Why employers should make higher job offers

On February 6, 2017

In the February 7, 2017 Ask The Headhunter Newsletter, a reader marvels at employers who discount job offers to save money.

Question

job offersI worked as an intern while in college, and after graduation they offered me a job. It was my first experience negotiating higher job offers. I discussed my proven performance and gave examples that demonstrated my value. The employer granted me the higher salary.

My advice to others is to capitalize on your value and have the courage to negotiate for what you think you’re worth. Of course, your value may not be viewed as high as you think. That’s okay. Just weigh the pros and cons of the position along with your needs and make a decision. Either way, keep in mind, it’s up to you.

But here’s what’s interesting. After I accepted the position, I went back to the hiring manager and asked why he offered a lower salary to begin with. He responded, “If you had accepted the lower salary, I would have saved $3,000 a year.” What do you think of that?

Nick’s Reply

It’s astonishing is how casually the hiring manager responded that he’d save money if you had accepted a lower job offer. On its face, that might seem like simple market economics. But there’s a profound fallacy underpinning the manager’s behavior.

Salary is not an expense to a company, though that’s how accountants portray it, and everyone accepts that. What a company pays you is an investment. And that’s not semantics. A company buys a piece of equipment as an investment against an expected return — and capitalizes it. An employee is capital, too — the employer expects an ROI (return on investment). The fallacy is that an employer can save its way to higher returns by making lower job offers.

Of course, with machines or people we want to pay less to maximize our ROI. But neither is simply an expense.

The value of higher job offers

All my life as a headhunter I’ve encouraged my clients to offer a desirable job candidate more than the candidate asks for or expects. The reason is simple.

Unlike machines, people perform better when motivated. So, when a candidate expects $75,000, offering the candidate a totally unexpected $78,000 triggers an incredibly valuable response: enthusiasm and motivation. Even gratitude. For an extra 4% investment, the employer will likely get far more than a 4% higher return.

However, when they offer less, I think employers suffer with a far lower ROI than the salary savings might suggest. (Maybe you’ll argue with me; that’s what the comments section below is for.)

Managers like your new boss may think they’re being rational by offering less to save money. They’re missing an opportunity to get a higher return. Salary isn’t an expense. It’s an investment. Done right, investing more returns more.

(See Goodbye to low-ball salary offers.)

Why employers hire

Remember: We’re saying the employer really wants to get that very desirable candidate on board. (What other kind of candidate would the employer hire?) So why not maximize both the chances the candidate will accept the job and the potential return by making a higher job offer to prove it?

Nobody ever worked harder or more enthusiastically because a company low-balled them.

But I don’t want to skip over the reality. I parenthetically asked what other kind of candidate an employer would hire, if not a very desirable one. I think much of the time employers hire like they’re checking off boxes and plugging holes in leaky companies. They aren’t thinking about boosting the bottom line by making a really good hire.

And that’s why they see no value in higher job offers, but are proud of saving money when candidates accept lower offers.

In my book, Keep Your Salary Under Wraps: How to say NO when employers demand your salary history, to make them say YES to higher job offers, I quote an HR manager who sent me an astonishing complaint about my advice that job seekers should never disclose their salary history. She said:

“Employers want your salary information because they believe that if you apply for a job that starts at $50,000, but you made $30,000 in the same sort of job at your last company, they’d be overpaying. They’d want the opportunity to buy you for $35,000 to start, saving them $15,000. The HR person who does that gets many kudos for their shopping moxie from their boss, and gets to keep their job and go on many more shopping trips.”

Many managers don’t hire to make more money for their companies. They hire to save money for their companies by using less of the hiring budget. As if the purpose of the hiring budget was to save it!

I believe treating salary as an expense makes it far easier to hire and fill jobs. If the outcome of hiring and filling jobs were measured on ROI, most HR managers and hiring managers would be fired.

I wonder how many CEOs and boards of directors realize their accountants and HR departments are saving their way to higher profits!

Nice work!

I realize your main point is that you succeeded in getting a higher offer not by just asking for it, but by demonstrating your higher value. Nice work! (See The ONLY way to ask for a higher job offer.) Your story delivers a valuable lesson to others.

But I was tickled by your new boss’s suggestion that if he’d paid you less he’d have saved money. My guess is you’ll work harder than the extra three grand cost him — and he’ll make more money.

Am I nuts?

Why should anyone pay a job candidate more than they ask or expect? Is a candidate really more likely to accept a slightly higher offer? Will a bit more money motivate better work? I can’t prove it objectively, but I think yes.

What do you think? Does that little boost in an expected job offer pay off? Is salary an expense or an investment? Has an employer made you a bigger offer than you requested or expected? Did that make you more productive?

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Can’t negotiate a higher salary? Ask for more money.

On January 30, 2017

In the January 31, 2017 Ask The Headhunter Newsletter, a reader can’t negotiate a higher job salary — but learns how to get more money.

Question

I rejected three job offers from three companies because none of them would budge on the salary. With unemployment dropping, the labor force is tighter, and employers say they can’t get good hires. It’s obvious why. They won’t pay enough! There must be a way to negotiate more money in a market like this. You must know some tricks. What can I do next time?

salaryNick’s Reply

You’ve answered your own question. When you can’t negotiate a higher salary in the job offer, ask for more money!

HR departments act like salaries are still set in stone while, as you point out, HR also says unemployment is at record lows. We can debate how big the unemployment number really is — loads of talented people are still on the street and many have dropped out of the market altogether, making it seem like everyone who wants to work is already working. (Jobs plentiful! Pay is up! But, how are you doing?) But forget all that. What matters here is HR. And HR says the talent market is very tight.

Nonetheless, HR in many companies won’t shake money loose to boost salaries so it can hire who it needs. That’s how you can leverage more money.

When the salary offer is on the table

When a company makes you a job offer and won’t budge if you try to negotiate higher, you need to understand what makes HR tick. Someone somewhere in the company created a salary scale for every job. Forget what the job is actually worth in the market — probably a lot more, and in time, we might see these salary scales adjust to reality. For now, many companies are stuck. They’re just not going to offer you more salary than the scale permits.

