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Monthly archive for November 2017

More Money: What to ask for in a talent shortage

In the November 14, 2017 Ask The Headhunter Newsletter, an employer makes a lousy job offer and a job seeker misses the point: Ask for more money.

Question

more moneyAfter three interviews that included a lengthy presentation on how I would do the job, I was made an offer for a director-level position in a major city. I expected the salary to be upwards of $70,000. My current salary is $63,000. I also get good health benefits that cost me nothing out of pocket.

I was stunned when the offer came at $45,000, and I’d have to pay for health insurance. I literally cried. I am 33, 11 years out of college, and my resume rocks. Do they think I’m stupid? Are employers really so clueless? In this booming metro area, new grads get $45,000 for entry-level jobs. What they offered seems like a joke!

Should I even try to negotiate for an additional $20,000 to $30,000?

Part of me wants to tell them to screw off. The problem is that this director-level job sounds really great. But I would lose my apartment because average rents in the area are $1,800 a month. I couldn’t afford it, and I wouldn’t have enough for gas or  food. Maybe they think I live with my parents?

Where do they get off offering entry-level pay for a director role to someone with 11 years experience? Any advice? My family, my friends and I are in shock. Help!

Nick’s Reply

Employers complain there’s a talent and skills shortage, and that good workers are hard to find. But wages are not going up enough to reflect such claims.

Greedy employers and the talent shortage

I think it’s clear employers are doing three things:

For more about cheapskate employers, see Wanted: Top talent to work for dog food.
  1. They’re bargain hunting.
  2. They’re keeping more of their profits while productivity is increasing.
  3. They’re avoiding sharing profits in the form of higher pay for hard-to-find employees.

What does this tell us? If you’re a talented, hard-to-find worker talking to a company that’s facing a talent shortage, you should ask for more money because you can.

In July 2017, the Economic Policy Institute (EPI) reported that “CEOs of America’s 350 largest firms made an average of… 271 times more than a typical worker in 2016.” (In 1965, the compensation difference was 20X.)

If you don’t think there’s any error in the offer you received, then consider that it may be how the company operates. It’s greedy. So ask for a higher job offer.

Don’t contribute to the problem

Now I’ll reprimand you. I imagine you did not ask the salary range on the job before you invested your time inteviewing. That’s a huge mistake. Make sure you and the employer are on the same page from the start. When job applicants fail to test a salary range before interviewing, their wishful thinking contributes to wasting time. On the other hand, if you tried to assess the salary range and the employer declined to tell you what it is, see The employer is hiding the salary.

I give you a lot of credit for using the interviews to demonstrate how you’d do the job. (See The Basics.) That’s how to interview, and I’m guessing that’s why they chose you! But the salary offer is another issue.

Don’t rationalize

I’m concerned that you are already rationalizing taking a job for half what you think it’s worth because “this director-level job sounds really great.”

Really? Many employers try to substitute impressive job titles for fair salaries. They count on candidates talking themselves into an undesirable deal.

The problem now is that you may be confusing monetary compensation with the lure of a fancy job title. I’ll give you the benefit of the doubt and assume this really is a director-level role. Please be careful not to sell yourself short during a talent shortage. A title is not compensation for doing a job.

Accept the job and ask for more money

Learn from those highly paid CEOs. The EPI report notes that: “CEO compensation has grown far faster than that of other very high earners in the top 0.1 percent…” Why? EPI concludes it’s because of

“the power of CEOs to extract concessions.”

Pay attention! CEOs make big demands because companies perceive that there’s a shortage of great CEOs. You can play this game, too, if you have the nerve.

If you are ready to walk away from that job offer, then you have power because you have nothing to lose. So do not say “No” to the employer. Drive them nuts instead. (They deserve to have their cage rattled for playing salary games with you.) Treat them like desirable CEO candidates treat them. Accept the job, but extract concessions on the pay.

That’s right: If you still really want the job, why not try to get it on your terms? I’d accept the job, but I’d change the terms. You’re allowed to change anything you want in their offer before you accept it completely. Then it’s up to them to decide whether to agree.

How to Say It:
“I showed you I could do the job profitably for you, and I’m glad you were impressed enough to want to hire me. I want the job and I’d love to work with you! So I accept the job. But I cannot accept the terms you have offered. I’m ready to start work [tomorrow, or whatever day you choose] at $72,000. I will leave it up to you.”

