600 Editions: The Best of Ask The Headhunter!

In the November 10, 2015 Ask The Headhunter Newsletter, we look at the best of 600 editions!

Question

I’ve been reading your Ask The Headhunter newsletter for a long time. Before that, I remember your forum on The Motley Fool going back into the 1990s! I have no idea how many questions you’ve answered in all those years, but I wanted to ask you — is there any topic you have not covered? What’s your favorite topic or Q&A? Thanks for sharing so much good advice all these years and for doing it for free!

Nick’s Reply

Thanks for following Ask The Headhunter for so long! I stopped counting the questions I’ve answered after 40,000. (Yes, I typed all the replies myself! Ouch!) I’ve been saving your note for a good occasion, and this is it.

Nick5bI published the first Ask The Headhunter Newsletter on September 20, 2002. Ask The Headhunter first went online on January 17, 1995 — on Prodigy, if any of you remember that partnership between IBM and Sears Roebuck! But the newsletter actually debuted in November 1999, when TechRepublic licensed a Q&A feature from me for several years. That version of the newsletter was daily!

I had such a good time producing it that I decided to continue it on my own — and over 10,000 subscribers immediately followed from TechRepublic. Today that list is huge, and this marks the 600th weekly edition. I couldn’t do any of this without the great questions from subscribers!

I don’t really have any favorite editions of my own, but there are several Ask The Headhunter articles and newsletters that I think are fundamental to what ATH is all about — so I thought it might be worth re-capping some of the “best of Ask The Headhunter.” I hope you enjoy this as much I’ve enjoyed putting it together! (And I hope you get a kick out of the series of mugshots I’ve used in the newsletter through the years!)

The Basics

If you’re new to Ask The Headhunter, this is a great place to start: The Headhunter’s Basics: Job hunting with the headhunter. This core set of articles explains:

  • What’s wrong with the employment system
  • How to use the strategy headhunters use — yourself!
  • What employers really want — and it’s not your interview skills!
  • The mistakes that will sink your job search
  • How to be the profitable hire that all good employers want

Resume Blasphemy

Nick1cI think my best article might be one I avoided writing for years. People kept asking, How can I write a really great resume that will get me a job?

I’m not a fan of resumes. In fact, I think a resume is the worst crutch you can use when job hunting. But I realized that if I can’t answer this very popular question in some useful way, I have no right to publish Ask The Headhunter. Resume Blasphemy challenges you in a way that — if you do this exercise thoughtfully — will make you throw your resume away and forever change how you search for a job.

Free?

I’d like to set one thing straight. Yes, Ask The Headhunter is and continues to be free — the website, the blog, the newsletter. Literally thousands of pages of advice, tips and insights about job hunting, hiring and success at work.

But some stuff you do have to pay for: my PDF books, which organize my advice around specific topics in depth and detail. These books help offset the cost of producing all the free content you find on Ask The Headhunter — but so do the many clients who have licensed Ask The Headhunter features over the years. I’m grateful to every client and customer who has ever spent a buck on what I write!

Which brings us to perhaps the most powerful Ask The Headhunter advice of all.

Eliminate job search obstacles

nick2When I compiled the 251-page PDF book Fearless Job Hunting, my goal was to help job seekers realize that job hunting is not about “following the steps.” If following steps worked, everybody could get a job easily and quickly. What I’ve learned over the years is that your success depends on knowing what to do when you encounter one of a small number of daunting obstacles that get in your way. Don’t let these stop you from landing the job you want!

Most of the time, the biggest obstacle you face in your job search is Human Resources departments, which seem to go out of their way to block, stop, and abuse you. The best newsletter I wrote about this is Why HR should get out of the hiring business. I think some of my best advice about how to go around HR is from this edition of the newsletter: Should I accept HR’s rejection letter?

Getting in the door

Speaking of throwing out your resume and busting past HR, this is one of the simplest, most powerful methods for landing a job that you’ll find on Ask The Headhunter: Skip The Resume: Triangulate to get in the door. It’ll take you out of the silly “job hunting” mode HR wants you in — and it’ll get you talking to the people who will actually bring you into a company as a new hire!

One of the Fearless Job Hunting books, Book 3: Get in The Door (way ahead of your competition) goes into lots more detail about this.

Oh, those job interviews!

nickhat1cSo much has been written about what to say and do in job interviews that today it’s all one big rehash. Virtually every career pundit regurgitates the same old ideas that have been around for decades — ideas that reek of personnel jockeys who want to “process” you rather than hire you.

This article is so obvious that you’ll “get it” instantly: The Single Best Interview Question… And The Best Answer. But beware: Doing this kind of preparation to win a job offer is a lot of work. And if you’re not willing to do the work to win the job, you don’t deserve the job!

No one has said it better than long-time Ask The Headhunter subscriber Ray Stoddard:

“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.”

Arrghhh! I took the wrong job!

My goal all these years has been to help you land and keep the right job. But what no one else tells you is how to avoid the wrong jobs!

Before you accept a new job, check It’s the people, Stupid and — yuck — Don’t suck canal water. I keep telling you that the #1 reason people go job hunting is because they took the wrong job to begin with. Don’t fall into that trap!

nicknew4Everybody wants more money!

Of course, no matter what anybody says about the importance of job satisfaction, nobody’s happy without the money. Everybody would like more money — but few people know how to ask for it so the answer will be YES.

The ONLY way to ask for a higher job offer is not for the meek. It’s as big a challenge as proving you’re worth hiring. But, hey — I never said Ask The Headhunter is the easy way to the job you want. It’s just the best way I know.

The bottom line

I’ll leave you with one of my favorite quotes, which once led me to the realization that, as humans, our biggest problem is our hesitation. Life is short. I try to remind myself of this every day: You’ll be dead soon. It’s how I get on with life and enjoy the choices I get to make!

I hope Ask The Headhunter helps you belly up to the bar to make the choices you face — to enjoy the results of the best and to learn from the rest.

The Best of Ask The Headhunter

Thanks for subscribing and for being a part of Ask The Headhunter, whether you’ve been around from the start or you just dropped in!

The best of Ask The Headhunter isn’t in any of the newsletters or in any of my articles. The best of Ask The Headhunter is the wonderful community of people who continue to gather here to share their stories, advice, wisdom and more questions from their own experience. That’s you!

Thanks to you all!


And to prove it, I’d like to offer you a Special 600th Edition Thank You. If you’d like to purchase any of the Ask The Headhunter PDF books, when you check out, use discount code=BIG600 to save 25% off your purchase! (This limited offer is good only through this week!)


If I may ask you a 600th edition favor:

Please tell your friends about Ask The Headhunter — encourage them to subscribe and join us every week!

As for questions we’ve never covered, this is where to post them! I invite you to ask the questions you want answers to about job hunting, hiring, and success at work!

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Lee Hecht Harrison: A failure of integrity in the HR world

In the November 3, 2015 Ask The Headhunter Newsletter, we try to get to the root of why employers routinely abuse job applicants.

