The employer is hiding the salary!

On July 14, 2014

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

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

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

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

Nick’s Reply

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

: :

Back to Top

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

On June 2, 2014

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

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

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

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

From Annie

I don’t ask for salary history

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

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

Nick Replies

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

Someone on the blog (Eddie) asked this question:

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

Can you share with us how you network to recruit?

From Annie

Where I network to find great job candidates

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

Making friends at meetups

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

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

Diversity in recruiting

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

Nick Replies

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

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

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

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

: :

Back to Top

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

On May 28, 2014

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

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

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

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

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

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

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

Best regards,
Annie

Nick’s Reply

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

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

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

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

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

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

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

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

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

The manager follows up

Hi, Nick,

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

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

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

Annie

Nick’s Reply

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

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

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

Coming next week…

Manager Annie tells us how this all turned out!

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

: :

Back to Top

What to say to a stingy boss

On April 7, 2014

In the April 8, 2014 Ask The Headhunter Newsletter, a reader says her boss “gave her a raise” by hiring another employee:

I have been with my current employer for six and a half years. I was promoted six months ago from administrative assistant to assistant manager. I got the title but no pay increase. Since being employed with this company I have not received any type of raise, only an occasional small bonus (less than $600). I recently asked the owner about a cost of living raise. His answer: “I did give you a raise when I hired a new person for your department. This took a large work load off you and that in turn was your raise.”

underpaidI almost fell out of my chair. I try very hard to be an optimist, but I am still trying to wrap my head around his response. I have proven that I have been very committed to this company. I have streamlined daily duties to save time, and I have found ways to save him thousands of dollars in operating costs. My boss informs me often that his clients compliment him on my professional skills and follow-up. I have a file of examples, but still I am not worthy of even a cost of living raise. My new co-worker was hired at the same time I was given a promotion in title only. She managed to negotiate $8,000 more than I am paid, with two years of experience against my six years. The only benefits that I receive are three weeks vacation. No retirement, no health insurance.

My boss also made this important statement: “I don’t believe in giving raises. People should learn to live within their means.”

My fire was ignited. A still small voice inside me is screaming saying, don’t settle, have courage, and as my father would say, go out there and shake those bushes.

I do apologize for the roundabout explanation. Do I stay and accept no pay increase ever, and just accept that maybe someday I can possibly make an increase in salary when my current manager retires in 10-15 years?

Or should I just go for it and test the market and just see what might be on the other side of that door? I will admit, I am old school when it comes to changing employers often. I tend to be very loyal. What makes me stay? I really do enjoy my work and I enjoy finding ways to save money. It’s a challenge for me. But now that I realize there will be very little compensation in my efforts, I feel defeated to say the least. My resume is ready. I’m the only one holding myself back.

Thank you so very much for all the information you have put together for people like me. I greatly appreciate any insider tips to help me navigate my way in a southern good ol’ boys business world.

Nick’s Reply

Your note reveals to me that you are a class act. A bit naive, but classy.

Loyalty goes two ways. If you’re giving your employer your best and he’s failing to recognize your increasing value to his business, then he’s not being loyal to you. I’m not trying to stoke the fire of discontent, but I don’t think you have anything to feel guilty about.

You’ve invested six years of your life in this business, and your boss has acknowledged your value to his customers. Now he’s given you a higher level job to acknowledge the growth of your skills and abilities. You are delivering much more value to him than you were when you were hired. But he’s delivering no more value to you.

stingy-bossHis statement that, “I don’t believe in giving raises. People should learn to live within their means” tells you all you need to know about this man: He’s taking advantage of you. My guess is that he’s earning far more today than he was six years ago, in part thanks to you. He’s not sharing that success. And as a boss, he’s not grasping a very simple but important idea about salary: That’s why it’s called compensation.

His statement that hiring a new person is his way of giving you a raise is a ridiculous insult. All I see here is a man with a very small mind who thinks he’s clever. But don’t begrudge your new co-worker her higher salary. Good for her for negotiating it. Her success is no reflection on you. (I discuss how to handle salary disparity in Fearless Job Hunting, Book 7: Win The Salary Games, pp. 16-17, “Why does he get paid more?”)

I’d take your boss up on his advice – live within your means. And your “new means,” with six years’ experience under your belt, include greater skills and abilities, and a higher value. Find an employer who recognizes that, respects it, and is willing to pay for it.

