How to negotiate salary through a headhunter

On July 23, 2012

In the July 24, 2012 Ask The Headhunter Newsletter, a job hunter wants to know how to get the best compensation deal through a headhunter:

What can I expect from a recruiter when I’m negotiating salary and compensation? After all, doesn’t he work for the hiring company?

My Advice

This question is so common that I include an entire section about it in the PDF book, How to How to Work with Headhunters … and how to make headhunters work for you. This advice is from Section 4: Talking Money.

To understand a headhunter’s motivations for negotiating your compensation, you must understand the headhunter’s job.

How to help the headhunter help you

Before there’s any chance to negotiate, the headhunter’s real challenge is to get a company and candidate to agree they want to work together. This has nothing to do with money. It’s all about the people, the company, and the job. That’s why it’s crucial for you to decide whether you actually want the job (as long as the terms can be worked out).

Saying you want the job doesn’t mean you’ve accepted the offer, but it sets the headhunter loose to get you a deal you’ll accept. It helps you win the headhunter’s cooperation, because half the battle is won. There’s nothing for the headhunter to negotiate unless you let him know you want the job.

Once your motivation to take the job is settled, the headhunter can get to work on the financial terms. Even though the headhunter works for the employer, he earns no fee unless he can work out terms that are satisfactory to you.

Be ready to express what you want

This is where many job candidates blow it. They don’t want to express what they want. They believe that if they don’t state what they want, they might magically get more. Nothing could be farther from the truth. Take note: If you have an offer, the employer has already put a number on the table. It’s decision time for you. If you can’t decide what you want, you can’t make the headhunter work for you. You must arm him with specific instructions. At this stage the headhunter will advise you what’s reasonable to negotiate with the employer — but he will do the negotiating on your behalf with his client.

So, be frank, but don’t be ridiculous. Tell the headhunter what offer you would accept. If the headhunter thinks your terms are nuts, he’ll tell you, but don’t hold it against him. He won’t go back to his client with an unreasonable request. But he’s not likely to drop-kick you out of the deal, either. He may try to convince you to take the offer as it stands. Or, if he thinks there’s some wiggle room in the offer, he will try to negotiate with you and with his client for a compromise.

Know where you fit in the negotiations

The headhunter’s position as the middleman makes it easier for you to work out the terms without jeopardizing the offer altogether. He wants to get the deal done as much as you do.

The client pays the headhunter, but the headhunter needs your cooperation, so he’ll work with you to set reasonable terms for your acceptance. The client gets the hire. You get a job you want on favorable terms. The headhunter gets his fee. All three parties must work together.

Of course, this all assumes you’re dealing with a good headhunter, but that’s another question, covered in another section of the book, Section 1: Understanding Headhunters. You’ll also learn more in the book about exactly why this approach to negotiating with a headhunter helps him negotiate a better deal for you. (Needless to say, the headhunter could be a she.)

What’s your experience been with headhunters? Did you get the deal you wanted? How did the headhunter handle the negotiations between you and the employer? How did you protect your interests?

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Hiring Manager: HR is the problem, you are the solution

On July 16, 2012

In the July 17, 2012 Ask The Headhunter Newsletter, a manager complains that Human Resources (HR) departments are behind the talent shortage:

I don’t have a question, but I want to share stories about two candidates that I interviewed. (I am a manager.)

I am continually astounded at the kinds of idiotic discrimination I see companies engage in when they’re hiring. This simply confirms my suspicions that bad HR managers are a major impediment to good candidates getting good jobs.

I’ve been to job fairs where companies tape up signs saying “U.S. Citizenship Required” and “Must Speak English.” This puts me in mind of the “Irish need not apply” and “No Blacks” of earlier years. There are very few jobs that genuinely require citizenship (as opposed to employment authorization) and I’ve found precious few on this side of the Atlantic who come close to speaking proper English!

At my company, HR often turns away good candidates for reasons just as ludicrous as those signs. This is what happened to two people I interviewed. HR ignored both of them as “unhireable.”

One candidate had a Chinese accent so thick that I had difficulty understanding anything she said. During the interview I resorted to asking her to write or draw in order to assist communication. I saw strong technical skills through the language problems that this new immigrant had and I made the offer.

Another candidate was so nervous that he completely messed up most of the questions in the first half of the interview. I persevered, put him at ease and satisfied myself that he was technically able. I hired him, too.