So don’t ask for more salary. Ask for more money. You should do this only under three conditions:

  • The employer has already made a specific salary offer and will not budge when you try to negotiate.
  • You really like and want this job.
  • You’re really going to walk away from the job offer if the employer won’t give you more money.

That last item is key. Really being ready to walk away actually makes you a very powerful negotiator. It frees you to be creative. (So does positioning yourself properly to begin with. See Fearless Job Hunting, Book 6: Be The Profitable Hire.)

Give the employer what it wants

Try this.

How to Say It
“I understand that you won’t raise the salary for this job, and I accept that. But I know I’m worth more, and I can get it elsewhere. But I want to work here, with you, at this job. We’re at an impasse, but I think we can get over it while respecting both our positions.”

Now do something that will give you a huge edge in this negotiation. Give the employer what it wants. That’s right: Accept the job.

How to Say It
“The main thing I want to say is, I want to come work for you — and I accept the job.”

Then pause and say nothing.

What job seekers don’t realize is that every employer that wants to hire you is worried you’re going to reject the job. It’s worried you don’t really want the job, you’re not sure you want to work at the company, you’re not sure about the manager, maybe you don’t like the work space, the building, the people… The employer has no idea how to convince you. Every employer that wants to hire you is worried you’re going to say no.

So say it out loud. Make the commitment and put the company’s worries to rest. Tell them you accept the job.

Negotiate the terms

Whatever their response, say this next:

How to Say It
“I’m ready to start work. As long as we can come to agreement on the terms.”

Now, don’t try this if you are at all hesitant about anything other than the money. You must be ready to show up at this place to work for this manager, with these people, doing this job. You must be ready to start work now.

If the terms can be worked out.

Ask for more money: A signing bonus

Now deliver the key to everyone’s happiness.

How to Say It
“I know you have a salary scale that you can’t break. I’m not asking you to break it. I’m not going to ask for more salary. But I am worth more money. So I’d like to propose terms that will not affect the salary you’ve offered. I accept the salary. But I’d also like to propose terms that will still pay me what I’m worth. I’d like to propose a one-time signing bonus of $X. It will not affect my salary, or anything based on it, like future raises, 401(k) contributions, insurance, or anything that is tied to salary. I accept the salary of $N that you offered if you will include a one-time signing bonus of $X.”

Why it works

Will this work? Who knows. It’s a gambit to try only if you’re willing to walk away otherwise. It’s a way to save a deal. I hate to say no to a deal I’ve already worked hard for — so I ask myself what I’ll settle for that won’t hurt the other guy, and I try to say, Yes to what you want, if you’ll do X for me. If you won’t, I’ll walk away, no harm done.

Here’s why a signing bonus can work. The lovely thing about it is, it doesn’t break the salary range. The company is not paying you more than it planned. But it has to pay you what you’re worth. You just have to set $X reasonably, and that requires some compromise on your part if you really want the job.

(If the employer whips out a salary survey, taps it, and says you’re not worth any more, I hope you read this first: Beat The Salary Surveys: Get a higher offer.)

Keep in mind that, if the employer agrees, your future raises will be based on your salary. If the raise is 3%, it’ll be 3% of your salary, not your salary plus the bonus. The same goes for all other benefits based on salary. You’ll see that bonus just one time. So plan accordingly.

(Worried the employer might withdraw its non-negotiable offer because you dared ask for something more? Read The Bad-Business Job Offer: Negotiating not allowed! Like we already discussed, you must be ready to walk away.)

Do you want this much more money?

What’s the point of a one-time payment, you ask, if what you really want and deserve is a higher salary? The point is that — as we noted at the beginning — you’re going to walk away from this job offer anyway. This is better than the offer you rejected — assuming you really want the job. This is more money. If there’s no size of signing bonus that would make you happy, then don’t even ask for it.

But if you can’t negotiate a higher salary, and what you want is more money, then negotiate for more money. A signing bonus is a good way to do it.

A few gotchas to beware of

You didn’t think there were no gotchas, did you?

  • Signing bonuses always come with a catch. You may have to agree to stay for a certain period of time, or refund the bonus or some pro-rated part of it. Negotiate an acceptable period.
  • Signing bonuses are sometimes paid in parts, to avoid having you skip out with the money. It might be monthly for a year, or quarterly or twice over a year. Negotiate it. My preference is to get it all upon start date, especially if there’s a refund clause.
  • Signing bonuses usually come with a written agreement. Consider having an attorney review it — along with your written job offer and other terms.
  • Signing bonuses are usually taxed just like any other pay. Consult your accountant if necessary.
  • The company may like your idea — but not the amount of the bonus. Decide well in advance what you’ll accept, and stick to it.

What kind of money is there other than salary? Would a signing bonus make a difference to you? How big? Have you ever gotten a signing bonus? How would you advise this reader?

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The Truth About Job Fairs

On January 23, 2017

In the January 24, 2017 Ask The Headhunter Newsletter, a reader blasts employers for job fairs and bogus recruiting. 

Question

I’m sure a lot of employers read this newsletter, so this is an open question to them about job fairs. Maybe they will respond. But I’d like your opinion, too.

job fairsTo Employers:

I go to job fairs to meet your company in person, but your representatives tell me to visit the company website in order to apply for a job. Call me crazy, but I thought the purpose of a job fair was to actually meet you — a real, live hiring manager.

By going to a job fair, I am separating myself from those who are sitting at their computers all day just sending out resumes. I am making an effort to drive (mind you, the cost of gas) to a job fair after getting all dolled up in a great suit and actually seeking to talk to someone to place my resume ahead of someone else’s. I’m trying to stand out and show you I’m serious about working for you.

And my reward for this effort? You slap me in the face and tell me to go home and apply on-line.

Why do you even bother “recruiting” at job fairs? Why is it that your representatives don’t know anything about jobs at your company? Why do they tell me, “We are not taking resumes?” I didn’t need to drive 20 miles to see you only to have you tell me to go home and apply online. What if I’m someone who does not have Internet access at home? What if I’m that person who is strapped for cash and had to decide between paying for groceries this month or keeping an Internet service provider and I chose to forego the Internet?

