Salary History: Use California’s new law for better job offers

On October 23, 2017

In the October 24, 2017 Ask The Headhunter Newsletter, we take a deep dive into California’s new salary history law. Is it going to help you get a better job offer?

Note: This article is not legal advice or a substitute for obtaining competent legal counsel about salary history disclosure laws.

salary historyYou’ve probably heard this from an HR manager who has demanded to know your salary history while you’re applying for a job: “It’s required. If you don’t disclose your salary we cannot proceed with your candidacy.”

It’s akin to a salesman on a car lot demanding to see your bank account balance before he tells you the price of the car you want. Once that cat is out of the bag, you can’t negotiate effectively.

Now the State of California has made it illegal for employers to ask your prior salary. See Assembly Bill No. 168. (See also this article in the San Francisco Chronicle.) This can help you negotiate a better compensation deal.

You have 2 new powers over personnel jockeys

But not so fast. Hiding your old salary isn’t going to help you get a higher job offer unless you can obtain another critical bit of information from the employer: What’s the salary range for the job you’re applying for?

Good news: The California legislature thought of that, too. Starting January 1, 2018, employers can’t ask your old salary and, if you request it, they have to tell you what the pay range is for the job you want.

You now have two new powers over employers and their personnel jockeys in California. You may:

  1. Decline to disclose your salary.
  2. Ask the employer “to provide the pay scale for a position.”

What you need to know

It’s important to understand the details of your new rights. Therein lies your real power — the power to avoid wasting your time with jobs, applications, interviews, recruiters and employers who want to break you down so you’ll cave in and accept a lower job offer. Use these powers thoughtfully, and you should be able to get the kind of salary you want.

Here’s what the new California law says (emphasis added):

SECTION 1.  Section 432.3 is added to the Labor Code, to read:
432.3.  (b) An employer shall not, orally or in writing, personally or through an agent, seek salary history information, including compensation and benefits, about an applicant for employment.

Now we’ll expand on the aforementioned two new powers you can exercise when applying for a job.

1. Decline to disclose your compensation

This means never disclose your prior pay or the value of your benefits:

  • When you fill out a job application.
  • When an HR recruiter from the company requests it.
  • When a third-party recruiter (or headhunter) solicits you for a job at the company.
  • When you participate in a telephone interview.
  • When you communicate with the employer or recruiter via e-mail or otherwise.
  • During a job interview, and,
  • Apparently, under this new law, after you’ve been hired and you’re filling out employment paperwork.

An employer that doesn’t know your old salary and benefits has a harder time low-balling a job offer. I can’t tell you how many times I’ve heard employers say, “Our offers are 5-10% above a person’s old salary. That’s our policy.” As if that has anything to do with the value of the new job — or the value you bring to it! For more about this, see Revealing my salary earned me a lower job offer!

Never disclose your prior salary to anyone connected to an employer where you’re applying for a job in California (or anywhere else, but in that case for other reasons). Because if you do, you’ve relinquished your rights — because there’s a gotcha in the new law. We’ll discuss that in a minute.

First let’s look at the more important of the two powers California now grants you.

2. Request the pay range of the job

This is the best part. The employer has to tell you what the job pays. This is what will help you avoid wasting your time on jobs that don’t pay in a range you’re willing to accept.

(c) An employer, upon reasonable request, shall provide the pay scale for a position to an applicant applying for employment.

You read that right. They can’t ask for your salary history, but they have to tell you the pay range of the job you’re applying for. If you ask. So ask! And ask in advance of filling out forms, having interviews, and otherwise investing your time.

I think it’s more important to know the pay range of a job than it is to withhold your own pay information. But, of course, it’s best to use these two tools in tandem for maximum benefit.

Now, here’s the tough-love part. When they tell you the pay range, don’t kid yourself if it’s lower than you’d like. Don’t proceed under the impression that you can “talk them higher” later on. Conversely, if you use this law to apply only for jobs that pay twice what you may be worth, you’ll probably be disappointed if you expect enormous job offers.

Beware the gotcha in this salary history law

Those two new powers can gain you a lot during your job search in the State of California, unless you’re applying for a government job or other job that’s exempt. (Read the full text of the new law.)

Now let’s get to the aforementioned gotcha. Read this next part of the new law carefully. (Emphasis added.)

432.3.  (g) Nothing in this section shall prohibit an applicant from voluntarily and without prompting disclosing salary history information to a prospective employer.

Yep. That means you’re free to spill the beans if you want to. And here’s how spilling the beans will get you screwed:

432.3.  (h) If an applicant voluntarily and without prompting discloses salary history information to a prospective employer, nothing in this section shall prohibit that employer from considering or relying on that voluntarily disclosed salary history information in determining the salary for that applicant.

Got that? Once you disclose your salary history “voluntarily and without prompting,” much of your protection under this law disappears.

Why you may need a lawyer

Any time you’re dealing with a massive amount of money — like the salary you’re going to earn for a year or more — it may be worth consulting a lawyer. A consultation with a labor or employment lawyer, to ensure you know what you’re doing in an employment matter, will cost you only a small fraction of that massive amount of money in order to protect that massive amount of money. Consider making an initial investment in legal advice, then proceed prudently.

You may also need a lawyer if you find an employer has violated California’s new law, because of one more gotcha:

(d) Section 433 does not apply to this section.

Section 433 of the California Labor Code says:

433.  Any person violating this article is guilty of a misdemeanor.

This means that while violations of other sections of the Labor Code are a misdemeanor, a company that demands your salary history or refuses to tell you the salary range of a job is not committing a misdemeanor. This new law does not define the penalties for violations.

If you want to fight violations of this new law, you’ll probably need a lawyer. It might even turn out that this Section 433 clause renders Section 432.3 toothless once it winds up in court.

What about your state?

Similar laws are under consideration (or have already been passed) in some major cities including New York City, San Francisco, Philadelphia and Pittsburgh, and in some states including California, Massachusetts, Delaware, Oregon and Puerto Rico.

Some of the legislation is controversial, and special interests are trying to block it. The Washington Post offers a good rundown in “New York City just banned bosses from asking this sensitive question.”

This issue is so hot that it’s best to look up your own city and state for accurate information.

What’s your best option?

We’ve barely touched on the myriad issues these laws raise. If you’re interested, you’ll find more here: Goodbye to low-ball salary offers.

Whether there’s a law against demanding your salary history or not, you can always say NO and decline to disclose the information. (See Keep Your Salary Under Wraps.) As long as you’re not party to a contract whereby you have agreed to disclose salary information (an employment contract might be an example), you never have to disclose it. There is no law I know of that obligates you to disclose your salary.

Of course, refusing to disclose might result in an employer rejecting you as a candidate. That may be their right.

In that case you may be better off finding a more reasonable employer who isn’t trying to manipulate salary negotiations by insisting on knowing your prior pay. You’ll get the best deal possible if you withhold information about your prior compensation, because the employer will be forced to base an offer on the value you prove you can deliver. (Did we just open a new can of worms? Yup. We don’t pretend anything is easy around here. See How do I prove I deserve a higher offer?)

Have you encountered one of these new laws in the wild? What happened? What’s your take on this kind of legislation — and on how to best protect your ability to negotiate compensation? What other issues do these new laws raise?

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When a headhunter has to fire a client to save a candidate

On September 18, 2017

In the September 19, 2017 Ask The Headhunter Newsletter, a headhunter screws up.

