Help! I’m a floundering headhunter!

On August 4, 2014

In the August 5, 2014 Ask The Headhunter Newsletter, a headhunter’s troubles reveal how job seekers can help themselves:

flounderingI just read your expose on CareerBuilder (Employment In America: WTF is going on?). I have used them over the years with very mixed results, and now they’re eliminating my discount and almost doubling my cost. A major disappointing rip-off.

I am a niche technical recruiter in a sector that has thousands of jobs not being filled because there is a lack of heavy-industry engineers. I am on Linkedin with up to 14 million connections to the 3rd level. There are some legit contacts, but the recruiter tools are a rip-off. And like CB and Monster, their sales people are relentless and care little for their customers’ results.

I have been doing direct e-mail campaigns and making calls, and I’ve been posting to niche boards. I got slammed by junk resumes on Indeed. Monster wants to sell me a $5,000 per month program, and I am hitting the wall. I have used some professional sourcers and it has been a struggle. One sourcer’s fee would be 50% of the fee a client would pay me.

I am floundering. All the techie features of these online systems can be a distraction! What else can I do to find good candidates for my clients? This is still about finding good people for good companies. Part of the problem is that the people I am searching for in heavy industry don’t publish, don’t attend conferences and don’t operate or participate on blogs. The companies that I work for trust me and they know their positions need to be filled with leprechauns riding unicorns chasing purple squirrels. Nick. I don’t want to be a lousy recruiter. It is still an important service that changes lives… hopefully for the better. Any advice is appreciated.

Nick’s Reply

I hope job seekers, whose questions we usually discuss here, can learn something from my advice to a troubled headhunter.

The solution is old-fashioned. You have to go where these people (candidates) hang out — wherever that might be. You talk to people who know people in the business – and ask for referrals to other possible sources. You do this primarily on the phone, but as much as necessary by e-mail, too. The point is to create a potent network of solid contacts so that insiders in heavy industry will know who you are and refer others to you.

LinkedIn is little more than a fancy phone book. Everyone is in it, but consulting it isn’t recruiting. As you can see, a list of 14 million people and their data is useless in itself. And the job boards deliver swill by the bucket. The reason a company uses a headhunter like you is that this takes hard work and there are no shortcuts. That’s where the huge headhunter fees originated – for all the hard work. Those professional “sourcers” you mentioned — they actually identify appropriate candidates in very challenging industries, and that’s more than half the work of headhunting. Of course they want half your fee! The online shortcuts just don’t do it.

I’m not trying to give you a hard time, just a reality check. Headhunting is 90% meeting and talking with people all day long. That’s where assignments and candidates come from. I know you know this, or you wouldn’t be telling me how all these “services” don’t really work.

You can start with your clients. Meet with them and ask them where their best hires have come from – what cities, what companies, what schools, where? Then I’d start cultivating contacts in those places.

Then go to heavy-industry engineers you have placed. What competing or related companies do they admire? Do they know engineers there? What continuing education courses do they take and where? Sign up for some of those classes — it’s where you’ll meet engineers and sources of good contacts. What conferences do they attend? Attend them yourself. (I don’t buy what you’re saying. Engineers congregate with other engineers. Your challenge is to figure out where.) Don’t just talk to attendees; talk to the organizers and presenters. They are great sources of candidates. Just don’t forget to return favors!

I’m sure you know people in manufacturing, finance, operations, marketing and sales. Many of them know engineers who know the engineers you’re looking for. That’s who those “sourcers” are talking to. Your job is to talk to them, too.

For the job seeker

How Can I Change Careers?Networking is not about using people. It’s about hanging out with the people you want to work with, where they hang out — talking shop, contributing to your professional community and making friends. The How Can I Change Careers? Answer Kit (36 pp., PDF format) provides tips and tools for career changers and job changers alike, including:

  • A good network is a circle of friends
  • The basics of good networking
  • How to initiate insider contacts
  • Tell me who your friends are
  • PLUS: Create your next job
  • PLUS: Put a free sample in your resume
  • PLUS: A crib sheet to help you explore, choose and research the right opportunities; tips on how to enter a circle of friends; how to define an employer’s needs and map your skills; and how to create a business plan for a job that will make you the profitable candidate in an interview.

I’m also sure you know quite a few heavy-industry engineers who are not looking to make a change. Buy them a nice lunch anyway and pick their brains — express an actual interest in their work. Become more of an expert in the field you recruit in, and you will start to see connections and opportunities you never saw before. Don’t ask these engineers for referrals; instead, offer them introductions to other people that might be beneficial. For free. Become a hub of good contacts without expecting any return and those engineers will start referring their friends to you because they will come to see you as more than just another headhunter who throws buzz words around — they’ll see you as a valuable industry resource.

For the job seeker

The best headhunters are looking for you in places where the best of your peers are talking shop. They cultivate potent networks of solid contacts — and job seekers can do exactly the same for themselves. For a more structured approach to how job seekers can meet and work with the best headhunters, see How to Work With Headhunters… and how to make headhunters work for you (130 pp., PDF format). It includes these sections and much more:

  • htwwh1Why don’t headhunters return my calls?
  • How should I judge a headhunter?
  • What are all the different kinds of headhunters?
  • Are online job boards a good way to find headhunters?
  • What’s the secret to getting on a headhunter’s list?
  • What kind of resume will make me the headhunter’s #1 candidate?
  • How can I find a good headhunter?
  • How should I manage a call from a headhunter?
  • Should I divulge my salary to a headhunter?
  • How should I negotiate with a headhunter?
  • Can I boost the salary range for a job?
  • Can a headhunter hurt my reputation?
  • Should I tell a headhunter who else I’m interviewing with?
  • PLUS: How do I keep a headhunter from squeezing me out of negotiations?
  • PLUS: How do I avoid having my resume tossed in the trash?

Like good jobs, good candidates are found through relevant contacts and hard work. (Who is relevant depends on how creative and insightful you are. That’s another thing that makes those big headhunter fees hard to come by.) The contacts you need will grow out of your active participation in the professional community you recruit from.

I admire how seriously you take your work. But no one is going to do it for you, and no online service will replace you. Take that to the bank.

How do the best headhunters you’ve met operate? We’re always talking about what’s wrong with headhunters. Some of them are very good at what they do. What’s right about them? Please share your experiences. Let’s talk about how to use the best headhunters’ best methods yourself!

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WTF! Inflatable Interviewer Dolls?

On July 28, 2014

In the July 29, 2014 Ask The Headhunter Newsletter, a reader doesn’t feel like doing a solo job interview:

What do you think of an employer that uses a video service such as Montage to conduct its pre-screening of job candidates? I was recently asked to do this and found the experience awful. You don’t get to hear responses played back before submitting them, and there is no conversation with the interviewer.