Come on! Give me a break. I go to job fairs so you can see a face behind my resume in hopes of landing that interview! I attend so I can meet real flesh-and-blood hiring managers. And you send “personnel representatives” who don’t even act like they work for your company! Maybe they don’t! Why are you wasting my time?

(Thanks for letting me vent, Nick.)

Nick’s Reply

Oh, you’re welcome. Venting is good, especially when you’re not the only one doing it. I get frequent mail on this topic. And I’ll tell you, you’ve nailed it. I don’t recall the last time anyone told me they went to a job fair and got a job.

The truth is, job fairs are largely a waste of time.

Companies go to job fairs because HR clearly has nothing better to spend its money on. They send greenhorn HR reps to collect resumes or to direct people to the website. You could do better standing on a street corner handing out your resume.

The other little secret some HR folks have sheepishly shared with me is that job fairs enable them to check off more boxes on federal employment regulation forms. Maybe this is how they identify race, color and disabilities and get credit for entertaining certain applicants. I welcome HR managers to explain their behavior.

You have dispelled one of the key myths about job fairs: that they are a good place to actually meet the hiring managers. Let’s dispel two more job-fair myths.

Job Fairs: Myth #1

You can cover a job fair with 300 employers in one day.

Or some huge number. The pitch is that more is better, so why not go? Even if you slice it down to 100 employers, a six-hour job fair will allow you 3.6 minutes for each employer. (Do you think that if you were to spend anywhere near six non-stop hours at a job fair you might get dizzy and pass out?) Trust your common sense: That’s not enough time for a meaningful exchange.

The alternative to job fairs: Get detailed job-fair information, including lists of employers, jobs and departments that are hiring. Invest that six hours identifying and contacting people who work at three good target companies that are “going” to the job fair. Tell these folks you can’t make it to the job fair, and ask for their insight and advice about their company.

Then ask for introductions to managers who seem to be hiring. Save gas and use it to attend interviews instead.

Job Fairs: Myth #2

Job fairs are a great place to find unadvertised jobs.

Any job openings advertised at job fairs are already old news. Job fairs are often a company’s last recruiting resort. While a personnel jockey is scanning your resume at the job fair booth, my candidate (or some other headhunter’s) is sitting in the hiring manager’s office demonstrating how she’s going to do the job profitably for the manager. That’s who you’re competing with.

But if you really think about it, why would an employer try to fill good jobs with the best candidates at a job fair — when so many of the best potential candidates have jobs and aren’t likely to attend a fair? That’s not to disparage unemployed job seekers; the best candidate for a job may be currently unemployed. But how does the job-fair strategy for hiring make sense for employers? Either HR is goofy, or HR isn’t being honest.

The alternative to job fairs: Truly unadvertised openings are in managers’ heads. Even HR doesn’t know about them yet. So skip the places where HR clerks hang out (job fairs). Instead, go where the hiring managers and their employees go: professional conferences, trade shows, and training courses. Get ahead of your competitors rather than stand behind them.

Sure, bring a resume, but first make some friends. Don’t ask for a job. Ask for the gold ring that smart headhunters reach for: insight about the person’s company and work. That’s what leads to real relationships, real personal contacts, and valuable personal referrals to hiring managers. And that’s where you will learn about unadvertised openings. (For more on this, see Meet the right people.)

Beware of the empty sales pitch

Like online job boards, job fairs are where many HR departments gleefully waste corporate recruiting budgets. Why? Because job boards and job-fair operators are very good at marketing their wares. You’ve seen the promotions: “Hire the best people! Use our service!”

It’s not a stretch to imagine this sales pitch by a job-fair operator to HR: “You can send your greenhorn clerks instead of expensive managers to the fair! Save money and still get applicants!” So HR saves money while appearing busy.

Need I say more? Thanks for sharing your story and ire. I hope your open letter draws responses from HR folks who spend money on job fairs.

Have you been to a job fair? What was your experience? If a job fair paid off for you, what’s the secret? If you work in HR, please give us the straight dope. I mean, the truth.

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LinkedIn Extortion

On January 16, 2017

In the January 17, 2017 Ask The Headhunter Newsletter, a boss tries to turn a new employee’s LinkedIn profile into an ad for the business. Is this LinkedIn extortion?

Question

linkedin extortionMy new employer wants me to list in my LinkedIn profile that I’m working for her, and to include the company’s logo, but I’m still in the 90-day probationary period of my new business development job. I don’t want other employers to see it yet. She’s made no commitment to me, and besides, I still don’t have the private office or company phone she promised.

She has also strongly suggested that I change my profile so my “message aligns with the company’s.” She’s very into branding, and wants her business to be found when people find my profile — yet she does not list any of her employees on the company’s website. Besides, my LinkedIn profile is my marketing piece, not my employer’s! She even asked me to delete the last part of my summary in which I list what roles I’m looking for next in my career.

I’ve tried to skirt this politely, but today she asked me when I’m going to do it. Because this job is different from others I’ve had, she wants me to omit key words from old jobs that aren’t consistent with her business. Meanwhile, I’m really trying to make this job a success. I just don’t like being pressured to re-write my resume — that’s what a LinkedIn profile is, after all — so it “aligns with the company’s message.”

I really want this job to work out. What should I do?

Nick’s Reply

Is your boss a dummy? She’s ridiculous to presume she has any right to dictate what you put on your LinkedIn (or any other social media) page. Unless, of course, she’s willing to pay you an advertising fee… (more on this later).

If you’re going to add this new job to your LinkedIn profile, she has to earn it. I once had a girlfriend who insisted I wear a “friendship ring” so that people could see I was “attached.” We soon parted company.

Look at it this way (she clearly doesn’t): Would your boss ask to see your new resume, so she can pass judgment on what you include about her company? What’s the difference between that and your LinkedIn page?

LinkedIn extortion

This looks like a kind of extortion: Let me control your LinkedIn profile and I’ll let you keep your job.

