Zuck’s Stupid Recruiting Start-up: Moo!

On June 5, 2012

Facebook is about to go face-down to $25 a share — but CEO Mark Zuckerberg may be saved by a new recruiting startup. (Recruiting industry watcher Joel Cheesman just keeps serving these flapjacks up, hot off the grill. I’m still LMAO about the last one.)

Identified.com

The Stanford University-spawned start-up Identified.com just got $21 million in sucker capital funding. (Disclosure: I went to Stanford and have yet to raise $21 million, but I do not hold that against Stanford.) And what does this “fastest growing career site for young professionals” actually do?

 

 

Yep — Identified.com sends traffic to Facebook.

Judging by the time-honored rule of putting your best assets right out front on your home page, Zuck’s got a winner by the short hairs. Somebody finally got the message — just send ’em over to FB right away!

Plus it’s not boring.

That’s the value proposition right off the bat. All you have to do is KMA and “Turn On Platform.”

Not Boring: Identified hangs out with Richard Branson

Courtesy of the Sacramento Bee, you can read all about it in the “unedited press release,” which explains nothing about how the “business” works. Well, it does say that Identified.com:

  • “transform[s] professional identity through gamification”
  • “aims to help young people achieve their professional goals”
  • “[is] taking the principles of game design and applying them to managing your career”
  • “[is] helping young people leverage data to make career choices in a fun, interactive way”

Then I realized where I’ve seen some of this stuff. It kinda reminds me of the classic resume objective statement: “I want to work with people to achieve my professional goals in a progressive company!”

But, the company’s business model, displayed on its front page, is that it’s driving more users to Zuck’s website… and that’s good for America.

And Identified hangs out with Richard Branson.

Dick Is Not On The Website

But the website doesn’t say dick about how it helps people and employers get together to fill jobs.

Because when I spent a few minutes to figure out what the proposition really is, all I learned is that:

The website says as much about the business as the press release. If you want to actually do anything on Identified.com, you need to talk to Zuck:

 

 

Why would V.C.’s dump $21 milion into a website that sends all its traffic to Facebook?

Wired magazine says:

“Facebook is on the cusp of becoming a medium unto itself — more akin to television as a whole than a single network, and more like the entire web than just one online destination.” (Cf., “We’re more popular than Jesus.“)

But then again, Wired also said:

“The sheer magnitude of Facebook’s success is one reason why, as the company charges toward what will likely be the most successful public offering in the history of capitalism…“

Disclosure: Wired is my favorite magazine. But like I said, Facebook is about to suck rocks at the bottom of $25 a share. (Facebook Deathwatch reports $25.87 at today’s close.)

If I were Tim Draper, Bill Draper, Innovation Endeavors, VantagePoint Capital Partners, and Capricorn Investment Group, I’d get Marc Cenedella on the phone, quick — Identified.com needs a better blog and a more capable hawker of recruiting services. (No disrespect to all these renowned V.C.s, but Dudes, I went to Stanford, too.)

How are we going to do that? Dunno, but it won’t be boring.

About Identified:

“What Facebook did for your social life, Identified is building for your professional life. How’re we going to do that? We’re going to make managing your career not boring.“

I was gonna say, who needs yet another online recruiting start-up? Who needs a business when you can just send all your traffic to Zuck?

But Cheesman already said it (I love this guy’s insights):

“The playbook for start-ups in the recruiting space usually goes something like this: Group of young, educated people — usually coming off their own job search, which apparently qualifies as experience in the employment space — come up with an idea to ‘make things better.’”

More Mooney?

When are the V.C.’s gonna learn that Facebook cow clicking is as good as it’s gonna get?

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Pop Quiz: Can an employer take back a job offer?

On June 4, 2012

In the June 5, 2012 Ask The Headhunter Newsletter, a guy gets honorably discharged from the military, carries a secret clearance, but has a misdemeanor conviction from 2003 for which he’s done probation. He gets a job offer. Then the nightmare begins:

Today I received a job offer from a large, well-known and respected company. I have a misdemeanor criminal conviction from 2003. I told the headhunter about the conviction. I put it in the application before my interview. I put it in the e-application for the background check. I even discussed it with the HR person that was giving me the offer.

