Executive Search: Don’t pay lazy headhunters

On September 16, 2013

In the September 17, 2013 Ask The Headhunter Newsletter, a reader asks why headhunters charge you to join their database so they can “find” you and earn big fees by placing you. Where’s the search in that?

I run a small, high-tech company and I’ve been looking at various models for hiring top-level executive talent, and also in case I decide to look for a new executive job myself. What’s your quick take on the BlueSteps Executive Search service that I keep seeing advertised? I know you say the candidate should never be paying to find a job. BlueSteps charges executive job seekers $329 to join its database. Is it the same story here? I thought headhunters got paid big fees to go find people — not to charge me to join the database they search.

Nick’s Reply

You nailed it. The candidate should never pay a dime to find a job — especially when a corporation is paying a big-name “executive search firm” huge fees to find the right candidates. (Real headhunters go out and find good candidates; they don’t charge candidates to be found.)

payoffWhat is it, anyway, with this new “business model” online? Create a database, charge job seekers to add their information, then charge employers (or headhunters) to find the information. Everybody pays! And the entrepreneurs doing business this way come off like slimeballs. Great business model!

We’ve discussed TheLadders, CareerBuilder, LinkedIn, and other job boards that charge job seekers — and then charge employers. (You should never pay for access to jobs — or to headhunters.)

Now there’s a new player in this league. BlueSteps — an operation of the Association of Executive Search Consultants (AESC). It’s doing what LinkedIn does: tapping job seekers for fees. It’s a racket.

Then the executive search firms that belong to BlueSteps charge their clients — corporate employers — one-third of a new hire’s salary to fill executive positions. We’re talking $100,000+ fees.

What makes these search firms worth so much? It’s a good question, because according to BlueSteps’ website, (1) they fill jobs by surfing a resume database, and (2) they deliver job seekers who paid to join the database. That’s not worth $100,000.

Real executive headhunters don’t sit in front of a screen reading resumes that come across the BlueSteps — or any other — database. They actually go out into the world and hunt the people their clients need. They travel in their professional community. They go where top talent hangs out and mix it up. They talk to respected members of the executive community and form long-term relationships. They track down talent that is hidden or unknown to their clients and bring it home.

lazy_recruiterWhen headhunters find their candidates in a database that job seekers pay to join, something smells. This is not headhunting.

Consider: BlueSteps is an association of search firms that get paid in the vicinity of $200,000 to fill a $600,000 job (one-third of the new hire’s salary). So, why is the AESC charging people to put their resumes into a database that its members can then query to find candidates? It rightfully raises an alarm. Suddenly, executive search is not worth $200,000. Any employer’s own personnel jockeys can surf databases to find people at any salary level. The same executives that populate the BlueSteps database are in other databases, like LinkedIn.

The suckers here are not just executives who pay $329 to “join” the BlueSteps database. The really big suckers are corporations that pay exorbitant fees to lazy headhunters who while away their hours feeding at the database trough.

Check this testimonial on the BlueSteps website from a managing partner at a world-class executive search firm:

“BlueSteps is a very effective way of being visible to the retained search community, as its database is constantly mined by AESC member firms.”

Mined?? Why aren’t these lazy headhunters out actually finding top executive talent? Why are they relying on job seekers who paid to get into the database?

Another managing partner (Don’t you love that title?) at another executive search firm testifies:

“Through BlueSteps, we quickly located three of our top candidates located in a broad geographic cross-section including Los Angeles, New York City, St. Louis and London. The candidate signed on for a total compensation package of $500,000+.”

This headhunter collected a fee that was probably around $166,000 — for querying a database. This is not executive search. This is lazy. This is a racket.

BlueSteps says that “in the past 90 days 3,549 BlueSteps database searches [were conducted] by executive recruiters,” and that executive profiles in the BlueSteps database were viewed 12,732 times.

What those managing directors are saying is, We no longer conduct the searches we’re being paid to conduct. We search databases, just like you do — and we charge you $200,000 to fill your open job the way your own personnel jockeys do it.

So, now that we’ve dissected this silly proposition, let’s get to my advice.

