Goodbye

On February 16, 2015

In the February 17, 2015 Ask The Headhunter Newsletter, we discuss how HR can make your exit tricky — and how to protect yourself.

The last word on leaving your job

When you leave a job, HR is often waiting for you with a few tricks. I call this exit gantlet the 6 gotchas of goodbye.

gotchaThis is the last of three special editions about what happens when it’s time to leave your job — and what to do to protect yourself. We’ve already discussed How to leave your job and how to Leave on your own terms. Then, of course, there’s the HR process that kicks in (and often kicks you!) when you’re on your way out the door.

Some HR departments are actually quite helpful to departing employees. Others are ready to exact a last pound of flesh from you. In any case, it pays to understand some of the gotchas and to be prepared — in the midst of an emotional ordeal — to escape intact.

These gotchas and my advice about how to beat them are from the 7-page Crib Sheet at the end of the PDF book, Parting Company | How to leave your job. The Crib Sheet is an extensive checklist compiled from my personal discussions with top HR insiders who know how the system works.

The 6 gotchas of goodbye

1. Don’t vent.

Your employer can use anything you say against you later. If you’ve resigned, avoid official discussion of your reasons, unless you want them in your personnel record. (See also pp. 46-47.) If you want to express yourself to your boss or to co-workers, do it off the record, casually, and preferably off-site at a restaurant or coffee shop. (See last week’s discussion about why you should not consent to an exit interview.)

2. Protect your future.

If you’ve resigned, don’t discuss where you’re going. (See also “Keep your future to yourself,” pp. 47-48.) Disclose it later, after you’ve started your new job, when there’s no possibility someone might try to nuke it. I once placed an executive whose resentful old boss contacted the new employer and made wild claims that almost resulted in withdrawal of the offer — until I completed an investigation and my client was satisfied none of it was true. Some employers feel betrayed and can behave irrationally. Don’t risk it.

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3. Protect your stuff.

Don’t leave your personal belongings exposed. Upon termination or resignation, you may not be permitted to retrieve them easily. Some employers will lock you out and pack what they believe is yours and ship it to you later. (See “Get your stuff,” p. 46.)

Tip: Don’t presume you have privacy at work. What you consider private might actually belong to your employer. When you start your job, make it clear in writing what belongs to the company and what belongs to you. One of my HR buddies, who contributed some astonishing tips to the Crib Sheet, says her IT department will confiscate a departing employee’s company cell phone and e-mail account immediately — and will not return any contacts or other digital files, even if they are personal. Never take anything that’s not yours, but think and plan ahead to protect your stuff. (See p. 71, “Protect yourself.”)

4. Outplacement: Don’t settle.

Should you accept outplacement help, or should you negotiate for an even more valuable alternative? One of HR’s dirty little secrets discussed in the book is that some employers offer outplacement not to help you get a new job, but to protect the company from lawsuits.

Tip: Outplacement may be negotiable, as discussed in “Outplacement Or Door #2?”, pp. 28-30. Start by negotiating for as much as you want, and settle for as much as you can get. Don’t assume the company’s first offer is set in stone. You may be able to negotiate a cash alternative so you can hire the career coach of your choice — not one that reports to the employer. Or you can pocket the cash.

5. Document.

HR has an extensive personnel file on you, and it will document your departure. You should document the process, too. Without such records, you may be at a disadvantage if, later on, there’s any controversy about your exit. For example, if you were fired after being put on a Personal Improvement Plan (PIP), obtain copies of relevant documents. Even if you don’t expect to take any legal action, your employer’s behavior may lead you to change your mind. The outcome may hinge on what kind of information you can provide to your lawyer. (See p. 69, “Benefits & documents.”)

Tip: Bring a pad to all meetings with HR during your exit process. Take lots of notes, including names, dates and times — especially about any promises made or terms discussed. Be polite, but make it clear you’re documenting. This puts HR on notice that you’re not a pushover. Your diligence could save you from a trick or two.

