Should I accept a job offer with a salary cut?

Should I accept a job offer with a salary cut?

In the February 25, 2020 Ask The Headhunter Newsletter a reader asks whether it’s possible to recover after accepting a job offer with a salary cut.

Question

salary cutI’ve been unemployed for six weeks. Was earning around $120K. Have been offered a position at $85K and, quite frankly, I need the money. Even more important, I recognize that my self-esteem is too bound up in my career: I need to work for more than just the money. Am seriously considering accepting this lower offer, because I believe these folks cannot afford to pay more. Will my chances of negotiating another position at a higher salary be irrevocably damaged if I accept a salary cut? Advice, please, and thanks in advance.

Nick’s Reply

You’re facing an important decision, and you need to be sure you are balancing the key issues. How long can you afford to go without a job? If you accept this offer, how much time will you be able to devote to continuing your search for one that pays better? Will being under-employed versus unemployed affect your self-esteem?

(And consider this: Is it possible to get more money out of a company that “cannot afford to pay more?” We’ll get to that at the end.)

What’s your objective?

I could easily tell you not to give in yet, and that it would be smarter to continue your search until you find a job where the pay is more in line with what you’re accustomed to. Six weeks is not a long time to find the right job. But being able to pay the bills is just as big a consideration. You could borrow to meet expenses until you find something better — but how would that affect your motivation and effectiveness in interviews?

These are very personal questions that only you can answer, and I think they are more relevant at this point than the main question you’ve asked: Will a salary cut damage your ability to win a higher salary later? While it might seem penny-wise and pound foolish to focus on the short-term problem (paying the bills), there’s something to be said for surviving today so you can stay in the game.

It’s important to think about what your objective really is.

Why a salary cut?

In today’s business climate, radical corporate restructurings and the outsourcing of jobs to “consulting firms” seem to be killing wages and salaries. While economists consider it a minor footnote and blow it off, stagnant wage growth tells us something is very wrong. Seemingly low unemployment suggests pay should be going up — but it’s not. This is for another discussion, but it seems the U.S. Department of Labor may be misrepresenting the impacts of masses of uncounted people who are returning to the labor market. I could make the argument that there is no talent or labor shortage; that in fact, we’re in an unprecedented talent glut. That’s why employers think they can hire you even with a salary cut.

There are a lot of good people on the street. Some employers are capitalizing on this by hiring great workers cheap. But this is no more of an ethical problem than you accepting a low-paying job while continuing your job search — and then quitting for a job with more pay.

(Is it ever worth taking a salary cut, other than because you need the money? I see one possible benefit, if you look at it as a re-tooling investment. A lower-paying job might be the price you pay for an opportunity to gain a foothold in a new field or business, and to learn new skills.)

Are good salaries dead?

While some employers are buying talent at a discount, others are smarter. They don’t assume that because you took a pay cut at your last job, you’re now worth less. They see an opportunity to land a great new employee who might not have been available to them otherwise at any price. (See Dr. Dawn Graham’s insightful article: The Salary Negotiation Mistake That’s Costing You.)

I know one very rare HR manager whose policy is to offer candidates what they’re really worth. If they are truly under-paid, she helps get their compensation back on track, and earns the new hire’s loyalty. Good salaries are not dead. (See Why employers should make higher job offers.)

So, no, I don’t think your chances for more money will be irrevocably damaged — not unless you become complacent. You must continue your job search if you take this lower-paying job. If you stay in the $85K job too long, you could indeed hurt yourself long-term.

Encourage better job offers

As you continue to search while newly employed, you must learn how to negotiate from a position of strength — even if the employer says it “cannot afford to pay more.”

  • Never disclose what your current salary is. It’s none of their business. An employer will always use your current salary to negotiate against you. See We need to know your salary because —.
  • Ask the employer what the salary range is before you agree to interview. Don’t fall into the trap of interviewing for jobs that won’t pay enough. You’re likely to rationalize accepting another low salary simply because you invested so much time in it.
  • Assess the value you could add to any new job you’re considering. Can you do it faster, more efficiently, more profitably than the employer expects? Couch your salary expectations in terms of what you will bring to the employer’s bottom line. Be ready to explain it.
  • Choose higher-paying jobs and, for each one, prepare a mini business plan that demonstrates clearly why you’re worth the money.

What counts most in any job negotiation is what positive impact you’re offering to an employer’s bottom line. That’s what wins you more money. Focus on conveying that critical message to an employer, and you’ll always be able to negotiate for more money — with a current employer, or with a new one.

Have you accepted a job with a salary cut? Why? Were you able to regain your higher salary level? How? What should this reader do? Do you believe salary cuts are more likely in today’s job market?

: :

Share

HR tech makes your job search a living hell

HR tech makes your job search a living hell

 

Cost Cutting Algorithms Are Making Your Job Search a Living Hell

More companies are using automated job screening systems to vet candidates, forcing jobseekers to learn new and absurd tricks to have their résumés seen by a human.