Keep in mind that searching for a new job always poses a bit of a risk. But I think doing nothing but accepting this man’s edicts is far, far riskier for you. If you stay, in another six years your self-respect and self-confidence will diminish, and you will indeed be worth less.

Your boss is wrong. Your father is right. Do it carefully and intelligently, but find yourself a better employer. (Let me caution you: Don’t look for a job.) Life is short, and as my best mentor told me long ago, “Never work with jerks.”

When you say goodbye to that fool, remember: Never complain, never explain. Do not express your dissatisfaction or explain why you are leaving, except to say, “It’s time for me to move on. Good luck.” (Nothing is gained by venting to an old boss except the venom he will spread about you.) So keep your standards and your head high. Rest assured that this man’s comeuppance will appear to him every morning when he looks in the mirror — while you earn what you’re worth.

When is enough, enough from a selfish boss? How do we know it’s time to say, so long? Have you been abused longer than you should have permitted? What pushed you to finally move on? What are your suggestions for this reader?

: :

Back to Top

5 Job Search Nightmares

On September 9, 2013

In the September 10, 2013 Ask The Headhunter Newsletter we tackle 5 nightmares:

  1. An employer wants free work
  2. A relocation dream turns into a horror story
  3. A guy’s network POOF! disappears into thin air
  4. LinkedIn makes an employer tell job seekers to sleep it off, and
  5. A headhunter and his client are lost in salary dreamland…

I get a lot of questions from readers, and I sometimes reply via e-mail with short answers (when I have time) that I never publish. But some of them are just as worthy of discussion… so here we go with some short(er) ones!

Question 1: They want free work!

nightmaresYour column regarding working on a real problem during the interview hit home. In the past six months I’ve had two interviews where I have been asked to work on a real-world problem. The first time, I suspected that this “interview” was to get an outsider’s opinion on a problem the staff was working on. (They wanted free work.) I never heard from the employer again. The second time, I asked the interviewer if the problem was something they were working on. He said yes and that this was a way for them to get a combination of interview and consulting work! I finished the problem and sent them an invoice for the time I spent at the firm. I can appreciate demonstrating your skill to a potential employer. However, the candidate has to be on guard for those seeking free work. How to handle these situations?

Nick’s Reply

When I emphasize the importance of “doing the job in the interview,” I usually include a warning about not working for free. That’s an abhorrent way for an employer to get free work from a job applicant — but I’ve seen it done many times. When responding, it’s always best to be a big cagey, and to hold back some details. If they press you, smile knowingly and offer your consulting time (for a fee) while they complete their hiring process. Heavily detailed “sample problems” are a tip-off. Do just enough to whet their appetites.

Question 2: Relo nightmare

My company relocated me to a new city in another state to a job with the same description as I had before. I thought it was going to be great. Unfortunately, I hate it. There are spider webs and low lighting everywhere, and I dread going to work every day. They got me to sign a contract — I have to repay relo costs of $12,000 if I leave before two years. It’s all of my savings. I am feeling stuck at this not-as-advertised job. I’ve certainly learned a lesson about getting a tour of the site before signing a contract. Am I totally stuck?

Nick’s Reply

Ouch. Relo can be a kind of indentured servitude. Since a contract is involved, I think your best bet is to see an attorney. You can probably get an initial consultation at no cost, but I’d get a good referral from a trusted source. The alternative is to feel depressed for two years. I’m not a lawyer and this is not legal advice, but you might be able to show that the job is not what they “contracted” for. I wish you the best.

Question 3: My network disappeared

I am a senior software consultant. I recently hit a dry spell finding work and finances have become very tight. What’s alarming is the realization that I am not really connected to any sort of reliable, non-virtual network that can help get me back in the game sooner. I guess while I am actively working, I don’t really think about it. Instead, my de-facto “network” is a random collection of job boards, fruitless job agents, and a few incredibly rude recruiters. Clearly this is inadequate. How do I tap into the support system I desperately need during the down times?

Nick’s Reply

You can’t tap into a support system you don’t have. A big part of life and work is cultivating friends and relationships over time. Please see Tell me who your friends are.