Let the employer decide

Do not say anything more. (This is difficult, but keep your mouth closed past this point until they answer.) They already know all the reasons they want to hire you. Now let them consider whether they are willing to pay to get what they need, or whether they’re willing to lose you. (It can be a very long way to the next great candidate in a talent shorage!)

They will probably say no. But when they realize you’re really ready to walk away, it’s now on them to make a decision. They may come back with a better offer.

If they don’t, and you really are looking for a $70,000 job, politely tell them the following.

How to Say It:
“I am worth upwards of $70,000 in today’s market, where employers are complaining about a talent and skills shortage. I’ve found that your competitors are determined to hire hard-to-find talent and to pay what I’m worth. I wish you the best – it was wonderful to meet you and to learn all about your company.”

You don’t owe them any explanations at this point, so don’t let them drag you into a debate. Remember: They’ve already settled the main question: They want you. Now they must decide whether to accept your terms. If they press back, decide in advance whether you’re comfortable saying the following — then say it and stick to it:

How to Say It:
“I’m ready to take this job because I want to work with you. But my salary terms are not negotiable.”

Note that you have not rejected ther offer. In fact, you made a commitment when you accepted the job. Now let the employer decide whether it accepts your terms.

“I want more money.”

If you think you’re worth it, let an employer know you want more — and say how much. Just keep in mind that if they accept your revised salary, it’s not appropriate to negotiate anything else. You already said you’ll take the job if they meet your terms. If there are other things you want to negotiate, do that before you take a stand on the compensation.

For every employer that pays its CEO more than 200X what it pays the lowest-level employee, there needs to be a job candidate who is smart enough to insist on sharing that kind of wealth and success. The CEO is just another employee.

When they need you, extract concessions

You ask how such employers “get off offering entry-level pay for a director role to someone with 11 years experience.” Don’t over-think this. They do it because they think they can get away with it. That’s also why CEO candidates demand more money.

When is the last time you accepted “Because I said so” as the justification for why someone wanted to take advantage of you?

For more on this topic, please read “How can I go back and ask for more money?”
I’m not suggesting that you should be greedy and expect more salary than a job is worth. But if you’ve come to a reasonable conclusion that this employer is being greedy, and you think you can get a good job that pays $70,000 or more, you should not waste your time considering an unsatisfactory deal. Do not waste time negotiating. Instead, extract concessions or move on.

Look – if you need to pay the bills, and you need a paycheck of any size, I’m the last person to criticize you for talking yourself into a lower salary. Do what you must to live. But if you feel as strongly as you suggest you do, don’t fall victim to a greedy company that’s bargain hunting.

On to the next!

Do you know when to ask for more money? When you know you’re going to walk away anyway, don’t say “No” to a low job offer. Say “Yes, if you’ll pay me what I want.” Have you ever drawn a line like this?

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Job applications are the biggest recruiting scam

In the November 7, 2017 Ask The Headhunter Newsletter, a careful reader gets recruited to fill out a job application. Welcome to recruiting today.

Question

recruitingEarlier this week a recruiter contacted me. The salary was stated as a maximum only, and it would mean a 20% raise from my current salary. Even though I am not looking, I went ahead and applied. Following your advice, I asked who the company was and the recruiter told me “in confidence.”  I disclosed that I know someone there, but didn’t give a name. The recruiter said he could still submit my name, so I gave him a PDF copy of my resume.

Things changed fast!  First, he said I would be required to fill out an online application for the HR department. But I couldn’t proceed with the application unless I put in a numerical value for salary. I asked about this and he said whatever I put in could be discussed later. I put in $0. There was also a short “personality test.” I completed all this by mid-day Friday. By noon on Saturday, I got a rejection notice. BAM!

Could it be my salary expectations were too high? The recruiter recommended I come down, but because I’m not desperate I did not. Could it be that HR was totally offended that I was non-compliant? My feeling is that a junior HR person went over this and saw one thing out of order, and eliminated me. I seriously doubt that this application got further.

The bottom line is that I would not want to work for these people anyway, but I will admit that such a rapid-fire rejection hurts. Maybe I will hear from the recruiter as the week begins, or maybe not.