HR techSource: Motherboard | Vice
By Nick Keppler

“I’m doing something else while the system is interviewing my candidates,” [a “senior recruiter”] says with a smile. The message is clear: She’s offloaded much of her work to someone else. Ifeoma Ajunwa, an assistant professor of labor and employment law at Cornell University said automated systems will probably continue to amass between jobs and jobseekers. “I think that’s the way it’s going to advance… Companies have come to count on it.” The makers of more advanced applicant tracking systems are acutely aware of the bias problem, but are not certain of a solution. Should job applicants rebel? Should they refuse to take online assessments or to upload video faux interviews or engage the next faceless gatekeeper?

 

HR tech in your face: Nick’s take

Don’t miss this excellent run-down on the “pseudoscience” and “profoundly disturbing” technology that HR is using in its never-ending battle to turn you into a bucket o’ bits. See also Why does HR waste time, money and the best job candidates?

What’s your take?

Do you let employers put HR tech between you and a job? Between you and the hiring manager? When is this going to stop — and who’s going to stop it?

 

 

: :

Share

How can I survive a reorganization at my company?

How can I survive a reorganization at my company?

In the February 11, 2020 Ask The Headhunter Newsletter a reader worries about navigating a reorganization.

Question

reorganization

My company will be undergoing changes after a reorganization and I will be settling in a new part of the company. I currently manage a team of five. The nature of my job should stay the same, but my boss, co-workers and direct reports will be all new people. I’ve been at this company for about a year and was just getting into a rhythm with my current boss and department. Now it feels like I have to start over and prove myself again in a new department — almost like a new job.

I’ve never been involved in a reorganization. I know from friends that sometimes a reorganization doesn’t turn out well, but I’m keeping a positive outlook. Do you have any advice or insight about these kinds of situations? Thanks!

Nick’s Reply

When a company undergoes reorganization, whether due to a merger or due to any internal or external impetus, it can indeed be like starting a new job in a new company. There’s loads of opportunity and, of course, risks.

Every “reorg” is different, and the process and outcome really depend on the quality of management and on the company culture. You must decide whether what I’m going to suggest is prudent or risky and whether it fits your style. Then do what you think is best.

Take the initiative

I find that the best approach to corporate reshuffling, or reorganization, is to take the initiative to make your arrival easy for your boss and your team. You’re just as new to them as they are to you. Don’t wait for them to come to you. By taking the initiative, you will demonstrate your commitment to making it all work.

I’m not suggesting that you “take control” or try to position yourself as “the solution to the department’s problems.” Rather, show your new team and boss that you’re ready to get to work by making it easy for them to bring you into the fold. It actually helps to consider your insight that this is “almost like a new job,” and that’s why you might find this article helpful: Afraid to ask for feedback in job interviews?

Talk shop

I’d ask your new boss for a meeting to further introduce yourself and to “talk shop.”

How to Say It
“I’d like to get an idea of the problems and challenges the department faces, and to discuss how I can best contribute to your success.”

The point is to get your boss (or your peers or new reports) to talk about themselves and their work first, so that you can then direct your own comments and questions appropriately.

It’s like being on a first date. Encourage your date to talk. Learning about the other person is the foundation of any new, successful relationship — and it’s how to determine what you say and do next. Psychological research also suggests that when we ask others about themselves, they perceive us as more likable!

Here are some additional examples of talking shop.

How to Say It

  • “Thanks for welcoming me to the team. Can you help me understand the team’s objectives, and what the day-to-day work is like?”
  • “May I ask what led you to this job, and what you see as the key challenges and objectives?”
  • “What do you think helps make this department more successful, and what might hold it back?
  • “I’m not sure how much of this is already fleshed out, but it would help me to know what you’d like me to accomplish, or work on, during my first month, three months, six and 12. I like to think in terms of deliverables — because my job is to do what you need. The more concrete, the better, though I also realize the work can be fluid. And I’d be happy to roughly outline how I’d go about it. Then we can discuss and fine tune a plan that you’re happy with.”

Remember: Don’t appear presumptuous. It often helps to “ask permission” before you offer your ideas. Until you understand your new boss’s style, be deferential. Make it clear that, while you are self-motivated, you want to fit in, do your share, and focus on the department’s objectives.

Learn where you fit in the reorganization

If your boss asks you to talk about yourself, offer three things you accomplished last year that made a material difference to the business. Then ask what the boss would like to see from you in the coming year. This helps establish your credibility, and also focuses the discussion on the benefits you will deliver to the organization — not on your aspirations, which it’s fine to discuss later on. Your new team’s needs should come first. That will earn you the right to talk about what you’d like out of this deal — later on.

This is just one way to break the ice and start forming a sound relationship. It’s good to talk shop and get specific. It shows that you are hands-on and ready to contribute.