Question

headhunter

I read your PBS NewsHour column, Job interviewers shouldn’t be asking for your salary. Here’s why. I am a new headhunter and I agree with everything you said in that article.

I recently had a deal fall apart with a client in the northeast who was ready to pay up to a $220K base salary. My best candidate was making $150K in the midwest. He checked off most of the boxes on their wish list, was in a niche, and there are not a lot of people doing what he does. He was willing to move his family, but the company only offered $185K despite a $30K cost-of-living difference. He wanted at least $195K to make a move but the company wouldn’t do it because they were stuck on the 30% increase and thought it was too high.

Everybody in the company that met my candidate loved him. He was nearly perfect for the role but they wouldn’t budge because of his prior salary.

So my question to you is: How do you persuade your clients not to ask about salary history in states where it is allowed? I understand that you might not want to give out trade secrets but thought I would ask. Thanks in advance for your help!

Nick’s Reply

There’s no trade secret here. Just common sense, fair play, and good business. Your client is demonstrating none of those qualities. When a company pays a headhunter for help finding a top-notch hire, our job is to tell the client the truth and help them make a good deal.

But the problem here is not just that your client got stuck on your candidate’s prior salary. It’s also that you fostered the problem by disclosing your candidate’s salary to begin with. Get out of that habit. Learn to push back and say no. Part of telling your client the truth is telling them the candidate’s salary is none of their business — and not the basis for a sound offer.

When the client gets in its own way, the headhunter must take control — or fire the client. You can’t win when you do your job, deliver a great candidate for fair pay, and then let your client kill the deal so stupidly.

A good headhunter doesn’t run a bargain basement

What’s stupid is that your client is not recruiting your candidate for what he’s worth to them. They’re trying to get an unfair bargain by offering an excellent candidate only what he’s worth in the midwest. What’s going to happen is a competitor is going to snatch him up for what he’s really worth in the northeast.

The way to persuade your client to judge a candidate’s worth for themselves, without looking at salary history, is to tell them what I just told you. (Check the boldface in the paragraph above.) If they don’t respond well to that, then you tell them something like this:

How to Say It
“If you aren’t willing to pay someone what they’re really worth, then I won’t be referring candidates of this caliber to you any more. Your team loved him. He was highly motivated to take the job and do great work for you. We both know he’s worth at least $200K. If he was from the northeast, you wouldn’t hesitate to pay him $220K. So while you wasted his time and mine, you’re the losers. Lotsa luck when word gets around that you don’t know how to judge a person’s value to your business.”

If you can’t control your client with the first message, you have to fire them with the second. Do you want to go through this with them again? You’re not in the bargain-basement business.

Fire the client

Yes, I’d fire this client. They just cost you several big fees, because the candidate probably would have referred several other great candidates to you over the next several years if this had worked out.

This client has probably damaged your credibility with the candidate — and he’s going to tell people. While any headhunter’s fiduciary duty is to their client (the employer), the headhunter’s reputation rests on the experience of candidates, too. If you can’t negotiate a good — not just reasonable — compensation package for a truly good candidate, you’re hurting yourself.

A good headhunter controls clients

To other clients, I’d make your policy clear. Your job as a headhunter is not to disclose salary; it’s to negotiate it!

How to Say It
“I don’t disclose a candidate’s salary because it’s irrelevant. I’m working with you under the premise that your company has a competitive edge and is thus able to attract the best people. If you’re going to judge candidates by what other companies pay them, then where’s your edge? If you don’t have a competitive edge, why would my candidates want to come work for you? Why would I want to recruit for you? I’d be happy to invest whatever time is necessary to help you assess this candidate’s value to your company in this market and in this locale.”

Job seekers: See Should you disclose your salary to a headhunter?
A good headhunter controls candidates by teaching them how to manage their expectations reasonably and intelligently. But sometimes you also have to push back hard at a client, or you lose control – and that’s the end of any headhunter. When you disclosed your candidate’s salary, you forfeited your ability to negotiate a good deal for both parties. Everyone lost.

A good candidate becomes a client

I’m sorry you had to experience this. It’s a hard lesson. I’d fire the client, but I’d then quickly try to pick up some new clients — among its competitors. Can you get a similar assignment from them? I’m not suggesting peddling this candidate around town — that’s not what real headhunters do. (See Headhunters find people, not jobs.) But you’ve found one great candidate who will likely lead you to more, so work with what you’ve got.

If you can place him, I’d call back Lowball, Inc. and give them a heads-up.

How to Say It
“It looks like you’ll be working with Mr. X after all – but as a competitor. He’s a really talented guy, so I wish you luck! No, I can’t tell you where I’ve placed him — that would be unethical until he’s settled in. But you’ll know soon enough.”

And remember one other thing. When you fire a client, they become a source of candidates. And a good candidate can become a great client!

A good headhunter is a good broker

Job seekers: Learn how to negotiate salary through a headhunter
The best job seekers routinely encounter lazy, thoughtless, unscrupulous headhunters. So show this candidate you’re different. Build a relationship. I’d do all I can for a candidate who did such a great job to make me look good and to earn an offer, even if the employer blew the deal. If you can’t place him elsewhere, invest a few minutes to make some useful introductions for him in the northeast. He’ll remember it. That’s where new client companies come from!

A good headhunter is a broker who doesn’t just bring two parties together. A good headhunter educates, manages and guides them to a successful outcome that makes them both happy to work together. Sometimes you have to take charge to do that. And sometimes you have to fire a candidate or a client. In this case, your candidate may be more valuable to you in the long term than this particular “client.” If you can’t negotiate a fair salary with your client, fire the client and save your future relationship with the candidate. Don’t be any less than the best broker you can be.

I know some of my suggestions may seem a bit snarky, but employers that can’t get out of their own way aren’t good clients. I wish you the best.

My PDF book, How to Work With Headhunters… and how to make headhunters work for you is designed for job seekers, but it’ll show you how to be a good headhunter, too.

Dear headhunters in the audience: Do you disclose a candidate’s salary to your clients? How do you manage your clients? Did you ever fire one? Job seekers: Do headhunters help you get a better salary or do they let their clients roll over you (and them)?

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Revealing my salary earned me a lower job offer!

On September 11, 2017

In the September 12, 2017 Ask The Headhunter Newsletter, a reader succumbs to an employer’s demand for his salary information and pays for not keeping his mouth shut.

Question

salaryNick, I need your help. I’m in a very tough spot with salary negotiations. HR told me the salary range for the position ($65K-$70K) on the phone before our interviews. They also asked for my salary expectations, and I told them $65K-70K. So we had the interviews knowing we were all on the same page. Or so I thought.

After the first interview, I was contacted by the HR rep and was explicitly told that I would need to provide my current salary or we would not be able to proceed further with the process. So I reluctantly gave my salary away ($53K, which will be $55K in five months when my annual merit kicks in).

After the second interview, which I knocked out the park, they made an offer. It was only $60K. On the phone, I told the HR rep that there is no deal but I would like to continue to try to negotiate the best compensation package, and we will revisit the offer in a couple days.

What do you suggest I do here? I don’t want to turn away more money, but they are $5K-$10K below my expectations. Is my only recourse to risk the offer as a whole? Thanks.

Nick’s Reply

You ought to charge them $5,000 for helping them negotiate a lower salary, because that’s what you did. Congrats on getting an offer, but I agree with you – you ruined your negotiating position by strengthening theirs.