6. Don’t be in a hurry.

gotcha1Perhaps the biggest gotcha of the exit process is that HR is expert at it — and you’re not. HR will run loads of forms past you. Don’t be rushed. Make sure you understand every step of the process. For example, if you are given a letter of separation to sign, consider having an attorney review it first. Don’t forfeit your rights in an effort to exit quickly. Protect yourself. (See p. 27, “Do you need a lawyer?”)

(These 6 gotchas are from the 7-page Crib Sheet at the end of the PDF book, Parting Company | How to leave your job.)

Your employer’s HR office conducts an exit process to protect the company. It might be the friendliest, most responsible process possible. Or it might not. The risks to you could be enormous. Think of leaving your job like selling a house. There’s a written legal trail for good reasons: A lot is at stake and no one wants to get screwed. When you exit, be aware of the gotchas. And be ready to protect yourself.

How smooth was your last parting with an employer? Did you ever get surprised on your way out the door? What happened? What advice would you offer to the dearly departing?

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Bait & Switch Job Offers

On January 19, 2015

In the January 20, 2015 Ask The Headhunter Newsletter, a job seeker interviews for a senior job only to receive a silly offer for a lower level job.

Question

I have not been on the job market since 2007, and after a layoff early October 2014 I am fighting my way through this job market. I have the background, experience, and personality a high tech company was looking for when they advertised a senior technical position at $96,000. After all the interviews, we seemed to be doing great, until my final face to face interview, where I was informed there are now two positions — one senior and one junior. During my initial screening with the company recruiter I was clear on my salary requirements.

When I recmousetrapeived the company’s offer letter, it was for $75,000, way below what we had discussed. I was insulted, shocked, and angry. When I called the recruiter, she stated there were a lot of strong candidates, that there were actually five positions, and that I fit better into a junior role at the salary offered. I replied that I applied for only the senior position at $96,000 and that there was no discussion of four other positions. I asked about the differences between the positions, and it’s clear from what the hiring manager says that there are none but the salary!

I want to send a response letter stating that I was a candidate for only the senior job, re-emphasizing my experience and expertise, and referencing the original senior salary range. What would you recommend?

Nick’s Reply

If you stand a few feet back from this and look at it for what it is, I think you’ll see the proper answer. I’m going to show you how to improve this job offer dramatically, but you must be ready to play this game for keeps.

First let’s do a reality check. This employer is playing you. You laid down the terms for the interview when you (a) applied for a senior technical position, and (b) when you stated your salary requirements and they agreed to proceed with those two understandings.

Now look at the facts:

  1. They offered you different job
  2. At a much lower salary.

We could just call this a stupid HR trick, but there’s another name for it: Bait and switch. A car dealer baits you with a test drive in a car you want to buy after you saw the price. You show up with a check, and they offer you a different car at a different price. You’d kick them down the street for switching the deal and wasting your time.

You did what you were supposed to do, so you’re thrown for a bit of a loop. You interviewed for a certain job at a certain salary level. They knew your expectations, and they agreed to proceed with the interviews. Then they changed all the terms and made a ridiculous offer. Had they made no offer, I’d just say the match didn’t work out. But this employer is clearly manipulating applicants. (I find this is most common with staffing firms that hire people and assign them to work for their clients. See Bait & Switch: Games staffing firms play.)

You’re trying to behave rationally, and you’re looking for a reasonable explanation and next step. The recruiter and manager should be trying to impress you — see Baiting the talent — but they are doing the opposite. They are breaking basic business rules and pretending the problem is yours.

But two can play at this, and you can play without doing anything unprofessional. First, you must decide that you are willing to walk away from the junior position at the junior salary. (If you’re desperate for a paycheck, then you know what you must do.)

What I’d do is sign the offer letter and send it back to them. But I’d cross out the salary and enter the salary you told them you wanted. Initial it. Cross out the junior title and write in the senior title you interviewed for. Initial it. Accept the position at the salary level you all discussed. Add a note that says:

“This is the job I applied for and that you interviewed me for, at the salary range we discussed. If you are prepared to sign off on the original terms as we discussed them, I am ready to start work in two weeks.”