Frankly, a support system is more important than any job. I’m not talking about a loose network of “contacts” for that purpose — I’m talking about real friends and buddies. Attend conferences. Join groups. Take training classes. Offer to do presentations. Cultivate and invest in your relationships — not just professionally, but in all parts of your life. You’ll know you’re doing it wrong if it’s not enjoyable.

Question 4: LinkedIn & ruled out

Thanks for your eye-opening article on LinkedIn. If I were an employer looking to hire (which I was when I was starting my small but successful software company about 20 years ago), I would respond to the sleazy practice of paid uplisting by working my way down the list and e-mailing anyone who had paid for an uplist. I’d let them know that I would not consider them for the job because they had clearly indicated that they didn’t consider themselves good enough to stand on their own merits.

Nick’s Reply

What puzzles me is why job seekers don’t get past the guard (the online forms and the HR department), and why hiring managers don’t open the door to the most motivated applicants! (If you liked that LinkedIn article, see the extended one I wrote for PBS NewsHour.)

Question 5: Salary nightmare

I recently had a discussion with a headhunter for a well-known staffing agency who insisted on getting my current salary. He told me the pay range for the position was $80k-$100k and that if $80k was more than 10% above what I’m currently making, he couldn’t offer me the position. I told him that $80k was more than 10% above what I’m making now, but I refused to give further details. He asked a few more times for my salary and finally ended our “interview” by saying he’d submit my resume and see what happens. What happened here? Is this B.S.? Who said I can’t make more than 10% higher in a new position?

Nick’s Reply

No one says you can’t make more than 10% higher, except this “headhunter’s” client. Many headhunters merely parrot what their client tells them. That’s a poor way to service a client. Sometimes you’ve got to tell them what they need to hear — not what they want to hear. His laziness further reveals itself in the fact that he won’t even back up his client — he’s still going to submit your resume! It’s not clear what he’s really doing to earn a fee. He’s waiting to see if some spaghetti might stick to the wall. Who knows, maybe he’s got no other candidates to submit and he’s willing to chance it.

Of course, employers have the right to limit job offers, even if the limit is completely irrational. The next candidate might be making $90k, so the top offer would be $99k. If you’re making $70k, but can do the job, and they gave you $80k — more than a 10% bump — they’d be saving money, right? Go figure. There are idiots in HR departments who can barely count their fingers and toes, and they’re making these kinds of salary calculations? The decision you must make is, do you want to work with an employer or a headhunter like these two?

I’ve placed people for close to twice their old pay. And the client and the new hire were perfectly happy — value delivered and paid for with no regrets. If I were you, I’d move on to a headhunter and an employer whose goal is to hire good people, not to learn how to count their fingers and toes. (See How to Work With Headhunters… and how to make headhunters work for you.)

My compliments for holding fast and not disclosing your salary history — but you let the cat out of the bag anyway. Next time, just say the job seems to be in the right salary range in terms of what you want. Of course, later on, if they make an offer, you must hold fast and not disclose what you’re making. (See Should I disclose my salary history?)

I’m sure you’ve got your own advice to offer on these little nightmares. Please pile on!

: :

Back to Top

Should you disclose your salary history to a headhunter?

On July 29, 2013

In the July 30, 2013 Ask The Headhunter Newsletter, a reader frets about disclosing her salary information to a headhunter (and to an employer):

I am a great fan of your newsletter and just read your guides, Keep Your Salary Under Wraps, How to Work with Headhunters, and How Can I Change Careers?, so I suppose I already know your answer to my question.

I recently had an initial interview with a recruiter to discuss my interests and to find out about the recruiting company. After discussing everything, there was this dreaded, but rather expected, question regarding my current salary. I advised that it is private and confidential, just like the hiring manager’s salary. I know that recruiters and employers will still ask for my salary history, but that does not make it right. I want to make sure I am considered for the role. Is there a better way or another way I can protect myself?

Nick’s Reply

shhhWe have discussed the importance of protecting your salary history on Ask The Headhunter before, but it’s worth talking about it again from time to time. Clearly, you already have the answer to your question. Just because recruiters and employers keep insisting and pretending you must hand over your salary information doesn’t mean you must keep coming up with new ways to answer them. The same polite but firm response, even if repeated again and again, is the best you can do without compromising yourself.

In How to Work With Headhunters there’s a section where I discuss how to handle the salary history question when a headhunter asks it. This is quite different from when an employer asks the question. It can be beneficial to share your salary history with the headhunter if you trust him or her completely. In a moment, I’ll share an excerpt from the book and tell you How to say it and how to protect yourself.