Never, ever, ever disclose your current salary to an employer. (See Keep Your Salary Under Wraps.) They will use it to put a cap on any offer they make to you. Now you’re stuck.

You must decide one thing: What’s going to make you walk away from this deal? That is, what’s the least amount of money you’ll accept and still be happy?

They may offer you a bit more, or they may stand pat. If they raise the offer, my guess is it will be by one or two thousand dollars, to make you feel you won a concession. But that’s no concession. It’s still lower than the range they agreed to. They will still save money, and you’ll lose money. You have already made a concession, by considering less than the top of your range ($70K). The kicker here is that both parties plainly agreed to the same salary range before proceeding with interviews.

They screwed you.

What they did is bait-and-switch. They agreed to one thing but switched to something else. They screwed you. Now you must recover or walk away.

Once you decide what is the minimum acceptable offer is, the rest is easy – even if it’s not a happy thing. You cannot negotiate unless you know in advance what will make you walk away. Then you tell them this:

How to Say It
“I can do this job profitably for you, and I want to join your team. I make that commitment. But I told you very clearly when you asked me what salary range I would require: $65K-$70K. And you told me your range was the same. On that basis, I did the interviews with you. If you can meet the range you committed to and that I asked for, I’m ready to accept.”

The rest is up to them. Just be ready – they may say $60K is as high as they’ll go. Are you ready to walk away? If you agree to the $60K at this point, be prepared for lower-than-promised raises in the future, and other broken promises. These people have made it clear from the outset that they say one thing but do another.

The offer is based on your salary.

“HR logic” about salary goes like this. If you make $A, you don’t deserve more than about $A + X%, where X is some small percentage. Why does HR do this? Here’s what one HR executive wrote to me in response to my advice that job applicants should never disclose their salary to employers:

“Employers want your salary information because they believe that if you apply for a job that starts at $50,000, but you made $30,000 in the same sort of job at your last company, they’d be overpaying. They’d want the opportunity to buy you for $35,000 to start, saving them $15,000.

“The HR person who does that gets many kudos for their shopping moxie from their boss, and gets to keep their job and go on many more shopping trips.

“I’ve been a vice president of HR, a recruiter, a labor negotiator and a candidate, so I know from which I speak… I am so dismayed that someone pays you to hand out this kind of information.”

[Excerpted from Keep Your Salary Under Wraps]

If they try to “explain” that their offer is based on your old salary, your response can be only one thing if you want to negotiate with strength.

Tell them to go pound salt.

If HR gets pushy or threatens to “end the process,” tell them I said they should go pound salt. Your salary is none of their business. Will they tell you their salary?

Here’s what an Ask The Headhunter reader posted recently on LinkedIn:

“To anyone who wants to maintain their salary history confidential in a way which no prospective employer can hold against you, I utilized Nick’s technique at one point in my career and was very successful — including getting the job I was interviewing for. Nick has a foolproof technique on how to address previous salaries which actually makes the company respect the candidate.”

Here’s what another said:

“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.”

You can decide for yourself how to proceed. Here’s my advice:

How to Say It
“My old salary is irrelevant. I told you my required range and we agreed to do interviews based on that. Will you make an offer in the range we agreed on?”

Once you decide your position, the rest is up to them. If they insist on judging your value on what your last employer paid you, it’s their loss, not yours. Move on. This is a company that admits it doesn’t know how to judge value for itself, or that cheats.

But please – this is your decision, not mine. If you decide $60K is good enough, then do what you think is right for you, not what I think is right. Only you have all the facts about your life and needs. I’d never criticize you.

Also keep this in mind: You killed the interviews. You impressed them. You pulled it off. Don’t let their negotiating tactics make you question your attitude, behavior, or worth. Do you think you can impress another employer? My guess is you can. But you must make that judgment for yourself.

We have of course discussed this topic many times before. See Goodbye to low-ball salary offers and Salary History: Can you afford to say NO?

How do you negotiate? Do you disclose your salary? What should this reader have done, and do next?

Coming next week

In the next edition, we’ll discuss a topic that may have headhunters (and their clients!) up in arms: Why a headhunter should never disclose her candidate’s salary to her client.

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Why does he get more pay than me?

On August 7, 2017

In the August 8, 2017 Ask The Headhunter Newsletter, a reader becomes disgruntled upon learning a co-worker at the same job gets more pay.

Question

more pay

I recently started a new job, and there is one other person here who does what I do. He was hired about six months before me. While he was helping me get settled, he showed me his annual benefits enrollment form as an example. It had his salary pasted all over it, and I was dismayed to find out that he makes 30% more than I do.

We have the same job, the same responsibilities, and my initial assessment is that my skills and background are stronger than his. (He did have a contracting relationship with the company for some time before he was hired.)

It’s been very demoralizing to learn this so soon after starting this job, which is otherwise a good situation for me. Is there any way to handle this, besides going out and finding another job? It’s hard to be happy and effective at work knowing someone else who does the same things you do earns so much more. Thanks!

Nick’s Reply

There’s a parable in the Bible that’s useful here. Two farm hands hoeing a row of beans stop for a break. Abe mutters, “I can’t believe I work this hard for $5 an hour.” Isaac is stunned. “$5 an hour? I get only $3 an hour!”

Later, Isaac goes to the boss. “How come you pay Abe more than you pay me?” The boss arches an eyebrow. “What did I offer you to do this job?” Isaac answers, “$3 an hour.” The boss leans toward him a little closer. “What do I pay you to do this job?” Isaac shrugs his shoulders, “$3 an hour.”

“So, I’m a man of my word,” says the boss.

Why more pay?

You have no idea why the boss pays your buddy more than he pays you. But there may be many reasons. For example:

  • Your buddy may have been hired on a career track you’re not aware of and he may have skills you don’t have that the boss will need later.
  • Your buddy may have been better at negotiating his deal than you were. (Need to beef up your negotiating skills? Here’s some help.)
  • Maybe the company can’t afford to pay more now.
  • Or, it may be easier to find workers today than it was six months ago.

The list of possibilities goes on. The point is, you accepted a certain deal, and your boss is honoring it. Don’t leap to a conclusion about this.

Justify more pay

My guess is your boss isn’t going to pay you more just because you want more. You’re going to have to justify your request, and it won’t help to compare yourself to someone else. Demonstrate your own value. (See Stand Out: How to be the profitable hire.)

When the time comes for your first performance and salary review, I suggest you prepare for it like this:

  • Outline what you think will be the three biggest challenges, problems, hurdles or objectives in your job next year.
  • Then, list three things you will do to tackle them. This should include significant detail, but don’t overdo it.
  • Finally, explain how your approach to doing the work will be profitable (or beneficial) to the company.

This approach will help you justify your value — and the extra money you want — to your boss.

What’s fair depends on the facts

In the meantime, consider how presumptuous it would be to ask your boss for more pay, right after you accepted the deal you did. I’m not going to get into the ethics of hiring the exact same kinds of people for the exact same kinds of jobs at different rates of pay, because I have no idea whether everything is equal. Do you?

Be careful: Value isn’t as obvious as you might think. Your co-worker may be more valuable to your employer than you are. While you may be getting treated unfairly, you just as well may not have all the facts to make that judgment.

(My good buddy Suzanne Lucas, aka The EvilHRLady, offers some strong advice about equal pay practices in 5 Ways Smart People Are Solving Income Inequality.)

You made the deal

I believe employers should pay equitably and people should be paid what they’re worth — but value is relative depending on the needs of the employer. You may indeed be worth more than you’re being paid, but you made the deal.