If you need to hire an executive, and you have a $200,000 budget to pay a headhunter, go to a small boutique search firm that actually has good contacts in your industry. Use a headhunter who flies below the radar, and who will go out and meet, talk with, and cultivate the best industry sources to get credible, trusted referrals to the best candidates. These are often solo practitioners who are highly respected in the industries they hunt in — headhunters who have relationships that yield excellent referrals. They don’t need LinkedIn, and they don’t need BlueSteps. They make their money the old-fashioned way: They earn it. (You can learn How to Work With Headhunters… and how to make [real] headhunters work for you.) They invest in people and in relationships — not in cheap recruiting tricks. And they get off their butts and actually recruit.

But if you want candidates from a database that people pay to join, then try BlueSteps.

Or, if you have $200,000 to spend and you’re smart, my guess is you could fill the job yourself. And that’s the lesson here. Filling top jobs properly, by finding the best people, is hard work, but it’s not rocket science. It’s just astonishing that AESC and BlueSteps and their members, who call themselves “executive search” firms, conduct “searches” by surfing databases, and by charging job seekers fees “to be found.”

That’s not worth $200,000. Or even $329. Don’t pay lazy headhunters.

If you’re an employer, how much do you pay headhunters, and what do you get in return? If you’re a job seeker, have you ever paid a headhunter?

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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!

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What to do about a broken job

On August 26, 2013

In the August 27, 2013 Ask The Headhunter Newsletter, a reader is frustrated by interviewers who don’t want to talk about the work that needs to be done…

I think your suggestion to “do the work in the interview” is literally right on the money. Nothing else shows how you’ll contribute to the bottom line. But a lot of managers just won’t put a challenge on the table for you to work on during the interview. It’s like pulling teeth to get them to think that way. (Of course, it’s also a test of whether they understand their own job, how candid they are and whether they’re worth working for!)

What do you think of a manager who cannot or will not pose a challenge he’d want you to tackle if you were hired? What’s the next step if this happens in an interview?

Nick’s Reply

The job candidate who takes a job like this usually winds up sucking canal water. I’ll explain that in a minute…

Sometimes a true story of a job candidate’s experience is far more instructive than my opinion. So I’ll recount a story for you.

broken-jobsRichard was an executive at a major pharmaceutical company, working in research and development (R&D). A colleague tipped him off that there was an opening for an R&D manager at the pharmaceutical company she worked for, and he was invited to interview.

Richard met with the Vice President of R&D for the entire operation–a scientist who had been with the company most of his life. The interview went very well. The two men hit it off both professionally and philosophically. As the meeting wound down, the V.P. asked Richard if he had any questions. Richard recounted the story to me:

“I decided to follow your suggestion and I asked the V.P. if he could please lay out a live problem or challenge he would want me to handle if he hired me. This clearly struck him. The V.P. put his hand up to his lips and really thought about it seriously. This went on for a few minutes while we sat in silence. You’d think this was uncomfortable, but it wasn’t at all. It actually felt perfectly right, like I had stimulated the big picture for him. This man, a brilliant Swiss researcher who is known all through the industry, was really thinking.

“Finally, he put his hand down and leaned toward me with a friendly smile and said, ‘You know, that was a very good question and I really can’t think of anything right now.'”

The meeting ended, the two men shook hands and went their ways. To answer your question, there is no “next step” in a situation like this. You’ve just witnessed one of the most important signals a hiring manager can give you: There is no job here.

Three weeks passed. Having heard nothing, Richard called his friend at the company to ask if she could obtain some feedback about the interview.

“Oh, your meeting went very well from what I heard,” said the insider friend. “But they didn’t get back to you? The V.P. decided to cancel the position. He decided not to fill it.”

Richard called me next.

“You’ll never guess what happened… They might have decided not to fill the job for any of a number of reasons. But I could see it in the V.P.’s eyes while he was thinking about my question. My bet is that he decided there was no real job to fill when he realized there was no challenge that he could discuss with me. Call me presumptuous, but I think our discussion made him cancel the position. Imagine if I had talked myself into that job–there was no job. Just an open position!”

Asking a manager to lay out a live problem for you isn’t just a way to challenge yourself and to set the stage to show what you can do. It’s also a very loaded question that can reveal much about the employer and the position itself. Just because a position is open doesn’t mean, as Richard points out, that there’s a job with a future.

Companies often fill positions just because they have “head count”–budget to pay for an employee. The budget stimulates a requisition which stimulates a job description (which is often a rehash of an out-of-date job description). Soon the HR department is advertising for candidates, scheduling interviews, and preparing to make an offer.

