Human Resources and Hiring | SmartRecruiters Blog https://www.smartrecruiters.com/blog You Are Who You Hire Tue, 17 Oct 2017 17:11:41 +0000 en-US hourly 1 https://www.smartrecruiters.com/blog/wp-content/uploads/2019/04/cropped-SR-Favicon-Giant-32x32.png Human Resources and Hiring | SmartRecruiters Blog https://www.smartrecruiters.com/blog 32 32 The Art of Salary Negotiation During the Job Interview https://www.smartrecruiters.com/blog/the-art-of-salary-negotiation-during-the-job-interview/ Mon, 28 Jul 2014 16:53:07 +0000 https://www.smartrecruiters.com/blog/?p=28757

I was intrigued last week when I received the results of a survey from the giant Menlo Park-based staffing agency Robert Half, saying that more than three quarters of hiring managers think it’s appropriate for job candidates to ask about compensation and benefits in the initial phone screening or first two job interviews. I’ve written […]

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I was intrigued last week when I received the results of a survey from the giant Menlo Park-based staffing agency Robert Half, saying that more than three quarters of hiring managers think it’s appropriate for job candidates to ask about compensation and benefits in the initial phone screening or first two job interviews. I’ve written at least three stories saying it’s best for job seekers to put off salary negotiations until an offer is on the table. Was I wrong?
Salary Negotiation

Paul McDonald, a senior executive director at Robert Half, says, “In this market, with 1% or 2% unemployment for some jobs, employers want to get to this business quickly. They want to see if there’s a good fit and they’re OK with the candidate bringing up the salary in order to be efficient with time.” Conversely, he says, applicants should be ready to answer questions about salary early in the process. “We believe honesty is the best policy,” he says.” If someone asks what has been your salary in the past three positions, we coach the applicant to be prepared for that.” The firm surveyed 300 hiring managers by phone in December 2013.

Has something changed in salary negotiation strategy since I first wrote about the topic two years ago? To answer that question I turned to three of my best career coach sources and to Heidi Ellingson, senior director of employment services at Middleton, WI-based Spectrum Brands, a diversified consumer products company with 13,500 employees worldwide, which makes everything from Rayovac batteries to George Foreman grills. She doesn’t recommend that candidates bring up the subject but instead she has her own staff raise salary in the very first phone screening. “We want to make sure we’re in the right ballpark,” she says. Frequently candidates don’t want to reveal either their salary or what they hope to earn, in which case Ellison’s team tries at least to get a range. “We don’t want to waste people’s time if we’re $20,000 apart,” she says.

Have I been giving my readers bad advice? In a word, no. The job of staffing firms like Robert Half is to screen candidates for employers so they can present the most viable candidates, and hiring managers have an incentive to get candidates to name a number early in the process. But from the candidate’s perspective, especially if you are negotiating for a managerial or executive position, it’s best to avoid saying anything specific about salary until a job offer is on the table.

“It’s like saying on a first date, ‘how many kids do you want,’” says Roy Cohen, a longtime coach and author of The Wall Street Professional’s Survival Guide. Sarah Stamboulie, a coach who previously worked in human resources at Cantor Fitzgerald, Morgan Stanley and Nortel Networks, agrees. “You don’t want to be negotiating salary until they’re at their maximum love—their maximum enthusiasm for you,” she says. Once a prospective employer has convinced themself and their colleagues that you are their first choice, they are much more likely to bump up your package in order to get you.

Longtime coach Ellis Chase, author of The Fun Forever Job: Career Strategies that Work, agrees with Cohen and Stamboulie and lays out four reasons naming a salary is a bad idea: 1) If you come in very low, the potential employer won’t take you seriously, 2) If you come in low the employer will think they can pay you less than they had planned to offer, 3) You price yourself out of the running, and 4) Even if you fall in the right range, you may not realize that the job comes with more responsibilities than you had thought and now you’ve ruined your negotiating stance.

SalaryThere are a couple of exceptions however. Stamboulie has worked with young up-and-comers at top consulting firms who have gotten multiple offers from employers who might not know the candidates want to make at least, say, $150,000. The fact that they don’t need to accept any of the offers puts them in a strong position, especially if they know they want to shoot high.

The other reason would be if you’re a superstar, you’re happy where you are and you’d only leave for a certain number. A third reason could be if you’re talking to a small startup where it’s tough to glean ahead of time what the salary range would be. Then you might want to name what Stamboulie calls an “anchor number” that will help the firm know what you think you’re worth.

What if the hiring manager or decision maker asks you what you make? That’s a tougher question. Chase says you should rarely volunteer a number and instead counter with a line like, “I’m very interested in this position but I would hate for a dollar figure to eliminate me from consideration because if there’s a fit, I’m sure we’ll be able to work it out.” If that doesn’t work, you could try, “Could you give me an idea of your range?” The goal, as I’ve written before, is to wait for the offer and then to get the decision-maker to be the first to name a number. If the hiring manager becomes visibly annoyed, says Chase, then you have to relent, but it’s always better to give a range, rather than a precise figure.

Cohen agrees. “A lot of hedge funds will bring it up. They’ll say what are you earning and what are you looking for. If you don’t give them some sort of benchmark you’ll look like you’re trying to tap dance around it.”