Could you have made a case for more pay? If yes, then this is on you. But consider that negotiations will come around again at review time. I suggest that you focus on the issues we’ve discussed — issues that might not seem so obvious — and that you respect the deal you made until the time is right to renegotiate it. It doesn’t sound like the salary was unsatisfactory when you accepted it. (Needless to say, you always have the option to quit.)

My advice is to take this one step at a time, and be careful not to disturb your good relationship with your co-worker. He’s hardly to blame. Focus on what the boss knows about your value, and make it your job to clarify that.

Finally, my apologies to the Bible for mangling a good parable.

(Ever wonder how asking for a promotion and a raise are similar to interviewing for a new job or a new career? The challenge is almost exactly the same — it’s about how to deliver more value to get more money and a better position. To learn more about how to make yourself stand out in front of your manager — or the boss you want to work for — check out How Can I Change Careers?)

Should you suck it up when you accept a deal that suddenly appears less desirable? For how long? And, how can you fix it? If you’ve been in this situation before, tell us how you handled it. What can this reader do now?

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Consulting: Welcome to the cluster-f*ck economy

On April 24, 2017

In the April 25, 2017 Ask The Headhunter Newsletter, a reader deals with modern employment: consulting.

Question

I’ve accepted an offer for a job at a company, but technically I’ll be an employee of the Consulting Firm that recruited me and is billing me out. There’s a third company involved, the Screening Company.

consultingToday I received an e-mail from the Screening Company, asking for W-2s from the employer I worked for between 2005-2011. I happen to know that companies verify prior employment electronically, so I asked the Consulting Firm why they needed W-2’s. He said the Screening Company couldn’t confirm my employment. This made no sense to me. I said I would call the Screening Company to work this out, since there was a number on the e-mail for customer service. The recruiter at the Consulting Firm said not to do that, and that I should download the W-2s from the IRS.

I called the Screening Firm anyway, and asked a customer service rep why they needed W-2s to confirm prior employment when I know they can do it electronically. She said the Screening Firm didn’t need W-2s for employment verification, and that it was the Consulting Firm that required W-2s.

But then she said they do call prior employers, in addition to doing electronic verification, and that my former employer did not respond to their request. “Would it be sufficient if my former employer called you?” I asked. She said, “Sure.” So I called the HR department at my former company and asked if they had any outstanding requests to confirm my employment. The answer: No. (Say what??) I asked if they would call the Screening Company on my behalf and they said they would only respond to a faxed request with a copy of my consent, and gave me their Employment Verification fax number.

Fair enough. So I forwarded the fax number to the rep at the Screening Firm and then e-mailed the recruiter at the Consulting Firm to keep him in the loop. I said if they had any other concerns to please contact me.

I already have the offer in hand. I never disclosed my salary history during the hiring process. Why would the Consulting Firm want my W-2s? What exactly is the Screening Company’s role? Why did the Consulting firm claim the Screening firm needed the W-2’s and then tell me not to communicate with the Screening Firm? I have more questions, but can you help me with these?

Nick’s Reply

I don’t see how your prior W-2 (salary) information is anyone’s business. If the Consulting Firm does its job right, it knows you’re qualified to do the job its client needs you to do. Otherwise, what’s it charging its clients for? What does it matter where you worked in 2011 or what you were paid? Just sayin’.

You’re asking good questions, but there’s a bigger question: Why are there so many middle-men involved in this?

A cluster of companies

You’ve got:

  • The Consulting Firm that recruited you. That is, your actual employer that will sell your work.
  • The company where you will actually be working. That is, the Consulting Firm’s client.
  • The Screening Company, which processes the hires that its client, the Consulting Firm, makes. The Screening Company seems to be handling the Human Resources tasks for the Consulting Firm.

I’ll hazard a guess that there’s a fourth entity — yet another firm that will process payroll, taxes, and benefits.

There’s a term for the amalgamation of arm’s-length client relationships and consequent finger-pointing that make up this employment game: Cluster-F*ck.

I have no idea how any of these entities can even stay in business with so many hands in the till. You’re not hired to work; you’re rented out to do work. The price being charged for your work far exceeds what you’ll see in your paycheck. Everyone’s getting paid for your work; everyone’s getting a taste of your pay. Good luck figuring it out, because I wouldn’t even start trying to. All I see is a hole in the economy, where money goes without the creation of any value. (See Consulting Firms: Strike back and stir the pot.)

This is not consulting

You’re not being hired by a consulting firm to help it consult to its clients. You’re hired by this Consulting Firm so it can rent you to another company. That’s not consulting. (And don’t confuse what your Consulting Firm is doing with headhunters. See They’re not headhunters.)

Real consulting is an honorable business that creates value. One company turns to another for specialized help: a consulting firm. The consulting firm employs experts in its field that are organized, usually as a team, to solve a client’s problems. Day-to-day work is not the product. A solution, delivered to the client, is the product.

The consultants report to a manager at the consulting firm, not to a manager at the client company. The consulting firm’s employees likely work on multiple client projects at a time. They’re never not working. They’re never “on the beach,” as modern rent-a-worker companies like to call unemployment. (See Will a consulting firm pay me what I’m worth?)

The deal you’ve signed up for is not consulting. None of the companies you describe seem to be responsible for you — or to you. One hires you. You work for another. A third handles the transactions. (I still think yet another will handle HR tasks, like processing payroll and taxes, and administering benefits, if there are any.) When you have a question, each points a finger at the other.

Work for your employer

You’re asking good questions. I don’t have any answers. You’re being forced to deal with middle-men whose roles are questionable. In a well-organized, well-managed business, the functions of all those middle-men are functions of the company itself. A competitive enterprise leverages its expertise with all those functions to produce profit. Beware employers that you don’t actually work for.

consultingMy advice is, work for your employer. Avoid any drain of economic value from your work. Don’t let middle-men interfere with the employer-employee relationship. The risk you take when you participate in this kind of cluster-f*ck economy is that you are not the worker. You are the product. You become an interchangeable part. Worse, you become a returnable interchangeable part.

If the Consulting Firm is paying a Screening Firm to confirm who you are and to handle other transactions with you, so it can charge its client for those services, then what value is the Consulting Firm delivering to its own client?

The employment industry has become one of the biggest rackets going. It really is a clusterf*ck. With workers like you in the middle. But as someone advised a long time ago when a dangerous political entanglement could not be unraveled, “Follow the money.” The real problem here is with the company that’s paying multiple entities so it can rent you. Are you comfortable with this arrangement?

Who do you work for? Who pays you? Are you being paid for the value you create in the economy, or are middle-men draining your value?

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Forget Glassdoor: Use these killer tips to judge employers

On April 17, 2017

In the April 18, 2017 Ask The Headhunter Newsletter, a reader needs to get past the Glassdoor company reviews to find the truth about an opportunity.

Question

I was recently asked to interview at a company that at first I was excited to have a chance at joining. Their industry is interesting and familiar to me, and the position itself is a great next step in my career.

glassdoorAfter my interview was scheduled I did my due diligence and started doing research to prepare. Sh*t hit the fan when I got to employment reviews on sites like Glassdoor and Indeed.

Except for the one or two company-planted positive reviews, the clear majority for the past four years have been scathing and disheartening. To summarize: Employees say upper management rules with an iron fist, takes credit for employees’ successes, and compensation is not competitive.