Rather than assert any rights over your social media assets, your boss should stay mum and hope you decide on your own to add her company to your LinkedIn profile. Just like my old girlfriend should have stuck to hoping we’d stay together — without demanding that I “brand” myself with her logo.

Is your LinkedIn profile part of your boss’s advertising and branding? Or is it yours? I’ve never heard of an employer making this kind of demand.

Will she ask you to alter your Facebook page next? Will she ask you to start tweeting about her business from your personal Twitter account? Where will it end?

So, what do you do? You can talk with her frankly and tell her your LinkedIn page is not up for discussion. Or you can do what she asks and take your chances. However, I think you have a card to play here. If you decide to post something on your profile to make a concession, I’d ask for something back. Maybe like this:

How to Say It

“My social media pages are not intended to promote anyone’s business — they promote me. Listing my current job is a small part of what defines me. I would add more about this job after I’ve been here for a year, but I’d consider adding it now if you’re willing to end my probationary period and make a full commitment to me — including providing the office and company phone you promised.”

Does that sound too strong? Then modify it to suit you. But do you see the point? Sometimes, you have to test your boss — because I think your boss is testing you. You might as well find out sooner rather than later whether this is someone you really want to work for long-term. For example, if you’re concerned about broken promises regarding an office and phone, you may realize other promises are on the line, too: What to say to a stingy boss.

Here’s another way to help her see your point, since she’s so focused on marketing:

How to Say It

“With all due respect, using my LinkedIn profile to promote the company would be like you buying ad space on a website — and of course I’d never ask you to buy space on my LinkedIn page. I think there has to be some separation between the company’s marketing and an employee’s own professional marketing.”

Am I serious — should you offer up your LinkedIn profile if your boss pays you? Of course not. I’m trying to make a point. Tweak my suggestions as necessary, or don’t use them at all. It’s food for thought. (So is a larger question: Is your boss too preoccupied with LinkedIn as a marketing tool? She should read LinkedIn: Just another job board.)

Realistically, your LinkedIn profile is not going to drive any business to your boss, any more than your resume would! It’s clear to me your boss has already made you uncomfortable by suggesting a kind of LinkedIn extortion, and that should not be. At some point, you must draw a line – even if it risks your job.

(For more about personal branding for career advancement, see Branding yourself suggests you’re clueless.)

Is this LinkedIn extortion? Would you let your employer have any control over what’s on your LinkedIn profile? How would that affect your marketability to other employers? What should this reader do?

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Jobs plentiful! Pay is up! But, how are you doing?

On January 9, 2017

In the January 10, 2017 Ask The Headhunter Newsletter, we attempt a reality check — about jobs. Disclosure: I wrote a snarky column to start the New Year. But it’s not as snarky as the news.

Question

Nick, I know the newsletter has been on vacation over the holidays, but have you been reading the jobs news? Am I crazy, or do people really believe unemployment is down and pay is up? That there’s suddenly a job for anyone who wants it? That all our troubles are over? Man, sign me up for a new job for 2X what I was making when I had a job!

Nick’s Reply

jobsDuring my Christmas break, the news kept coming hot and heavy from the U.S. Department of Labor and associated pundits and experts: You should stop complaining about jobs and salaries. Everything’s great!

I’m sure you’re reading the same good news, but all I want to know is, does this reflect your experience with the job market and employers? Or is your head spinning?

Jobs: U.S. Department of Labor News

In the past few days, the DOL reported:

  • “Unemployment rates were significantly lower in November in 18 states and stable in 32 states and the District of Columbia…”
  • “The national unemployment rate was 4.6 percent in November, down from 4.9 percent in October, and 0.4 percentage point lower than in November 2015.”

Fewer people unemployed!

Bloomberg News

Recent Bloomberg reports tell us:

  • “The 4.7 percent jobless rate remains close to a nine-year low, even with a tick up last month.”
  • We’re seeing “enduring wage gains as labor market tightens.”

You’re getting paid more and employers are working harder to hire you!

  • “Worker pay rises at fastest pace since end of last recession.”
  • “Fiscal stimulus would stoke further gains as labor [is] scarce.”
  • “Average hourly earnings jumped by 2.9 percent in the 12 months through December, the most since the last recession ended in June 2009.”
  • “Workers in almost every category, from mining and construction to retail and education, saw paychecks rise from November.”

JPMorgan Economic News

Michael Feroli, JPMorgan’s chief economist, says:

  • “I expect to see continued acceleration in wages this year.”

And get this: Labor shortages may become more common. Employers are going to be begging you to take a job! I hope that makes you feel better if you’re facing a shortage of exactly the one job you need to pay your bills.

But then there are the gotchas from from the DOL reported by Bloomberg:

  • “More Americans joined the labor force but had not yet found jobs.”

Oops. And try this double-talk on for size:

  • “The number of people who were jobless and gave up looking for work declined to a three-month low…” but “One caveat: fewer people who were already in the labor force but unemployed were able to find jobs.”

Associated Press News

The Associated Press isn’t being left behind:

  • Since 2009, “the job market is in infinitely better shape. The unemployment rate is 4.7 percent. Jobs have been added for 75 straight months, the longest such streak on record.”
  • But, er, ah… “The proportion of Americans with jobs… dropped a full percentage point.”

Uh… apply the grammatical logic tool to that one and you get… More Americans are without jobs!

  • “Hiring has been solid yet still hasn’t kept up with population growth.”
  • “…many workers, especially less-educated men, have become discouraged about finding jobs with decent pay and have stopped looking.”

Yes, that means many, many Americans are screwed, but they’re probably not educated enough to parse those sentences to glean the economic reality. But when they try to pay for food next week, they’ll grab their pitchforks and torches.

Middle America

And don’t miss this troubling factoid: The “routine work” that pays middle-income wages is disappearing. But the good news is, those of you doing “higher- and lower-paying jobs” should have no trouble finding work! Tech jobs have “soared” 42%. Hotel and food service jobs have “jumped” 19%!

Apply the grammatical logic tool to that one and you get… Middle America can’t find a job!