The manager wants to protect his budget (Who wants to give up budget money?) and goes along with the process. But this is how “the work” becomes divorced from “the position” and it’s how serious hiring mistakes get made. It’s also how a job applicant winds up swallowing canal water.

When there’s no specific challenge the employer can tell you about, that means there’s no desired outcome for the job. Which in turns means there are no metrics to judge your performance. Which means the job is broken. And you’re screwed if you get hired.

If you ask the question Richard asked, and the employer lays out a challenge, will you be ready with a good answer? In Fearless Job Hunting, Book 6, The Interview: Be The Profitable Hire, you’ll find these two detailed sections of advice and how-to:

    • How to do a Working Interview
    • What’s your business plan for doing this job?

How would you handle a live challenge from an interviewer? Have you ever encountered a broken job? (See the canal water link to find out what that is.)

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How to get into a company that’s not hiring

On August 19, 2013

In the August 20, 2013 Ask The Headhunter Newsletter, a reader wants to break down the barriers to get into companies that are not advertising jobs:

There are several companies I’d like to work for that don’t have any positions posted, but my skill sets should make me a very viable candidate for them. I don’t have any networking connections to these companies. A few years ago, I submitted resumes and cover letters to these same companies for future consideration, as suggested on their websites, but they never went anywhere.

Do you have any tips for breaking through the barrier to get into these companies?

Nick’s Reply

Yes: To get into these companies, you must identify, make, and cultivate contacts. You’ve already seen that resumes don’t work. No matter how viable your skills may make you, the chance you’ll be considered is small unless you are recommended by someone they trust. There is no easy path.

not-hiringWhen I read your question, here’s what I see. First, you tell me you know where you want to work, and you explain why these companies should hire you. Great! By picking your targets thoughtfully, you’re ahead of the game!

But then you quickly say that you can’t do what’s necessary to achieve it — that is, make connections. You’re saying you’re doomed without even trying!

You’re doing yourself a huge disservice. Thinking you have no networking connections is a common mistake — don’t feel bad. The employment system just programs people to think this way.

But, then you make things even worse. You suggest that employers should figure out for themselves why they need you by reading your cover letters and resume. They won’t. Employers absolutely stink at this.

This is why companies have HR departments that offer excuses galore why, in this talent glut — 26 million Americans looking for full time work — those clowns can’t fill 3.2 million vacant jobs. They have an 8:1 advantage. Eight job seekers available for every job!

What HR says to all these job seekers is, “You’re all under-educated or not educated in the right new skills! You are not the perfect candidate!”

My A!

HR is just lazy. HR wants Instant Workers Who Can Do The Job Now, when what they really need is Smart People Who Can Learn Quickly. People like you.

No offense intended, because I don’t know you. But, virtually everyone I talk with who is in your shoes has the same problem: They learn to be helpless. But don’t feel bad, because helplessness can be unlearned.

So please rewind to your second sentence. You have to make the contacts who will vouch for you and recommend you even if you’re not the perfect candidate — and even if a company isn’t presently hiring.

Check these articles to get an edge

To get new contacts to take you seriously, start with The Interview, Or The Job? Next, Outsmart The Employment System to avoid getting buried by the system. Finally, when you get in front of the right people, Tell ‘Em What They Need to Hear.

Some tips about how to get in the door — even before a job is posted

From How Can I Change Careers?
Learn to initiate insider contacts. (1) Make friends before you need them. Meet people before you need them. Start by talking shop — about the work you both do. (2) Seek advice, not help. No one wants to help you find a job. But if you ask for advice and insight about someone’s employer or work, they’ll talk to you. That leads to introductions to other insiders. (3) Give before getting. Developing insider contacts requires time, effort, follow-up. You may even have to have lunch or a beer with someone. Express your interest in their work first!

From Fearless Job Hunting, Book 3: Get In The Door (way ahead of your competition)
(1) Don’t give references–launch them! Traditional references answer questions about you. Preemptive references call the employer first, and recommend you. (2) “I don’t know any insiders!” Bunk. You just don’t know them yet! Identify customers, vendors, consultants, lawyers, bankers, accountants who deal with the company. Call them. (See “Seek advice, not help” above.)

From Fearless Job Hunting, Book 1: Jump-Start Your Job Search
(1) Hang out with people who do the work you want to do. That’s where hot tips about unadvertised jobs come from. (2) Learn how to say it: “I’m trying to meet the best marketers in my field. Is there someone in your company’s marketing department that you think I should talk with?”