I can understand a couple of bad reviews that might be from disgruntled people, but with a consistent theme delivered on multiple websites spanning a few years, I’m beginning to second-guess my effort.

My big question to you is: What is the best way to bring up my findings to learn the truth? I feel I absolutely have to ask because I not only want to see how they answer, but I also want to see if they own up to the need to change. I’m worried they’ll blacklist me for bringing it up, and I’ll never know whether the environment is truly terrible or not. I want to approach this with respect and good manners so that I don’t look like a bad seed trying to be planted.

How do I look behind the curtain? Is this worth the effort or should I just run now?

Nick’s Reply

I wouldn’t trust Glassdoor to help me judge a company any more than I’d trust Indeed or LinkedIn to connect me with a job. (See Can I trust Glassdoor reviews?, LinkedIn: Just another job board and The Bogus-ness of Indeed.com.) All those websites make money when you keep looking for jobs — not when you find one!

I’d invest more effort to get the truth about this company firsthand, but only if the company passes the first test. So let’s cut to the chase.

The first test

I doubt you’d take this job in if the compensation is not competitive. So let’s get this deal-breaker out of the way because it may save you further effort and later frustration.

Since they asked you to interview, it’s incumbent on them to provide information you need. I’d ask about compensation before taking any more steps. It’s best to ask the hiring manager this question, but if HR is the best you can do, that’s fine.

Make a phone call. (Do not use e-mail. This is too important.)

How to Say It
“What’s the pay like for this job?”

That’s it. Do not elaborate. This simple, off-the-cuff, obvious question says it all. It’s friendly and it’s clear.

If they won’t give you a salary range, I’d thank them for their interest (always be polite) and explain that you can’t invest your time in interviews if you’re not all on the same salary page. If they decline to state a range and instead ask you your current salary or your desired range, I’d politely reply that they’re asking you to interview — and they need to confirm the salary range. (See The employer is hiding the salary!)

If they won’t tell you, you’re done.

Glassdoor reviews are not enough

I’m not a fan of company reviews, especially the way Glassdoor presents them. There’s no accountability. Anyone can post anything anonymously. Nonetheless, when strong criticism spans lots of time and multiple websites, you’re right to be concerned. Just remind yourself that every bit of the criticism could be wrong. Could. It probably isn’t, given the extent of it. But you seem to want to find out for yourself, so take the next step.

Since you’re still excited about the job as you understand it, it’s worth going in to find out for yourself what’s up. You don’t need to confront them with the online reviews. In fact, I would not, because consider their best defense. If I were the employer, I’d respond that those reviews are not proof of a problem and the critics are all hiding behind anonymity.

The company can quickly render your question as a fact-less accusation, and you’ll come off like a person who makes decisions and judgments without solid evidence. Glassdoor is not solid because critics are not personally accountable.

If you had nothing else to go on but all you’ve read, and you had to make a choice right now about this company, the prudent decision is probably to walk away. But you can get firsthand evidence on which to base a sound judgment — and you should, because online reviews are not enough to make a defensible judgment.

Killer methods to judge the employer

Here’s what I’d do. Go to the interview. Answer their questions, and ask the normal kinds of questions you’d ask even a very good company. Then use one or more of these killer employer-vetting techniques. Here’s what to ask the employer (preferably the hiring manager):

How to Say It
“If you could change anything about your company instantly, what would you change?”

See how they handle that. If they’re aware of their online reputation, it gives them a chance to explain without you actually bringing it up.

How to Say It
“I’d like to meet some of the people I’d be working with if I were hired, and I’m willing to invest some extra time to do that. I’d also like to see where I’d be working. Can you give me a cook’s tour of your facility? If today’s not a good time, I’d be glad to come back.” If they let you do this immediately, that’s a good sign. If they put it off, do they quickly schedule that next visit, or do they never get back to you?

Ask the employees

If you get the tour and have a chance to meet other employees on the team, try to get a few minutes with each one privately. Ask this question.

How to Say It
“So, what’s it really like to work here?”

Do not share what you’ve read online. Let them talk. Their reactions will tell you all you need to know. Remember: Your goal is not to show how much you know, because that gains you nothing. Your goal is to confirm what you’ve read and to learn even more.

Leverage the job offer

This is the most powerful way to judge an employer. If you get an offer, they’ve demonstrated they want you — and they want you to say yes. They’re waiting. People don’t realize what incredible leverage they have at this point. It’s the most control you’ll ever have in negotiations. It’s time to vet the company.

Tell them you’re thrilled to get the offer – “Thank you!” Then take more control and learn the truth.

How to Say It
“Before I accept your offer, I’d like to meet some of your key people – managers of departments related to the department I’d be working in. I’d like to make sure I’m a fit for your team and I’d like to get the bigger picture of the work environment.”

For example, if you’d be working in manufacturing, you’d want to meet the heads of engineering and product development, because they create the products your team builds. You’d want to meet heads of sales and marketing, because their job is to make money from what manufacturing produces. If they’re not all great people doing great work, then your team (and you) will fail. Get the idea?

Find your own truth

Glassdoor and online company reviews are not the truth. They’re the partial, questionable truth. The best way to get the whole truth about a company is to talk to key people inside, and to talk with people you’d be working with every day. There is no need to bring up Glassdoor reviews. (You might find that the company’s reputation online is not deserved.) Get the facts for yourself.

Any company that declines to let you meet the people I’ve suggested – even though it’s an unusual request – probably has too many skeletons in its closet, or has a lousy attitude about transparency.

Formulate these questions in a way that’s comfortable for you. Don’t use my exact words. I like that you want to be respectful and well-mannered. Always assume the best, and politely ferret out the truth. Then deal with it, either way.

I hope this is helpful. It’s probably more work than you’d like to do, but consider what you’re investing here – the next several years of your work life. It’s worth the extra effort to find your own truth.

If you need more suggestions about how to vet this company, these two books will help. Check the tables of contents at these links:

Fearless Job Hunting, Book 5: Get The Right Employer’s Attention
(See especially, “How to pick worthy companies,” “Is this a Mickey Mouse operation?” and “Scuttlebutt: Get the truth about private companies.”)

Fearless Job Hunting, Book 8: Play Hardball With Employers
(See especially, “Avoid Disaster: Check out the employer,” “Due Diligence: Don’t take a job without it” and “Judge the manager.”)

Do you trust anonymous company reviews? How do you get the truth about a company?

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The only 2 reasons to tell recruiters your salary

On March 6, 2017

In the March 7, 2017 Ask The Headhunter Newsletter, a reader questions advice about divulging salary information to recruiters.

Question

recruitersI have your book, Keep Your Salary Under Wraps, about how to avoid telling an employer your salary history. I agree: Disclosing salary hurts your ability to negotiate the best job offer.

But now HR expert Liz Ryan asks, Should you tell a recruiter your salary? (Recruiters Don’t Need Your Salary History — But Here’s Why They Want It.)

She says absolutely not, and hundreds of people have posted their comments. Can we hear from another HR expert? I want to know what you say. Is telling a recruiter your salary different from telling an employer?

Nick’s Reply

I’m not an HR expert and I’ve never worked in HR — perish the thought. I always worked on the outside as an independent headhunter. According to Liz Ryan’s LinkedIn profile, her experience is in HR, not in independent recruiting or headhunting. That might explain our difference of opinion.