Ever wonder where HR departments learn to mistreat and abuse you when you apply for jobs, then disappear behind a veil of impersonal doubletalk and officious sanctimony?

integrityThe answer lies in who they turn to for “best practices” and “HR policies.”

An entire HR consulting industry teaches HR departments around the world how to behave, and HR in turn trains you to apply for jobs and tolerate increasing levels of abuse. Curiously, according to Google Finance, most of the top HR consulting firms are privately held. Little is known about how they operate, until now, when an odd copyright violation revealed some of the inner workings of Lee Hecht Harrison (LHH), a unit of Adecco, “the world’s #1 employment services firm.”

What’s copyright got to do with bad HR behavior?

From time to time, I deal with scofflaw publishers who steal copyrighted Ask The Headhunter content. When they realize they’ve been caught, I quickly get a nervous phone call and profuse apologies. Statutory damages for distributing a copyrighted work can be as high as $150,000 per incident, which means if you give copies to just 7 people without permission, it could cost you over a million bucks plus attorney fees. To a content licensing business like Ask The Headhunter, copyright is a serious matter. Nonetheless, my policy is to resolve violations quickly and amicably when possible. Contrite violators make this easy most of the time. A sincere phone call goes a long way.

A few weeks ago, an Ask The Headhunter subscriber tipped me off to a rip-off:

lhh-tip-off
The culprit was Michael Schumacher, an LHH Senior Vice President who posted a slightly modified version of an old ATH article to LHH’s LinkedIn Group for the company’s “clients and alumni.” He could have paid for the article — like LHH’s clients pay for LHH’s materials. Instead, he put his own name on it.

The ATH subscriber concurrently put Schumacher on notice that he’d been exposed.

You’d think Schumacher would immediately pick up the phone and call me to apologize, and to take down the stolen article. Instead, Schumacher hid the ripped-off article behind LinkedIn’s members-only wall and hunkered down.

You can’t hide from social media

“If you are represented in the virtual world, what kind of impression are you making?” cautions a LHH report for job seekers. “In this age of technology, not being in tune with the times could even appear unprofessional and possibly be a mark against you.”

This is where the underpinnings of “global” HR behavior came to light — as one of the world’s leading HR advisory firms revealed what “best practices” in the HR world are all about. Pay attention, because this is the root of the culture that mistreats and abuses you when you apply for a job.

I want you to see how a simple copyright violation revealed how a top HR consulting firm operates. The story features a cast of characters we couldn’t dream up:

  • A president whose company’s product is intellectual property — who dispatches “damage control” to cover up IP theft by his company.
  • A top HR executive at a corporate outplacement firm that advises clients to have LinkedIn profiles — who has no LinkedIn profile.
  • An SVP in charge of “Operational Best Practices” — who steals a competitor’s copyrighted content and passes it off to clients as his own, then hides the evidence after it’s already leaked into the social media.

A social media bust

I love social media. It keeps everyone honest because everything a business does today quickly becomes public. You’d think that a company whose business is teaching “best practices” to HR departments would know that.

After I learned of the rip-off, I waited to hear from Schumacher or someone at his company. They knew that I knew, but no one contacted me. So I published Lee Hecht Harrison rips off Ask The Headhunter, an article that quickly made the rounds of social media. Among the items are tweets from a leading HR writer and critic.

lhh-laurie-tweetsLaurie Ruettimann even contacted the president of LHH, Peter Alcide, via LinkedIn. Her style is inimitable.

lhh-lauriie-linkedin

You’d think Alcide, manager of a company whose revenues depend on its IP (intellectual property), would realize how big his problem was and immediately call me to apologize and make amends.

The policy and best practice is damage control

Instead, Alcide revealed the company’s duck-and-cover policy that Schumacher was already following. Peter Alcide ordered up “damage control.”

lhh-to-laurie

Except LHH’s president sent this order to Ruettimann by mistake, and she forwarded it to me. The bungled e-mail apparently refers to LHH’s Dallas/Fort Worth Area Managing Director, Russell Williams, Schumacher’s boss.

What’s all this got to do with your travails with HR? It’s what Lee Hecht Harrison and a host of HR consultancies teach their clients: how to avoid accountability and personal contact. Alcide wasn’t concerned about damage his company caused — or how to make amends. He was concerned only about covering up his company’s bad behavior. The content rip-off was public, but there would be no public mea culpa.

At this point, you’d think Williams would have immediately contacted me, if only to contain the problem. Instead, he handed it off to HR.

Hiding behind HR

Now I offer a challenge to you, dear readers. After an employer recruits you, wastes your time in hours of interviews, gathers volumes of personal and private information that you must provide under threat of rejection for “being unreasonable” — you’re left hoping for a personal call about the outcome of the hiring process. What happens?

HR sends you an impersonal form letter to blow you off.

I couldn’t make this stuff up. LHH’s next action was to send me the equivalent of the form letter you receive when HR blows you off after mistreating and abusing you.

lhh-letter(click to view full size)

That’s what I received from “Pamela Jones, EVP, Human Resources and Legal” at Lee Hecht Harrison. But don’t bother looking up Pam Jones or Pamela Jones associated with Lee Hecht Harrison or Adecco on LinkedIn. Contrary to LHH’s advice to its clients that a LinkedIn profile is a must in today’s business world, LHH’s top HR executive isn’t on LinkedIn.

Are we starting to see the connection between what this HR consulting company promotes and gets paid for, and how its top executives behave?

  • Peter Alcide, the LHH president who ordered damage control so LHH’s clients wouldn’t find out, hid behind damage control.
  • Michael Schumacher, the guy who stole my article, hid behind LinkedIn’s firewall.
  • Pamela Jones, the corporate lawyer who put on her HR hat, and hid under it.

They all hid behind the same veil that LHH teaches its corporate HR clients to draw between themselves and job applicants. That’s the epic failure of integrity in HR today — “best practices” on display from “the world’s #1 employment services firm.”

And you wonder where HR learns how to mistreat and abuse you while disappearing into a fog of self-serving bureaucracy? LHH’s top HR executive is also its lawyer!

Where do dismissive HR policies come from?

What does a copyright violation have to do with your experiences applying for jobs? Lee Hecht Harrison is a key player in the HR world. According to its Google Finance profile, its parent company Adecco “provides career and leadership consulting through its more than 300 offices covering 60 countries around the globe.”

Employers pay big bucks for LHH’s HR “services in areas such as career and leadership development, outplacement, and executive coaching.”

HR departments and the consulting companies behind them dictate your experience when you’re job hunting. Perhaps worse, this HR hegemony forces you to follow “rules” for getting jobs that contradict your own good business sense and lead you on wild goose chases. But you do it, anyway, because HR people reprimand you — and toss out your application — when you fail to follow those rules.

HR learns this stuff somewhere, from someone. It learns from Peter Alcide, Michael Schumacher, Pamela Jones, and a host of other “policy makers” in the career and employment industry who get paid big bucks for their “guidance” and “best practices.”