This is how to break through the barriers. Keep in mind: If this were easy, everybody would be doing it. That means you have less competition.

How do you get in the door? What can job seekers do to earn your help to get into your company?

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Did this headhunter overlook me?

On August 5, 2013

In the August 6, 2013 Ask The Headhunter Newsletter, a reader wonders when a headhunter will call him about his application:

I’ve applied for a job (online, to a headhunter) for which I easily meet all the criteria. I even have several “value add” items in my past that make me an extra good candidate. But I have not been invited for even a preliminary interview. Should I just give up, or is it acceptable/advisable to contact the headhunter and essentially say, “I can’t believe you’ve overlooked me!”

Nick’s Reply

In How to Work with Headhunters… and how to make headhunters work for you, there’s a section titled, “How should I judge a headhunter?” (pp. 26-27). It includes 10 tests that reveal a headhunter is a good one. Here are four of them:

  • A good headhunter doesn’t call anyone blindly. He already knows quite a bit about your background, or he wouldn’t call you.
  • He is conscientious. You’ll see this in the questions he asks. Rather than rely on your resume, the headhunter will learn about you by talking with you extensively.
  • He will exhibit a sincere interest in your work and abilities, and in your interests and goals.
  • He will give useful advice if you ask for it.

blind_leading_blindThe root of your problem is that you’ve applied for a job indirectly — you applied (1) online, and (2) through a third party. Consequently, you know very little about the job or the manager. You might meet all the criteria that you know about, but that’s really very limited. What you don’t have is all the insider information that “insider candidates” have.

Applying indirectly puts you so far down on the list of realistic candidates that you’re really wasting your time. But I’m not here to berate you. This is a good learning experience if you understand why you’re wasting your time with this headhunter — who seems to have overlooked you because he’s working blind.

First, if the headhunter were any good, he or she would be actively recruiting you and sharing the inside scoop about the job with you. A headhunter who recruits via job postings is a pretty pathetic headhunter. This should be one big tip-off about how realistic the opportunity is. Please think about it: No one is “hunting” you if they’re waiting for you to come along via a job posting, right?

Second, If you’ve never actually talked to the headhunter, you don’t even know if the job is real, or whether the headhunter is just building his database with resumes. (This is common.) So you’re worrying about something that has never happened: The headhunter has invested nothing in you at this point.

That’s the danger of online job postings: They require no work. This is a trap that job hunters fall into all the time. They take job postings too seriously. The place to invest your time and energy is in people who actually know who you are and who take the time to understand what you can do for the employer. (These might be headhunters or employers themselves.)

Now consider the four tests of a good headhunter that I listed above. The headhunter in this case fails all of them. The main test is that, if the headhunter thinks you’re a good match and that he could make a placement, he’d be calling you. I think your best move is to move on — to opportunities where you have good information and contacts. And if you don’t have good contacts, start making them — that’s where the real opportunities lie.

Some guy posting jobs and waiting for a piece of spaghetti to fly across the Internet and stick to his wall isn’t really a headhunter. He’s not worth bothering with.

Do you apply for jobs online, indirectly, via “headhunters” you don’t know? What’s your hit rate? (Come on, make me laff…)

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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?

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LinkedIn Payola: Selling out employers and job hunters

On July 22, 2013

Introduction

You’re an employer. You pay LinkedIn to search its profiles when you’re recruiting. Do you care that the job applicants who rise to the top of your search results paid for their positioning?

linkedin-top-of-listIn a sweeping 1950s music industry scandal, radio deejays were exposed for taking money — payola — from record promoters to play their record labels’ songs, regardless of popular tastes. Certain songs went up the charts because record labels paid for positioning.

Today, payola seems to be the name of the game on LinkedIn, where job hunters can pay $29.95 per month to “move to the top of the applicant list” when employers search LinkedIn profiles for recruiting.

In the radio scandal, the payments were secret. LinkedIn sells top position in recruiting search results shamelessly.