After discussing the conviction, she extended me a verbal offer. At the end of the call, I accepted the offer. She welcomed me to the team and said I will get all the details after the background check clears. After the phone call, I turned down a competing job offer from another company and told my headhunters that I am no longer on the job market.

Less than an hour later, the HR person called me back and said she has to withdraw the offer because my three-year probation was cleared in 2006. Since that’s less than the company’s policy permits — seven years — I am ineligible for the job. The company’s security regulations would prevent me from gaining access to their campus.

The job posting required that the applicant must qualify for a government secret clearance. I was just honorably discharged from the military, where I held a secret clearance that I was able to renew after my misdemenor conviction.

It seems quite unethical to extend an offer prior to assuring that the information that I provided multiple times wasn’t an issue. This should have been caught well before I got the interview. Is this legal?

My Advice

This sounds like you got the shaft, but it’s a bit more complicated, based on the information you’ve provided.

I published your story in this week’s Ask The Headhunter e-mail newsletter, but I did not publish my advice and comments because I wanted to challenge our community to figure this one out. I asked subscribers to think about your story, and then come to the blog ready to post their take on it.

  • Did HR give this job applicant the shaft?
  • What went wrong?
  • How could this situation have been handled better?

Here’s how I see it.

HR blew it.

While it was nice of the enthusiastic HR lady to give you the offer on the phone, she jumped the gun when she “welcomed you to the team.” You weren’t on the team yet, and she had no business implying you were. Someone needs to call her on the carpet.

The HR lady tipped you off.

The key to this entire unfortunate episode lies in this sentence: “She welcomed me to the team and said I will get all the details after the background check clears.” That meant she made you a contingent offer. It was not bona fide. That is, it was dependent on the background check. In other words, you had no offer to act on.

You jumped the gun.

I always tell job applicants who “get an offer,” to never, ever, ever resign their old job, or turn off other opportunities, until they’ve been on the new job for two weeks. Sounds kind of extreme, eh? Yah, well, so’s what happened to you. While odds are pretty good that a job offer will turn out fine, the enormity of the consequences if anything goes wrong is why no one should do what you did. [Correction: My bad on a poor turn of phrase that confuses two issues — when to turn off other job opportunities and when to resign your old job. Please see my comment about this below.]

Before even orally accepting the offer, you should have waited for a bona fide offer in writing, signed by an official of the company.

Before setting aside other opportunities (because there is no sure thing), you should have completed the company orientation, met your new boss, started the job, and ensured nothing goofy was going on at your new job. I’ve seen many people quit new jobs within the first two weeks. It takes that long to… well… make sure nothing’s goofy. You don’t want to be out on the street with nowhere to go if the new job goes south. (Likewise, an employer should not stop recruiting and interviewing just because a candidate accepts its offer.)

You did the right thing, again and again.

You disclosed, from the start and throughout the interview process, that you had a misdemeanor conviction. That takes guts, and it was the smart thing to do. The company had an obligation to be as candid with you, and to disclose its policy about hiring people convicted of crimes. It had no excuse for not detailing its policies once you made your disclosures.

Fearless Job Hunting, Book 5: Get The Right Employer's Full AttentionDo all employers behave like this? Absolutely not. It’s up to you to find the right employers and to know how to get their attention — because lousy employers aren’t worth your time or aggravation! Learn how to:

  • Stop walking blind on the job hunt!
  • Pick worthy companies.
  • Test the company. Is it a Mickey Mouse operation?
  • Recognize and beat age discrimination. (Or is it your own anxiety?)
  • Deal with a bad reference. Don’t get torpedoed!
  • Investigate privately-held companies — Here’s the secret!
  • And more!

Don’t waste your time with the wrong employers! These methods are all in
Fearless Job Hunting, Book 5: Get The Right Employer’s Full Attention

But somebody didn’t do their job.