Best Practices: A failure of integrity

No decision maker at LHH apologized to me — least of all in Pamela Jones’ letter, which is the only communication LHH has deigned to have with me. No one acknowledged to LHH’s paying clients that they were given stolen advice — or showed them where it actually came from. No one acknowledged that LHH’s content theft caused Ask The Headhunter any harm or damage, much less offered to make amends. It was all “an error” and a “misjudgment” and “an isolated incident” — without any proof that plagiarized content isn’t rife throughout the “intellectual property” LHH sells to its “global” clients for top dollar.

Laurie Ruettimann is right to be worried. Who else’s protected content is being illegally distributed by LHH to its clients? I don’t believe Jones’s assurances for one second.

What’s a copyright violation got to do with how you’re treated when you apply for a job? Both are HR problems.

The treatment you get from HR departments when you apply for a job is considered “best practices” — and it’s exemplified by one of the HR firms that drives HR policy around the world. I’ve just experienced what you go through when an employer hides behind HR.

This story is really about HR’s epic failure of integrity. Integrity can’t be parsed. Either a company demonstrates high standards of behavior in all its dealings — or reveals a lack of integrity across the board.

Ask The Headhunter openly criticizes bad behavior in the career and employment industry, and sometimes specific players including TheLadders, Monster.com, CareerBuilder, and LinkedIn. Job seekers need to be aware of practices that affect their ability to get a job.

Today, a small group of HR consultancies in the career and employment industry establish the standards of behavior that job seekers are expected to meet: How to apply for jobs, how to present themselves, and how to set aside their good business sense if they want to play the HR game of landing a job.

These firms also dictate how HR departments treat and process the people they recruit.

How a top company — that HR looks to for guidance — handled copyright theft reveals problems not only with LHH’s corporate governance and culture, but with its adverse influence over how companies hire and recruit, and how job seekers suffer through the experience.

An industry where nothing is personal

And that’s the problem with the career and employment industry: a lack of personal integrity and a policy of no accountability. It’s why job seekers cringe at the thought of applying for a job; at interviewing with bureaucratic stuffed shirts who cite “policy” and “best practices” as their excuse for disrespectful behavior; and it’s why job seekers don’t dare to expect respectful treatment from hiring managers who take hours of applicants’ time without the courtesy of any follow-up.

  • Has a manager ever taken your ideas and your time — perhaps in multiple job interviews — then disappeared behind the corporate veil rather than talk to you?
  • Have you ever been subjected to the impersonal swat of the HR hand when a company decides you’re not worth its time?
  • Has an HR manager ever demanded your salary history, and when you declined, told you “it’s the policy — we can’t continue without it”?
  • Has a company ever revealed a disrespectful culture to you, contrary to the image it projects in its marketing?

What you need to know as a job seeker is, the treatment you get from HR has its roots in HR consulting firms that establish HR practices across companies. What you know now is that LHH’s culture is consistent from the bottom to the top. What you’re left wondering is, what are LHH’s and Adecco’s corporate clients paying for when they hire these firms and buy their content?

This is a company stuck in the dark ages of corporate HR hegemony, that telegraphs a message that personal responsibility can and should be hidden behind “damage control” — in an age when everything is public.

How can any employer that competes in today’s world adopt “best practices” from an HR consultancy whose own practices suck so badly?

In today’s business world, it’s not always about whether you can make a buck; it’s about the face you show to the public, to your customers, to your competitors, and to people who bust you when you rip them off. But Lee Hecht Harrison clearly doesn’t operate in today’s world. Since few HR departments do, either, is it any wonder that earnest job seekers can’t catch a break in an HR world where integrity is a big FAIL?

In this copyright incident, Lee Hecht Harrison has done nothing to make amends for its violation. Its HR executive has merely avoided acknowledging that the company did any damage.

Why make a big deal of this?

Because job seekers aren’t in a position to — and because LHH’s behavior with respect to a copyright violation reveals a stunning failure of corporate ethics and integrity in the career and employment industry. It’s a big deal because rude, impersonal practices in HR make it hard for employers to hire — and harder for job seekers to get jobs.

Mistreating and abusing you when you apply for jobs is nothing personal — these people don’t know what personal means. It’s simply best practices. But we all deserve better.

Integrity. It’s been defined as what you do even when no one is watching. But what if you get busted? How do you acknowledge and make amends? Have you encountered abusive, impersonal behavior when dealing with employers? Where do you think it comes from? How should we all deal with it? If you work in HR, I’d especially like to hear from you — tell us how your company demonstrates integrity.

Update: November 24, 2015

Following the publication of this article Peter Alcide, President and COO of Lee Hecht Harrison, called me and did the right thing. In a tweet and a posting on the LHH website, he issued a public apology for violating Ask The Headhunter copyright, made restitution for misuse of the content, and the matter is resolved.

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Only naive wusses are afraid to bring up money

In the October 27, 2015 Ask The Headhunter Newsletter, a reader is living in la-la land.

Question

I recently had three great interviews with an organization that I would be proud to work for. Afterwards they asked me for samples of my work and references, but they never brought up salary. I asked them if they had a salary range in mind for the role, and I learned it was $20k lower than what I am currently earning. ? I politely said that I had a higher number in mind, based on my background and experience. I said I hoped there might be some flexibility if I ended up being their finalist. I left them samples of my work and left the interview with no further discussion of remuneration.

la-laWhen I got home there was an e-mail asking me for references, so I took the opportunity to mention my salary expectations prior to moving forward. The CEO responded that they could not match my request, but explained she would go to the board to see if she could increase the pay since the position played an important role in their growth strategy.

A couple of weeks later, the CEO got back to me and said she could not get any more money from the board and thanked me for my interest.

Since then they have re-posted twice for the job under a more junior title. I suspect that other applicants for the original posting of Chief Strategy Officer were also expecting a higher salary. They have now changed the posting to Senior Development Officer.

I realize now that I should have waited for a job offer, and then negotiated. But, live and learn, right? I am still very interested in the position but would need them to come up at least $10k.

Do you think I can still approach them or has that ship sailed? Being experienced in recruiting, I would never have taken a candidate that far without knowing where I stood on salary. Do I stand a chance?

Nick’s Reply

No, I don’t think you stand a chance at all. What surprises me is your wishful thinking and rationalizing, since you said you’re experienced in recruiting. The CEO told you it’s over. What I see is you putting your hands over your ears: “La-la-la I can’t hear you!”

But this is incredibly common. Employers will make it clear how much they’re willing to pay, and it just goes in a job applicant’s one ear and out the other. It’s one of the most puzzling phenomena — otherwise smart, savvy job seekers just refuse to believe what they’re told about salary.

Or, is it that some job seekers really, really want to believe an employer will pay more, even when it said it won’t? Then — when no more money is forthcoming — the applicant either (1) gets angry and blames the employer for wasting their time, or (2) blames themselves for not wishing hard enough.