In the July 23, 2013 Ask The Headhunter Newsletter, a reader says LinkedIn is behaving immorally and unethically:

I received an e-mail from LinkedIn, with a vertical list of five or six firms and logos, suggesting that I could be interested in these jobs. One of them caught my attention and I applied. I simply clicked on the “View job” link, uploaded a copy of my resume, and clicked the submit button. Immediately, a very questionable pop-up appeared. For $29.95 per month, LinkedIn has offered to sell me an “upgrade” that will put me at the top of the results this employer will see when it searches the LinkedIn database for job applicants. I find this to be unethical and immoral. How about you?

Nick’s Reply

When Ask The Headhunter subscriber Richard Tomkins brought this to my attention (he graciously gave me permission to print his name), I had to see it for myself.

linkedin-pitch-nickSo yesterday I applied for a job listed in a LinkedIn e-mail about “Jobs you may be interested in.” The pop-up that appeared on my screen is on the right.

(Tomkins got the exact same pop-up six months ago, listing the same #2 and #3 profiles beneath his own. He notes they are in the “San Francisco Bay Area,” thousands of miles from his own location. You’d think LinkedIn would gin up a pitch that at least delivers “results” that include “candidates” from the same geographic area!)

More suckers

I couldn’t believe that LinkedIn was going to sucker an employer — who paid to search LinkedIn profiles — by putting me at the top of the search results just because I paid for it.

“Move your job application to the top of the recruiter’s list!” in exchange for payola of $29.95, LinkedIn said to me.

While the employer is paying thousands to LinkedIn to search for applicants???

So I contacted LinkedIn, thinking that Tomkins and I had somehow gotten this wrong. Could LinkedIn be taking money from job seekers and fleecing employers with fake rankings?

A customer service representative, LaToya (no last name given), explained that the advantage, if I pay the $29.95, “is that your [sic] at the top of the list rather than listed toward the bottom as a Basic applicant.”

So it’s true. LinkedIn sells positioning to job hunters while it sells database searches to employers. Talk about getting paid on both ends of a deal! Meanwhile, the “Basic” applicants (those other suckers, who ride free) are relegated to the bottom of the list.

I wrote back to LaToya: “Don’t the employers get upset when they see someone ‘paid’ to get bumped to the top?”

That was taken care of, explained LaToya: Employers “have the option to turn on and off the setting.”

So I buy top positioning in recruiting results for $29.95 per month, and the employer has the option to render my payment a total waste. The only winner is LinkedIn — higher revenues, higher stock price, higher corporate valuation, and more suckers paying. This is the leading website for recruiting and job hunting?

The Lance Armstrong league

But it seems there’s another loser in this game: LinkedIn, whose reputation just sank to the bottom of the job board swill pot. (Well, not the very bottom. That’s the sole purview of TheLadders.)

Another job board, CareerBuilder, used to offer top position in search results for $150. (CareerBuilder’s New Ad Campaign: What’s a sucker worth?) LinkedIn may call itself a business network, but now it’s just another job board.

LinkedIn recently awarded Tomkins a “blue ribbon” because his LinkedIn page is “in the top 10% of the most viewed entries.”

tomkins

But he is not happy:

“If I am in the top 10%, it’s not translating into more interviews, let alone a job. 20 million people got this award? That’s the size of big city or a small country. Should I laugh or cry? What significance does this really have to me? I was okay with their business model, up to the point when they became a job board. If your name is at the top of the list only because you paid for it, that puts you in the same league as Lance Armstrong.”

Tomkins guesses at how the professional network’s business model is likely to evolve next:

“What if three different applicants — all with premium accounts — apply for the same job? Who gets to be on top? Maybe they have another pop-up stacked up, one that offers the user a premium-plus-plus, extra-premium account for $300.”

Is a sucker endorsed every minute?

LinkedIn has turned the business of new product development into Project: Anything Goes.

LinkedIn used to be a credible business network that became the business network online — and potentially the standard-bearer for professional identity integrity. Since it started selling recruiting and “job seeker” services, it has slid down the slippery slope of inconsistent, slimy “offers” and business practices. A generous explanation is that one hand (LinkedIn marketing?) doesn’t know what the other (LinkedIn product management?) is doing.

(This is not LinkedIn’s first dumb move, or its last. Fast on the heels of LinkedIn’s New Button: Instantly dumber job hunting & hiring came the more ridiculous and gratuitous “endorsements,” which serve no purpose but to drive up traffic stats.)

But the question is, why are employers (who pay to access the database) and job seekers (who pay for database positioning) going along while LinkedIn sells them both out with this game of payola?

And where does it leave LinkedIn users who just want to meet one another to do business?