Nick’s Reply

inflatable_manI think it’s bulltarkus. Any company that asks you to do an interview by yourself on video might as well hire an inflatable doll. If an employer asks you to invest your time to apply for a job while it avoids investing time in you, think twice before doing it.

In fact, I think the decision to interview you by yourself on video was made by an HR doll that was inflated by a very lonely venture capitalist who will end up unsatisfied. It’s all overblown.

The Journal Sentinel reported that Montage — the Talk To The Doll App you’ve encountered — was funded to the tune of $4 million by Baird Venture Partners and — get this — the State of Wisconsin Investment Board. All you need to know is this comment posted to the article: “Very simple technology that will have little value in the future. It’s a groomed Skype with recording abilities.”

Montage is a “solution” that only a puffed-up HR executive with too big a budget could love. Next time, insist that a human show up to interview you.

WTF is up with venture capitalists (VCs), anyway? Didn’t we just cover a bunch of venture embarrassments in the recruiting space? The Stupid Recruiting Apps just keep coming, and you need to watch out for them.

Montage is just one notch up from another new app, Yo. According to The New York Times, Yo raised $1.5 million from Betaworks and other investors. Yo makes a “new smart phone app whose sole purpose is to let people send text messages saying ‘Yo.’”

“People think it’s just an app that says ‘Yo.’ But it’s really not,” said Mr. Arbel, one of Yo’s founders.

Rumor is that several Fortune 500 employers will be notifying job applicants whether or not they were hired with one word: Yo. “We like to call it context-based messaging,” says Arbel. “You understand by the context what is being said.”

Ask The Headhunter readers will be relieved to get any sort of feedback after their job interviews. (See Question 4 in 4 Tips for Fearless Job Hunters.) But, can’t we send one-word Tweets without having an app that sends only one word? Yes?

cenedellaThis is not to suggest there aren’t some seasoned recruiting industry veterans getting funded today. The former CEO of TheLadders, Marc Cenedella, has what’s probably the winning entry in the Totally Useless Apps category — Knozen. Business Insider says it’s “a new iPhone app that lets coworkers rate each other’s personalities anonymously… it’s like Yelp is for restaurants.”

I’d rather have an employment app that’s like OpenTable — it would guarantee me a place at the table! VCs including FirstMark Capital, Lerer Ventures and Greycroft Partners gave Cenedella $2.25 million. And here’s where you — the job seeker — come in. Business Insider reports that, “Eventually, Cenedella wants his app to become a ‘personality API’ that businesses can tap into during the recruitment process.”

Uh-oh — Cenedella is talking tech: API. So’s Yo investor John Borthwick: “over time [Yo] has the potential to become a platform.”

You can’t make this stuff up. “Cenedella feels Knozen is an extension of the work he was doing at The Ladders, a career site that matched executives with job opportunities that paid six-figures.”

And how’s Cenedella’s last start-up faring? Today TheLadders is fighting a consumer class action in Southern New York District Court for breach of contract and deceptive practices. Word is his lawyer dolls are keeping Mr. C. out of breath.

“The Ladders was about showing the intangible qualities of yourself to employers,” says Cenedella. Yah — actually, it was about letting you lie about your salary to employers so they’d interview you for “$100K+ jobs.” (See TheLadders: Job-board salary fraud?) Does Knozen somehow guarantee honesty?

How does Cenedella explain that TheLadders is now a Hazbeen while Knozen is new and cool? “I got more interested in how people present themselves when they’re already in a job, not hunting for it.” No shit. One Business Insider comment sums up this start-up: “Stupid app. Nark app.”

I usually limit the levity and try to rise above all this. But when:

  • We start talking about a single word “that over time has the potential to become a platform;”
  • Employers want to snooze while you talk to the hand about a job; and,
  • A discredited recruiting entrepreneur gets over $2 million from venture capitalists…

Then it’s impossible to keep a straight face. We’re talking about a total of about $8 million worth of phony “recruiting technology” that you might face when you apply for a job.

So what’s my advice? Do what my mentor Harry Hamlin taught me: Use your judgment, and do the best you can. Then remember what my other mentor, Gene Webb, said: “Never work with jerks.” And don’t talk to inflatable doll interviewers.

Are new recruiting apps helping you land a job? Who’s become more stupid — venture capitalists, or employers? Want to buy an inflatable doll from me — to send to your interviews?

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4 Tips for Fearless Job Hunters

On July 21, 2014

In the July 22, 2014 Ask The Headhunter Newsletter, four questions yield four tips to help you overcome some of the daunting obstacles you’ll face in your job search.

  • What should a job seeker always say to the employer at the end of an interview?
  • What should I do about application forms that “require” my salary history?
  • How can I avoid a salary cut?
  • What should I do about employers that won’t give me a decision when they promise to?

Recent questions submitted by readers reinforce the idea that it isn’t the “steps” of job hunting that matter most. It’s the unexpected obstacles. In this week’s edition, I’d like to share four important tips to help you overcome obstacles in your job search. My answers in each case are excerpted from the Fearless Job Hunting PDF books. I hope these tips give you an edge!

FJH-6From Fearless Job Hunting, Book 6: Be The Profitable Hire, pp. 14-15:

Question 1

What should a job seeker always say to the employer at the end of an interview?

When I was job hunting, I always made it clear that I wanted the job. As a hiring manager, I want to ensure that positions are filled by qualified candidates who I know, undisputedly, want the job. Can you discuss the importance of this basic and obvious technique in interviewing that is often overlooked? That is, the applicant must always say to the potential employer, “I want this job.”

Tip 1: Learn to say “I want this job”

There’s a story I tell in my first book about a talented sales executive who interviewed for a job and failed to get the offer. I asked him whether he closed the interview by saying he wanted the job.

He argued with me that making such an explicit statement is awkward and that it suggests the candidate “has no class.” My response: “It’s good you weren’t hired. Failure to say you want the job shows you don’t have enough interest in working for the employer.”

“Of course I wanted the job!” he exclaimed. “The manager knows that! That’s why I’m interviewing!”

No, the manager doesn’t know that. Not unless you tell him. Interesting, isn’t it, how unacceptable some think it is to make an explicit commitment, when that’s exactly what an another person needs to hear.

FJH-4From Fearless Job Hunting, Book 4: Overcome Human Resources Obstacles, pp. 11-12:

Question 2

What should I do about application forms that “require” my salary history?

Some companies I recently applied to have established online application forms that include the infamous salary question. Many of these forms have the field flagged as “required,“ which prevents you from moving forward without disclosing this information. Can you give some advice on how to handle this situation?

Tip 2: Beat the application form

There may be ways around it, if you’re willing to risk getting the application screener ticked off at you. (Ever wonder who screens those apps? Ever wonder why a company lets some clerk decide who managers will and will not interview? It’s crazier than nuts.)