Stop wishing

Consider: The CEO knows what you want. She went to her board, which refused more money. The CEO told you. Yet you still harbor a belief that the CEO will come up with another ten grand.

la-la-2But your rationalizing doesn’t end there.

You’ve seen that the title was downgraded from Chief Strategy Officer to Senior Development Officer — and you even seem to understand why. Applicants like you were expecting higher salaries that the company can’t pay. So the company adjusted the title to reflect the lower salary.

Nonetheless, you’re telling me you should have gone through the rest of the hiring process, gotten an offer, and then negotiated — after the CEO already told you there’s no room to negotiate!

And it still doesn’t end there. You seem to think that because you’re “still very interested in the position,” they’re going to come up with another ten grand! Stop pretending! It doesn’t matter how interested you are!

Having said all that, I can understand why you’re bothered. The CEO never should have taken you through three rounds of interviews without knowing where you stood on salary. You’re right about that. She never asked you about salary, and never told you about the salary range — making her just as guilty as you of wasting everyone’s time!

Are we all on the same planet??

I don’t think so.

  • Wishful thinking about salary is a stupid, dangerous waste of time.
  • Hiding a job’s salary range is a stupid, dangerous waste of time.
  • Hiding your desired salary range is a stupid, dangerous waste of time. (See How to decide how much you want.)

The conventional wisdom — which is proclaimed by “negotiation experts” — is that whoever mentions money first loses! And it’s pure nonsense!

Who wins?

Who wins is the person or employer who knows what they want, expresses it candidly, and establishes common ground before investing time in a hiring process. Only a naive wuss starts talking about doing business without first talking money.

I say naive because most people have no idea how to negotiate, so they pretend instead. Do you pretend? Are you afraid? Try this:

How to Say It

“Look, I have no idea whether we can come to agreement on money, but I’d like us to establish a framework about the money before we start talking turkey — so that we won’t both feel like a couple of turkeys after we invest hours talking, only to realize we’re not even in the same ballpark about money. So, what kind of money are we talking about?” (See “How can I avoid a salary cut?” in Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer), pp. 7-10.)

I say wuss because most people are afraid or embarrassed to talk about money until the other person does — hence the silly excuse, “It’s best not to be the first to bring up money!” Whew.

People who know what they’re worth, and what they want, are the ones who are best prepared — both to do the job, and to justify how much they want. They’re the people who are ready to demonstrate their value and to engage in a candid dialogue about it. (See The New Interview and The New Interview Instruction Book.)

When you’re going to do a deal — any deal — negotiating about money starts immediately. Whoever controls this discussion sets the anchor on the outcome. That’s who wins.

The anchor effect

There’s a phenomenon in the science of pricing called the anchor effect. The idea is simple: Whoever brings up money first influences which direction the negotiation will take. If you start talking high numbers, the final negotiation will probably end on a higher number. If someone starts by putting smaller numbers on the table, the final number will likely be lower. That is, the first number that hits the table is said to anchor the negotiation — pulling the rest of the discussion toward that point, higher or lower. (For more on this, see William Poundstone’s excellent and very readable book, Priceless: The myth of fair value and how to take advantage of it.)

Of course, if your number and their number are way off, either try to make your case, or shake hands respectfully and move on. Don’t pretend!

Grow up

Everyone needs to get over their hesitation to talk about salary before interviews proceed. Employers need to disclose — even advertise — a job’s salary range. Job seekers need to disclose how much money they’re looking for. At the very least, both parties should establish an honest ballpark for salary — or stop screwing around with interviews, rationalizations, sneaky tactics, and hemming and hawing.

I know what you’re thinking: “If I say what I want, what if the other guy is actually willing to pay me twice that? I’ll lose out!”

Unless you just fell off a hay wagon, you can’t possibly believe that what the employer was planning to spend is double what you want. Grow up. You’re not going to hit the lottery in a salary negotiation. More likely, playing coy is going to lead you right into a brick wall — when honest mutual disclosure is more likely to result in a healthy discussion.

Where did you go wrong?

When you agreed to the first interview, you failed to ask what the salary was for the job — so you could decide whether it was a match.

Worse, you avoided this because you thought you might be able to play the CEO along, and “convince” her to spend more than her board permitted. This is the old foot-in-the-door tactic of the inept salesman: “If I can get the sucker to invite me in, I’ll just brute-force my way to a deal!”

That’s naive. It’s also — pardon me, because I sense you’re actually smart and capable — stupid. I’ll bet you think it’s professional to not bring up money, and unprofessional to expect the employer to bring it up.

You’re wrong on both counts. What’s unprofessional is two people leading one another on. There’s nothing professional about being afraid or embarrassed to talk money. The CEO is just as guilty. She should have asked you how much you wanted — a range — at the same time she expressed the salary range for the job.

Please: Consider these basic guidelines when applying for jobs:

  • Know what salary range you want, and be ready to express it. (Don’t confuse this with disclosing your salary history. See Keep Your Salary Under Wraps.)
  • Don’t agree to an interview if the employer won’t disclose the salary range for a job.
  • Be prepared to justify the money you ask for, in terms of how you’ll produce more value for the employer than the next candidate will.
  • Pay more attention to what the employer is saying, than to what you’re wishing.

The key to negotiating

Do you know what is the biggest mistake you made, even after you invested time in three interviews without knowing the salary? You let the CEO ask the board for more money without arming her with the justification.

The CEO was willing to go to bat for you — but you sent her to negotiate without a bat!

If you’d given the CEO evidence of why you’re worth $20,000 more than she was planning to spend, she might have gotten more money from the board. Your mistake is that you asked for more money just because you want it. The key is to show what the board gets in return for $20,000. The key to successful negotiating is being able to deliver more value than the other guy expects.

The CEO has struck out. She told you to go home. Sorry — get over it. There is no job for more money. Please don’t make a fool of yourself.

I don’t care what negotiating experts say. Don’t be naive, or afraid, or a wuss about bringing up money first. Winners are prepared to justify what they want, and to show how it will pay off for the other guy. (See “What’s your business plan for doing this job?”, Fearless Job Hunting, Book 6: Be The Profitable Hire, pp. 30-32.) If there’s no match on the money, they move on early and quickly.

Do you talk money? Or are you terrified to bring it up? Do you wait until you’ve invested hours of time before you find out what the salary is? What’s the best way to ensure everyone is on the same page regarding salary?

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The Job-Offer Sucker Punch

In the September 1, 2015 Ask The Headhunter Newsletter, a reader trusts a recruiter and winds up regretting it.

Question

I was hired as an executive assistant at a very large, global company. The recruiter (who worked for the company) assured me that the benefits were very good, “comparable to any big company,” and insisted that they were on par suckerwith any other organization I’ve worked with.

It turns out they aren’t. I pay half of my health insurance (approximately $750/month), my vacation is mandated in December because of annual office closure, no overtime is offered, I work one scheduled weekend per month unpaid, and my significant other was not covered under benefits (though a same-sex partner would have been) until we are married.