As soon as this employer learned about your conviction, HR should have pulled out its policy book and mapped it to your situation before making you an offer. The HR lady explained the policy clearly to you — too late!

What bunch of numbnuts knows it’s got a policy issue from the start, but ignores the implications of its policy? Especially because you were so candid and forthright about your problem, HR should have had the background check completed far sooner, and should have inquired about the dates of your conviction, sentence, and the resolution.

(I’m waiting for someone to suggest that, for legal reasons, the background check could not be done until you accepted the offer. That would be a good trick — accepting an offer for a job that company policy prohibits you from accepting.)

Who’s on the hook now?

I think the HR lady is on the hook. She should have made it crystal clear to you that the job offer was not yet bona fide, and that it was contingent on the background check. I think she should have even gone so far as to advise you not to take any other action until the check was confirmed. She blew it. She should be on the hook, but you’re the one who got hurt.

You’re on the hook because you rejected another (more bona fide?) job offer, and notified the headhunters that you’re no longer a candidate for a job.

Most important, this company’s HR practices are on the hook, and they need to be gutted and cleaned.

Fearless Job Hunting, Book 4: Overcome Human Resources ObstaclesThere’s no way to beat HR, is there? Sure there is! Learn how to recognize and overcome these HR obstacles:

  • HR demands too much private information, like your salary history. But two can play this game!
  • HR throws a “behavioral interview” at you.
  • Online job application forms — learn to get past them.
  • HR gets between you and the decision maker. Learn how to go straight to the hiring manager!
  • The HR rejection letter: Why you should reject it!
  • And more!

HR isn’t as tough as you think! You’ll find myth-busting answers in
Fearless Job Hunting, Book 4: Overcome Human Resources Obstacles

Doubling HR Costs: Time to change company practices.

Poor HR practices are what make HR executives scream that, “There’s a talent shortage!” Well, here’s the talent, fresh out of the military, worthy of a job offer, but… Aren’t an honorable discharge and a fresh secret clearance enough to merit more careful treatment when the company is looking at an applicant who qualifies for a secret clearance?

Now where’s the talent shortage? In HR.

HR spent a lot of company money to process this hire — only to stumble at the last minute. Now HR will spend the money again on another candidate. HR costs just doubled in this case. I wonder what the board of directors would have to say? Because HR will sweep the mistake under the rug, along with all the other good candidates HR lost because:

  • An otherwise excellent applicant’s keywords “didn’t match;”
  • A wise applicant didn’t want to disclose her salary history;
  • A highly motivated applicant dared to contact the hiring manager directly;
  • HR interviewed the engineering applicant but doesn’t understand engineering;
  • The applicant seems a bit old;
  • The applicant refused to meet with HR until he first interviewed with the hiring manager;
  • And on and on… through the myriad wasteful practices we discuss on this forum that cost companies good hires every day…

It’s time for this company — and many companies — to take a good, hard look at HR practices because good talent is not easy to come by.

Whose bad?

That offer was no offer, so give it back! Has an employer ever given you a job offer, then rescinded it? Why? What was the reason? What did you do? What’s your take on this reader’s experience?

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Netflix: Another stupid employer

On May 16, 2012

Netflix bungled its business last year and ticked off lots of its customers, who quickly cancelled the service. It was a case study of a business and public relations disaster.

Now Netflix is at it again — this time by advertising for “recent college graduates” to fill jobs anyone could do. Age discrimination anyone? The ad on craigslist is titled, “Netflix – Recruiting Researcher  (los gatos)” and it says:

“We treat you like an adult and expect you to act like one.”

(For a PDF of the full ad on craigslist, click here. For the “live” ad on craigslist — which will not be there forever — click here. For the ad on Netflix.com, click here.)

***UPDATE 5/18/12: Netflix has removed the job posting from its own website. For a PDF of the original, click here.

Netflix has not responded to a request for comment.

Netflix would do well to act like an adult and recruit people who can do the job — and that includes college grads from quite a while ago. Consider the Netflix job ad below. What’s in this job description that an older worker couldn’t deliver?