“Sheesh. I’m still pissed off,” says Tomkins. “I used to think of Linked In as a respectable website, but I have less respect for them now than Facebook.”

Have you paid LinkedIn for search-results position and “premium” standing? Does it pay off? If you’re an employer, how do you feel about paying to view search results that job applicants bought? Is this immoral, unethical, or the new standard of business?

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Who will lead you to your next job?

On July 15, 2013

In the July 16, 2013 Ask The Headhunter Newsletter, a reader asks what to do after getting screwed by a long-time employer:

After ten years, my sales performance at my company started topping the charts. The boss could not understand how I did it, but it was the personal attention I gave my customers. I did all I could to help them be more successful themselves. One day I brought on a big new client and closed a record-breaking deal worth millions. A few days later, my boss fired me. My confidence was shattered. I’ve been working the job postings but I’ve been out of work for months. Where do I go from here?

Nick’s Reply

Unless you did something unethical (or illegal) that you’re not telling me, my suspicion is that you got fired because your employer doesn’t want to pay the kinds of sales commissions you are earning. That’s silly — everyone’s making money and the customer is happy. But I’ve never been able to understand a company’s resentment against successful sales people.

screwedThis happened once to me. I took a sales management job under a very aggressive commission plan. The head of sales designed it, and I accepted it. It was so aggressive that there was no salary or draw. It turns out they never thought I’d make the plan work for me. I was making so much money (for them and for me) that they cancelled the plan. I quit.

If this is your story, I don’t know why it would shatter your confidence. I’d talk with a lawyer to determine what (if anything) you’re owed for closing the deal.

It’s not uncommon for sales companies to fire a top sales rep and turn big accounts over to junior salespeople who are paid far smaller commissions.

Here you’ve been in this particular business for ten years, and you’re desperately using job postings to find a job! Cut it out! You’re wasting your time. Use the ten years of excellent contacts you’ve got! (Please don’t say, “I don’t know anybody,” because you do!)

Sit down and make a list of your best customers — companies and specific people you’ve worked with at big companies and small ones. Review the quality of your relationships. Think also about what companies they do business with — their customers, vendors, consultants and other professionals. Make a list. (If you’re reading this and you don’t work in sales and you don’t have customers, then some of the other people you encounter through your work are potential employers and potential sources of referrals to a new job. Where do you think good headhunters find new clients and great candidates?)

Note: If you have Non-Compete or Non-Disclosure Agreements (NCA or NDA), make sure you don’t violate them. Talk with a lawyer. (Ouch. That’s twice I’ve recommended lawyers in one column! You don’t think lawyers can help? Read Employment Contracts: Everyone needs promise protection.) I think it’s worth at least an initial consultation to understand your position before you take action.

Your former customers are people who know you well and respect you. These are the kinds of references you can use. Call them. Don’t ask them for a job. Tell them you’re going to work only for a top-notch company — big or small — and you would value their advice. What companies do they respect? Which ones would they recommend to you?

What do you do when a friend refers you to a company? That’s when the fun starts — and that’s when you must get to work! Fearless Job Hunting Book 5: Get The Right Employer’s Full Attention delivers the obstacle-busting answers you need:

  • Don’t walk blind on the job hunt
  • How to make up for lack of required experience
  • Is this a Mickey Mouse operation?
  • Age discrimination or age anxiety?
  • How to deal with an undeserved nasty reference
  • Scuttlebutt: Get the truth about private companies
  • And more!

Overcome the daunting obstacles that stop other job hunters dead in their tracks!

You may find yourself referred to a competitor of your last employer. Or there may be a department in one of your old customer companies that’s dying to hire you. Or an old customer may have a customer who needs you.

Why waste time with the unknown? That’s what the job postings will get you. Focus on the people who already know you, and with whom you have good relationships and something in common.

The job market is not just job postings and want ads. It’s people. Focus on the ones who care about you because you have treated them well. They will help you if you let them.

Has anyone used this approach, whether in sales or any other line of work? I think it’s the best “insider” method for meeting your next boss!

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Job Hunting: I’m lousy at selling myself!

On July 8, 2013

When I created the new Fearless Job Hunting books, I packed almost 100 of the best Ask The Headhunter Q&As and advice columns into The Complete Collection. Even so, lots of great Q&As didn’t make the final cut — I just had to stop somewhere. This edition of the newsletter includes one of the Q&As I wish I’d had room to include in Fearless Job Hunting. I hope you enjoy it!