First I’ll give you a warning: Keeping your salary confidential can lead some employers (and recruiters) to stop the interview process. So you must decide how to deal with this risk. I strongly believe the right approach is to withhold salary history, even if it costs you a job opportunity, simply because sharing your old salary will almost always result in a lower job offer. But you must decide if that’s a level of risk you are willing to accept. Never take anyone’s advice as gospel — even mine — if you are not comfortable with it.

When an employer asks for salary history

After you decline to reveal your salary to an employer, it’s up to you to shift the discussion to support your position. It’s not going to buy you anything to say No without helping the employer assess your value.

How to Say It
“I’d like to help you assess what I am worth to you with respect to this job. If you’d like to lay out a live problem you’d want me to tackle if you hired me, I’ll show you how I’d go about it. If I can’t show you how I’d do this job profitably, then you should not hire me. But I think you’ll be pleased. Can you lay out a live problem or challenge that’s part of the job?”

This might be as simple as working through a live problem in the interview, or it might mean spending half a day shadowing the manager or someone on the team. I find that when managers see such motivation and willingness to work together during the selection process, they drop the silly demand for salary history in favor of an actual demonstration of your value.

Again, you must decide for yourself how to handle each situation, because standing firm may cost you some opportunities. That’s a problem not just for you, but also for the employer, because your past salary has nothing to do with the job at hand — it’s your ability to do the work that’s the question. Too many HR people avoid the work of thorough assessment by using some other employer’s judgment of a candidate’s value — the old salary.

(For in-depth discussion of salary tactics, see Fearless Job Hunting, Book 7: Win The Salary Games (long before you negotiate an offer.)

When a headhunter asks for salary history

While a headhunter’s first duty is to the client who is paying the fee, a headhunter’s livelihood depends on being able to place lots of candidates and on getting good referrals from those candidates for future assignments. A good headhunter would never compromise a candidate’s satisfaction just to close a deal. It’s far better to have lots of very happy placements who refer lots more great candidates than to selfishly talk a candidate into a lower salary. A good headhunter’s reputation and future earnings depend on doing right by both the client company and the candidate. It’s a delicate balancing act, but every good headhunter can do it.

So, assuming you’re working with a good headhunter, here’s what to say when she requests your salary history. This is an excerpt from How to Work With Headhunters, which provides more elaborate advice if you need it (including about how to judge headhunters):

How to Say It
“My policy is not to divulge my salary for the simple reason that it could adversely  affect a job offer. I am willing to walk away from any opportunity if that’s a deal  breaker. No offense intended. I may be willing to divulge my salary to you under two  conditions. First, you would have to agree not to divulge it to your client. That’s up to  you. Second, — and I say this respectfully — you would have to show me how it would benefit my career to tell you what I earn now.”

A good headhunter will have good answers for you and respect your position, even if she disagrees with you. If the headhunter hems and haws and chants excuses and rationalizations, then she cannot work with you candidly and cooperatively, and my advice is to move on to another headhunter or another opportunity.

Do you disclose your salary to headhunters? What’s the effect? Have you missed out on opportunities by withholding your salary? How do you manage headhunters?

: :

Back to Top

Beat The Salary Surveys: Get a higher job offer

On February 18, 2013

In the February 19, 2013 Ask The Headhunter Newsletter, a job applicant resists lower job offers “justified” with salary surveys:

I don’t like telling employers my salary history when they ask, and I know you advise to keep the information private. But I’m happy to tell an employer what salary range I expect. That way we’re all on the same page, or why bother having interviews? The problem is that employers sometimes gasp when you tell them you want more than an average salary. When they trot out a salary survey and tell me what I’m asking is too far on the high end, how do I say, “You should offer me more money?”

Nick’s Reply

Here’s the advice I offer in my PDF book Keep Your Salary Under Wraps:

If an employer cites a salary survey, ask to see the curve. Point to the leading edge of the curve, where the most unusual individuals are earning the highest salaries.

salary-curveHow to Say It
“I believe I’m on the leading edge of the curve. If I can’t prove that to you during our interviews, then you shouldn’t hire me. But please understand that I’m not looking for a job on the middle of the graph, this part of the curve.” [Point to the fat middle of the graph, where average workers earn average salaries.]