Such forms don’t distinguish between text and numeric entries. Try entering CONFIDENTIAL instead of a number. If a number is required, I’d use lots of 9’s to make it clear that you’re not misrepresenting your salary, but protesting the field.

You might be considered a smart aleck, and your response inappropriate. So make a frank statement about your intent elsewhere on the application. (There is usually a field for comments.) I believe it’s perfectly legitimate to politely but firmly state that your salary is confidential, and that you prefer to withhold it until a serious mutual interest develops between you and the employer. What better way to get a screener to actually pick up the phone and call you? (That’s the point of applying, right?)

FJH-7From Fearless Job Hunting, Book 7, Win The Salary Games, pp. 7-10:

Question 3

How can I avoid a salary cut?

I had an excellent rapport with the CEO who interviewed me. The job is just what I was looking for. It would be a next step in my career. The salary, however, is 20% less than my last job… The CEO asked me to think it over during the weekend and call him next week if I have any ideas that could bring us closer to an agreement. He asked me not to accept the position unless I could be happy for the long haul. How can I avoid a salary cut?

Tip 3: Avoid a salary cut

It’s up to you to show the CEO how the work you will do will pay for that salary boost… Sales doesn’t mean convincing. At its best, sales means showing how you’re going to help the other guy make profit from your work, so he can pay what you’re asking. This simple idea is foreign to many people, yet it’s at the heart of any salary negotiation — and at the heart of any good business transaction.

Avoid a salary cut by showing the employer how you will help him avoid a dip in profits. Make the employer want to pay you more, by showing him how you will help him make more, too. Give the CEO some good reasons to work with you, and you may get some or all of what you want.

FJH-8From Fearless Job Hunting, Book 8: Play Hardball With Employers, pp. 15-16:

Question 4

What should I do about employers that won’t give me a decision when they promise to?

Two weeks after my interview, I called to ask if a decision had been made. The HR person said the job was not filled, and that I was a top candidate… I have waited another two weeks without any word. I suppose I have several options: Continue waiting, call the company again to reiterate my interest, or give up and look elsewhere. Which do you recommend? How long is it reasonable to wait “patiently” after interviewing?

Tip 4: Play hardball with slowpoke employers

Never call the personnel office to find out where things stand. After the agreed-upon deadline, call the manager. Whether you talk to the manager or get voice-mail, leave this hardball message: “I’d like to work for you, but I’m considering another job offer.” Say no more. (Note that you have not closed the door to an offer.)

If none of this yields an offer or believable timetable information, then stop investing time and emotion in this deal unless it comes back. Move on.

I know only too well how frustrating this is, and how angry it makes you. The sooner you understand that many employers are too preoccupied to care, and that you’re not going to change their behavior, the sooner you can get on with your life. If you spend your time waiting for someone to make a decision about hiring you, then you give up control of your destiny. This is me playing hardball with you: Stop calling the employer.

There aren’t any “steps” to getting hired. If there were, you’d follow them and you’d have the job you want. Getting an offer is about knowing how to overcome daunting obstacles that stop other job hunters dead in their tracks. Let’s talk about the obstacles you face in your job search!

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The employer is hiding the salary!

On July 14, 2014

In the July 15, 2014 Ask The Headhunter Newsletter, a reader complains about wasting vacation time interviewing for the wrong jobs:

I applied for a position in another state and got a call right away to set up an interview. I scheduled vacation time for this meeting and it went very well. I liked what I was hearing and my would-be future boss obviously liked what he was hearing so much that he scheduled another interview with the “powers that be” right away. So again I scheduled more vacation time for this interview. This also went very well.

At the end, when it came down to talking salary, all involved were very disappointed. My low end of expected salary was much higher than the high end of what they could offer. It was a good enough fit that the hiring manager e-mailed me a couple of weeks later wondering if there was any way I could come down in my salary expectations. After I turned him down again, he e-mailed me a few days later telling me how much he was disappointed that we couldn’t work things out. I asked him to keep me in mind for other opportunities.

It would save me countless hours of wasted vacation time and interviews if employers were not so secretive about their salary ranges. If I had known the salary range ahead of time, or at least at the end of the first interview, we could have saved each other so much time and disappointment. How do you suggest handling this?

Nick’s Reply

hidden-moneyIf I didn’t know better, I’d think that, as the economy improves, employers are trying to take advantage of job seekers by hiding the money. Perish the thought!

The other explanation is that it’s become a cultural problem. “Oh, we never talk about money… it’s so declasse…” Yah, and it’s also ridiculous.

Would you visit a Tesla salesroom for a $75,000 car if all you can afford is $25,000? Of course not (unless you’re just out for entertainment). Imagine if there were no way to find out the ballpark price of cars in advance. Would you visit a dealership twice, hoping the price might turn out to be right on the third visit? Of course not.

In one of the Fearless Job Hunting books I discuss how to respond to your boss when he offers you a promotion but fails to mention a raise in salary. Is there one? How much? The same method works perfectly before you agree to interview for a new job.

This excerpt is from the section titled, “The Pool-Man Strategy: How to ask for more money,” pp. 13-15, in Fearless Job Hunting, Book 7, Win The Salary Games:

“You should have asked about money first. Some might consider that presumptuous, but I don’t. It’s business. Setting expectations early is usually the best way to accomplish your goals. The psychology of this situation can be more complex than you might realize. If you embark on this meeting… without setting an expectation about money up front, you will wind up like a puppy waiting for a treat after you’ve jumped the stick 20 times.

“How to Say It: Keep it short and sweet: ‘What’s the pay like?’

“Those are the only words I’d respond with. It’s not a demand, or even an expectation. It’s a top-of-the-head, disarmingly honest, enthusiastic question that must be answered before any further discussion. Note that you’re not even asking for a specific number… I think the best way to ensure that compensation will be a part of negotiations is to put it on the table from the start.”

This is business. Get an answer before the interview, or move on to the next employer. The only reason employers don’t like to disclose a salary range — like the manager who kept challenging you to lower your salary expectation — is that they want to hook you early in the hopes that you’ll compromise. And, once you’ve gone to multiple interviews, you’ll be more likely to compromise your negotiating position to justify all the time you’ve already invested. It’s an old sales trick.

The manager you interviewed with is just astonishing. He asked you to lower your salary requirement — twice! Why don’t you send him an e-mail now, and explain that you’ve thought about it and you’d love to work on his team. Is there any way he could come up to your required salary?

See what I mean? It sounds kind of awkward and presumptuous for you to do that — right? Yet he did it with no problem. Maybe it’s worth trying. Maybe he’ll realize he can’t find who he needs for the money he wants to spend. (You might want to be ready to explain, How do I prove I deserve a higher job offer?)

This is the salary double-standard. The manager wasted your vacation time twice and keeps asking you to to give up even more… for what?