The recruiter quit her job shortly after I was hired. I haven’t brought up these issues with the company, although I’ve been here almost a year. The culture is very much that one should not complain because you should be happy you have a job.

I took a 25% pay cut for this gig. Do I have any legal recourse? I fear that the legal costs would outweigh any benefits. In the meantime, I’m looking for a new job elsewhere but have found that my “new” salary requirements have me in a different bracket.

Nick’s Reply

You got sucker-punched because you didn’t see it coming. I doubt you have any legal recourse, but I’m not a lawyer and this isn’t legal advice. You could start by talking with your state’s department of labor and employment — they may be able to advise you, and they may have other complaints on record about this employer.

It seems the recruiter baited you. See Why do companies hide the benefits? Too often, job applicants trust what is stated orally in an interview without insisting that the commitment be reproduced in writing in the job offer. It amazes me that an applicant will read an offer letter carefully — but never ask for the written benefits. The benefits are part of the offer. I urge you and all of our readers: Get the entire offer in writing and read all components of the offer carefully before you accept!

You must state your position to an employer clearly.

How to Say It

“I’m impressed with your company, and I’m eager to come to work with you. However, I cannot accept this offer without knowing all the terms of employment, including the benefits. I could no more sign an employment agreement without knowing all the terms than your company could sign a business contract without knowing what it was committing to. I’m sure you understand. Could you please provide me with your employee manual, benefits package, and any other documents that would bind me after I start the job? Once I have these, I will promptly respond. I look forward to accepting your offer, and to making a significant contribution to your business. I hope I can count on your help so we can all get to work.”

What a recruiter tells you is akin to what a salesman tells you — it’s intended to close the deal. Good luck collecting on the oral promises later.

I agree that your most important next action is to start a very active job search. The solution to getting stuck applying for jobs with lower salaries is to not disclose your salary — apply for jobs that can pay what you’re worth, and politely but firmly decline to disclose your salary history. Employers have no right to it. You must also be ready to demonstrate why you’re worth more than your current job pays. Two of my PDF books cover these topics: Keep Your Salary Under Wraps and How Can I Change Careers?

Start with your state’s labor office. Get their advice on the details of your situation. But I think that, unfortunately, when you accepted this job you accepted terms you did not understand clearly — because the employer misrepresented them. Please check this article for tips about how to avoid a lower salary at your next job: How do I prove I deserve a higher job offer?

I wish you the best. This kind of slimy behavior by employers is indefensible.

Have you ever accepted a bait-and-switch job offer? What did you do? How would you advise the reader in this week’s Q&A?

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Naive young grad blows it

In the August 25, 2015 Ask The Headhunter Newsletter, a new grad ignores the line between life and job.

Question

I’ve gotten myself into a bit of a situation and need your advice. I’m taking my boss to a distant, major resort because my parents have a place there and I foolishly offered it up to our small department as a “retreat” — not thinking my boss would actually approve this.

oopsWell, my boss said yes. He’s in his twenties and was thrilled. Now we have plans to go in a few weeks. The dilemma is that I’ve been poached during the past week by two great companies and both want me to come in for an in-person interview lasting several hours. Both jobs would pay about 50% more than I’m making now.

Although I don’t have an offer yet, I want to be prepared in the case one of these companies does extend one. Initially, I was going to use the offer as leverage at my current company. Then it dawned on me that if my boss doesn’t match the offer, or counter it with something close, I will face a very difficult choice: take the new job and put my two weeks in during the retreat, or accept that my current company is not going to pay me what I deserve.

I’m 22 and graduated from college very recently. What should I do?

Nick’s Reply

Sheesh! You are in a bind. New grads almost always blow it when they start work. It’s how we all learn the ropes, so don’t take my reaction as ridicule. I’ve been there, done that. Your problem is that you’re compounding your problems over your naivete.

Forgive me if I lecture. There are a few important lessons here for new grads.

You’re not in college any more.

Don’t make the mistake of mixing work with your personal life. You can’t negotiate for a job at your parents’ house while your boss is eating your mom’s pancakes and drinking your dad’s beer. Would you take a date to your parent’s vacation house so you could tell her you’re breaking up?

We blow it when we forget there’s a line between fun and work. Of course, in college there’s no such line. Remind yourself regularly that you’re not in college any more. If I were you, I’d probably beg off this trip.

Two job opportunities are not a choice.

I know you’re excited about those two jobs. I don’t even care that you’ve been at your current job for only a short time while you’re entertaining them. Calculate the costs of any choice you make, and do what’s best for you. But keep one thing in mind: You have no choices to make until you have a bona fide offer in hand. (See I’m still waiting for the job offer!)

Don’t jump the gun and risk your job over a fantasy. Take it from a headhunter: Most “great opportunities” go south. Don’t presume anything until it’s real. Risking a real job for an uncertain opportunity is not prudent.

Don’t use an offer to get a raise.

Either take the new job, or keep your mouth shut and keep your old job and salary. The only decision to make is, which deal is best for you? (See The ethics of juggling job offers.) If the new job and offer are to your liking, then go. When you use a job offer to extort a raise, you will likely wind up on the street with no job at all:

To a company, a counter-offer is sometimes a purely pragmatic tactic that enables it to sever a relationship on its own terms and in its own good time. That is, companies use counter-offers defensively. A company would rather have a replacement employee lined up, and a counter-offer buys time. The extra salary offered may be charged against the employee’s next raise, and the work load may increase. The employee is a marked man (or woman).

From Parting Company: How to leave your job, p. 52, “What’s the truth about counter-offers?”

If you dangle a new job offer in front of your boss to get a raise — especially while he’s at your vacation house — you’ll probably blow it.

Your boss is not your friend.

I’ve had bosses that I liked; bosses who cared about me and had my back. But any good boss acts in the interest of the employer when the chips are down. If you want to pretend otherwise, I wish you luck because you’re going to need it. It isn’t your boss’s duty to be your friend. His first duty is to make you a good employee.

For this reason, never tip off your boss that you have alternative job plans. If you disclose your plans, and neither of the two jobs you’re contemplating pans out, you’ll be a marked man. Odds are high that sometime soon you’ll be ushered out the door — if your boss doesn’t fire you instantly right under your own father’s roof.

Choices are often painful.

That’s why it’s important to act quickly, accept the consequences, and move on. You have put yourself in a nasty spot. Assuming an offer (or both) come through, do you tell your boss now that the trip is off — because you don’t want to face him with your resignation after entertaining him? (I don’t think there’s anything wrong with citing “personal reasons” for calling it off.) Or do you want to tell him you’re quitting during — or right after — the retreat?

Both scenarios stink. One stinks less. I wish I could wave a magic wand, but I can’t. You have to choose. It’s going to hurt, no matter which way you go.

Take some time and identify all the issues. Figure out how they’re all interrelated before you act. This is not about accepting a new job or about embarrassing yourself. This is about growing up quickly. I wish you the best.