Your challenge is to demonstrate that your performance would indeed be at the leading edge of the curve.

I realize this borders on sounding cocky, but remember that if you don’t make your case in this meeting, you probably won’t get another chance. Be polite and respectful, but be firm. Your future compensation is on the line. Obviously, you must be prepared to justify what you can do that makes you worth a higher salary. There is no way around this. Employers don’t increase job offers just because people ask for more money. You have to give them good reasons based on what you will bring to the job. (You also must decide what is the minimum you will accept. This article will help you flesh that out: How to decide how much you want.)

This is where I call employers and human resources departments to task. While the job offers they make are often only mediocre at best, they claim they reward “thinking out of the box,” and that they are in the forefront of their industry. This is where they need to prove it. I suggest you politely (and perhaps quizzically) address the person you’re negotiating with.

How to Say It
“I’ve studied your company carefully, and I’m impressed at your philosophy. Your company prides itself on thinking and acting out of the box. That’s why I’d like to work here. Of course, out of the box is another way of saying on the edge of the curve. I’d like to show you how I can bring edge of the curve performance to the job — but of course that means edge of the curve compensation. If you will outline what you consider to be exceptional performance, I’ll try to show you how I will deliver.”

There is nothing easy about this. You must do your homework in advance. (For more details on this assertive approach, please see The Basics.) It’s important to open a serious discussion on salary. Companies, and HR departments especially, love to talk about how people are their most important asset. We all know that assets are cultivated so they’ll grow. We want to maximize their value. So we hire the best people, pay them the most, and cultivate them well so they’ll pay off, right?

Well, that’s not what happens when an employer insists on knowing your past salary so it can base a job offer on it. It’s hypocritical — and risky business. It’s how companies lose great candidates who won’t stand for average job offers.

But you can make an employer’s pretensions work for you, if you can be firm but diplomatic, emphatic but gentle, challenging but cooperative. My suggestion above is one way to do it.

Putting Ask The Headhunter to work usually requires saying something to someone to make it pay off. My suggestions about How to Say It are not the only way. There are many good ways to tell an employer that you want more money when you’re negotiating a better deal.

What do you do when you want more money? How would you say it — and what’s worked for you?

: :

Back to Top

Will a consulting firm pay me what I’m worth?

On January 28, 2013

In the January 29, 2013 Ask The Headhunter Newsletter, an underpaid consultant keeps trying to get more raises:

I am a computer consultant working at a company that assigns me to work at other companies. My salary is less than average in the region for people with comparable skills. I went to my boss and got an increase that’s still less than I’m worth. I think they just tossed me a bone to quiet me.

I like this company even though they’re underpaying me. What else can I do, apart from getting another offer and proving to them that the market values me more than they do?

Nick’s Reply

pay-me-moreFirst, if you’re relying on salay surveys, know when to fold them. Generalized surveys are okay to give you an idea of salaries in a particular field, but they are not a good place to start negotiating your own salary.

I would not dangle another company’s offer in front of your boss unless you’re absolutely ready to take that offer. I’ve seen many companies usher people straight out the door for doing that. (It’s not clear whether you did that anyway, or whether you just asked for a raise on your merits. I hope it was the latter.)

Your employer has already agreed to pay you what it thinks you’re worth, and that doesn’t seem to match what you (and the market) think you’re worth. I don’t think it would be wise to approach management again. My guess is that they don’t really care. Without knocking consulting companies in general, it’s my belief that many of these “meta employers” aren’t as motivated as regular employers to treat employees equitably. Unless they’re one of the exceptional firms out there, they may view employees as a commodity.

Perhaps more important than figuring out how to get more money out of this employer is deciding how you’ll handle the next one. Consider How to decide how much you want, and be ready to ask for it before you accept your next job.

Consulting firms are accustomed to pretty high levels of employee turnover, and they’ve got mechanisms for dealing with that. They may pay decently to bring you aboard, then keep your raises low while your market value goes up until you leave. In the interim, they enjoy higher billing rates and increased profits while you decide whether to get up and go. Then the cycle repeats with the next hire. Of course, some consulting firms demonstrate more integrity. I know this sounds cynical, but remember that the consulting business is incredibly competitive. You are the product, and you can be replaced easily because the firm’s projects and clients come and go in fast cycles. (Read Scott Henty’s excellent Consulting Jobs Primer in the Industry Insider section of my website.)