I’m not asking these questions rhetorically. Employers like this need to do a reality check, because they’re a bit nuts and more than a bit unreasonable.

Next time, when an employer hides the salary for a job, ask. Save yourself some grief. (There’s another side to this double standard: Why do companies hide the benefits?)

Have you interviewed for jobs where you didn’t know the salary? Were you surprised later? What do you think would happen if you insisted on knowing the salary range in advance?

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Why do recruiters suck so bad?

On June 30, 2014

In the July 1, 2014 Ask The Headhunter Newsletter, a reader expresses serious reservations about recruiters:

I am a 46-year-old woman who has been rendered 100% unemployable in the New Economy. I’d just like some help in understanding what’s going on. My experience with recruiters has been terrible, and as a recruiter I thought you could maybe offer some insight into why they have become so useless.

I’ve spoken with lots of other “permanently unemployable” professionals over the age of 40 and their experience with recruiters is identical to mine. Are recruiters truly incapable of providing real feedback? Why do recruiters suck so bad?

Nick’s Reply

sucks-so-badYou’re opening up a can of worms. So let’s tie on our aprons and take a good look at the slop that passes for “recruiters” nowadays.

There are some very good recruiters out there — both inside of companies (in the HR department) and on the independent side (those that HR pays to deliver candidates). They are few. (See Good Headhunters: They search for living resumes.) On the whole, recruiting sucks really, really bad today.

The problem is automation

The number one problem is that recruiting is now wholly automated. Both the HR profession and independent recruiters don’t really recruit. To recruit means to go out into the world to find, talk to, assess, judge, cajole, seduce, convince and bring home the best people to fill a job for a client. This still requires getting one’s duff out of the chair from behind the desk and the computer display to actually meet people. (See Executive Search: Don’t pay lazy headhunters.)

But, show me 1,000 recruiters and I’ll show you 999 lazy keypunchers who are terrified to talk to anyone, and content to get paid for diddling their keyboards. They pay monthly fees to access huge databases of “job seekers” — and their expectation is that “the system” will deliver candidates. So, what do employers need recruiters for?

The 1,000th recruiter — who actually goes out and recruits — is worth his or her weight on gold. He doesn’t suck. The rest aren’t worth spit.

Everybody can play!

The other biggest problem is that the cost of entry to the recruiting business is virtually zero. Anybody with an Internet connection and a cell phone can play. The automation thus allows a proliferation of drive-by recruiters who run over job applicants while scratching their lottery tickets. It’s why you hate recruiters: You’re just another casualty and there are plenty more where you came from. (See Does the headhunter own my job interviews?)

I could riff on this for pages, but I’d rather just show you the very disturbing trend that proves my point: It’s not about recruiting any more. Proof lies in the “state of the art” start-up firms that get funded because idiot investors get excited about “new business models” that do absolutely nothing to advance the art and science of recruiting.

If these are the kinds of companies that have been funded, what does it tell us about the state of the business? (See Employment In America: WTF is going on?) As you put it, this is why recruiters suck so bad.

NotchUp

One of the early dim-bulb recruiting start-ups was NotchUp, started in 2008 by a couple of guys whose first concept was a “pay for interview service” that didn’t quite make it. In 2010, BusinessInsider called NotchUp a “Hot Silicon Valley Startup You Need To Watch.”

What was this exciting new concept in recruiting? It was a “crowd-sourced lead generation platform on top of social networks.”

Notchup was basically an app that was supposed to leech job seekers from social networks. It was designed to avoid recruiting. The app circulated job listings across social networks and matched them to users’ connections. Then they waited for results, just as “recruiters” inside major corporations wait for job boards to “deliver” hires. NotchUp no longer exists.

Standout Jobs

This start-up arrived in 2007. Standout Jobs was described as a “do-it-yourself, interactive career site.” A few years later, founder Ben Yoskovitz admitted, “I didn’t have a strong enough understanding of the HR/Recruitment market going in.”

Surprise: None of the clownish “entrepreneurs” looking to cash out know a thing about recruitment. They’re selling apps and database services in lieu of recruiting.

Clicking on StandoutJobs.com yields an “error establishing a database connection.” The business was acquired in 2010 by another up-and-coming online recruiting business, Talent Technology, which garnered a “top HR product” award from HR Executive magazine. The award seems to have been purged from the web, and Talent Technology Corporation is nowhere to be found online. (What does this tell us about HR Executive magazine?)

Tony Haley is a seasoned London headhunter who’s been watching these start-ups a long time. “You have people with little or no recruiting experience introducing new services and putting spin around them,” he explains, “about how they will improve the recruiting process without understanding it in the first place.”

Haley points to the real problem: HR executives who know nothing about recruiting, either. The recruiting services they turn to “match the misguided demand from employers that cheaper is better. These services encourage low-level, high-activity churn. It encourages more inexperienced people to go into recruiting — people who think they can make quick money. It drives down the quality of candidates and it hinders the speed of service.”

Referral recruiting

The main idea behind many online recruiting start-ups is “referral recruiting.” It’s simple: Recruiters suck at finding job candidates, so let’s find someone else to find job candidates, thus recruiters and employers can both avoid recruiting. We’ll introduce a cool new business model: Split the placement fee with anyone who touches the process.

I won’t waste your time with links, because most of them are dead, but the lsplit-feesandscape is littered with the corpses of brilliant, “award-winning” referral services: refer.com, KarmaOne, YorZ, h3.com, referrio.com, and more.

When you get that call, you realize recruiters suck because the state-of-the-art in recruiting is not about recruiting. It’s about splitting recruiting fees while avoiding recruiting. And what of the employers that try out these services?

Says Haley, “Do they really think recruiters will do more for less? They will do less for less and the employers get what they pay for. Time spent working to fill jobs is minimized, which means quality is affected, speed of service slows down and the candidate experience is poor because no one really cares about the candidate. It’s all about the cost.”

Under this model, the recruiter who actually does the work is left with a tiny fraction of a fee. And you guessed it — this is how employers wind up working with really crappy recruiters, because the best ones don’t need help and aren’t going to share their fees. The intermediary “recruiting services” wind up pimping recruiters who can’t do the business themselves.

Scout Exchange

A representative from Scout Exchange (www.goscoutgo.com) tried to get me to write about this latest recruiting concept. I’ve included the URL in explicit form because the company’s mascot really is a dog. So they get their wish. The company charges employers to find recruiters who will find candidates to fill jobs.

Disintermediation, anyone?

I think what this tells us is that inept in-house personnel jockeys not only can’t recruit to find hires — they can’t find good recruiters. (Oops. We’ve inadvertently figured out why internal recruiters suck, too!)