Can this new grad grow up quickly and get out of this fix? What would you advise?

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Is this the worst job ad ever?

In the August 18, 2015 Ask The Headhunter Newsletter, a reader almost blows it.

Question

A friend of mine is seeking a job as an Event Planner. He did this for IBM for several years. He came upon this job description for an Event Manager — if it is indeed a real job! Check out the “Required Experience” at the end. I’m sure that anyone with that much experience would just jump right into this “purple squirrel” job. What do you think of the “fun” wording that says — between the lines — that one person will be doing the work of three?

Nick’s Reply

Wow. File that under Stuff We Couldn’t Make Up If We Tried. I’m still laffing my A off. I’d love to meet the “passionate” HR wonk that wrote this job description. Of course, it might have been the hiring manager.

[Note: The link above is to a copy of the job posting. The direct URL, which is active at time of this publication, is http://www.indeed.com/cmp/Belgian–American-Chamber-of-Commerce/jobs/Event-Manager-516d0a935ce3bbed.]

over-workedI hate to hold up even the most naïve employer to ridicule… but this is publicly posted on Indeed. Why is this worth talking about? Because employers claim there’s a talent shortage — while they demand decades worth of expertise in a tone that suggests you must sell yourself out to get the job. Since this job has been on Indeed for over a month, I imagine the employer feels it’s hard to find the purple squirrel it’s looking for. (See Roasting the job description.)

But as you point out, the dead giveaway is the closing line on the job posting. How much experience is required to do this “President of Planning” job? One year.

I’m guessing the only thing that’s “one year” about this job is the salary level. (If it’s higher, why not mention the salary range?) But I don’t know the employer and have not contacted it. Like any job seeker, all I know is what’s in that job ad — and that’s the basis on which I judge it.

The trouble with job ads like this — and we’ve all seen enough of them — is that they reveal an employer’s misguided attempt to fill a complex job on a junior salary. (See How to avoid a “bait and switch” job offer.)

They reveal an employer that thinks new hires must “say NEIN to leaving at 5,” and that suggests it’s cool to be the kind of manager who can “persuade volunteers to miss their own wedding.”

The right candidate will have “triple check OCD” and can “single-handedly beat the Red Sox.”

And how about the new standard of motivation the right candidate must demonstrate? “The way you spread your entrepreneurial spirit puts Ebola to shame.”

Is all this cute? It’s so cute that it’s transparent. Beneath the veneer of this job ad is a cynical message that this job may be on a slave ship. Or, what’s the salary for a President of Planning who’s got one year of experience? Some of our over-50 readers might suggest this employer is softening up a very senior, very skilled Events Manager for low pay and lots of abuse. Just how desperate are you for a job?

But that’s not why this is the worst job ad ever. It’s the worst job ad ever because it shrouds cynicism in cool. It markets hard work as something you should be willing to sell yourself out for. And that is why job seekers — from the youngest and most inexperienced to the oldest and most frustrated — are fed up with the behavior of employers that want something for nothing while complaining the right talent isn’t out there.

If employers like this one chafe at criticism, I’d like to see them address the job seekers they really need with candor and respect.

Perhaps this job pays $150,000. What’s your take? Have you seen better examples of the worst job ads? Please share examples and your comments!

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One Big Negotiating No-No

In the August 11, 2015 Ask The Headhunter Newsletter, a reader almost blows it.

Question

I live and work on the West Coast. Two days ago I was offered a position back in the New York area. I was so happy to go back home, and with my initial offer (including base salary). Nonetheless, I managed to negotiate a sign-on bonus to cover my relocation expenses — but that’s about it. I verbally accepted, and gave permission to do the background check.

After thinking it over, I am kicking myself for not pushing the envelope to negotiate a higher salary, fearing the risk of losing the offer. Do you have any meaningful advice that can help me? Is it too late to negotiate anything else after verbally accepting the offer? I would really appreciate it. Thank you.

Nick’s Reply

Last week we discussed The ONLY way to ask for a higher job offer. Your question is a nice bookend to this topic. It’s important to know when negotiations are over.

negotiatorImagine you bought a new car. The next day, you arrive at the dealership to pick it up and hand over a check for the agreed-on price. The salesman tells you he hopes you don’t mind, but he wants to charge you a few grand more. Is that okay with you?

That’s what you’re talking about. Forget about whether it would be fair to re-open negotiations. It’s unacceptable, it’s bad practice and it’s unbusinesslike.

If I were the employer, I’d pull the offer instantly. I’d question your integrity and ability to deal with others – especially after I agreed to give you a starting bonus. Negotiations are over when both parties agree to the deal.

Having said that, I’ve got no problem with you changing your mind. If you feel strongly about the compensation being too low, then rescind your acceptance, apologize, and walk away – but it’s really bad business to accept a deal and then try to renegotiate it.

Now for the soft part. I know how you feel. Been there, done that. I think you’re beating yourself up for nothing. The offer was good enough that you accepted it. Enjoy your win! Enjoy your satisfaction. As for “leaving some money on the table,” that’s actually a sophisticated negotiating practice. It leaves the other guy feeling like he (or she) won, too — and it buys you some good will in your new relationship. Not asking for more could be the best thing you ever did.

But the best thing you can do now is either walk away from this immediately – or take the job and do your best to earn a raise in the first year. Heck, once you’ve proved yourself, you can even ask for an early salary raise.

I would not go back to the well for more money at this point. Put yourself in the employer’s shoes. What would it say about you?

I’m sorry you’re not happy with your offer. But once terms are agreed to, the negotiating is done. The lesson here is not to accept a job offer so quickly — no matter how excited you are. Take at least 24 hours to think it through.

Use this to negotiate a better deal next time: How do I prove I deserve a higher job offer?

Have you ever “left money on the table?” Did you ever risk an offer to re-open negotiations? Is there a way to re-open negotiations that I’ve missed?

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The ONLY way to ask for a higher job offer

In the August 4, 2015 Ask The Headhunter Newsletter, a reader wants more money.

Question

How should I request a better offer than the one that was made? By phone? By e-mail? By regular mail? Do you ask the HR person, since that is who handles the offer letter in the first place? How does the give-and-take take place?

Nick’s Reply

Almost everyone makes one huge mistake when asking for a higher job offer. They fail to justify the extra pay.

Want more? Prove you’re worth it!

want-moreWhy would anyone give you more money just because you asked for it? Yet job seekers try that lame approach all the time.

If you want more money, you must explain why you’re worth more.

(By the way: Don’t waste your time quoting salary surveys. No survey includes the exact job you’re applying for, or your exact constellation of skills and attributes. You will always lose the survey game because any smart employer will respond with yet another survey that “proves” its offer is handsome! See Beat The Salary Surveys: Get a higher job offer.)

When negotiating for a better offer, the goal should be to engage in a discussion rather than to put a stake in the ground, unless you are absolutely sure your asking figure is firm. This allows the company to explore the money issue with you, rather than be forced to respond with a yes or no.