Both these people have been stunning performers in my company. The Chinese candidate has improved her language skills to the point where communication is no longer a challenge. The formerly nervous candidate has gained confidence. The only downside is that either candidate could now go elsewhere and breeze through interviews with the sort of lame-brains who (I believe) routinely pass up good candidates because it takes a bit of extra effort to get to know them.

The moral of this story is, if you are a candidate, try to talk to managers, not HR. If you are the solution, prove it. If you are a manager, try to get at the candidates before HR filters out all the good ones. If you are a recruiter, drop the dumb prejudices! There is no talent shortage, just a shortage of good hiring practices and patience!

My Advice

I could kiss you. Thanks for the reality check. Employers are losing great candidates due to crappy judgments about who is worth interviewing and hiring.

I haven’t seen the sort of signs you refer to, but then again, I haven’t been to a job fair in a long time. However, I have seen good job candidates passed over by corporate representatives who had no skin in the game. That is, they weren’t hiring managers. It’s amazing, isn’t it, that a good hiring manager will dig a bit deeper to get to know a candidate than an HR manager might — because the manager needs to fill a job.

Do HR workers, in general, discriminate? Are they lazy? Your stories raise these provocative questions, and you deliver a sharp message: Companies do themselves a disservice when they keep the hiring manager at arm’s length from the hiring process.

Today HR uses software to filter candidates before any human judgment is brought to bear. The result is that excellent prospects are denied before the hiring manager even knows they exist. Why does HR do this?

HR’s answer is just as dumb as it sounds: HR has so many applicants that it has no choice but to use software to filter them!

And my rejoinder reveals just how stupidly HR behaves: HR created the problem itself! Where do you think all those tons of applicants suddenly came from? HR posts jobs and solicits any and all applicants — then complains it’s got too many?

For $50 I’ll give any HR department the solution: Stop posting jobs and soliciting millions of resumes. More is not better — so stop with the stupid excuses already. End the problem of “more applicants than we can handle.” If too many are applying, you’re not doing your job. The point is to use methods that attract the right candidates — not tons of candidates!

And here’s the rest of the solution: HR should handle the administrative process of getting new hires on board, but HR should get out of the business of recruiting, selection, interviewing, and hiring. That’s for managers – those who have skin in the game.

You didn’t ask a question, but there’s lots to learn from what you had to say. I hope employers (and job hunters) see the lessons in it.

Both managers and job hunters need to get down to brass tacks: Talk about how to do the job profitably. In How Can I Change Careers? (or jobs) is a simple method for preparing for interviews so you can prove to a manager that you’re worth hiring. It’s not difficult for managers to set up an interview to ensure the candidate will have a chance to show what they can do — so the manager can make a sound hiring decision as quickly as possible.

If you’re a manager, have you ever missed out on good hires due to HR’s “filtering” process? How do you find your new hires? If you’re a job hunter, how do you get past the HR meat grinder so you can actually talk to the hiring manager?

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My employer withheld my pay

On July 2, 2012

In the July 3, 2012 Ask The Headhunter Newsletter, a 20% bonus disappears:

When I was hired, my offer letter included the promise of an annual 20% bonus. Recently I was transferred internally, but there was no notice of a change in my compensation deal. Bonus time came around but neither my old or new department budgeted for my bonus. I’ve been making monthly appeals to my boss, who keeps getting the runaround from Accounting. It turns out that no one else at my level gets bonuses. To make matters worse, the company was acquired and all our jobs are up in the air.

Is there any way I can get the bonus I’m due? The amount is substantial. This sounded too good to be true when I got the offer letter, but there it is in black and white: 20%.

My Advice

I don’t ordinarily tackle questions that require legal advice, but there’s also a matter of principle here. It seems the company is breaking a simple agreement and it’s worth discussing how to deal with that. However, my advice is not legal; for that you’ll need an attorney.

Since your offer letter promised an annual 20% bonus in writing, and since you got no other written notice to the contrary, then I think the company has an obligation to pony up the money. While a company may have the right to reassign you to a different job or department, I don’t believe it’s got the right to withhold compensation.

If your boss is “getting the runaround from Accounting,” that’s not your problem. Accounting doesn’t decide whether you’ll be paid; your employer does. This passing of the buck suggests that who’s getting the runaround is you.

Given the circumstances, I’d pursue this quickly and create a document trail. If you get laid off before you put the issue on the table, it’s going to be harder to resolve it.