Employers sign up for the service, which matches them with recruiters who sign up to share placement fees. Explained the rep: “Scout is an online platform that uses advanced data analytics and algorithms to find the best matches between specific job reqs from enterprise and specific third-party recruiters.”

(Note there’s no claim that anyone is matching workers to jobs. This is matching companies to recruiters. Recruiting recruiters. Do pimps have pimps?)

Tony Haley: “There are no advanced data analytics and algorithms that can account for human interaction, emotion and, therefore, decision making.” He took the words out of my mouth.

wild-dogWhen a job is filled after being “touched” by who knows how many parties, the employer pays a fee, which winds up shared by recruiters and Scout.

I was told: “Employers benefit from Scout’s bidding feature that allows recruiters to submit talent at the placement rates they feel are appropriate, often reducing agency costs for employers.”

This service encourages recruiters to fight like dogs for the right to have their throats slit by “clients” looking for bargains. When one of these recruiters calls you about a job, do you think they’re going to take time to act professionally? That’s the game.

Better yet, what do you think happens when a recruiter bids the lowest price? Does she bite the hand that feeds her?

RecruitFi

My favorite new recruiting service is RecruitFi. The company’s Business Development Director pitched me to do a story about the company, and excitedly told me they have “gameified” recruiting. (It seems these firms spend a lot of time trying to get into blogs. Is that business development?) Like Scout, RecruitFi doesn’t improve recruiting in any way that I can see. The game is that it merely spreads around the fees employers pay. But they spread the fees farther.

Here’s how it was explained to me. Buckle in for some serious doubletalk. (I added the highlights):

“There is higher engagement with incentives, because we have a large pool it helps us keep recruiters motivated as we connect them with new clients. [sic] We want the highest quality candidates for clients and small rewards as recruiters do searches acts [sic] as an incentive to be in our community. We also pay the candidates which closes the loop of hiring conformation (as well as establishes the relationship with their recruiter and us).”

Read that part again: They pay the candidates!

I asked David Hines, an HR consultant with Human Capital Solutions, LLC, for his reaction. “This model will get 95% of back-bencher contingency recruiters to participate. The best 5% of recruiters would never play in this arena because it would quickly kill their reputations,” said Hines. “As for paying candidates… Unbelievable. I can’t believe that these idiots don’t see any ethical violations here.”

Here’s what I told the biz dev guy from RecruitFi:

“First, about 5% of independent recruiters/headhunters are really any good. The rest are fast-buck artists who will do anything to make a fee. That’s who your model will engage. ‘Engaging’ all of them is a waste of time and counter-productive. When all of them are chasing the same candidates, it pollutes the pool and makes it more difficult to hire the best people. (See Headhunters, Personnel Jockeys & Monkeys.)

razor“Second, the best headhunters will not invest their valuable time to get partial fees. They’ll go work on real assignments, where the client wants the best candidates and is willing to work closely with one headhunter – even if only on contingency — who will earn a full fee. Key here is the fact that you’re not lowering the fee the client is paying – just distributing it. There’s no benefit to the client. Having ‘more headhunters’ working on an assignment has never resulted in better searches or better placements.

“All your model does is encourage headhunters to slit one another’s throats for the benefit of working with you. You will wind up with a pool of poor or mediocre headhunters throwing all the spaghetti against the wall that they can – to make a few bucks. The best assignments and the best placements will be done by the best recruiters.”

The best recruiters don’t play games and have no competition

Does this explain why most recruiters you encounter suck so bad? The very recruiting industry now sucks, because the newest developments are not about recruiting — they’re about introducing more hands to grab at limited placement fees, and paying even more wild dogs to abuse job applicants. They’re even paying you when you accept a job! This is the business model venture capitalists like to fund — because they don’t understand recruiting, either.

Yes, it sucks. The trouble is, employers support these “innovations” which amount to little more than recruiting recruiters to do the work recruiters inside corporations aren’t doing.

Meanwhile, the best recruiters have no real competition. They don’t play “games” or dice up fees, or abuse job applicants. For more about how to distinguish the real recruiters from those dialing for dollars, check How to Work With Headhunters… and how to make headhunters work for you. Much of the book is about how to avoid recruiters that suck. The rest is about how to profit from the best.

Let’s hear about your experiences with recruiters that suck — and about those that don’t. And tell me whether you’ve encountered any clever new “recruiting services” that actually work to your advantage — whether you’re a job hunter or an employer or a recruiter.

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Illiteracy is a sign of ignorance

On June 23, 2014

In the June 24, 2014 Ask The Headhunter Newsletter, a reader questions the value of spell-checkers:

A friend of mine applied for a job as a “Principal Engineer” at a local software company. The company recruiter asked lots of questions about his writing ability. It turned out that the recruiter almost threw his resume out, believing my friend had misspelled “principal.” The recruiter said the title is “Principle Engineer.” However, anyone who knows this position knows that “principal” is the correct spelling. That is, one shouldn’t be engineering one’s principles!

Fortunately, the story has a happy ending. Once he got to the Real Engineers, my friend wowed them and got the job. In this linguistically-challenged era of the spell-checker, I wonder how often good resumes get tossed because the screener can’t spell. (A quick check of Monster turns up dozens of ads for “Principle Engineers.”)

Nick’s Reply

Okay, it’s time for my literacy rant, right after my rant about resumes. Thanks for sharing this common story, which often has a less happy ending.

This is one of the many ways resumes (or LinkedIn profiles) can sink you. They are dumb pieces of paper (or characters on a computer screen) that cannot defend facts, spelling, or credentials. When resumes are screened by personnel clerks, you lose. That’s why I advocate using personal contacts to get interviews. Your friend got lucky. Don’t rely on luck. (See How (not) to use a resume.)

Now let’s tackle “the other problem,” because it’s far more important: Illiteracy is a sign of ignorance.

It isn’t just illiterate recruiters who create problems. It’s become distressingly common in business and in the professions to hear that “your point” is more important than “how you express it.” That’s bunk. (Watch the Taylor Mali video.) People shrug off poor spelling and incorrect grammar as though it’s inconsequential. I see people smirk and roll their eyes when someone points out errors in their writing, as if to say, “Look, I’m successful. I don’t need no spellin’!”

(You say you use a spell checker? Lotsa luck! In the example we’re discussing, “principle” would not be flagged as incorrect — the word is spelled correctly. But it’s the wrong word.)

What’s a discussion about language doing in Ask The Headhunter? Poor spelling, incorrect grammar, lousy writing and poor oral presentation are all signs of illiteracy. I don’t care what field you work in, how much you earn, or whether you’re a production worker or a vice president. The way you use language reveals who you are, how you think, and how you work. And that will affect your career profoundly. You can pretend otherwise, but you can also walk around buck-naked believing you’re invisible because you’ve got your eyes closed.