In the July 9, 2013 Ask The Headhunter Newsletter, a reader asks whether employers hire 64 year olds:

scared-of-sellingShouldn’t you be encouraging people to use headhunters like you, instead of trying to sell me on how I should do it for myself? I have no experience “selling” myself. Basically, while I’m a supreme analyst, I stink at people sales. While I’m absolutely great at crunching numbers (by the way, I loved your job board metrics discussion [CareerBuilder Is For Dopes] — very meaty and revealing), I’m not good at grabbing the people I need to meet, connecting with them, making the pitch, and closing the deal. That’s sales. I have limited experience. You are an expert.

So, why shouldn’t I utilize the best resource for the project? Why shouldn’t I utilize someone who could complete the project (finding me a job) in one tenth of the time it would take me to do the same thing?

It seems to me that using placement services is the best angle. But then again, what do I know? I’m an analyst. I like your ideas, and will give them a shot. It might take me a while to learn the techniques, but I’ll get there…

Nick’s Reply

The answer is in your last statement. It takes a while to get good at this.

It’s like dating — you can try an “introduction” service, and it may be helpful, but can you do that every time you want to meet someone (whether for a job or a date)? It’s far better to invest some time and energy in learning to do it yourself.

It’s one of the skills in life that’s important to learn. Don’t worry about how long it takes. I’ve been at this for a long time and I still don’t have it down. And I was very shy to start. I was lousy at making myself walk up to someone to start a conversation.

I’m not going to offer “how-to” advice about meeting and talking to people, but here are a few of my favorite books on the subject:

Influence: The psychology of persuasion by Robert Cialdini

How to Get Your Point Across in 30 Seconds or Less by Milo Frank

Never Eat Alone by Keith Ferrazzi

I also recommend the Dale Carnegie program and Toastmasters. Both teach how to talk to people. It’s a lost art, but a key element of success. In my experience, the failure to communicate effectively is a root of personal and business failure.

As for headhunters, remember that they don’t work for you. They don’t find jobs for people. They find the right people for their corporate clients. Even “consulting companies,” which I think you’re referring to, are not the best solution. You might get lucky getting others to find work for you, but you’re better off learning how to do it yourself.

Yep, it takes time. But it can be enjoyable. And once you learn to do it, no one can take it away from you. But I disagree. It’s not sales. You can’t think of it that way, or it tastes sour. You can’t create a relationship by selling. You do it by engaging someone on a subject you have in common and that’s meaningful to you.

In other words, you make a friend, and Poof! a sale has happened. Think of it as an artifact, not a process or an objective.

There’s nothing wrong with taking a position through a consulting service, or via any channel that works for you. But you know the old saw: You can feed a person, or you can teach them how to fish. I’m glad you intend to give it a shot, so you can always feed yourself.

Thanks for your compliment about CareerBuilder Is For Dopes. I’m not an analyst or numbers guy — that stuff comes hard to me. I’m always afraid I’m missing some analytical angle and getting the conclusion wrong. If an analyst like you finds it meaty and compelling, then I guess I got the analysis right!

Hang in there. Forget about selling. Think about getting to know people. Big hint: People love it when you ask them about their work. It’s a hop and a jump to asking for insight and advice. And that’s where new friendships — and new jobs — come from.

(This is one of the Q&As that didn’t make it into the Fearless Job Hunting books You’ll find almost 100 more in-your-face ways to overcome the daunting obstacles that stop other job hunters dead in their tracks in Fearless Job Hunting: The Complete Collection.)

Do you feel awkward “selling yourself?” What do you do about it? Post your fears and comments below…

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71 Years Old: Got in the door at 63 and just got a raise!

On July 1, 2013

In the July 2, 2013 Ask The Headhunter Newsletter, a reader asks whether employers hire 64 year olds:

I really enjoyed reading Too Old to Rock & Roll? My husband has great knowledge and is good at what he does. He is 64, confident and looks great.

He just interviewed, they liked him, and asked him to fill out an application. The first line asked for his date of birth. Employers can’t discriminate, but can think he’s too old and give a bogus reason for not hiring. Do you know of applicants who were hired at 64, or do you personally think that he is too old to seek employment?