We’ve found that recent college grads have been most successful in this position because we need some who is:
– Self-motivated and directed; hungry to get started with a great, well-known company.
– Proactive; taking initiative and follow-through is a must
– Accustomed to multi-tasking and meeting multiple, tight deadlines
– A leader and will offer innovative and constructive ideas to continue our team’s success

I know a lot of hungry 40+ year olds who are out of work — they’re self-motivated, proactive, can multitask, and lead others.

Netflix goes on to say that:

“We don’t have rules.”

That’s clear. They could add, “We don’t have any common sense.”

I’m a big fan of hiring kids out of college — as a cohort, they’re suffering mightily in the job market. They need help. Perhaps Netflix can hire a new grad who can show the company how to recruit properly. Or maybe it needs someone a lot more experienced than the clown in HR who’s producing these job descriptions and ads.

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How to Boost Your Salary Quickly and Often

On May 7, 2012

In the May 8, 2012 Ask The Headhunter Newsletter, we’re covering something different: A wild story…

From The Headhunter Files

People seem to enjoy hearing some of the stranger stories from The Headhunter Files. I usually share these only in my live presentations and workshops, but I think it’s time to go public. Rather than Q&A this week, we’ll do a “Headhunter File,” and if subscribers enjoy it, we’ll do this as a regular feature in upcoming editions.

Fred was an engineer I spoke with while I was checking references on another engineer during a search I was conducting in Silicon Valley. No one had recommended Fred to me (you’ll see why this is pertinent later) — but after my reference call was done, he asked me if I could help him land a better job. I took his resume and filed it, but I wasn’t working on any assignments he’d be a fit for anyway.

But Fred was persistent. He called me again and asked why I wasn’t helping him out. I explained that I didn’t find jobs for engineers — I found engineers for my clients, based on specific requirements. Here’s roughly how the conversation went.

Let’s make money together

Fred: “But if you’ll help me, I’ll make you a lot of money.”
Me: “I’m sure I could earn a good fee placing you, if I had the right assignment.”

Fred: “Just send me to interview with any of your current clients. I’m very good at getting job offers. You’ll earn a fee quickly and it will be good for both of us.”
Me: “Sorry, I don’t work that way. But since you brought it up, what’s your specialization? What do you do, exactly?”

Fred: “I’m an engineer, and I can do almost anything. I got a 15% raise to take this job. If you can get me 10% more, I’ll take it.”
Me: “How long have you been at your current job?”

Fred: “About two months. Before this job, I got almost a 20% raise on the last job.”
Me: “Really? How long were you at that job?”

Fred: “No more than six months. My goal is to get my salary up as high as possible.”
Me: “Don’t you think you’re building a reputation for jumping around?”

Fred: “Employers want the best people they can get, and as long as they pay me and my salary keeps going up, I’ll go wherever I have to.”
Me: “Sorry, but my clients don’t pay me fees for engineers who will pack up and leave every few months. You should be careful.”

Fred: “There’s no need to tell them I changed jobs recently. I’ve only been here two months. Just tell them I’m still at the last company. And that would be true. I’m doing both jobs.”
Me: “You’re working at two companies at once?”

Fred: “Yes. It’s a lot of work, but I don’t mind. I’ll do it as long as I can and make all the money I can.”
Me: “Do both companies know you’re doing this?”

Fred: “Of course not. Look, I could earn you several fees in just one year! We’d be a good team.”
Me: “No, you look — don’t call me again.”

Fred: “If you’re going to tell anyone, let’s just forget it.”
Me: Click.

I could have said something more clever, but I just told Fred to bug off. He never told me where he worked, and I didn’t want to know. Since no one had recommended Fred to me — another engineer used him as a reference — I had no context for a relationship with him, and no one to blame!

Making jobs pay

How was it possible for Fred to keep jumping jobs, getting 10%-20% higher salaries, and not get caught? He told me he worked odd hours, but that’s common for engineers. He’d put in just enough time at each job to keep his head above water, then leave when things got hot. After around three years, he’d boosted his salary by over 50%, and made much more than that by holding two jobs at a time. He made sure to stay employed, so headhunters would call him with interviews — he’d figured that much out. He was “working” headhunters who filled jobs without asking too many questions.