  • More good news: “Over the past year, average hourly pay has risen 2.9 percent, the healthiest increase in seven years.”
  • But, uh, in a “robust economy” pay gains would be more like 3.5%.

There’s more, but your under-paid, under-fed or unemployed (or under-employed) brain probably couldn’t take it.

Let’s stop pretending

The jobs news is so contradictory that nobody knows — or will admit — what’s really going on. While the government, economists, banks and pundits spin a story that makes heads spin, I think the wisdom about all this is in the crowd. The people living, succeeding, failing, giving up, dropping out, scraping by and dying in this economy have a clearer picture of what’s really going on than what’s being reported.

How are you doing?

Early January of a New Year is a good time to sweep away the news and ask you — How are you doing in all this? I think we all want to know what’s really going on in our economy and job market.

  • Does this news reflect your experience?
  • Are you finding more jobs — real jobs — are begging to be filled?
  • Are you getting paid more money?
  • Are employers hiring you more quickly at higher salaries?
  • If you already have a job, has your boss increased your salary to avoid losing you?
  • What’s really going on with respect to jobs, employment and pay?

I don’t think we’ll sort this out, but we can do a more honest job of discussing the truth than the news pretends at!

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Why am I not getting hired?

On December 19, 2016

In the December 20, 2016 Ask The Headhunter Newsletter, we address some of your biggest complaints about job hunting — why you’re not getting hired.

Question

Let’s look once again at the perennial problems job seekers continue to face:

  • “I don’t understand it. I must have responded to over 50 job postings in the last month, and I haven’t gotten a single interview.”
  • cane“I’ve completed over a dozen job applications, and I haven’t heard from one company.”
  • “The tight market puts employers and recruiters in the driver’s seat once again. Fewer jobs are available, and there’s a larger talent pool to choose from.”
  • “Companies that once had to make offers on the spot to snare candidates now have the luxury of time. They can postpone making hiring decisions until they find someone who meets all their criteria.”

The question behind all these plaintive protests is clear: Why am I not getting hired?

Nick’s Reply

Whoo-whee! It’s that time again — a difficult time for getting hired. (See The Third Fallacy.) Companies are indeed hiring. They’re just not doing it the way you’d expect. They’re in a hurry but they don’t want to make mistakes — though it somehow seems they don’t really want to make hires. Throughout Ask The Headhunter and throughout the year it seems we keep coming back to the same challenge: how to help employers make a decision — to hire you.

Be the right candidate

Consider the logic of the frustrated job hunters above. It’s not logic at all. It’s pure frustration that stems from not being the right candidate. Who’s fault is that? Difficult as it might be to hear this, please listen:

  • Don’t approach a company if you’re not the right candidate.
  • Don’t make rationalizations when a company ignores you.

It’s true that many companies are hiring more slowly, but that doesn’t mean they have the luxury of time. In fact, the opposite is often true. Some managers are under great pressure to fill precious slots before the year ends and budgets close (or are cut). Thus, employers are not hiring slowly because they can, but because they can’t get the right candidates. They are deluged with every Tom, Dick, and Jane who has a minute to submit an application — and those same managers are burdened with applicant tracking systems that can’t distinguish strong candidates from weak ones.

Remember that most hires are made via trusted referrals and personal contacts. Why? Because this is the most reliable source of good, appropriate candidates. When managers can’t get a hire through this preferred channel, they turn to lesser sources, like job boards and applicant tracking systems. They know the odds of finding a good candidate are low but they, too, are frustrated and desperate. They need to fill a job now.

Put that in your Santa’s pipe and smoke it — and you’ll sweep past your competition.

wreath‘Tis the season to be truly right. If you are the candidate a manager needs, you can capitalize on the rush to hire. You can give a manager the gift he’s been waiting for: your earthly presence. Help him to spend his budget and make the hire. Be ready to articulate your value, but do it face-to-face or on the phone — not via an application form or a resume.

These concepts and methods are laid out in how-to fashion in the Ask The Headhunter PDF books, and we’ll summarize some of them here.

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Make it personal

Like Baba Ram Das said in 1976, “Be here now.”

Getting hired means actually being there. A resume doesn’t cut it. An application doesn’t cut it. When you hide behind a form, you’re admitting that you’re not sure you’re the right candidate. You are afraid to face the manager because you have nothing compelling to say. If you’re the right candidate, then you have exactly what it takes to make a manager say, “Yes!”

There aren’t 400 jobs out there for you. You can be the truly right candidate for only one, or two, or maybe three different jobs. Pick them carefully. Study, prepare, create a business plan to prove your value to the specific manager, and go after those two or three jobs and no others.

Here’s the secret to showing an employer why she should hire you: Estimate as best you can how your work produces revenue or reduces costs for the company.

Excerpted from Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire, p. 8:

Identify your role in the profit equation
If you work in sales or product design, you help produce revenue by selling or by creating products. That’s good for the company. The more you contribute to revenues, the more value you add to the business.

If you work in information technology or in manufacturing, you have a daily impact on the company’s costs. (But, of course, every worker is part of a company’s costs.) High costs are not good. Your job contributes to the success of the business by helping minimize costs (also known as increasing efficiency) while performing a function necessary to help produce revenue.

The difference between revenue and cost is profit. So, regardless of what your job is, ask yourself what you do to enhance profits. Do you sell more stuff at higher margins, or do you do some other job smarter, faster, and cheaper? Explaining this to an employer helps you demonstrate your value.

Getting hired: Take the right path

The frustrated candidates who submitted the complaints above are not being dismissed because their resumes are lousy, but because they are cows. If you merely send in a resume, what’s the chance you are really the right candidate? If you rely on nothing but a dopey job posting, how can you know what a job is about or what a manager wants?

Please: Be realistic. Take the most reliable, proven path to a job. If you are really the right candidate, prove it by getting referred by someone the hiring manager trusts.

hollysprigI know I sound a bit harsh. My suggestions seem like an unreasonable burden on a job hunter. The notion that it’s up to you to pick the right job creates a daunting task. And making personal contact with hard-to-reach managers is so difficult. This is all very hard work.