Ask the manager, not HR!

It’s critical to have the discussion with the hiring manager, not with HR. HR might control the hiring process, but it’s the manager’s budget that your compensation will come from. So have this discussion with the manager, in person or by phone. (I would not use e-mail. It’s too impersonal.) Try this:

Make a commitment

“First, I want to thank you for the offer. I want to come work with you.”

That’s a powerful opening statement because it resolves one big question for the manager: Does this candidate want the job? Once you’ve made this commitment, managers know it’s worth their time to work out the terms. Too often, job candidates try to negotiate money without consenting to the job itself. Bear in mind that saying you want the job doesn’t obligate you in any way. If the money can’t be negotiated to your satisfaction, you can ultimately turn the job down.

Now comes the most important part:

“I realize you have carefully considered how much you think this job is worth. As we discussed in our interview, I believe I can do this job [more profitably, more efficiently, more quickly, more effectively] by doing [such and such]. For these reasons, I believe my contribution on this job would be worth between $X-$Y in compensation. Of course, if I can’t show you why I’m worth more, you shouldn’t offer me the job. Are you open to discussing this?”

Deliver more value

The key element here is value: You must show how the added value you will deliver is worth more money. Employers love it when you reveal you have thought carefully about the work and how you would do it profitably. It shows you are motivated to make the deal a “win” for the employer.

But I will warn you: If you cannot explain exactly what you will do to perform the job more profitably, efficiently, quickly — better, in some way, than the employer expected — then you have no business asking for more money. This is not a negotiating game. It’s about exchanging fair value for fair value, and you must be prepared to explain it.

HR cannot have this kind of discussion with you, because HR will never understand the ins and outs of how you will add more value to a certain job. Talk to the hiring manager, and let the manager go explain it to HR.

(Don’t know how much to ask for? See How to decide how much you want. Once you figure this out, lay the groundwork for your salary negotiations early in your interview. See The most important question in an interview.)

Once you’ve said your piece, it’s up to the manager to respond and engage in a discussion. The manager may decline to discuss a higher salary. So, you must know in advance whether you will back off and take the offered package, or politely walk away from the offer.

Be the better candidate

The only way to approach salary negotiations is to grant the manager a concession: Clearly state that you want to work for him or her. Separate your interest in the job from the compensation, and the manager is more likely to negotiate terms with you.

“I’m ready to come to work, if we can work out the terms — the compensation.”

(For more about how to negotiate based on your value, see Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire and Book 9: Be The Master of Job Offers.)

There’s no guarantee about how this will work out. But, the better prepared you are to discuss how you will do the job better than anyone else, the better your chances of working out a mutually beneficial deal with the manager. The only way to ask for more money is to show the employer the money!

How do you ask for more money? If you’ve been turned down for more, why do you think you were rejected? Can you prove you’re worth what you ask for?

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Should I ask for a raise one more time?

In the July 28, 2015 Ask The Headhunter Newsletter, a reader has been waiting eight years for a raise while doing loads more work.

Question

I’m a gigantic fan who recommends Ask The Headhunter to everyone I meet. So thank you. I have a question, and if it doesn’t work for the newsletter, then I’d be good with a Talk to Nick session.

shrug-no-raiseI’ve been at my job eight years. With inflation, I make about what I made in 2007. My job responsibilities have grown enormously, and I have delivered tremendous, demonstrable value. My boss and his VP agree that I’m dramatically underpaid, and they “wish” they could do more, but you know, HR is horrible, I’m at the top of the pay band, and so on.

For a few years, I’ve sweated it out because frankly I like the place, and I get to spend more time with my kids than I would at a job where I was paid fairly. The kids are priority #1, so I don’t mind making less.

It’s a small company, and there’s not much room for growth. But I’m doing a job now that is quite different from my job title, and one that doesn’t exist here. I had a very ATH conversation with our CIO (my VP’s boss) in February, and it went quite well. He said he was going to see what he could do with HR. Then he got replaced after 32 years.

The new guy seems really talented, and sharp. But my dilemma is, how do I approach him to deliver the same sort of info I already told my CIO? I’d like to let him know that I’m doing a much more important job, while being paid for a lesser job.

My bosses are not going to advocate for me. That’s just the way it is, and has been since the beginning. So I have to do it myself.

I guess I just don’t know how to approach a guy who has been here for two months, and tell him how awesome I am, and that he needs to recognize my value. It’s like an interview, but not really. Your advice is appreciated. Thanks for all you do.

Nick’s Reply

Thanks for your kind words — I’m glad you enjoy ATH! You might expect I’m going to recommend some magic negotiating method, but I don’t think you should negotiate for a better salary. (If I did, I might suggest something from Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire.)

I think you should leave.

There’s an old joke: A cynical out-of-towner steps out of New York City’s Penn Station onto 34th Street and asks a passerby, “Can you tell me how to get to Lincoln Center, or should I just go F myself?”

I’m afraid all you’re doing is asking to be told to go F yourself. You’re very close to this because you’ve been there so long. If you step back, you might see this differently and a lot more simply. We tend to make excuses for people — especially our employers. I think the signs are that you need to move on.

Consider the facts you’ve shared:

  1. Your pay has not gone up in 8 years.
  2. You’re doing lots more work that has effectively increased your employer’s “pay.”
  3. Your management acknowledges all this.
  4. Your management has clearly told you they’re not going to pay you more. Worse, they blame it on HR, which after all works for management!
  5. Your bosses are not going to advocate for you. (See 4.)
  6. There’s not much room for growth.

Even if the new CIO is a great guy, he’s not likely to buck the company line. (See 5.) Even if he does, and you pull this off, (6.) tells me you’re just stalling the inevitable — unless you just want to make like a tree and take root for life. (See Should I take a big counter-offer?)

I respect that you put family at #1. That’s got nothing to do with how these people are paying you while you help generate more profits for them. It’s possible to keep doing your current work, keep family at #1, and make more money. But it’s not permitted. It seems they’ve made it clear they’re not going to pay you more.

Do you see what I see? I’m not saying jump to another company where you’ll earn more in exchange for making your family #2. I’m saying start looking for employers who value the kind of work you do and who will pay for it. Nothing is stopping you from conducting a well-paced, savvy job search. Worst case, you won’t find what you want. My guess is, you will.

I think you’re making excuses for managers who aren’t doing right by you. The new guy is not likely to rock the boat or buck your own boss.

If you go talk to the new guy anyway — and start a search at the same time — be careful. If all the managers put their heads together and realize your comp is such an issue, you may become a marked man. My guess, though, is they’re too lazy and complacent to worry about it.

Management like that just waits it out. When under-paid employees finally quit, the company just hires new ones for even less. It’s a sad commentary on how some companies are run.

“My bosses are not going to advocate for me. That’s just the way it is, and has been since the beginning.”