Take this to the highest level HR manager you can. Put a copy of your offer letter on the desk and politely ask what the problem is. (Keep the original under lock and key.) The difficulty is that you’ve waited a long time since the bonus was due, but that doesn’t excuse your employer. I’d also ask HR for a written statement about the company’s position on the matter — build that document trail.

Listen to what the HR manager has to say. If there’s no resolution within a week, send a certified letter (with proof of receipt) to HR outlining the situation, and copy the letter to your attorney. Do not say anything accusatory in the letter: Be purely factual and request your bonus.

It’s unfortunate that you need help to get paid what you were promised. But my expectation is that this is going to require the help of an attorney. When your boss blames Accounting for not paying you, you can blame your attorney for any awkwardness, too.

By the way: Don’t let the idea of turning to lawyer make you uncomfortable. A good lawyer will work with you to control legal costs, and to develop a strategy for collection that avoids spending more than the recovery would be worth. Start with a consultation to help you decide what your best options are, and to estimate the costs.

Ever get paid less than you were promised? Was it in writing? What did you do to recover the money?

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What if there’s no time to prepare for the job interview?

On June 18, 2012

In the June 19, 2012 Ask The Headhunter Newsletter, a job hunter is frustrated by last-minute interviews:

Here’s the harsh reality of job interviewing. You apply for a job, you are called in for the interview, and there is no time to do all the research and preparation that you recommend we do. I have been in this spot, as I know most people have. How many times has a headhunter called at 4:00pm and said, “I have a great job possibility for you. Are you available tomorrow at 9:00am?” How can you prepare yourself in the manner that you recommend? Should one just say no to the interview? I think not, especially when one has been out of work for a while. Your input/answer is?

My Advice

Why on earth would you want to go into an interview when you are unprepared, and likely to embarrass yourself?

I have three comments on this.

1. Don’t apply if you didn’t choose the job based on research.
If you selected this company as one you want to work for, I expect you selected it for several good reasons, all based on your research. Even if you were introduced by a headhunter, due diligence is necessary. Thus, you must know quite a bit about the company, or why interview?

2. Good headhunters always prep their candidates.
Any headhunter worth his salt has lots of information about his client company. If he isn’t willing to share some of it with you, you’re interviewing blindly. Why would you want to do that? If the headhunter doesn’t know enough about the company to be able to prep you thoroughly, then the company is not his client. (See “Is your resume spaghetti?“) You’re wasting your time. (Need help figuring out whether the headhunter knows what he’s doing? Learn How to Work With Headhunters.)

3. Preparation is more important than showing up on demand.
A request for an interview is not a command. It’s an invitation. You are allowed to say to the headhunter, “I need two days to prepare properly for this interview, to optimize my chances of success as well as your chances of earning a placement fee.” What idiot of a headhunter would want to send an unprepared candidate to an interview? (Hint: One whose placement strategy is scheduling as many interviews as possible.)

Please remember: Both you and the headhunter have an immense responsibility to make a job interview productive and profitable. Both your reputations are on the line. If you’re dealing with lousy headhunters, stop. If you’re desperate to interview as often as possible under any circumstances, stop.

My advice: Decline the interview until you are prepared. This isn’t a race. It’s business, and unprepared business people lose.

What happened the last time you went on an interview unprepared? Is there a way to fake it that actually works? How do you deal with situations like this?

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Zuck’s Stupid Recruiting Start-up: Moo!

On June 5, 2012

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

Identified.com

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

 

 

Yep — Identified.com sends traffic to Facebook.

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

Plus it’s not boring.

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

Not Boring: Identified hangs out with Richard Branson

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

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

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

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

And Identified hangs out with Richard Branson.

Dick Is Not On The Website

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

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

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

 

 

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

Wired magazine says:

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

But then again, Wired also said:

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

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

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

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

About Identified:

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

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

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

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

More Mooney?

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

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

On June 4, 2012

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

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

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

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

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

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

My Advice

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

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

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

Here’s how I see it.

HR blew it.

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

The HR lady tipped you off.

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

You jumped the gun.

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

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

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

You did the right thing, again and again.

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

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

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

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

But somebody didn’t do their job.

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

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

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

Who’s on the hook now?

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

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

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

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

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

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

Doubling HR Costs: Time to change company practices.

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

Now where’s the talent shortage? In HR.

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

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

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

Whose bad?

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

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Netflix: Another stupid employer

On May 16, 2012

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

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

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

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

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

Netflix has not responded to a request for comment.

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

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

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

Netflix goes on to say that:

“We don’t have rules.”