I don’t think you should ever disclose your salary history to any employer. (See Should I disclose my salary history?) But that’s not what Ryan’s column is about. What she is recommending is a dangerous whitewash of a more complicated issue. She’s saying you should never disclose your salary to a recruiter or headhunter.

2 kinds of recruiters

Let’s be clear on one thing, because it’s important. When she says don’t tell a recruiter your salary, Ryan is referring to a third party recruiter, or a headhunter — not a recruiter working in the employer’s HR department. (When you disclose to an employer’s recruiter, you’re disclosing to the employer.)

The recruiter she’s talking about will earn a fee if you are hired, and also stands to gain tremendously if you’re happy with your job offer and new job. Although the terms are often used interchangeably, to avoid confusion here, when we’re talking about an independent, third-party recruiter, we’ll call that a headhunter. A happy, newly placed candidate refers more great candidates that are worth a lot of money to a good headhunter.

Ryan is wrong because a headhunter’s motivation is very different from an employer’s. A good headhunter can use your salary history to help you, not hurt you, in part because the headhunter wants valuable referrals from you after you accept a new job she’s helped you land.

Employers and headhunters have different motives

Never tell an employer your old salary because he’ll use it to cap any offer he makes to you. In other words, your old salary becomes what’s known in behavioral economics as an anchor. It pulls down the job offer. (If your old salary is higher than the employer hopes to pay, you might be rejected outright, but that’s another discussion. Please see How do I prove I deserve a higher job offer?)

A headhunter actually earns a higher fee when your job offer is higher, so she’s motivated to get you the best offer possible without jeopardizing an offer altogether.

There’s no good reason to give employers — or their recruiters — your salary history.

But the only good reason to tell a headhunter your old salary is if it’s going to help you get a higher job offer.

And that’s where Ryan blows it while she bangs the drum to say no. She’s confusing motives, and that’s naïve. There’s more to it.

When to tell a headhunter your salary

testHere are my two rules about salary disclosure:

  1. If it’s an employer asking — the hiring manager, the HR manager, the HR recruiter, or the company’s online application form — do not disclose your salary, ever.
  1. If it’s a headhunter or third party recruiter, disclose your salary only if:
    (a) The headhunter agrees not to disclose it to the employer without your express permission. No exceptions.
    (b) The headhunter explains how she’s going to use the information for your benefit — and the reason had better be good.

If the headhunter can’t pass tests (a) and (b), don’t tell.

A good headhunter’s obligations

While a headhunter is paid by the employer and thus has a fiduciary duty to get the best deal for the client, the headhunter is also beholden to you if she wants introductions to more good candidates — and a sterling reputation in the professional community she recruits in.

So a good headhunter will not use your salary history to low-ball your job offer for the benefit of her client. If you think she’s going to do that, then walk away immediately — because that’s not a headhunter you want playing middle-(wo)man for you with any employer. (See How to Judge A Headhunter.)

When Ryan says not to disclose salary to a recruiter, what she should be saying is, Walk away from any headhunter you’re not sure you trust.

And that means most headhunters that solicit you — because they’re not headhunters. They’re unsavory spammers and telemarketers dialing for dollars. They’ll never do a good job for you. Work only with the best, or don’t work with a headhunter at all. Satisfy yourself that the headhunter is going to optimize your job offer — and, more important, get you in front of the right manager for the right job. Those are the headhunter’s obligations to you.

Now let’s discuss what Ryan avoids.

Why disclose your salary to a headhunter?

What legitimate reasons could a good headhunter possibly have for wanting to know your salary? If it’s me, I want to understand how your career growth and salary growth reflect one another so I can make a good placement — for you and for the client paying my fee.

  • Do I think you’re over-paid? Under-paid?
  • Do I think you’re squandering your abilities for too little money?
  • Is your salary expectation unreasonably anchored by your current salary?
  • How does that affect how you behave in interviews?

I’d rather discuss these questions with you before you talk with my client, because it could affect how I advise you to interview and negotiate.

Maybe you’re on the wrong career trajectory. You might be earning at the top of the range for, say, a digital design engineer. If you want to be an R&D engineer, you may have to take a step back in salary to shift to the new career direction. I want to prepare you for that. I don’t want you to get sticker shock after you’ve invested your time in interviews with my client.

If you don’t trust a headhunter like you’d trust a doctor when sharing your personal information, then don’t work with that headhunter. If a headhunter isn’t discussing these questions with you, run.

The 92% salary increase

I’ll give you an example of when it pays to tell a headhunter your salary. I recruited a candidate who was earning $40,000. I helped him get a 92% salary increase.

He was hoping to get a 10% salary bump. After a lot of assessment including talking with his references and having him talk with an industry expert whose opinion I respected, I knew he’d be great for a very different kind of job with my client.

If I hadn’t asked for his salary history, he’d have blown the interview, because the job paid over $70,000. His jaw would have dropped if this came up in the meeting with my client, and he’d have betrayed his old salary if only in his body language. My client never would have offered what he was worth. I’d have had no idea, if I didn’t know the candidate’s salary.

We had a long talk about how to behave while discussing a job that would almost double his salary. Based on the candidate’s aptitude, I negotiated a $77,000 job offer. My client never batted an eye, and never learned what its new hire had been earning. The candidate and his wife were able to buy their first house. I earned a nice fee — and several great referrals. The new hire performed so well that I got more search assignments.

I asked for, and got, the candidate’s salary history — but I never disclosed it. I used it to coach him properly so he could get a better deal.

If you’re not satisfied a headhunter is going to work that way with you, hang up the phone or delete her e-mail.

Liz Ryan is wrong

A headhunter is not an employer. Different rules apply when a job seeker deals with a headhunter. It’s up to you to understand the differences. That’s why I wrote a 130-page book about How to Work with Headhunters, and how to make headhunters work for you. What I just explained is in the book.

Liz Ryan sometimes offers good advice. This time Liz is wrong. She sounds right because she’s being contrarian, but she’s whitewashing a question that requires more insight and discussion.

Her advice to not disclose your salary is reasonable only if you’re dealing with a questionable or unsavory headhunter or recruiter — but in that case, you shouldn’t be working with that recruiter anyway! Just as there are lots of lousy HR people who will waste your time, there are loads of unsavory headhunters. (See Why do recruiters suck so bad?)

Know when to say yes

If you’ve properly vetted the headhunter, and the headhunter gives you satisfactory answers to the two tests I posed above, you might gain a lot by letting the headhunter know your salary history so she can assess and coach you properly. Make sure the headhunter will:

  • Keep your salary information confidential — that is, won’t disclose it to the employer — and,
  • Use the information to your advantage.

A good headhunter stands to make a lot of money by helping you get the right job for the best possible salary. And the headhunter’s client never needs to know your old salary. But it’s up to you to draw a line in the sand. Don’t be afraid to say no — and know when to say yes.

9 tips for dealing with recruiters and headhunters

If you don’t know how to separate good headhunters from unsavory ones, check the nine tips in The truth about headhunters.

Do you tell recruiters your salary? Why? If you’re not sure why, then don’t do it. How do you handle headhunters and employers’ own recruiters? How do you keep control of being recruited?

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Why employers should make higher job offers

On February 6, 2017

In the February 7, 2017 Ask The Headhunter Newsletter, a reader marvels at employers who discount job offers to save money.

Question

job offersI worked as an intern while in college, and after graduation they offered me a job. It was my first experience negotiating higher job offers. I discussed my proven performance and gave examples that demonstrated my value. The employer granted me the higher salary.