That tells me pretty much everything I need to know. In a healthy company, bosses advocate for their best people. They don’t resort to excuses. But what cinches this in my mind is, they’ve never thrown you a bone in eight years. That’s a bad sign. If there’s some indication that the new guy might be helpful, I just don’t see it. You’d need to explain that.

pc-cover1-211x275In a “talent shortage” like employers complain about today, the best talent gets hired. Why not start looking at yourself that way?

I’d be happy to schedule a Talk to Nick with you, but I’m not sure what more I could tell you — except to flesh out how to handle this new CIO. (You’d spend less learning about Parting Company properly.) The real question is, why do you think the new CIO is going to make any difference to you? Just because he’s smart does not mean he’s going to buck the rest of management. In fact, it suggests he won’t.

I believe in negotiating, as long as you’re talking with someone who is negotiable. If they’re not, then don’t beat your head against a wall. If anything I’ve said is helpful, I’m glad. Sorry if it’s such a downer, but I call them like I see them.

Would you keep negotiating with this employer? Is there an opportunity here for a salary increase that I’ve missed? What would you do in this reader’s shoes?

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2 Rules About Working for Start-Ups

In the July 21, 2015 Ask The Headhunter Newsletter, a reader is in a pickle — er, start-up — without a salary, and without protection on the upside or the downside.

Question

Your advice in the newsletters is brilliant. However, I haven’t seen you say much about start-ups. I’m in my 50s and enjoy the chaos of a new company. I have been doing it for nine months, and I love it. I am not getting paid, or receiving any benefits. The company has been getting exposure, and a few small projects, but no investment backing. That means no money. The CEO continues to tell the development team, the editors, and writers that “we are so close.”

bait-and-switchShe also mentioned they are moving to Silicon Valley, but will be using distributed-teams software to push more projects out.

The problem is that my budget and time are expanding. I am worried that my “job” will be lost by their move. I have only a handful of e-mails outlining the stock certificates, with promises of full-time employment when investors come through. However, I have nothing legal or tangible to suggest they are serious.

I’m ready to quit, but need some guidance. How do I approach her about my concerns without questioning her integrity? Should I suggest several options that have some legal teeth that protect me? So far I have all the risk while she continues to pump out projects. Thanks!

Nick’s Reply

There are two good reasons to work at a start-up:

Why work for a start-up?

One, you’re an owner with ironclad shares that cannot be diluted without your approval. If the company takes off, you’ll get your reward. If it doesn’t, you at least had a deal that protected your upside.

Two, you’re an employee being paid a fair (if not good) salary, and you’re expected to work hard over and above anything resembling “reasonable” — because you have some shares and stock options as a reward if the business takes off. Your salary protects your downside.

If you’re working at a start-up under other circumstances, I’m sorry to tell you that you’re probably a chump — unless you’re independently wealthy and love that kind of work.

I’ve got two rules for working at start-up companies.

Rule #1: Don’t get screwed

star-wars

I love start-ups. Been there, done that, had great experiences… except the time I got screwed because I had nothing in writing. When the founder decided to bring in other investors, my 250,000 shares were instantly diluted down to virtually nothing. (See Start-Up Stock: What’s it “sort of” worth?) The first rule when joining a start-up is don’t get screwed. Invest in legal and accounting advice to protect your up- and downside.

Let’s discuss how to handle your boss. You’re being naively nervous about offending a founder that you’re giving free work to. It’s time to make it legal.

I’d sit her down without any apologies and without hesitation in your voice.

How to Say It
“I’m excited about what we’re doing and I love the work. However, this is a business proposition — I’m working for free for equity and the promise of a full-time job. I think it’s time we put this in writing for our mutual protection.”

If she indicates any problem with that, then I think you’re being taken for a ride, and that you’ll be summarily dumped by the side of the road. She should be apologizing to you and extending every courtesy — you’ve been working for free with no written assurance of any reward!

You might want to talk with other “employees” to see how they feel — and to find out whether they have contracts. You all need them. You may want to speak with her as a group. But in my opinion this has already gone too far. You’d be pretty upset if she took advantage of all of you at this point — so don’t fret about having this discussion.

Rule #2: Don’t get screwed

Before you do that, I’d talk with an attorney. (See Employment Contracts: Everyone needs promise protection.) Equity deals and contracts with start-ups are complicated and fraught with risk. If it’s not worth the legal fee, then how can the promise of this job be worth anything? Please take this seriously.

The other issue is that if and when investors come in, your boss will have very little to say about your equity share. Investors don’t like seeing their shares diluted. You could wind up with very little, if anything, if you don’t have a solid contract now — and the right kind of shares.

I don’t mean to scare you, but I’ve seen this again and again. Even a well-intentioned founder can wind up hurting the team that poured its blood and sweat into the business. Working with no contract is totally imprudent and un-businesslike. I’d get to it asap. Did I caution you not to get screwed?

Don’t forget about IP (Intellectual Property) rights. Have you signed an NDA or NCA? Have you signed over any IP rights to anything you’ve developed? Your boss could be screwed, too, without these. It’s another reason you need a good employment lawyer.

Get compensated

My philosophy is, get value for value. Your work is valuable. Ask for salary, and ask for equity. I don’t think suggesting “several options that have some legal teeth” will help you unless you talk to a lawyer first. This is easy: Just tell her it’s time for a written, signed agreement — and stock certificates. Something tells me that’s when she’ll tell you you’re not part of the move — though I hope I’m wrong.

Before you quit, give your boss a chance to protect your investment in this business by compensating you fairly for the risk you’re taking. Get compensated. That’s not a rule; that’s good business. Do your best to prepare yourself in advance. These Ask The Headhunter PDF books will help you with your “boss”:

Fearless Job Hunting, Book 6: The Interview – Be The Profitable Hire. This works even when discussing salary with your current employer!

Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer), especially “The Pool-Man Strategy: How to ask for more money,” pp. 13-15. Sometimes it helps to ask casually!

Fearless Job Hunting, Book 8: Play Hardball With Employers, especially “Due Diligence: Don’t take a job without it,” pp. 23-25. This is a must when considering a job at a start-up, though this section applies to established companies, too.

Fearless Job Hunting, Book 9: Be The Master of Job Offers, especially “Non-Compete: Did I really agree to that?”, pp. 5-7.

There’s a lot more to start-ups, of course. (See Ben Slick’s excellent article, Evaluate a Start-Up Job Opportunity Like a Venture Capitalist.) If something I’ve said is helpful, I’m glad. I’d love to know what you decide to do and what comes of this. Thanks for your kind words about Ask The Headhunter!

For those considering the excitement of working at a start-up, if it’s what you really want to do, don’t be dissuaded by risk. As this reader points out, it can be an exciting experience. Just follow my two simple rules, and make sure you protect yourself on both the upside and the downside. I hope you get rich, but don’t end up losing your shirt.

(If you’re thinking about making the leap to starting your own start-up, learn more about Trading Your Job For Venture Funding.)

Have you ever worked for a start-up? How did it turn out? Did you protect yourself? (Did you get rich?) How would you advise this reader?

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