Fred said he was “making jobs pay.” You could say Fred was just playing the market, and beating employers at the salary game. He’d lucked into some employers that didn’t do much background checking — or that trusted “headhunters” to do it for them.

I write a lot in this newsletter about employers that go too far with background checks, and about job hunters who get abused in the recruiting process. But employers sometimes take it between the eyes, too, from unscrupulous “salary hunters.”

What Fred was doing can be done — but not for long. The issue wasn’t the salary boosts he was getting — that’s a matter of negotiating. The problem was that he wasn’t comitting to a job, and that was his routine.

Do you think people can hold down multiple jobs of the same kind, and do it successfully and legitimately?

I didn’t keep up with him, but my guess is Fred didn’t spend many years in the engineering profession. I’m sure he got busted. There are many lessons in stories like this. What do you get from this one?

Got a good, weird tale of job hunting or hiring? Let’s hear it! (Want to hear more true stories from The Headhunter Files? Let me know!)

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Open Mic: What’s your problem?

On April 24, 2012

Every week in the Ask The Headhunter Newsletter I answer one question from a reader in the traditional Q&A format. From time to time, we have an “open mic,” where you pose the questions on the fly here on the blog.

This week, I will do my best to answer any and all questions you post. As always, I welcome everyone to contribute their best advice to the questions, and to add their comments to the discussion. The more input, the better!

  • Lost your job and don’t know how to start hunting for a new one?
  • The employer wants you to do a stress interview?
  • 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?
  • The manager made you a good offer, but HR just called to rescind it?
  • What’s your problem? Please post it and we’ll tackle it.

(You don’t have to include any identifying information.)

I’ve answered over 30,000 questions from Ask The Headhunter readers since 1995. This week I’ll answer as many as you post — and I’m sure you’ll get lots more great advice and commentary from the rest of our community. So… please ask away!

(This column was published before the comment threading feature was added to Ask The Headhunter, so my replies to questions do not appear immediately below each comment. Please scroll down in the comments and look for my reply “@commenter-name” to each question. Sorry for the inconvenience!)

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The First Job Interview

On March 29, 2012

In a hidden valley many thousands of years ago… “So, where do you see yourself in 50 moons’ time?”

 


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Move Over H-1B: Make way for L-1 visas

On March 28, 2012

The H-1B visa is well-known in technology circles: U.S. employers use it to hire temporary foreign workers in “specialty occupations.”

Engineers and Information Technology (IT) workers have long complained that the H-1B program takes jobs away from Americans. While H-1B requires employees to be paid the prevailing wage, some argue that employers actually pay lower salaries to H-1B workers — and that this depresses salaries across the board.

Enter L-1: A dog of a visa?

While there is a cap on the number of H-1B visas issued in the U.S., there is no cap on the L-1 visa, which has no prevailing wage requirement.

The L-1 visa is used by foreign companies for intra-company transfers of foreign employees into the U.S. L-1 workers are supposed to have “specialized knowledge” — but my dog could claim that his nose enables him to fulfill that requirement.

Use of the L-1 visa is growing, in part because the definition of “specialized knowledge” makes it easier to abuse.

Leading work to other countries?

Computerworld reports in an article, Charting H-1B users, as attention shifts to L-1, that, according to the Economic Policy Institute (EPI), L-1 could start resulting in significant job losses for Americans. EPI warns of “offshore outsourcing firms whose business model is to first hire L-1 workers to learn the work done by Americans, then to transfer that work overseas.”

Says an EPI analyst: “The L-1 program was not intended to function in this way. Nevertheless, this blatant misuse of the program is legally permissible. As a result, the program is operating at the expense of American workers.”

The issue: The U.S. government is considering changing the definition of “specialized knowledge,” and EPI is warning that the new definition could cause new, more extensive job losses. Are American jobs being led out of the country on L-1 leashes? I mean, L-1 visas?

Meanwhile, foreign companies that want to transfer more of their employees to work in their U.S. facilities complain about the restrictions.