We all make mistakes when we write or speak. When I’m in a hurry, I type too quickly. I’ll drop a suffix, substitute a word and fail to delete the original one, or use the incorrect case. That isn’t the point. The point is to know the difference between correct and incorrect usage, and to be able to use language properly.

Incorrect use of language will cost you a job or an opportunity, if it hasn’t already. If you have a problem with usage, I urge you (that is, anyone reading this) to get help. Remember that a software spell checker knows nothing about semantics, and that no grammar checker understands grammar. Take a writing course. Get some good reference books and use them. I write for a living so I’ve got more of these than you’re likely to need, but here are some of the references I keep on my shelf where I can reach and use them. Buy one to get started and use it. Over time it will improve your reputation, your self-confidence, and possibly your income.

Hodges’ Harbrace Handbook. You may remember this little book from college. It’s standard issue for English 101. Most students sell it back to the bookstore, glad to be done with their basic composition course. Too bad, because it’s indispensable and lasts a lifetime. The Handbook will help you quickly find the answer to almost any question about writing and grammar. Keep it next to your dictionary.

Modern American Usage by Bryan Garner. This is my favorite reference because it’s fun to read. Garner writes about language with a great sense of humor. This book will teach you more than definitions — it will educate you about how to use words more effectively and precisely.

Shorter Oxford English Dictionary. There are lots of good dictionaries, but this one will teach you about words through good examples and discussion of their history. It costs a few bucks, but you can pass it on to your grandchildren. I’m taking mine with me.

Literacy matters in business and at work. People who notice your errors will rarely correct you, but they will always judge you. When I goof, feel free to nail me. I welcome it because I want to get it right. Try the same with your friends, in a polite way. Then invite them to monitor your usage, too. Don’t be offended when they point out your errors. Instead, “go look it up,” or suffer the hidden consequences.

Does spelling matter to you? Do you judge people by how they use language and express themselves? I do. And I love hearing success stories and horror stories about the role of our language at work. Please share yours!

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Stand Out: How to be the profitable hire

On June 16, 2014

In the June 17, 2014 Ask The Headhunter Newsletter, a reader says that not all jobs produce profit:

I have read this in your advice more than once:

If I can’t show you how I will boost the company’s profitability with my work, then you should not hire me.

There are many positions in “the company” that do not have a direct impact on profitability, and I would argue it could be difficult to prove they even have an indirect impact.

It seems to me much depends on the size of the company, the culture of the organization, the management structure, as well as the specific position and the ability and authority of that position to influence more significant factors (such as staffing levels or budgets) that could impact profitability.

If one is seeking one of these lower- to mid-level management positions (such as project manager, for example) exactly how would a candidate show how they will “boost the company’s profitability?” The concept is understandable, and I can see where at some level this might be valid, but the majority of job seekers are not operating at that level, are they? Is your advice targeted only at the highest-level positions?

Nick’s Reply

profitable-peopleMost of my columns are written for all levels of work – though some people have preconceived notions about what “profitable work” means. They are brainwashed, and I say that with a smile. Every job – every one – affects profit. Trouble is, few people (including employers) talk about it or even worry about it. That’s why we see layoffs and down-sizings.

I think it’s incumbent on every manager to have some sense of how each job in the department contributes to profit – either by boosting revenue or controlling costs. Both require work. There is no job that doesn’t affect one of those financial terms in a business, and – put very simply – PROFIT=REVENUE-COST.

Every job fits into one of the two terms on the right side. We can pretend it doesn’t, or we can avoid calculating it and thinking about it, but in the end, people lose their jobs and companies go out of business because one or more jobs aren’t contributing positively to the profit equation.

As an employee (many years ago) I sought out the CFO of my company to talk about how my job affected profit. The CFO was stunned that anyone would come in to discuss this – puzzled but pleased. I instantly made a new friend. (This experience was what prompted me to write How Can I Change Careers? and Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire.)

The profit from one job is a hard thing to calculate, as you point out, especially in larger companies. But go tell that to the board of directors and they’ll laugh at you. They’ll point to the P&L statement and ask you where your job is located – because it’s in there. Trouble is, management has learned not to talk about it. It’s long past time we fixed that and owned up.

I recommend this approach to job seekers because I know the effort to estimate a person’s role in profitability makes them stand out in job interviews. It makes them powerful candidates who show they care about the bottom line.

So please think twice about what you said:

There are many positions in “the company” that do not have a direct impact on profitability.

My response to that is, eliminate those positions, because they’re dangerous. And fire the managers who don’t know how jobs under their command impact profit directly. The people in those jobs may be great, but if management doesn’t know how they impact profitability, the jobs should be cut until management figures it out. It’s called a business plan – and no venture capitalist would put a dime into a new venture if the biz plan didn’t justify every single employee.

Why should a mature company be held to a lower standard? It shouldn’t — yet I know bigger companies are, with the excuse that they are “more complex.” So what? It’s okay for bigger enterprises to have sloppier profit metrics? Just look at the news — it’s why we see massive down-sizings. Management lost sight of profit for too long! (See Bloomberg: Profit-based job hunting and hiring.)

As for the “how,” if you do your homework as best you can prior to an interview, then open the profit topic for discussion in the interview, you’re head and shoulders above your competition. Estimate as best you can. Discuss the components that contribute to the calculation – even if you don’t have the numbers. Encourage the manager to get into it. The two of you may never come up with a fixed answer, but I guarantee you’ll have a discussion the manager will never forget, and you’ll learn more about the job than any other applicant.

If this were easy, everybody would be doing it. They’re not. And that’s the point – everyone isn’t because they’re not paying enough attention to why an employer pays anyone to work: profit. If you want to stand out from your competition, be ready to present the business plan for your job – as best you can. Be ready to assess the business plan with your boss. (See How do I prove I deserve a higher job offer?)

I know it’s not what you’re accustomed to – and it’s not what employers are accustomed to. I’ve had executives in Executive MBA classes at top biz schools ask me what you asked. When I explain it, light bulbs go off and they get it. They start laughing at themselves, and they get it. That “aha” moment is priceless. And that’s what I want the employer to experience when you complete your interview.

Rich Mok, a seasoned executive in Cornell’s Executive MBA program at the time, put it better than I can. He had just interviewed for a job after attending my workshop:

“The hiring manager more or less offered me the position on the spot and indicated a salary range that is roughly 40-50% more than I make now. Your two biggest lessons (at least for me) at work in the flesh: (1) Never divulge my current salary, and (2) Talk about what I will do, not what I’ve done. They oughta make you a Cornell professor! I can already see that the one hour you spent with us will have as much impact on my MBA ROI as any class that I have taken in the program, if not more so.”

Rich presented his plan for profit and surprised the employer. (See Don’t Get Hired, Get Acquired: Audio from Cornell workshop.)