Next time I will ask if the recruiter’s contact is a hiring manager or HR. If it’s HR and not a manager, I will pass. So this was a good lesson learned. It cost nothing. Insofar as missing out on the raise? No problem there because I am not yet vested with my current company and I would lose the equivalent of the raise if I moved now.

Two last questions: Why does just about every recruiter who contacts me seem like a slime ball? How can they sleep at night?

Nick’s Reply

Welcome to the biggest recruiting scam going: job applications. Thousands if not millions are victimized daily. They don’t even realize it. You didn’t get recruited. You got scammed. And it’s legal. Employers encourage recruiters to scam you every day.

A recruiter contacted you to recruit you. That is, he’s out scouring the world for the right candidates for his client. He identifies the best, and then he goes after them — he pursues them. He and his client still need to interview you to be sure you’re right enough, of course, but they chose you and now they’re approaching you, enticing you, seducing you, cajoling you, trying to convince you — the guy they selected to go after — to consider a job there. They’re trying hard to impress you with an opportunity so you’ll invest your valuable time to talk with them.

Is that how this process felt to you? Of course not.

Recruiting you to fill out a job application

You were not recruited for a job. You were recruited to fill out a job application.

You were recruited off the street to do what anyone does to apply for a job they found posted on a job board. My guess is the employer is not even the recruiter’s client. I doubt they have a contract. The recruiter is hoping to throw enough job applications at this employer, in the hope one might “stick” so the employer might pay the recruiter a fee.

The recruiter led you down the path every other job seeker takes on their own. Like every other job seeker that is summarily rejected instantly, you got rejected. No surprise!

The only difference between job applicants who go through the process and you is this: If by some miracle you had been hired, the recruiter would have earned a big fee for doing nothing but ushering random people through the application process.

I’ll say it again: You were recruited not for a job, but to fill out a job application.

Recruiting to fill a job

Here’s what recruiting really looks like. Last week I finally reached a person I’ve been trying to recruit for almost a month. She’s a good candidate for my client. The president of the company and I carefully selected her because our research showed she fit our carefully defined criteria. I knew exactly why I was reaching out to her.

When I finally reached her, it was to set up an interview with the president of the company. No forms. No online links. No personality tests. No obstacles.

My job for a month was to eliminate obstacles so my client could talk to her. I never asked her for her salary information. I still don’t know it, and I don’t care what it is. When I finally got her on the phone, I spent most of the time trying to impress her. I didn’t want to let her get away.

My goal has been to pursue and persuade her to talk with my client about a job — and to impress her with the opportunity so that we’d have a good chance of hiring her. Why would we risk offending her by making her jump through hoops? That would not have impressed her!

How to test a headhunter

  • Who are some of the headhunter’s clients? Get the names of companies and managers.
  • Who has she placed? Get the names of a few candidates placed recently and a year or two ago.
  • What firm does she work for?
  • Where is she located?
  • Who owns the firm?

From How to Work With Headhunters, pp. 28-29.

Why they do it

Recruiters like this one sleep at night by mentally counting all the lottery tickets they’ve acquired — job seekers they’ve convinced to fill out job applications. Then they dream that a company will pay off on one of them.

The daily recruiting scam is a numbers game. Recruiters play it because sometimes it pays off — just like everyone else plays the lottery.

How to save loads of time

The recruiter’s trick is to get you to spend loads of time applying for a job that pays “20% more than you’re making!” It’s a simple rule of behavioral psychology: The more the recruiter can get you to do, the more you will then rationalize doing even more to comply. So the recruiter’s goal is to get you to start complying.

You ask what to do next time. Here’s a quick and sure way to save loads of time. The next time a recruiter contacts you, ask this question:

“Why does your client want me?”

Then ask this question — and nothing else:

“When does your client want to talk with me?”

For more on this topic, see Why do recruiters suck so bad?
If the recruiter answers with a list of tasks for you to do first — submit your resume, complete online forms, take a test, disclose your salary — tell the recruiter to take a flying leap into a cactus bush.

It takes a mental re-set to realize what that guy did to you. He made you apply for a job. It’s the daily recruiting scam.

How do you sort out the recruiters? What percentage of contacts from recruiters have resulted in face-to-face job interviews for you? At what point should the reader above have recognized what was going on?

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