Yep. But so is that great job you want. The task of finding and getting hired has never been easy. If you believe otherwise, it’s likely because the media and automated recruiting systems have brainwashed you and employers alike. (Zip Recruiter, anyone? Just watch applicants come rolling in! LinkedIn, anyone? Just watch opportunities fill your e-mail box!) You already know this isn’t simple. You already know that being dead-on for a job is a rare experience. But if you don’t make it happen, it’s not likely to happen on its own.

Take advantage of this high-pressure time when managers really do want to fill jobs. But don’t be casual about it. Be the right candidate who picks the one right company, the one right job, then picks up the phone and delivers the solution a manager has on his wish list.

Stand out

Who’s getting hired? The candidate who gets personal, picks the right companies, and delivers a solution to the right manager is who you’re competing with, whether she learned this approach from here or whether it’s just her common sense. Long-time ATH subscriber Ray Stoddard puts it like this:

“The great news about your recommendations is that they work. The good news for those of us who use them is that few people are really willing to implement what you recommend, giving those of us who do an edge.”

Lets review some key tips to help you get the edge you need over your competitors:

I hope Ask The Headhunter helped you get an edge in 2016. We will continue to discuss the details of the methods outlined here in upcoming columns.

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If you buy Ask The Headhunter PDF books in the Ask The Headhunter Bookstore, I’ll deduct 40% from your purchase price — no matter how many books you buy! Just use discount code=MERRYATH when you check out! (This limited-time offer for the holidays expires Jan. 1, 2017!)

christmas-treeI’m taking a break for the next two weeks — See you with the next edition on January 10!

Meanwhile, here’s wishing everyone a very Merry Christmas, Happy Holidays (no matter what you celebrate or where you celebrate it), and a Happy, Healthy, and Prosperous New Year!

How have you used the ATH methods to land the job you want, or to hire exceptional employees? What methods of your own have you used successfully? Please share, and let’s discuss — what matters most is what works best out in the field!

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Hack your elevator pitch

On December 12, 2016

In the December 13, 2016 Ask The Headhunter Newsletter, a reader asks how to formulate an exceptional elevator pitch.

Question

elevator pitchI have been out of the corporate world for over 10 years. I recently sold my business and am contemplating my options. I am too young to retire (in my mid-50s), yet too old to be a hot prospect for most companies, so I am networking.

I was recently asked for an “elevator speech” about myself. Of course, I know what that is, and admit it has value because it forces focus. Yet I am vexed by the prospect of re-developing such a tool, partially because I am not sure what I really want to do and I want to keep my options open, and in part because I always question the value of a bumper-sticker-tool in changing times.

What are your thoughts? Is an elevator pitch valuable? What are the critical elements as you see it? How should it be developed and delivered? What’s the best you have heard?

Thanks for your time. I have been a subscriber for several years and recognize a great content developer, and blogger, when I see one!

Nick’s Reply

There’s no way to focus on what you cannot see, but more about that in a moment. Your instinct is right. It’s time to hack the elevator pitch, because I think elevator pitches (or speeches) are nonsense.

They’re a product of the career coaching industry, which wants your money, and which tends to fabricate stuff it can sell you. (I tell this to Executive MBA students at Cornell, Wharton, UCLA and other schools whenever I do workshops for them.)

What’s an elevator pitch?

By definition, an elevator pitch is about you. You meet me in an elevator and you spout your pitch. But I don’t know you, so I couldn’t care less about you. I don’t need or want to hear about you. Why would I be impressed that you can talk about yourself?

I care about my business and the problems and challenges I face. And they’re all unique to me. (See How to get the hiring manager’s attention.) Hearing about you does nothing for me, because when you rattle off that speech your objective is for me to listen carefully, then to invest my time trying to figure out what to do with you. That’s an unreasonable presumption.

What’s worth listening to?

Now, if you have something useful and specific to say about my business that reveals you’ve already made an investment to understand my plight — that’s worth listening to.

If you say something on the money about my business, the encounter shifts. I’m suddenly interested in who you are, and I might want to know more about you. We might even become great friends.

The trouble with job seekers

This brings us to the fundamental trouble with job seekers. On the whole, what’s painfully lacking in their presentation is attention to the person they’re addressing. An elevator pitch is all about the speaker — it shows no real respect to the listener.

Similarly, a resume that you hand to every employer is about you, and your objective is for each employer to figure out what to do with you. Consider how presumptuous that is. More to the point, consider that no employer has the time, interest or ability to figure out what to do with every job seeker that comes along!

(Think I’m daft? For all the resumes you send to employers where you’re convinced you’re perfect for the job, how many of them invest the time necessary to conclude that you’re the perfect candidate? Employers don’t do what job seekers presume they do. That’s why using automated job application tools to hit as many employers as possible is stupid and unproductive. So why do people keep doing it?)

Who are you pitching to?

If you think about it, investing time in producing a canned elevator pitch is pretty silly. Selectively and thoughtfully investing some serious time in understanding the business and problems of someone you want to work with — that’s smart. Of course, it means you must carefully select your target, right? Or, why bother making such an investment? You must prepare a short speech that’s highly specific to that individual — one that wouldn’t mean anything to anyone else.

Only if you have time to do that do I have time to hear you out.

When you ran your business, did you ever stand on a street corner reciting information about your products to impress people? I know the answer. So, why would you even consider doing that now?

Hack your elevator pitch

The best elevator pitch I’ve ever heard goes like this: “By doing XYZ, I can increase your profitability by 10%.” There’s the focus you mentioned — but to bring that kind of focus, you must first clearly see and examine the object. And that object is my business. Can you hack my business? (See Stand Out: How to be the profitable hire.)

Thanks for your kind words. Glad you enjoy Ask The Headhunter. Please use your good business sense when pursuing a job, if it’s a job you want. Because employers don’t pay for elevator pitches or interview skills. They want business acumen that addresses their specific issues, and that contributes to their bottom line. One size does not fit all.

What will get the attention of someone you want to work with? Do you use a prepared speech? How do you know what to say?

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How do I ask for 30% salary increase?

