Open Mic: What’s your job search problem?

On July 25, 2022
Open Mic: What’s your job search problem?

job search problemSpecial Edition

I started Ask The Headhunter many years ago as an “open mic” and invited anyone with a job search problem (as well as managers, HR, and recruiters with hiring problems) to post their questions. At that time, I was answering 20-30 questions per day on a massive, free-flowing discussion board. (Yah, my fingers hurt and the letters wore off my keyboard.)

Since then, I’ve answered over 50,000 questions — I really have heard it all! Nowadays I pick the best questions readers submit via e-mail, and I publish one per week along with my advice here on Ask The Headhunter and in my free weekly newsletter.

Periodically I like to open things up and let the questions fly. So, in this special edition, the mic is open to everyone —  job seekers and employers and recruiters. We’re going to tackle a lot of questions. (Yes, we.) 

Open Mic: You’re on!

The open mic idea stems from webinars and live conferences I do for professionals where I make a brief presentation, then we open it up. Anyone may ask any question about a job search problem or about hiring and recruiting (or about work), and I do my best to provide useful advice on the spot.

I love doing these events because I don’t have to prepare! In fact, I can’t prepare. I have no idea what anyone will ask. I also enjoy doing it because it tests me — how much value can I deliver, to someone with a job search problem, in the space of a few minutes? (Yes, sometimes it gets messy and I sometimes get egg on my face…)

We haven’t done an open mic in quite a while. But, hey — this is called Ask The Headhunter for a reason, right?? With the economy, the job market and our daily lives almost totally upended, I know a lot of people are facing unusual situations – so let’s try to help!

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What’s your job search problem?

I will do my best to answer any and all questions you post in the comments section below this column on the website.

  • Lost your job and don’t know how to start hunting for a new one?
  • You’ve got an offer but now the company is “on hold.” What do you do?
  • Wondering how to deal with a headhunter who just called you?
  • They want your salary history, but you don’t want to share it?
  • Your company posted a job and you got 5,000 applicants. What now?

What’s your problem? Please post it and we’ll tackle it. (To get an idea of how I view job search and hiring overall, please check The Basics.)

Two suggestions

  1. Please try to summarize your situation — about 100 words or so. Too much detail can be confusing. Try to boil it down as best you can. Help us understand the real issues so we can focus and offer useful responses.
  2. Please remember to ask in the form of a question. This helps crystallize the problem so we can address it effectively.

Please pile on!

I expect (and invite!) everyone to chime in and offer advice. The more suggestions and discussion, the better. Your advice is often better and more insightful than mine, so please share it!

What’s your question? What job search problem or challenge are you facing? Employers are welcome to post questions about their recruiting, hiring and HR problems, too.

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Should I use a job offer to get a raise?

On July 18, 2022
Should I use a job offer to get a raise?

Question

Can I use a job offer to get a raise out of my employer? After 22 years of military service, I’ve been working the last 14 months for a company (A) as a government contractor. The pay’s okay. Last month, out of the blue, I received an unofficial job offer from another company (B), to do basically the same work. The job description is similar to what I’m doing now, but the benefits are much better and the pay is about 25% more.

I’m not going to do anything until B actually makes me an offer in writing, but assuming that they do (in the next month), my question is: Should I sit down with my supervisor and tell him I’ve had another offer, and see if he can match the pay that B is offering? If he matched their pay I’d be inclined to stay. But would that sour our relationship (which is pretty good now)?

This is completely foreign to what military supervisors (at all levels) have to deal with.

Nick’s Reply

use a job offer to get a raiseMy compliments for not taking any action until you receive a bona fide, written offer from company B. Don’t risk your current job. And don’t let this blow up in your face!

What’s really motivating you?

You must first decide, Why are you interested in taking this new job? If it’s the money only, that’s fine. But, don’t confuse money with the quality of the job and company. These are two separate issues, and you must do yourself justice on both.

If it’s more money that you want, you should first try to get it from your current employer. Ask your boss for a raise, but don’t hang the new offer in front of his face. Such a threat — and it is a threat, no matter how you couch it — could blow up on you.

What’s in a raise?

Your boss might usher you right out the door, or, if he concedes on the salary, he may view you differently. That salary increase might be paid for out of your next review. That is, you may see less of a raise later. Or, you may be viewed as “less than loyal” and if cuts are made, you may be among the first to be let go. Only you can judge this.

A threat is no reason for your boss to give you a raise. You must earn the raise based on your abilities and on the value you deliver to the company. If your boss won’t give you what you want based on that, then why would you stay for any amount of money? So, make your case and ask for the raise without bringing up the other offer. It’s a great test of your relationship with your current employer.

Don’t use a job offer to get a raise

Now let’s talk about the second issue. If you want to leave because the new job and employer are better, then why would you stay where you are for more money? Just go.