I love questions from readers about topics like this. You’ve nailed a key underlying issue in Ask The Headhunter. Thanks! I hope my lengthy comments are helpful.

What’s the point of the job you want? Be ready to talk about it, because your resume is history. What you’ll get paid for is what you can do next. How do you talk about profit to an employer, and to your boss?

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Make interview travel pay off

On June 9, 2014

In the June 10, 2014 Ask The Headhunter Newsletter, a reader doesn’t want to pay so an employer can interview him:

I applied for a sales job, but it’s in a distant city. I don’t think the company pays relocation costs. They insist that applicants pay a portion of the interview costs, including mileage, airfare, hotel, meals. (The job posting says interview expenses are “negotiable.”) I’ve never faced this before. I may be willing to pay my own relocation if I want the job, but I don’t want to get stuck paying interview costs. The airfare alone could be several hundred dollars. I’m thinking this puts them in the “no skin in the game position” and would allow them to interview as many people as they want, for as long as they want, at almost no cost to them. What is your feeling about this, and how would you negotiate the arrangement?

Nick’s Reply

We recently discussed Why employers should pay job applicants — but this is another subject. Some employers will pay for interview travel, others won’t. Usually the employer will just tell you they don’t interview out-of-towners mainly because, if they hire you, they don’t want to incur the relocation cost. This is really up to you. It depends on how much you want to work for this company.

airfare-costsIn any case, you can make some moves to protect yourself and to optimize your chances of getting a job offer.

Remember that everything is negotiable, even if they tell you it’s not. As long as you are really willing to pay your own relocation, you can take a position even on this.

Tip #1

I’d ask them (now, before you fly out there), “If I split the interview travel cost with you, and you hire me, will you cover my relocation costs up to some maximum amount?”

They will likely say no, but they might also compromise, saving you quite a bit of money when you move. It’s worth asking, especially if you’re interviewing for a sales job. Demonstrate your negotiating skills.

Now let’s make sure you’re protected from unexpected losses.

Sometimes a company will tell you to pay your expenses and submit receipts for reimbursement later (even if the reimbursement is only partial). I hate that. What if they don’t hire you and decide to ignore the reimbursement altogether? It’s rude, but it happens.

Tip #2

Split the costs into portions that each of you pay up front, and settle the rest later. For example, make them this offer: If they pre-pay the airline ticket, you will pay for the hotel and meals and then submit for reimbursement. That way you don’t get stuck holding the entire bag, even if they ignore your requests later. Of course, if they decline to front any costs for your trip, you must decide whether to gamble. My advice is: Don’t. A company that won’t pay to fly you out is trouble.

Overall, I think your analysis is correct. If you pay interview expenses, they will have no skin in the game, leaving you in a weak position. But two can play at this game. This is where you turn the tables a bit, capitalize on your trip, and optimize your chances of getting an offer — even if it’s from another company.

Tip #3

If you decide to make the trip, do some research and figure out who are the employer’s best and biggest competitors in the same city. Call them. Talk to the head of sales, not to HR. Be frank. “I’m going to be in town interviewing with company A — but I’ve heard great things about your company (B). If you’re available on such and such a date, I’d like to stop by at a time convenient to you to introduce myself. Can we schedule a cup of coffee?”

Do this with as many companies as you can. Even if you have to pay for another night’s stay, this may be an excellent investment because your trip will be more likely to pay off. It’s a funny kind of employer psychology that I’ve seen again and again. When company B hears that company A is interviewing you, B is suddenly motivated to get in on the action, especially because there’s no travel cost. Ordinarily, company B might not interview you, but when one company deems you attractive, you instantly become attractive to its competitors.

(In my opinion, even if company A is paying for your travel, you’re still free to conduct other meetings as long as they don’t interfere with A’s meetings. If your favorite aunt lived in town, you’d make time to see her, right? What you do in your spare time is your business.)

Decide whether you really want to work in the distant city, and negotiate your way out of financial costs as best you can. Then take advantage of a trip to meet as many employers as you can.

Have you ever had to travel for a job interview? Who paid for it? Did you ever get stuck for the costs of an interview trip? How did you optimize your experience?

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Smart Hiring: How a savvy manager finds great hires (Part 2)

On June 2, 2014

In the June 3, 2014 Ask The Headhunter Newsletter, a manager tells how she finds great hires.

Last week we heard from Annie, a manager whose approach to interviewing and hiring reflects how she likes to be treated as a job applicant. She doesn’t rely on job boards. She treats applicants respectfully and always gets back to them. She explains interviewing procedures clearly in advance. She doesn’t waste applicants’ time. And she doesn’t demand their salary history.

find-hiresSo far, so good — but does this work? Does it help her hire great people?

Annie and I have kept up an e-mail conversation, and she has generously shared the process and outcome of her hiring efforts. You can review the story to date — and we’ll pick up where we left off last week.

From Annie

I don’t ask for salary history

Hi, Nick! It’s exciting to see the story up and people engaging with it. Our top candidate just accepted our offer today, so I’m able (and delighted) to say that our search process has been a success.

We suspected (but didn’t confirm) that the candidate was probably under-paid at his current position. I had to campaign pretty vigorously to pay him what he’s worth instead of some calculation based on his current number. He was such a promising candidate that he likely wouldn’t take less, and I wouldn’t feel right offering it to him. After we had finished our internal budget negotiations and arrived at a range, I simply asked him what he was hoping to make. Luckily, the numbers worked out!

Nick Replies

Annie, good for you for making the case to pay the candidate what you think he’s worth. Asking what he wanted to make is the honest way to come to terms on salary. A good alternative would have been to quote your budget range for the job. Kudos to you for not falling back on a request for his salary history. Job applicants should keep their salary under wraps.

Someone on the blog (Eddie) asked this question:

It is good to hear that hiring managers are attending networking events. But how do I find these?

Can you share with us how you network to recruit?

From Annie

Where I network to find great job candidates

Your commenter Dave is spot-on: Meetup groups are the way to go. The position I was hiring for is a technical one (and I’m in a technical role myself), so most of my networking was at groups focused on programming languages, technology stacks, etc. These aren’t (on the surface) career/hiring events. These are places where people in the industry get together and discuss their craft. So, if you are deliberate about hiring, it’s the sweet spot: places to form relationships with people who already have good jobs in the area, who know their stuff, and who might want a job someday. [Don’t say, “I don’t know anybody!” -Nick]

Making friends at meetups

The tricky thing about relying on a network is, you have to start building it before you need it. I’ve been going to most of these groups for years. They give me the opportunity to make friends, pair-code with people, toss around project ideas, and share answers to problems. In other words, to demonstrate my interest and involvement in our field, and get enough face time that people can safely conclude I’m probably not a terrible, awful person to work with.