On December 5, 2016

In the December 6, 2016 Ask The Headhunter Newsletter, a reader wants a 30% salary increase to accept a big promotion and relocation.

Question

salary increaseAs a senior manager with a big manufacturing company, I lead a sizable sales team and have enjoyed good career growth over 18 years. I’ve been told I am a high-potential employee and they are considering me for a promotion to a director job at HQ or in one of our national regions, which would require a relocation. I’m ready to move, but I won’t do it without a considerable salary increase.

I have done some homework and 30% seems to be the right number. Our company typically would only give me a 10% raise. But my thought is that, if I am getting uprooted and taking on more pressure and responsibility, they need to compensate me for it. Is this a reasonable response to give them, or a bad one?

Nick’s Reply

Congrats on the good news. My view of this is, you put your proposal out there along with your justification, and that’s where the negotiating starts. But there are two potential issues.

  • Will you offend them because you dared ask for 3X what they were probably going to offer you?
  • Can you justify what you’re asking for?

Let’s consider the possibilities — and prepare for them.

The salary increase stinks

There’s not much you can do about management that gets offended easily, so you need to make a judgment. Could asking for so much get them upset? Are you prepared to deal with such a reaction? What I’m really asking is, would you decline the promotion — or quit — if they don’t give you what you think you’re worth?

Finally, have you prepared for the worst case — they dismiss you? (See Negotiate a better job offer by saying YES.)

You need to ask yourself what the odds are in each case, and you need to plan in advance what your response will be. Don’t wait to figure this out while it’s happening, because that’s when people make mistakes.

Your justification stinks

As far as salary surveys and what you’ve determined others are getting paid —that doesn’t matter to your employer. If they were looking at the same data you are, they’d give you 30%, right?

I believe people should be paid what they’re worth to a business. But I also believe it’s up to the employee or job candidate to demonstrate what they’re worth. The employer will not figure it out for you. Don’t rely on salary surveys like Glassdoor — your employer will tell you it’s not really relevant. (For other readers’ insights, see Am I chasing the salary surveys?) Best case, they’re looking to pay something “fair” that’s still a discount for them.

No matter what Glassdoor (or any survey) reports, all your employer has to say is, “Those positions don’t accurately reflect our company.” Or, your employer will bring out its own salary survey — which shows you’re not worth so much. (In that case, see Beat The Salary Surveys: Get a higher job offer.) If you base your case on such data, the negotiation will end there.

Make sure your justification doesn’t stink.

Be worth the salary increase you want

So here’s the only way to deal with this, in my opinion. The case you make for a 30% salary increase must address the benefits to your employer — not “what’s right” or “what everyone else is making.” That is, what will you accomplish during the next year, in this new job, that’s worth 30%?

Map it out. Produce a mini business plan that will convince them you’ve figured this out and that it’ll pay off for them, too. In my experience, that’s the absolute best way to negotiate a raise and a new job. (For a detailed approach to using a business plan to get what you want, see How Can I Change Careers? — it’s not just for career changers. Read “Put a Free Sample in Your Resume,” pp. 23-26.)

Compared to haggling about salary surveys, you’re far better off talking about your company’s business, its challenges and problems, and about a specific plan you’ve devised that makes you worth a 30% boost. The critical advantage of this approach is that it stimulates a discussion with your employer about something you’re expert at — your job. There’s the negotiating edge that can make all the difference.

Plan the outcome

There’s no reasonable or bad response to their offer. There’s what will work, and there’s what you’re ready to do if you don’t get what you want — assuming what you want is really that important to you. You must be ready to control the negotiation and to plan the outcome.

So there are really two challenges for you here.

  • First, can you demonstrate — hands down — that you’re worth what you’re asking for? (That is, worth it to the employer.)
  • Second, are you ready to walk away from this employer if you can’t get what you think you’re worth?

I wish you the best, and I’d love to know what you decide to do and how it turns out. I hope my comments help you in some way.

(Since you haven’t yet discussed this promotion with your company, there’s a completely different strategy you can follow. It’s covered in Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer), in the section titled “The Pool-Man Strategy: How to ask for more money,” pp. 13-15.)

Is a 30% raise even possible? How would you advise this reader? What are the angles and gotchas in this situation?

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The Salary Questions

On November 28, 2016

In the November 29, 2016 Ask The Headhunter Newsletter, a reader is puzzled about how to answer salary questions in interviews.

salary questionsQuestion

What’s the best way to deal with an interviewer who wants to know my salary history and salary requirements? While I know employers always ask this, I feel it takes away from my edge when I divulge that information.

Nick’s Reply

You’re absolutely right — to a point. When you show your salary cards at the wrong time, your negotiating edge disappears. When employers ask for salary requirements, they usually follow up quickly with a question about your salary history. Then they use your last salary to influence any offer they make. And that’s why you need to take control of the discussion.

There’s no puzzle here, if you keep your objectives straight. Your goals should be to:

  1. Avoid divulging salary history.
  2. Determine your worth with respect to this job.
  3. Express your desired salary as a range you can justify, and
  4. Negotiate a salary that reflects what you can contribute to the company’s bottom line.

Rather than go through the steps, let’s look at the underlying logic. How you apply these ideas is up to you and depends on the situation and on your good judgment.

When salary questions come up, profit is the issue

My advice is to turn any salary questions around and ask what exactly the employer wants you to accomplish for its business. But be even more specific than that.

How to Say It
What kind of profitability goals do you have for this position?

The more the employer expects you to contribute to the company’s profitability, the more you should be paid. Remember that every job contributes to profitability, either by increasing revenue or decreasing costs. If a manager thinks a question about profitability is odd, reconsider whether you want to work for him. This is someone who may not have a job himself in three months.

How to Do It: The PDF book, How Can I Change Careers? — which is for anyone who wants to stand out in a job interview, not just for career changers — provides detailed exercises to help you demonstrate and justify your value. See the section titled “Put A Free Sample in Your Resume.”

Salary history is confidential

In my opinion, discussing salary history is a no-no. It’s no one’s business. Some employers will object, but keeping your past salary confidential is pure common sense because it directly affects your ability to negotiate.