My advice to others is to capitalize on your value and have the courage to negotiate for what you think you’re worth. Of course, your value may not be viewed as high as you think. That’s okay. Just weigh the pros and cons of the position along with your needs and make a decision. Either way, keep in mind, it’s up to you.

But here’s what’s interesting. After I accepted the position, I went back to the hiring manager and asked why he offered a lower salary to begin with. He responded, “If you had accepted the lower salary, I would have saved $3,000 a year.” What do you think of that?

Nick’s Reply

It’s astonishing is how casually the hiring manager responded that he’d save money if you had accepted a lower job offer. On its face, that might seem like simple market economics. But there’s a profound fallacy underpinning the manager’s behavior.

Salary is not an expense to a company, though that’s how accountants portray it, and everyone accepts that. What a company pays you is an investment. And that’s not semantics. A company buys a piece of equipment as an investment against an expected return — and capitalizes it. An employee is capital, too — the employer expects an ROI (return on investment). The fallacy is that an employer can save its way to higher returns by making lower job offers.

Of course, with machines or people we want to pay less to maximize our ROI. But neither is simply an expense.

The value of higher job offers

All my life as a headhunter I’ve encouraged my clients to offer a desirable job candidate more than the candidate asks for or expects. The reason is simple.

Unlike machines, people perform better when motivated. So, when a candidate expects $75,000, offering the candidate a totally unexpected $78,000 triggers an incredibly valuable response: enthusiasm and motivation. Even gratitude. For an extra 4% investment, the employer will likely get far more than a 4% higher return.

However, when they offer less, I think employers suffer with a far lower ROI than the salary savings might suggest. (Maybe you’ll argue with me; that’s what the comments section below is for.)

Managers like your new boss may think they’re being rational by offering less to save money. They’re missing an opportunity to get a higher return. Salary isn’t an expense. It’s an investment. Done right, investing more returns more.

(See Goodbye to low-ball salary offers.)

Why employers hire

Remember: We’re saying the employer really wants to get that very desirable candidate on board. (What other kind of candidate would the employer hire?) So why not maximize both the chances the candidate will accept the job and the potential return by making a higher job offer to prove it?

Nobody ever worked harder or more enthusiastically because a company low-balled them.

But I don’t want to skip over the reality. I parenthetically asked what other kind of candidate an employer would hire, if not a very desirable one. I think much of the time employers hire like they’re checking off boxes and plugging holes in leaky companies. They aren’t thinking about boosting the bottom line by making a really good hire.

And that’s why they see no value in higher job offers, but are proud of saving money when candidates accept lower offers.

In my book, Keep Your Salary Under Wraps: How to say NO when employers demand your salary history, to make them say YES to higher job offers, I quote an HR manager who sent me an astonishing complaint about my advice that job seekers should never disclose their salary history. She said:

“Employers want your salary information because they believe that if you apply for a job that starts at $50,000, but you made $30,000 in the same sort of job at your last company, they’d be overpaying. They’d want the opportunity to buy you for $35,000 to start, saving them $15,000. The HR person who does that gets many kudos for their shopping moxie from their boss, and gets to keep their job and go on many more shopping trips.”

Many managers don’t hire to make more money for their companies. They hire to save money for their companies by using less of the hiring budget. As if the purpose of the hiring budget was to save it!

I believe treating salary as an expense makes it far easier to hire and fill jobs. If the outcome of hiring and filling jobs were measured on ROI, most HR managers and hiring managers would be fired.

I wonder how many CEOs and boards of directors realize their accountants and HR departments are saving their way to higher profits!

Nice work!

I realize your main point is that you succeeded in getting a higher offer not by just asking for it, but by demonstrating your higher value. Nice work! (See The ONLY way to ask for a higher job offer.) Your story delivers a valuable lesson to others.

But I was tickled by your new boss’s suggestion that if he’d paid you less he’d have saved money. My guess is you’ll work harder than the extra three grand cost him — and he’ll make more money.

Am I nuts?

Why should anyone pay a job candidate more than they ask or expect? Is a candidate really more likely to accept a slightly higher offer? Will a bit more money motivate better work? I can’t prove it objectively, but I think yes.

What do you think? Does that little boost in an expected job offer pay off? Is salary an expense or an investment? Has an employer made you a bigger offer than you requested or expected? Did that make you more productive?

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Can’t negotiate a higher salary? Ask for more money.

On January 30, 2017

In the January 31, 2017 Ask The Headhunter Newsletter, a reader can’t negotiate a higher job salary — but learns how to get more money.

Question

I rejected three job offers from three companies because none of them would budge on the salary. With unemployment dropping, the labor force is tighter, and employers say they can’t get good hires. It’s obvious why. They won’t pay enough! There must be a way to negotiate more money in a market like this. You must know some tricks. What can I do next time?

salaryNick’s Reply

You’ve answered your own question. When you can’t negotiate a higher salary in the job offer, ask for more money!

HR departments act like salaries are still set in stone while, as you point out, HR also says unemployment is at record lows. We can debate how big the unemployment number really is — loads of talented people are still on the street and many have dropped out of the market altogether, making it seem like everyone who wants to work is already working. (Jobs plentiful! Pay is up! But, how are you doing?) But forget all that. What matters here is HR. And HR says the talent market is very tight.

Nonetheless, HR in many companies won’t shake money loose to boost salaries so it can hire who it needs. That’s how you can leverage more money.

When the salary offer is on the table

When a company makes you a job offer and won’t budge if you try to negotiate higher, you need to understand what makes HR tick. Someone somewhere in the company created a salary scale for every job. Forget what the job is actually worth in the market — probably a lot more, and in time, we might see these salary scales adjust to reality. For now, many companies are stuck. They’re just not going to offer you more salary than the scale permits.

So don’t ask for more salary. Ask for more money. You should do this only under three conditions:

  • The employer has already made a specific salary offer and will not budge when you try to negotiate.
  • You really like and want this job.
  • You’re really going to walk away from the job offer if the employer won’t give you more money.

That last item is key. Really being ready to walk away actually makes you a very powerful negotiator. It frees you to be creative. (So does positioning yourself properly to begin with. See Fearless Job Hunting, Book 6: Be The Profitable Hire.)

Give the employer what it wants

Try this.

How to Say It
“I understand that you won’t raise the salary for this job, and I accept that. But I know I’m worth more, and I can get it elsewhere. But I want to work here, with you, at this job. We’re at an impasse, but I think we can get over it while respecting both our positions.”

Now do something that will give you a huge edge in this negotiation. Give the employer what it wants. That’s right: Accept the job.

How to Say It
“The main thing I want to say is, I want to come work for you — and I accept the job.”

Then pause and say nothing.

What job seekers don’t realize is that every employer that wants to hire you is worried you’re going to reject the job. It’s worried you don’t really want the job, you’re not sure you want to work at the company, you’re not sure about the manager, maybe you don’t like the work space, the building, the people… The employer has no idea how to convince you. Every employer that wants to hire you is worried you’re going to say no.

So say it out loud. Make the commitment and put the company’s worries to rest. Tell them you accept the job.

Negotiate the terms

Whatever their response, say this next:

How to Say It
“I’m ready to start work. As long as we can come to agreement on the terms.”

Now, don’t try this if you are at all hesitant about anything other than the money. You must be ready to show up at this place to work for this manager, with these people, doing this job. You must be ready to start work now.

If the terms can be worked out.