Have you encountered L-1? Is it the new H-1B?

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Business Cards: What do Asians know?

On March 26, 2012

In the March 27, 2012 Ask The Headhunter Newsletter, a business owner defends business cards:

I just read an article in the L.A. Times that says Passing out business cards is quickly becoming passe. Instead, I’m supposed to “bump” my phone with someone else’s to trade contact information. If cards are optional, then so are new clients and referrals. The end of that article points out that in the world’s fastest growing market, Asia, you’d better have a card because it’s crucial. I run a successful small business and I think anyone who doesn’t carry business cards is naive. Do you use business cards?

My Advice

Hmmm… what do Asians know that the rest of us don’t?

I run an online publishing business, and “digital” is an enormous part of my work and life. If there’s a way to do something more effectively or efficiently, I take advantage of it. Sometimes, digital technology enables us to do things we could never do without it — like publishing this newsletter and my books.

But I do carry business cards, and I don’t intend to give them up. Guess I’m good to go to Asia.

Last week I gave a presentation, and afterwards I had a cup of coffee with one of the attendees — who is a potential client. She asked me for a business card. Suppose I’d told her, “I don’t use business cards. Find my e-mail address on my website.” I’d have broken the pace of our discussion. It would not have helped.

I do a lot of business online and I don’t always meet my clients, so there’s not always a chance to use a business card. But for those in-person meetings and work sessions, cards are a necessity. I’ve encountered some people who don’t have a card to share, and sometimes — not always — this sends a bad signal. I quickly assess whether the person has a viable business, or is just knocking around, trying to get lucky. It affects how I judge them. Is that fair? I don’t think that matters. I know other business people who react the same way. Cards are cheap; so’s a simple website. If you’re too cheap to have both, you may not be worth talking to.

But there are lots of subtle benefits to cards. Some people are in too much of a hurry to recognize them.

If you want to encourage someone to talk to you again, it’s easy to offer your card. Asking for their e-mail address or getting them to jot down yours is a bit more awkward. (Not all phones “bump.”) Contrary to what that article suggests, cards are not all tossed in the trash. I have a large digital contact list, but I also have a well-organized box of cards that I refer to often.

I can write a note on the back of a card, to personalize the memory someone has of me. And when they give me their card, I can jot a note on theirs, too. I could do it on my Droid, but so what? That card stays on my desk for a while and reminds me of the person. If the information is only in my phone, I won’t see it until I have reason to search for it.

A university professor is quoted in that article: “It’s time-consuming to organize business cards — and not portable.” That’s pretty naive. New contacts earn their way into my phone. Many start out as cards. If I need them more than once or twice, I add them to my digital list.

One last reason cards are good: Design. A person’s card tells me as much about their brand as their website does. Do they care how they come off?

What’s most unfortunate about the article is its self-righteous tone. It pits “under-30” and “young and Web-savvy people” against… who? Over-thirty and Web-ignorant people? Gimme a break.

The real punch line in the article reveals how gratuitous it is. “Firms that do business abroad, particularly in Asia, have found printed business cards to be crucial to corporate culture and ritual there.” In one of the fastest-growing markets, cards are crucial. Did someone miss a bigger point when writing this article?

Why come off like a clueless dork? Carry cards as well as one of those digital communication thingies, what do you call it? A smartpod? A pad thingy. You know what I mean — here, I’ll write it down on my card for you… Call me. We’ll do lunch.

Do you use business cards? Are they on the way out? What do Asians know that the rest of us don’t? Do biz cards offer anything that digital doesn’t? Post a comment… or write me a letter…

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Should I disclose my salary history?

On March 19, 2012

In the March 20, 2012 Ask The Headhunter Newsletter, a reader worries that disclosing salary history to an employer is not a good idea…

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.

My Advice

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 limit any offer they make. And that’s why you need to take control of the discussion.

You should avoid disclosing your salary history, while expressing your desired salary as a range you can justify and defend. The best way to negotiate a good salary deal is to demonstrate that you’re worth it.

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 her to make an independent assessment of your value to her business.