Although an employer may suggest that your old salary is a good indicator of your value, the truth is that it’s up to him to make an independent assessment of your value to his business. Your salary history is personal and confidential, and in some cases your prior employment agreements may even prohibit you from divulging it because it is also confidential to your old employers.

If you still have trouble with this logic, ask yourself, Would an employer divulge the salary history of the job you’re applying for?

How to Do It: Keep Your Salary Under Wraps shows you how to say NO when employers demand your salary history, to make them say YES to higher job offers. Learn how other Ask The Headhunter readers avoid disclosing their salary history politely but firmly. (This PDF book comes with a bonus audio lesson.)

Know what you want

Now let’s talk about your salary requirements. It’s a legitimate question for an employer to ask, as long as it’s couched in a larger discussion about how you will contribute to the bottom line. As we said above, the more value you can contribute to the work, the more you’re worth. There’s no way to provide a desired range until you know what the job entails and what the expectations are — and that requires some discussion. That’s not a cop-out or a clever response to the question. It’s the truth.

But, at some point, it makes perfect sense to decide what salary range you want and to share that information. (Wait until you’re satisfied the employer is one you want to work for, and that this is a job you want.) I think this actually gives you a negotiating edge because it establishes a level of agreement before you get to the offer stage.

When you share your desired range at the proper time, the employer should either agree that he will continue the discussions in good faith based on that range, or you should terminate your discussions. For more about this, see How much money should I ask for?

How to Do It: “The Poolman Strategy: How to ask for more money” is one of the key sections of Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer). Many years ago, my own lawyer taught me how to start a negotiation. In this lesson, I teach you how to dominate talk about salary.

Negotiate responsibly

Some people believe you should hide your requirements until an offer has been made. They seem to think that if you divulge what you would accept, the employer will low-ball you. This is nonsense. If you present a well-thought-out range, it gives you room to maneuver based on how well you can articulate your value.

No employer is secretly thinking, “Gee, I was going to offer 50% more than he’s asking for. Lucky me!”

It just doesn’t happen. While some employers are looking for ridiculous bargains, I think you will find that an employer’s target compensation is probably somewhere in the ballpark. (If it’s not, you walk.) When salary questions arise,providing a range and being able to justify it opens the door to a responsible negotiation.

It’s easier to negotiate the right deal when you’ve demonstrated good faith — and firmness — by demonstrating your worth and sharing your goals with the employer.

How to Do It: I know you’ve asked yourself this question — “Am I unwise to accept their first offer?” I cover this in detail in Fearless Job Hunting, Book 9, Be The Master of Job Offers. You’ll also learn a surprising tactic: How to say, “I accept your offer, but I’d like more money!”

Do the salary questions make you nervous in interviews? How do you handle them? What additional tips would you give this reader?

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Recruiting: How to get your hands dirty and hire

On November 14, 2016

In the November 15, 2016 Ask The Headhunter Newsletter, a hiring manager offers a profound recruiting tip for employers.

Question

recruitingMost professional associations have “X helping X” groups (e.g., lawyers helping lawyers). These groups consist of people being rehabilitated from disabilities of one sort or another (including a number of recovering alcoholics). It never hit me before, but such groups can be great sources of hires. When we brought our latest aboard and she worked out extremely well, I asked where we found her. I got to thinking after that.

A guy in my company goes to just such a “helping group.” (He joined Alcoholics Anonymous 20 years ago and has been sober since.) A while back he started recruiting the occasional employee from the group. The success of our hires from that group, compared to hires from the general population, is about 4 to 1. Why? I think it’s because at these meetings you get full disclosure of a person’s problems, a good feel for the degree of their recovery (just being a member is a good sign) and the people are generally competent, humble, loyal, and grateful as heck to be employed.

Anyway, I find it an interesting approach to hiring. I attend our industry’s “X helping X” group whenever I can now. Afterwards, people go to dinner together, and I’m usually the last to be left out of a group!

Nick’s Reply

I have corporate clients who pay me a lot of money to provide them with recruiting ideas like the one you just described. It’s so obvious, it’s almost silly, isn’t it? Real recruiting by getting your hands dirty — going out to meet people!

Recruiting: I doubt you are!

Employers get so stuck thinking about hiring the traditional way that it never occurs to them to make it personal. That means having managers stop and think about social, professional, and community settings where potential job candidates congregate. You’ve hit on a particularly interesting one, where you’re not only getting what you want, but helping the kinds of people who make great employees.

Think of all the other possible sources of job candidates, all of them essentially free, where you can observe people in action:

  • Local chamber of commerce meetings
  • Church groups
  • Professional associations and meetings (like the one you describe)
  • Job search clubs
  • Professional training programs (e.g., marketing, programming, finance and accounting, etc.)

I do workshops for some of the top business schools around the world (and I charge them a fee), but I also regularly conduct pro bono Ask The Headhunter workshops at the Somerset Hills YMCA in New Jersey. Very talented “downsized” people gather to learn how to job hunt. I’ve never met an employer at these events! Why don’t employers jump on these? Maybe because they’re too busy reading through dopey resumes on LinkedIn and Indeed!

Managers have forgotten how to circulate and meet people! (See Smart Hiring: How a savvy manager finds great hires.)

Recruiting people where they learn

Think about professional training programs especially. This is where people are building skills that you want to hire! Why don’t companies routinely send a few of their managers to these? The students at these programs are great potential hires, and it’s a comfortable setting in which to recruit. Like the “X helping X” groups you talk about, these classrooms are also a revealing environment in which to observe prospective candidates.

Clearly, you already get the idea, and it’s paying off. I’m not at all surprised that your hires from that group are four times more likely to succeed than other hires. When you find people — especially people who’ve overcome problems — where they’re helping one another, you’ve hit a gold mine.

Sheesh — What do people think employers did before the Internet? For that matter, what do people think any of us did before the Internet? (See Network, but don’t be a jerk!)

Thanks for sharing a great tip from the employer side! My compliments!

If you’re a hiring manager, where do you find your hires? Ever invest time in your professional or social communities to meet people you can hire? Have you ever gotten a job this way?

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