You can take similar steps with your co-workers and reports: Ask for a casual meeting where you can learn about what each member is working on and how it all combines to achieve the department’s and the company’s objectives. The more you can get your boss, your peers and your new reports to talk about their work, the more you’ll see how to best fit in.

I can’t promise that doing any of this will ensure you survive this experience, but I hope my suggestions help you see what some of the fundamental issues are in trying to succeed in any job anywhere.

For a more in-depth look at how reorganizations often work, check out this resource from the Wharton School.

Worst case

As you’ve noted, a reorg can be like a new job. It might not work out!

I’m a cautious optimist, so I always like to consider a worst-case scenario when there’s a reorg, acquisition, or merger, because some of these “transitions” don’t always succeed. That means it’s smart to hedge your bet until you can form a sound judgment about the next few years of your career. This may surprise you, but it’s what I recommend to anyone when they start a new job.

Start (or continue) a quiet, low-level job search, just in case. You can end it if things go well at work, or accelerate if necessary. Keep a positive attitude about your new job, but hedge your bet and always have something cooking — don’t wait til the last minute. It will make you a more powerful decision-maker in the meantime for having something in your back pocket. Hopefully, you won’t need it!

In the meantime, find your new place. Take the initiative to get to know your new boss, your peers and your new reports — by helping them talk shop with you. I wish you the best.

Have you been through a reorg? What challenges did you face? Did you survive? How? What advice would you offer this reader?

: :

Share

She got mugged in a stress interview

She got mugged in a stress interview

In the February 4, 2020 Ask The Headhunter Newsletter we consider the meaning of a stress interview.

Question

stress interviewMy daughter just went through what’s called a “stress interview.” She said she held it together, but came home and burst into tears. She didn’t know this was a thing. She’s had three such interviews in a row that left her feeling worthless in some unknown way. WHY is this a thing? It’s just mean. Why would anyone want to work with such awful people?

Nick’s Reply

Please tell your daughter there’s nothing wrong with her. What she went through is the corporate equivalent of getting mugged. The victim feels that they somehow did something wrong to put themselves in that position.

Many employers’ hiring methods are rooted in HR consultants’ reports that advise using “best practices” – like stress interviews – in the name of “HR science.” But there is no science in intimidation, and abusing job applicants is not a good practice!

Is a stress interview a hiring method?

Let’s make an important distinction from the start. There is a difference between asking a job candidate to consent to participate in a work simulation that models the pressures of a job, and subjecting the candidate to an unexpected personal attack as part of an interview. Even in the former case, an employer is obligated to disclose the stressful nature of the job and give the applicant the option to decline any interview at all. For our purposes, the rest of this column refers to the latter scenario.

Job applicants like your daughter strive to be cooperative during the highly bureaucratic hiring process. I’m sure she trusts that, even if job interviews are fraught with anxiety, employers will conduct themselves with integrity. There is no business without trust, though we sometimes get hurt for trusting. Tell her to be careful around people who lack integrity, but not to stop trusting.

Many online resources purport to teach how to handle the pressure of a stress interview and how to prepare for it. But I don’t think a stress interview is ever justified. If it’s a “method” of testing applicants, then someone doesn’t know how to assess job applicants. I’m in agreement with this BBC article on the subject: The ‘stress interview’: a technique that goes too far? If an employer wants to give you a “front-row seat to the ugliest side of the company,” that’s your signal to run to the fire exit.

Stand and deliver

My advice to anyone who finds themselves in a stress interview is to calmly and politely stand up and deliver a message like this one:

“I’d never subject a fellow employee or a customer to such treatment for any reason, and I don’t tolerate it myself. Good luck finding someone who does.”

And walk out.

What kind of people do you want to work with?

Of course, that means no job. But there was no job there to begin with; just abuse and nasty people who have no clue that business is about trust, integrity, and respect. If the explanation is that the company wants to prepare you for working with abusive customers, for example, you should reconsider the job entirely. Would you consent to being tortured, so we could see how durable you are? Ask yourself, what kind of job do I want and what kind of people do I want to work with? (See Never work with jerks.)

Please tell your daughter to hold her head high and move on – to companies that have a standard of behavior as high as her own. To accept anything less is to debase and devalue herself.

In answer to your question, no one should want to work with awful people. Walk away from them. They are never worth the torture they inflict. Just because “it’s part of the interview process” doesn’t make it legitimate or acceptable.

I wish your daughter the best and I compliment you for not remaining silent about how she was treated. Good for you for letting out your ire. Sharing experiences like this is how we help others avoid them.

Now it’s time for your daughter to go find smart people worth working with.

How far should an interview go? What’s the wildest “test” you’ve encountered, and was it justified? Is there any way to conduct a legitimate stress interview? Is there a better way than I suggested to deal with one?

: :

Share