Then let them figure it out.

My prediction is that you’ll never hear from them again. However, there’s a chance that, having a solid acceptance in hand, along with a start date, from a candidate they have judged worthy of hiring, they might negotiate a reasonable salary for the job you want. You’ve written your own ticket, and it’s up to them to join you for the ride. If they decline, you’ve lost nothing (having already decided you wouldn’t accept less) and you’ve preserved your integrity and self-respect.

For more about dealing with the final stages of the interview process, see Fearless Job Hunting, Book 9: Be The Master of Job Offers.

If they decline, write them off and move on. These are jerks of the first order and I’d never talk to them again. This is an unscrupulous recruiter who advertises a high-level, desirable job at a high salary to entice seasoned, experienced technical people like you to invest plenty of time in interviews — just so they can short-sell you on a lower-paying job that they’d prefer to fill with much more highly qualified candidates at a huge discount.

fishhookThey are con-men. You told me off-line who this company is: one of the biggest, most respected computer companies in the world — but it doesn’t matter. They’re still con-men.

Many, many people in today’s job market would fall for this and rationalize that it’s the best they can do. Maybe so — but when you add in a confidence game, we’re left with a bunch of self-deprecating job seekers who let themselves be suckered. Con-men love that.

I’d be interested to know what you do and what happens. The problem, of course, is that there are desperate job hunters who will accept any job under any terms and at any pay. This employer counts on that. It’s what’s wrong with our economy today: Crooks and suckers. They create a market that can’t last. It can only go south. For more about this, see Employment In America: WTF is going on?

(I mean no disrespect to job seekers who need to put food on the table and who will take any job to do so. I’d do it myself. But the economic reality is that being put in this position creates a vicious downward cycle that encourages more of the same from ruthless employers.)

There is nothing wrong with you or your expectations. If you can afford to walk away from this, I would not look back. Jerks make lousy employers. You need only one employer with integrity.

Did you ever feel pressured to accept a lousy offer for a job you never applied for? What’s the most bizarre job offer situation you’ve been in — and what did you do? Was I too tough on this reader? What would you advise?

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4 Fearless Job Hunting Tips for Thanksgiving

On November 24, 2014

In the November 25, 2014 Ask The Headhunter Newsletter, there’s no Q&A. Instead…

pumpkinI used to take a break during Thanksgiving week and skipped publishing an edition of the newsletter so that I could cook, bake, and fill the larder with goodies for the holiday. But last year I started a new tradition and cooked up something different for you with the Thanksgiving week edition. Rather than normal Q&A, I’d like to share four tips from the latest Ask The Headhunter publications. If you find something useful in them, I’ll be glad.

The idea behind the new Fearless Job Hunting books is that finding a job is not about prescribed steps. It’s not about following rules. In fact, job hunting is such an over-defined process that there are thousands of books and articles about how to do it — and the methods are all the same.

What all those authors conveniently ignore is that the steps don’t work. If they did, every resume would get you an interview, which would in turn produce a job offer and a job.

But we all know that doesn’t happen. The key to successful job hunting is knowing how to deal with the handful of daunting obstacles that stop other job hunters dead in their tracks. Here are some excerpts from Fearless Job Hunting — and if you decide you’d like to study these methods in more detail, I invite you to take 20% off your purchase price by using discount code=GOBBLE. (This offer is limited until the end of the holiday weekend.)

4 Fearless Job Hunting Tips

You just lost your job and your nerves are frayed. Please — take a moment to put your fears aside. Think about the implications of the choices you make. Consider the obstacles you encounter in your job search.

FJH-11. Don’t settle

From Fearless Job Hunting Book 1: Jump-Start Your Job Search, p. 4, The myth of the last-minute job search:

When you’re worried about paying the rent, it seems that almost any job will do. Taking the first offer that comes along could be your biggest mistake. It’s also one of the most common reasons people go job hunting again soon — they settle for a wrong job, rather than select the right one.