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Your salary is nobody’s business. Disclosing it can cost you a big raise.

Learn to say NO firmly and with authority when employers demand your salary history — to make them say YES to the best possible offer.

It’s all in my new PDF book:

Keep Your Salary Under Wraps

BONUS: I’m throwing in a special mp3 download, from my recent workshop at Cornell’s Johnson School of Management.

.

ORDER NOW! Get a BONUS mp3 download!

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Don’t cap the job offer.

Employers claim otherwise, but once they know your salary history, they’re likely to use it to limit any job offer they make to you. They offer myriad excuses for why they need to know your salary, but I’ve never heard a legitimate one. (My favorite: “It’s the policy!” Gimme a break.) If they want to make sure you’re “in the right ballpark,” ask them what the salary range on the job is. If they continue to press you, ask yourself whether they’d disclose the boss’s salary — or anyone else’s salary in the department. Makes no sense, does it? Don’t help an employer cap the job offer by retreating to your old salary before you even begin to negotiate.

Talk profit.

Turn any salary question around and ask what exactly the employer wants you to accomplish for her business. Then be ready to show how you will deliver. If this sounds like a lot to prepare in advance, it is. If you can’t do it, then you have no business in the interview.

Know what you want.

It’s legitimate for an employer to ask what you want, 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 thoughtful discussion about the manager’s business objectives and how you will fit into them.

Salary negotiations can be challenging. But it’s easier to negotiate the right deal when you’ve demonstrated good faith — and firmness — by keeping your salary history private, by demonstrating your worth, and by sharing your goals with the employer.

How to handle demands for your salary history is such a hot topic on Ask The Headhunter that I wrote a 27-page Answer Kit that teaches how to say NO politely and with authority, so you can prove you’re worth more: Keep Your Salary Under Wraps!

How do you protect your ability to negotiate the best salary? Should employers demand your salary history? Should you disclose it?

Don’t miss these other Ask The Headhunter Answer Kits:

How to Work With Headhunters

How Can I Change Careers

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Should I give equity to entice a new hire?

On March 12, 2012

In the March 13, 2012 Ask The Headhunter Newsletter, the owner of a start-up business asks whether it’s smart to give equity to a new hire:

After years of frustration with the way many professional services firms treat their clients, I decided to launch my own business. I have had modest success in my first six months and I am considering adding an employee. The individual that I am interested in has expressed concern about the added risk of working for a small company. He wants me to give him an equity stake to offset the risk, but I don’t want to give away too much too early, considering the competitive nature of the marketplace and my own business vision. What would you recommend?

Here’s the short version of my advice:

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My Advice

There are two kinds of people in your start-up world, other than clients: employees and investors. You can’t fill a job with an investor. You must fill it with an employee.

Now, I’m a big believer in sharing profits with good employees. And I think it’s a great idea to make employees owners to a reasonable extent, commensurate with their commitment to the business. That’s what profit-sharing plans are about.

But employees must earn their way into ownership of the business. It’s simply not good management practice to give away ownership of your company before you know what you’re getting in return. If this individual were bringing you new clients or some kind of intellectual property to enhance the value of your company, then and only then would I consider giving him equity from the outset.

If you hire an employee whose contributions become a true investment and a key part of your business, then at some point sharing some equity may be a key to your long-term success.

You can test this candidate’s motivations. Try this:

How to Say It
…(Sorry, this part is only in the newsletter… Don’t miss next week’s edition. Sign up now. It’s free!)…

…This person is clearly looking for security and potential riches without making a solid investment.

I’d find another candidate, or someone who wants to invest in your business as a partner. Take a look around: Even jobs with big, stable companies are risky. There is no such thing as job security.

In the future, I would look for candidates who want to add value to your business and to make you more successful — not ones that want you to protect them from risk. Talk about jobs and salary to potential employees. Talk about investment and risk to investors. But don’t confuse the two.

Does your company offer equity to new hires? Have you ever accepted equity to join a start-up? How did it work out? I’d like to hear what you have to say about the risks of start-ups — and the joys of taking risks!

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