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

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

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How to Boost Your Salary Quickly and Often

On May 7, 2012

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

From The Headhunter Files

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

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

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

Let’s make money together

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

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

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

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

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

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

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

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

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

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

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

Making jobs pay

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

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

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

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

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

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

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

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Can an employer charge you for quitting?

On April 30, 2012

In the May 1, 2012 Ask The Headhunter Newsletter, an employer is out $6,000 when a new hire found through an agency jumps ship after 15 days. Can the employer charge the next employee for quitting?

We recently hired an employee using an agency through which he was temping for us. We paid the temp agency a fee of $6,000 (20%) of the person’s salary. After 45 days, the new employee resigned to move out of state. The temp agency says that he was here for more than 15 days, so they are not going to do anything about their fee.

We have a policy for encouraging continuing education. If an employee in good standing wants to take a course or go back to school at night or weekends, we will pay 70% of the costs, providing successful completion of the courses. If the employee leaves before two years, the employee must reimburse our company for the education expenses.

Because of this disagreeable experience with the agency, we are contemplating a similar policy: “If you leave before your second anniversary, you will need to reimburse some portion of the headhunter fee.”

What are your thoughts on this approach? It would make us feel more confident about using a placement service. Thank you in advance for your thoughts.

My Advice

Suppose you hired that employee without an agency’s involvement, and he quit after 45 days. Would you require him to refund part of the salary you paid him?

Of course not. Yet that’s what you’d be asking someone to do if you hired him through an agency: To pay you back out of their salary. Did you pay a fee to the employee so he’d come work for you? Of course not. So there’s nothing for the employee to refund.

(I’m not a lawyer, but my guess is it would be illegal for you to take back salary because someone quit a job.)

The agency, on the other hand, earned a fee for finding an employee for you. It’s up to you to work out a reasonable contract and financial arrangement with the agency, for the work it does for you (recruiting). The underlying problem is that you as the employer make the hiring decision — not the agency. The agency’s job is to deliver viable candidates. It’s duty ends there, or after some agreed-upon guarantee period. I don’t think any agency would guarantee a placement for two years, one year, or even six months.

I don’t like your idea at all because you’re making the employee responsible for your contract with the agency.

So what are your options as an employer? Let’s start with typical placement agreements, though of course they vary greatly. Commonly, a headhunter’s (or recruiter’s, or agency’s) fee is about 20% of the employee’s starting salary. Please note: The fee is not deducted from the employee’s pay. It’s merely calculated based on that salary. So it’s an additional cost to the employer. Employers that routinely use external recruiters usually budget for such fees. Negotiate the best fee you can.

It’s common for temporary placement agency agreements to permit you to change from “temp to hire” — that is, to hire the temp permanently. The fees and any guarantee period should be spelled out in the contract. To control your costs, you might negotiate a permanent placement fee that is progressively lower based on how long you’ve already been paying temp fees to the agency for that particular employee.

Whether it’s a temp agency or a headhunter you’re working with, the contract usually includes a guarantee period. Many recruiting firms offer guarantees for between 30-90 days. (Some offer no guarantee at all.) If the new hire “falls off” in that time, the agency will either replace the hire, or refund a prorated portion of the fee, or the fee is refunded completely. I’ve never heard of a 15-day guarantee period. It seems too short to be meaningful. But if that’s what you agreed to, it was your choice.

You might be able to negotiate a more aggressive refund guarantee with recruiters. Please keep in mind that it’s pretty unusual for a new hire to leave so quickly. (If it happens to you often, then you’ve got another problem!) Check a recruiter’s (or agency’s) references: Do they have a reputation for placements quitting early?

I want to caution you about charging placement fees back to your employees. If it’s not illegal, I think it’s unethical. It comes out of the employee’s salary, but (unlike education) the employee gets nothing in the bargain. I suggest you work this out with your agency or headhunter instead.

Has an employer ever charged you to quit your job? If you’re an employer, have you ever recovered a placement fee from a departing employee? Headhunters: How do you handle “fall offs?” How long is the typical “guarantee” on a placement?

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Open Mic: What’s your problem?

On April 24, 2012

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

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

  • Lost your job and don’t know how to start hunting for a new one?
  • The employer wants you to do a stress interview?
  • Wondering how to deal with a headhunter who just called you?
  • They want your salary history, but you don’t want to share it?
  • Your company posted a job and you got 5,000 applicants. What now?
  • The manager made you a good offer, but HR just called to rescind it?
  • What’s your problem? Please post it and we’ll tackle it.

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

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

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

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