Settle the money question in your mind first. Then decide which is the better workplace. This article will help: Should I stay at my current company?

Your sense is right: Threatening to leave and dangling an offer in front of your boss is not good. As we’ve discussed, it can backfire on you. Decide what you want to do and do it. Either negotiate a new salary based on your value, or leave for a better employer and job. Either way, make sure you are choosing to work with good people who recognize your value.

If and when you decide to move on, please refer to “Resign Yourself to Resigning Right,” in the PDF book Parting Company: How to leave your job.

I wish you the best!

Did you ever use a job offer to get a raise? How did it work out? What’s your take on this method of getting ahead? Have any wisdom or cautions to offer other readers?

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4 answers about signing bonuses

On July 11, 2022
4 answers about signing bonuses

Question

When it rains, it pours! Two of my friends got new jobs and both were offered signing bonuses. Is this common now? I have a few questions about signing bonuses.

  1. What is a signing bonus?
  2. Is there a “gotcha” I need to know about?
  3. When is a signing bonus typically paid out?
  4. Is a signing bonus taxable? If yes, at what rate?

Thanks for your answers.

Nick’s Reply

signing bonusYes, I’m seeing more signing, or “starting,” bonuses nowadays. Let’s answer your questions in the order you asked them.

1. A signing bonus is a one-shot deal

In a competitive job market, companies do all they can to attract the right kinds of people. If a company really wants to hire you but fears a competitor might snatch you up first (or that you’ll stay with your current job), they’ll pony up a bonus to get you to sign on. Or, they may offer a one-time bonus to compensate for something you’ll be forced to leave behind at your old job — like an imminent raise or sales commission.

That’s what a signing bonus is: a one-time inducement (though it may be in multiple payments) to get you to take the job.

2. Some signing bonus gotchas

Any bonus is a good thing, as long as you understand the terms. Here are some gotchas that may surprise some people.

Be aware that the bonus probably won’t affect your salary, or a review and raise, or the basis for any life insurance coverage, or your 401(k) program. That is, if you accept a salary of $100,000 and a signing bonus of $20,000, and you’re given a 5% raise next year, your new salary will be $105,000 — not 5% X $120,000.

Any benefits you get that are based on salary will not be affected by that bonus, because it’s usually not considered salary.

Companies love that, because it’s a short-term, one-time expense to them. Don’t let anyone convince you that a $100K salary plus a signing bonus of $10K is the same as a $110,00K salary without a bonus. Long term, there can be big differences because there’s nothing long-term about a one-time bonus.

Here’s a particularly sneaky gotcha. An employer hired a hotshot sales person and made the signing bonus contingent on the new hire turning over their book of business to a more senior sales person in the company. It was a nasty surprise because the new hire didn’t read the agreement carefully.

3. A signing bonus may not be paid all at once

Signing bonuses can be paid out any way the company wants (and you agree). It’s likely to be paid out over time. That’s because your new employer wants you to stick around. After all, you could accept the job, pocket the entire bonus, and quit six months later.

They’re probably going to spread the payments out, or make you sign an agreement saying the bonus is recoverable if you leave the job in less than, say, a year.

In some cases, they won’t make any payment on the bonus until you’ve been on board for an agreed-upon period of time. Read the fine print, and negotiate.

4. Tax consequences

I don’t give tax or legal advice, so you should check with a CPA and perhaps a lawyer about your specific situation.

Generally, a signing bonus is typically taxable as income. It’s considered part of your total earnings, and whatever your income tax rate is, that’s what you’ll pay on the bonus. The only way around this expense is if the company factors it up to cover the tax on the payment — but you still pay the tax. (Factoring up makes an interesting negotiating gambit.)

At executive levels complex deals can be struck using financial tools and techniques we mortals are not likely to have access to.

Settle it before accepting an offer

You should get all your questions about a signing bonus — and all aspects of your compensation — answered before you accept a job offer. If what you’re told is not reflected in the written offer or agreement, insist that it be added.

The terms of signing bonuses vary from situation to situation. If an employer offers a signing bonus, settle all the details in advance.

Negotiate.

Finally, remember that a signing bonus is just as negotiable as any other part of an offer. In fact, if no signing bonus is suggested as part of your job offer, you can ask for it.

If the employer absolutely won’t budge on salary, and you won’t accept what’s offered, suggest that a one-time signing bonus could close the deal without breaking their salary rules and scales. Of course, keep in mind that this won’t have the effect of a higher basis for raises and other benefits — but it’s still more money for you.

Have you been enticed to take a job because they offered a signing (or “starting”) bonus? How was this bonus structured? Were you able to negotiate it? When is it smart to accept such a bonus, and when might it not be so smart?

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