Ask for more money: A signing bonus

Now deliver the key to everyone’s happiness.

How to Say It
“I know you have a salary scale that you can’t break. I’m not asking you to break it. I’m not going to ask for more salary. But I am worth more money. So I’d like to propose terms that will not affect the salary you’ve offered. I accept the salary. But I’d also like to propose terms that will still pay me what I’m worth. I’d like to propose a one-time signing bonus of $X. It will not affect my salary, or anything based on it, like future raises, 401(k) contributions, insurance, or anything that is tied to salary. I accept the salary of $N that you offered if you will include a one-time signing bonus of $X.”

Why it works

Will this work? Who knows. It’s a gambit to try only if you’re willing to walk away otherwise. It’s a way to save a deal. I hate to say no to a deal I’ve already worked hard for — so I ask myself what I’ll settle for that won’t hurt the other guy, and I try to say, Yes to what you want, if you’ll do X for me. If you won’t, I’ll walk away, no harm done.

Here’s why a signing bonus can work. The lovely thing about it is, it doesn’t break the salary range. The company is not paying you more than it planned. But it has to pay you what you’re worth. You just have to set $X reasonably, and that requires some compromise on your part if you really want the job.

(If the employer whips out a salary survey, taps it, and says you’re not worth any more, I hope you read this first: Beat The Salary Surveys: Get a higher offer.)

Keep in mind that, if the employer agrees, your future raises will be based on your salary. If the raise is 3%, it’ll be 3% of your salary, not your salary plus the bonus. The same goes for all other benefits based on salary. You’ll see that bonus just one time. So plan accordingly.

(Worried the employer might withdraw its non-negotiable offer because you dared ask for something more? Read The Bad-Business Job Offer: Negotiating not allowed! Like we already discussed, you must be ready to walk away.)

Do you want this much more money?

What’s the point of a one-time payment, you ask, if what you really want and deserve is a higher salary? The point is that — as we noted at the beginning — you’re going to walk away from this job offer anyway. This is better than the offer you rejected — assuming you really want the job. This is more money. If there’s no size of signing bonus that would make you happy, then don’t even ask for it.

But if you can’t negotiate a higher salary, and what you want is more money, then negotiate for more money. A signing bonus is a good way to do it.

A few gotchas to beware of

You didn’t think there were no gotchas, did you?

  • Signing bonuses always come with a catch. You may have to agree to stay for a certain period of time, or refund the bonus or some pro-rated part of it. Negotiate an acceptable period.
  • Signing bonuses are sometimes paid in parts, to avoid having you skip out with the money. It might be monthly for a year, or quarterly or twice over a year. Negotiate it. My preference is to get it all upon start date, especially if there’s a refund clause.
  • Signing bonuses usually come with a written agreement. Consider having an attorney review it — along with your written job offer and other terms.
  • Signing bonuses are usually taxed just like any other pay. Consult your accountant if necessary.
  • The company may like your idea — but not the amount of the bonus. Decide well in advance what you’ll accept, and stick to it.

What kind of money is there other than salary? Would a signing bonus make a difference to you? How big? Have you ever gotten a signing bonus? How would you advise this reader?

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LinkedIn Extortion

On January 16, 2017

In the January 17, 2017 Ask The Headhunter Newsletter, a boss tries to turn a new employee’s LinkedIn profile into an ad for the business. Is this LinkedIn extortion?

Question

linkedin extortionMy new employer wants me to list in my LinkedIn profile that I’m working for her, and to include the company’s logo, but I’m still in the 90-day probationary period of my new business development job. I don’t want other employers to see it yet. She’s made no commitment to me, and besides, I still don’t have the private office or company phone she promised.

She has also strongly suggested that I change my profile so my “message aligns with the company’s.” She’s very into branding, and wants her business to be found when people find my profile — yet she does not list any of her employees on the company’s website. Besides, my LinkedIn profile is my marketing piece, not my employer’s! She even asked me to delete the last part of my summary in which I list what roles I’m looking for next in my career.

I’ve tried to skirt this politely, but today she asked me when I’m going to do it. Because this job is different from others I’ve had, she wants me to omit key words from old jobs that aren’t consistent with her business. Meanwhile, I’m really trying to make this job a success. I just don’t like being pressured to re-write my resume — that’s what a LinkedIn profile is, after all — so it “aligns with the company’s message.”

I really want this job to work out. What should I do?

Nick’s Reply

Is your boss a dummy? She’s ridiculous to presume she has any right to dictate what you put on your LinkedIn (or any other social media) page. Unless, of course, she’s willing to pay you an advertising fee… (more on this later).

If you’re going to add this new job to your LinkedIn profile, she has to earn it. I once had a girlfriend who insisted I wear a “friendship ring” so that people could see I was “attached.” We soon parted company.

Look at it this way (she clearly doesn’t): Would your boss ask to see your new resume, so she can pass judgment on what you include about her company? What’s the difference between that and your LinkedIn page?

LinkedIn extortion

This looks like a kind of extortion: Let me control your LinkedIn profile and I’ll let you keep your job.

Rather than assert any rights over your social media assets, your boss should stay mum and hope you decide on your own to add her company to your LinkedIn profile. Just like my old girlfriend should have stuck to hoping we’d stay together — without demanding that I “brand” myself with her logo.

Is your LinkedIn profile part of your boss’s advertising and branding? Or is it yours? I’ve never heard of an employer making this kind of demand.

Will she ask you to alter your Facebook page next? Will she ask you to start tweeting about her business from your personal Twitter account? Where will it end?

So, what do you do? You can talk with her frankly and tell her your LinkedIn page is not up for discussion. Or you can do what she asks and take your chances. However, I think you have a card to play here. If you decide to post something on your profile to make a concession, I’d ask for something back. Maybe like this:

How to Say It

“My social media pages are not intended to promote anyone’s business — they promote me. Listing my current job is a small part of what defines me. I would add more about this job after I’ve been here for a year, but I’d consider adding it now if you’re willing to end my probationary period and make a full commitment to me — including providing the office and company phone you promised.”

Does that sound too strong? Then modify it to suit you. But do you see the point? Sometimes, you have to test your boss — because I think your boss is testing you. You might as well find out sooner rather than later whether this is someone you really want to work for long-term. For example, if you’re concerned about broken promises regarding an office and phone, you may realize other promises are on the line, too: What to say to a stingy boss.

Here’s another way to help her see your point, since she’s so focused on marketing:

How to Say It

“With all due respect, using my LinkedIn profile to promote the company would be like you buying ad space on a website — and of course I’d never ask you to buy space on my LinkedIn page. I think there has to be some separation between the company’s marketing and an employee’s own professional marketing.”

Am I serious — should you offer up your LinkedIn profile if your boss pays you? Of course not. I’m trying to make a point. Tweak my suggestions as necessary, or don’t use them at all. It’s food for thought. (So is a larger question: Is your boss too preoccupied with LinkedIn as a marketing tool? She should read LinkedIn: Just another job board.)

Realistically, your LinkedIn profile is not going to drive any business to your boss, any more than your resume would! It’s clear to me your boss has already made you uncomfortable by suggesting a kind of LinkedIn extortion, and that should not be. At some point, you must draw a line – even if it risks your job.

(For more about personal branding for career advancement, see Branding yourself suggests you’re clueless.)

Is this LinkedIn extortion? Would you let your employer have any control over what’s on your LinkedIn profile? How would that affect your marketability to other employers? What should this reader do?

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