Start Early: Research the industry you want to work in. Learn what problems and challenges it faces. Then, identify the best company in that industry. (Why settle for less? Why join a company just because it wants you? Join the one you want.)

Study the company, establish contacts, learn the business, and build expertise. Rather than being just a hunter for any job, learn to be the solution to one company’s problems. That’s what gets you hired, because such dedication and focus makes you stand out.

2. Scope the community

From Fearless Job Hunting Book 3: Get In The Door (way ahead of your competition), p. 6, It’s the people, Stupid:

FJH-3You could skip the resume submission step completely, but if it makes you feel good, send it in. Then forget about it.

More important is that you start to understand the place where you want to work. This means you must start participating in the community and with people who work in the industry you want to be a part of.

Every community has a structure and rules of navigation. Figure this out by circulating. Go to a party. Go to a professional conference or training program. Attend cultural and social events that require milling around with other people (think museums, concerts, churches). It’s natural to ask people you meet for advice and insight about the best companies in your industry. But don’t limit yourself to people in your own line of work.

The glue that holds industries together includes lawyers, accountants, bankers, real estate brokers, printers, caterers and janitors. Use these contacts to identify members of the community you want to join, and start hanging out with them.

3. Avoid a salary cut

From Fearless Job Hunting Book 7: Win The Salary Games (long before you negotiate an offer), p. 9: How can I avoid a salary cut?

FJH-7Negotiating doesn’t have to be done across an adversarial table — and it should not be done over the phone. You can sit down and hash through a deal like partners. Sometimes, candor means getting almost personal. Check the How to Say It box for a suggestion:

How to Say It
“If I take this job, we’re entering into a sort of marriage. Our finances will be intertwined. So, let’s work out a budget — my salary and your profitability — that we’re both going to be happy with for years down the road. If I can’t show you how I will boost the company’s profitability with my work, then you should not hire me. But I also need to know that I can meet my own budget and my living expenses, so that I can focus entirely on my job.”

It might seem overly candid, but there’s not enough candor in the world of business. A salary negotiation should be an honest discussion about what you and the employer can both afford.

4. Know what you’re getting into

From Fearless Job Hunting Book 8: Play Hardball With Employers, p. 23: Due Diligence: Don’t take a job without it:

FJH-8I think the failure to research and understand one another is one of the key reasons why companies lay off employees and why workers quit jobs. They have no idea what they’re getting into until it’s too late. Proper due diligence is extensive and detailed. How far you go with it is up to you.

Research is a funny thing. When it’s part of our job, and we get paid to do it, we do it thoroughly because we don’t want our judgments to appear unsupported by facts and data. When we need to do research for our own protection, we often skip it or we get sloppy. We “trust our instincts” and make career decisions by the seat of our pants.

When a company uses a headhunter to fill a position, it expects [a high level] of due diligence to be performed on candidates the headhunter delivers. If this seems to be a bit much, consider that the fee the company pays a headhunter for all this due diligence can run upwards of $30,000 for a $100,000 position. Can you afford to do less when you’re judging your next employer?

Remember that next to our friends and families, our employers represent the most important relationships we have. Remember that other people who have important relationships with your prospective employer practice due diligence: bankers, realtors, customers, vendors, venture capitalists and stock analysts. Can you afford to ignore it?

* * *

Thanks to all of you for your contributions to this community throughout the year. Have you ever settled for the wrong job, or failed to scope out a work community before accepting a job? Did you get stuck with a salary cut, or with a surprise when you took a job without doing all the necessary investigations? Let’s talk about it! And have a wonderful Thanksgiving!

If you purchase a book,
take 20% off by using discount code=GOBBLE
(This offer is limited until the end of the holiday weekend.)

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How can I go back and ask for more money?

On October 27, 2014

In the October 28, 2014 Ask The Headhunter Newsletter, two job seekers make one very wrong assumption. One gets burned, the other still might learn. These two readers made the same mistake–they bungled their salary negotiations. Could they have handled it better?