Nick’s Reply

We recently heard from a 58-year-old who landed a new job. But your husband is in his sixties. I can offer you two things: Evidence that people in their sixties can get jobs. And methods to do it.

Consider this series of e-mails I received over an eight year period from a long-time subscriber, Stephanie Hunter.

over-60June 29, 2004 I have faced the job search at an advanced age and successfully defeated the age anxiety. I am a 63-year old woman, nothing special, with an M. A. in English and twenty years of progressive experience in public relations. I was suddenly outsourced from a job I loved and intended to retire from. After nine months of researching companies, training myself in the Ask The Headhunter methods, and working hard to do the job in the interview, I have — again, at age 63 — been hired into a Fortune 500 company.

I say I am “nothing special” because your readers should know anyone can do it. Often when I hear some phenomenal success story I look for the silver spoon or the uncle who was in on the ground floor, but I did this myself. With a little encouragement and a lot of help from your advice. Glad I discovered you. I will continue to read your e-mail newsletter and pass along your tips to my job-searching friends. There are plenty of them out there. Thanks.

March 14, 2006 Good morning Mr. Corcodilos: Just to let you know I found myself in your newsletter this morning (only now I am two years older!). I’ve received excellent reviews, one merit raise and — most important to me — serious job satisfaction. Thanks again for the timely and timeless advice; I read the newsletter every week and often forward sections of it.

September 11, 2007 Re: your piece today about age. Three years ago I wrote to tell you your work had inspired me to keep going and do it right. At age 66 I am still on the job, enjoying it and regularly taking on new responsibilities. Keep up the good work; no one in the business does it as well as you!

January 15, 2013 All is very well. I remain in the job we discussed; I have served for eight+ years, and my most recent review was “O” for outstanding plus a 4% raise. It’s too good to make up, and I thank my luck almost daily. Quick arithmetic will give you my current age, but there is one person on a staff of 200 who is, um, older than I!

Although I am not in the job market myself, I still pass along your new information and techniques to folks who are.

Stephanie Hunter is unusual only because she got in the door and turned her meeting into The New Interview.

I don’t think anyone is too old for employment if they can contribute to the bottom line. And I know companies that hire older workers for what they can do. Needless to say, I also know companies that discriminate and break the law. But I don’t think we can live our lives worrying what someone else’s motives are — being fearful leads to failure. Our challenge is always to inspire motives in others that enable us to achieve our own goals. That’s Fearless Job Hunting.

Your husband’s job is to inspire the belief that he will contribute to a company’s bottom line more than that he will pose a risk. Or he can collect evidence to sue for discrimination, or he can get depressed and give up and complain. He might win a suit in time, but there is no quarter in the latter.

Or, he could try this to get in the door, and to motivate an employer:

Excerpted from:
Fearless Job Hunting Book 3: Get in The Door (way ahead of your competition)

FJH-3Don’t stop at the resume.
When the resume you send to a company is added to a big stack, your odds of success drop precipitously due to competition. Managers act first on information they receive directly from trusted sources, like co-workers, friends and experts they pay for help… Your resume isn’t sufficient.

Scope the community.
Every community has a structure and rules of navigation. Figure this out by circulating. Go to a party. Go to a professional conference or training program. Attend cultural and social events that require milling around with other people… The glue that holds industries together includes lawyers, accountants, bankers, real estate brokers, printers, caterers and janitors. Use these contacts to identify members of the community you want to join, and start hanging out with them.

Meet the players and participate.
Use the social geography we just discussed to figure out the lay of the land in your industry. Which companies do business with which others? What people circulate between related companies as employees, as vendors and customers, and as consultants? Then go to professional events armed with this information, which will make you a better participant.

Ask for help.
Once you have established yourself as a member of a relevant community, gently ask for help. Gently. Never ask for a job or a job lead. Ask for introductions to people who can help you fill in the gaps in your knowledge about a company’s (or industry’s) business.

Have something useful to say.
Produce a brief business plan describing the work you will do to make a company more profitable. Now, you could put that plan into a resume and send it along. Or, you could discuss it with a person who will talk to his friend the manager about you… It’s the people, Stupid… To get in the door, you need those people to introduce you. And the manager needs someone who has a plan to get the job done. Make that person you.

Do you know anyone in their sixties (or even seventies) who has been hired or who is still happily delivering value in their job? What’s your story? Regardless of your age, what methods have you used to get in the door?

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