If you don’t know a better consulting firm to work for, my advice is to seek out a regular employer where the future might be a little more predictable and where the compensation program is more oriented toward holding on to good employees. You might find the culture more to your liking, too. The best companies are grappling with the issue of retention, or how to keep good people.

Needless to say, lots of regular employers don’t demonstrate much integrity, either — and don’t guarantee any more job security than consulting firms do.

If you can’t get satisfaction, move on.

Have you ever worked for a consulting firm that farms you out to other companies on assignment? What are the ins and outs you’ve experienced in that business? What should this reader do next?

: :

Back to Top

They promised a raise but won’t deliver

On October 29, 2012

In the October 30, 2012 Ask The Headhunter Newsletter, a successful manager complains a promise about higher pay hasn’t been kept:

When I was hired almost two years ago as a manager, it was with the promise that if I achieved certain milestones and met the company’s expectations my compensation would increase dramatically. I’ve met all the requirements and more, and no one disputes that. But when I approached top management about this recently, they said there’s no way they could pay me that much money.

These are basically honest people, and I like working with them. They created the expectation, and I have worked exceptionally hard to earn exceptional money. I’m willing to stick it out, but I’m wondering if I was too trusting. I did not get all these promises in writing as you recommend. I decided to take a chance. (I just bought Keep Your Salary Under Wraps. I figured I owed it to you. Your first book basically got me my current job!) I’d appreciate your thoughts.

Nick’s Reply

There’s no law against employers promising things they later decide they just “can’t” deliver — unless they put it in writing. I learned this the hard way, too. Many years ago I took over a sales group, and the VP offered me one of two deals: A decent salary and a pretty good commission plan, or no salary and a phenomenal commission plan. I quickly decided that if I couldn’t blow the quotas away, I just shouldn’t take the job. But I did, and the VP used to crow that he and I were the only ones that put their money where their mouths are and worked on 100% commission.

I made a lot of money. And, as I anticipated, I blew away the plan. Again and again. Until they brought me in and said, “We can’t keep paying you this much money.”

It took a while for me to leave. But I’ve seen this happen many times to others, and the caution I offer is, get it in writing when you accept the offer.

The criteria for more money must be:

  • Written
  • Objective
  • Achievable, and
  • Measurable.

The agreement must also guarantee the plan throughout your employment, or they’ll reduce it. Few employers will put it in writing because the deal they offer isn’t real to them. That is, they really don’t know what to do with exceptional performers, except promise that they’ll take good care of them… until time comes to pay off. And here’s the serious problem: They can’t accept the idea that paying you a big chunk of a lot of money is better than paying a small percentage of a lot less money. So they lose managers like you.

For some of the very best advice about how to protect yourself when accepting a job offer, see Bernie Dietz’s excellent article, Employment Contracts: Everyone needs promise protection.

None of this helps you now, but it might help you next time. If your boss doesn’t understand that the best way to lose the best employees is to welsh on compensation, then either you adjust your expectations, or you find an employer that is willing to pay for exceptional performance. They’re out there. But you won’t find them by applying for jobs. You pick the sweetest companies, then research the management team — and when you find such a company, you go after it. But once you’ve got the deal you want, get it in writing. It’s not real (as you’ve learned) if they won’t sign it.

But you can still try to fix this now. Try to “renew your wedding vows.” Is the company willing to sign a friendly letter of intent that re-states your original agreement with a firm timeline based on your performance? It’s not too late to amend the employment deal you took.

In Keep Your Salary Under Wraps I recommend William Poundstone’s excellent book, Priceless: The myth of fair value. This book explains how a salary is “anchored” to a low point. Don’t let it happen to you. The book also explains how to pull a negotiation upwards by understanding the parameters of the anchoring effect. Contrary to the conventional wisdom (“Whoever states a number first, loses.”) it turns out that you can control negotiations about money if you know what number to state and how to state it.

Thanks for your kind words. I wish you the best.

Did you get paid what you were promised? Or, did you get suckered into delivering exceptional performance without exceptional compensation? Is it reasonable for employers to avoid big payouts? Let’s talk about how to protect yourself.

: :

Back to Top

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?

: :

Back to Top