Really, I can’t stress enough how important this kind of interaction (again, on your advice) has been in my career. I’ve gotten jobs based on the recommendation of people I’ve pair-coded with at meetups. I’ve got job leads in my pocket because of it. And I found the young man that we eventually hired the same way: a personal recommendation from someone I trust, who knows both of us through meetup groups.

Diversity in recruiting

Following on the recent news of Google releasing their demographics data, I think this is also the perfect (and possibly only?) way to go about recruiting a diverse staff. I make sure to contribute in groups targeting women and other minorities in engineering, in part so that I can be sure to know diverse candidates in order to include them in my hiring process. You know, everybody says, “We need more women / African Americans / Latinos / etc. in computers,” but it seems like companies make next to no effort to go out and recruit them. Unfortunately, they won’t just fall into your lap. As with everything, it takes work.

Nick Replies

Annie: You’ve made an eloquent case for real networking. Your method of making friends to find great hires is the flip-side of making friends to get referred to great jobs. (I cover this in detail in How Can I Change Careers?, in the section titled “A Good Network Is a Circle of Friends.”)

Thanks for acknowledging that “networking” — as some people practice it — can be “icky.” By investing the time to demonstrate your genuine interest in talking shop, you help people judge that you’re a good person to talk with and get to know. This is the essence of making friends and getting introduced to jobs.

Thanks again for showing us how you actually recruit and hire using the ideas we discuss here every day. Some managers respect job applicants and go out of their way to make good hires intelligently and with care. My advice to job seekers: A manager like Annie doesn’t need many great applicants, and you don’t need more than just one good manager to hire you. Don’t lower your standards. Go where managers like Annie will find you.

Where do you find great managers? How do you network effectively to find great jobs? There is nothing easy or quick about investing time in your professional community to get ahead. If it were easy, everyone would be doing it. Since they’re not, it means you have less competition. Does this shake up your world?

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Smart Hiring: A manager who respects applicants (Part 1)

On May 28, 2014

In the May 27, 2014 Ask The Headhunter Newsletter, a manager explains how she hires by respecting job applicants:

I’m a longtime reader. Your advice has helped me in my job searches and salary negotiations. I recently landed a great job with a great salary, where I have done very well. Well enough, in fact, that I’m now the one in charge of my team, and we are hiring! So now I’m on the other side of the job-search equation.

Since I take your advice to heart, as I conduct my candidate search I am:

  • respectNot relying on job boards. I am pursuing local networking opportunities.
  • Treating my applicants with courtesy by replying promptly and keeping them updated.
  • Communicating clearly about our interviewing procedures.
  • Trying to be respectful of my applicants’ time, and not requiring multi-day interview processes.

The one place where I’m a little stuck is about salary history. As an applicant, I would never give away my current or past salary. When pressed about my expectations, I hedge with statements like, “I hope to be paid a market salary commensurate with my skills.”

But as a hiring manager working with a limited budget, it seems it’s my responsibility to play hardball and try to get the best candidate within our price range.

Do you consider it unethical to press for salary history? Is there any happy medium? Is there any way I can determine quickly if someone is out of my range, without asking them to compromise themselves? Do you have any advice for a well-intentioned member of “the other side?”

Best regards,
Annie

Nick’s Reply

Your four bulleted hiring techniques speak for themselves. Unfortunately, too many managers and companies fail to follow your simple rules. That means you have less competition — good applicants will recognize a good manager.

I’m glad to hear my salary strategy (Keep Your Salary Under Wraps) has been helpful to you as a job hunter. I think it can be just as helpful now that you’re hiring. Please consider approaching this the same way.

If you have a budget for a job, what’s wrong with stating a compensation range to your serious candidates? (That is, the ones you’re going to interview.) It’s easy enough to say, “Just to be clear, our comp range is $X to $Y, and if we’re going to go to $Y, you’d have to demonstrate how you’re going to contribute to our profitability to justify it.”

You don’t need to announce this in advance, but I’d make a phone call to each of your best candidates when you have identified them. I think they will appreciate it. “I’m disclosing this to you because I don’t want you to interview unless you’d be happy with an offer in that range. I like to be above board.”

As long as you stay within your budget, I don’t think you’ll have a problem. You have a clear obligation to your company to stay within budget – and I think this accomplishes that.

“Hardball” is actually just honest ball. I don’t think you’re going to lose a great candidate by being honest. Anyone outside your range is, well, outside your range. And if someone outside your range is honestly willing to interview for less than they’re making or have been making, that’s up to them.

Make sense? Of course, knowing someone’s salary history doesn’t help you decide what to offer them. What other employers paid is their judgment, within their business. Value is relative, and you must make your own judgment for your own business. It seems to me you’re already okay with this, and that gives you an edge over your competitors.

I think it’s always best for employer and applicant to agree on the general salary range they’re both comfortable with before they start talking seriously. The best way to ensure this is for the employer to state the range of salary for the job. This does not mean you must let yourself be swayed to the high end if you don’t think the candidate is worth that much — which is why I suggest making that clear from the outset. (Job applicants can make their case by following the methods in Fearless Job Hunting, Book 9: Be The Master of Job Offers.) Of course, you should phrase this in a way that’s right for you — my words are mine, not yours!

My highest compliments for demonstrating such high standards in your hiring practices. You’re a manager who respects job applicants. I wish more managers would follow your simple rules.

The manager follows up

Hi, Nick,

Thank you so much for taking the time to respond. I think your suggested script is a good one. As with all aspects of salary negotiations, I’ll just have to practice saying it out loud about a hundred times, until I don’t cringe anymore when it comes out of my mouth. Never was there a thing more uncomfortable than talking salaries!

It’s nice to hear that you think I’m on a good track. I’m absolutely convinced that this approach is getting me better candidates than LinkedIn and Craigslist have gotten us. But it has also given me a new respect for HR departments and recruiters! This process takes an incredible amount of work! I’m so focused on “people” stuff right now that I couldn’t write a decent line of code if I tried.

Thank you again, I was very touched to hear back from you.

Annie

Nick’s Reply

It makes my day when I hear from a manager as thoughtful as you. I’m happy to help if I can.

I know recruiting and hiring are incredibly time consuming. It’s why I tell managers, expect to invest at least 30% of your time doing it — or you’re not being a good manager. Done right, this investment pays off handsomely. You’ll never be as productive as you can be if you don’t have great employees doing the work. A manager’s #1 task is hiring great people to get the job done. If more managers approached it this way, I think turnover would be much lower, productivity higher, attendance higher, and promotion from within a better bet. (To further enhance your success rate, hand-walk the offer once you’ve made it.) Good hiring makes strong companies.

Please let me know how this works out for you..

Coming next week…

Manager Annie tells us how this all turned out!

What can managers do to show respect to job applicants? If you’re on the hiring side, what do you do? What does it mean to hire smart today?

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