Question

I got an offer from a prestigious company and accepted it two months ago. During my notice period of three months, I got one more good offer. It was higher than the first offer. After careful analysis, I have decided to join the first company, where the salary is lower. This is my first job, and I accepted the offer without negotiating the salary. Now I would like to ask the employer to increase the offer. I still have 15 days before I start work. Could you please suggest how to proceed? Thanks in advance.

Nick’s Reply

want-moreCongratulations on your offer, and on having a job with a company you really want to work for. If you’re happy with this new job, don’t try to grab a few more dollars. Rather, earn them in your first promotion and performance review. (Here’s the first thing that I think everyone should learn about this topic: That’s why it’s called compensation.)

Now I will caution you: You said you have already accepted the job offer. That means negotiations are closed, over, finished, done.

If you go back now and ask for more money, there is a chance they will become justifiably upset with you and withdraw the offer. After all, you accepted what they offered. In my opinion, what you are contemplating is inappropriate. I think it will suggest a lack of character to the employer.

(However, if you were to rescind your acceptance so you could take the higher-paying job, I’d have no issue with that. I discuss this in Juggling Job Offers, an article that is now expanded in the PDF book, Fearless Job Hunting, Book 9: Be The Master of Job Offers.)

It is common to have second thoughts about salary, especially when another company offers you more. It is also common to feel we could have negotiated a few more dollars. But consider this: You chose the lower salary job for a reason–apparently it’s a better situation for you. That’s a form of very valuable compensation in itself.

I have a rule: When you negotiate, always leave a few dollars on the table. It makes the other guy feel the negotiation was a success, and it makes him regard you and your new relationship more highly. Those few dollars are worth a lot in good will. To put it another way, never be greedy. Negotiate as best you can during negotiations–but when you’ve agreed to a deal, negotiations are done.

Read on to see what happened to another reader who changed her mind–too late–and tried to ask for more money.

Question

I had an interview last week with a professional office, and I told them my desired salary range. My mistake. I quoted a lower amount than I needed. They checked references and they called to offer me the job. I explained that I had made an error and quoted them a range for a 30-hour work week rather than a 40-hour work week. I did not mention a new salary amount.

The hiring manager told me he was “put back by the lack of communication” and wanted me to come back in and speak with them again. I responded with, “It’s not a problem. I will accept your offer and I’m ready to start work.” He seemed frustrated and said he would call me back after talking to his partner again. He did not call back. I called yesterday and left a message, but he has not called me. I don’t want 25% more. What’s your advice?

Nick’s Reply

I’m a big advocate for negotiating the very best compensation possible. But as I pointed out in the Q&A above, you can’t change a deal after it’s struck. (You can walk away from it, but that’s another story.) The problem is clear: You destroyed your credibility by changing your salary range. I understand you made an error. But when you called to explain it, all they heard is that you want to change the terms. That worries them. Now they don’t trust you to be up front and accurate with them.

You introduced uncertainty. I think that’s what turned them off. I’d send them a short, handwritten letter. I’d apologize for causing confusion, thank them for their time and interest, and tell them you understand why they may have decided to drop the matter. Sign it with best wishes and forget about it. There’s a small chance they’ll consider this a classy action and call you back. But if they don’t, I’d leave them alone, chalk it up to experience, and move on.

This is a hard lesson. I hope it’s one that the person who asked the first question above takes to heart. I don’ t think these are greedy people; I think they are naive negotiators. Never go into a negotiation without knowing exactly what you want. (Here’s some very simple but very powerful help: How to decide how much you want.) Once you state what you want, you kill your credibility if you change your position after the deal is settled–and it’s perfectly understandable if the other party withdraws the deal altogether.

Can you go back and re-negotiate a settled deal? I think there’s a difference between rescinding your acceptance of a job, and re-opening negotiations to get a better deal. What advice would you give these two readers?

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