One of Cohen’s Wall Street trader clients can’t hold himself back. “He won’t do his homework,” says Cohen. “He’ll go into an interview and say, ‘I want to know what this job pays, I want to know the base, I want to know the formula, I want to know what cash I’ll get at the end of the year.’” According to Cohen, this candidate has blown three or four opportunities in the first interview. “When the market was stronger, they would tolerate this sort of thing,” he says. “But now he’s shooting himself in the foot.”

The folks at Robert Half may be right about the preferences of recruiters and HR managers, but it’s always best to try to bypass those gate keepers and go straight to the person who will make the ultimate decision about whether you get the job.

susan adamsThis article was written by Susan Adams from Forbes and was legally licensed through the NewsCred publisher network. Learn more about SmartRecruiters, your workspace to find and hire great people.

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7 Steps to Smarter SMB Hiring https://www.smartrecruiters.com/blog/7-steps-to-smarter-smb-hiring/ Fri, 25 Jul 2014 19:30:45 +0000 https://www.smartrecruiters.com/blog/?p=28726

Small businesses added 75,000 jobs in January, according to payroll company Automated Data Processing. If things have been looking up at your organization, you may be eyeing a few new potential staff members as well. If you’ve been on the sidelines in the hiring game these past few years though, you might want to take a […]

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Small businesses added 75,000 jobs in January, according to payroll company Automated Data Processing. If things have been looking up at your organization, you may be eyeing a few new potential staff members as well. If you’ve been on the sidelines in the hiring game these past few years though, you might want to take a few moments to review some best practices for your expanding team. Here are seven tips for effective hiring at your small business.
Steps to Smarter Hiring

  1. ‘Measure’ passion. Skills and talent are important, but you must also take into account whether candidates are passionate about going to work for you. Did they do pre-interview research to inform themselves about your organization? Are they enthusiastic during the interview? Do they illustrate their talents and passion with stories of previous experience? It’s answers to these types of questions than can help evaluate whether or not potential employees really want to work for your company, or are simply looking for any old job.
  2. Utilize established relationships. Often, you can find employees just by contacting folks you already have relationships with. Dial up some of your business colleagues or post an update on LinkedIn informing your contacts of your hiring needs.
  3. Offer incentives to team members. Your current staff represents a goldmine for finding new employees. Institute a referral program in which team members can earn cash rewards for referring a new hire. Just make sure you advertise the dollar amount as “after-tax” — there’s nothing worse than employees thinking they just made $1,000 only to find out that a good chunk of it is going to Uncle Sam.
  4. Institute a “day in the life” program. Consider creating a program where potential hires come in and shadow one of your employees for a day. This familiarizes candidates with your day-to-day operations, plus it gives you an idea of how they function with your existing staff. If you’re hiring freelancers or virtual employees, schedule a Skype meeting with a current staff member to discuss duties and responsibilities.
  5. Search social media. When using social media to find candidates, LinkedIn should be your first stop. After that, check any potential hires for inappropriate Facebook postings, as well as negative or offensive tweets. Be sure that you do not factor any protected class information into your hiring decisions (gender, race, religion, age, disability, origin or pregnancy).
  6. Interview like a pro. Whether in person or over the Internet, make sure you get the interview right. Show up on time, be positive, and diligently address any red flags you may have found on a resume. There are good and bad answers to any issues — interruptions in work history, for example — so make sure you ask all the right questions and let candidates respond accordingly.
  7. Consider hiring older employees. Older workers can bring a certain level of experience to your organization that younger bucks just don’t have. Plus, if they work out, they can help mentor younger team members. They also tend to give better attention to detail and are typically more organized.

Now that we’ve talked a bit about best practices for hiring, let’s discuss pay. If you’re not willing to loosen up the purse strings a bit when a stellar candidate comes along, you may not improve your team’s quality by much. If you’re not familiar with average pay rates for the position you’re hiring, check out websites like Salary and PayScale to ensure you offer fair compensation. Hiring the right folks for your small business is important, but paying them appropriately can keep them around for a long time.

Are you doing any hiring this year?

 

Andrew SchrageThis article was written by Andrew Schrage, co-owner of the MoneyCrashers.com, from Forbes and was legally licensed through the NewsCred publisher network. Learn more about SmartRecruiters, your workspace to find and hire great people.

Additional Reading on Forbes: “How Small Business Can Hire Better – And Faster”

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Communication Equals Love: A Missing Link In Your Hiring Process https://www.smartrecruiters.com/blog/communication-equals-love-a-missing-link-in-your-hiring-process/ Mon, 07 Jul 2014 18:01:10 +0000 https://www.smartrecruiters.com/blog/?p=28413

Many of us in HR and Leadership circles – I am among them – bemoan the negativity that springs up during the process of recruiting employees, affecting positive candidate experience and your employer brand.  One would think companies would have a stake in ensuring candidates, whether they are hired or not, have a positive experience […]

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Many of us in HR and Leadership circles – I am among them – bemoan the negativity that springs up during the process of recruiting employees, affecting positive candidate experience and your employer brand.  One would think companies would have a stake in ensuring candidates, whether they are hired or not, have a positive experience with the hiring company and your recruiting process. Others might point out that not getting the job is in itself enough to sour the candidate on the company if he or she is passed over. Yet studies have shown even unsuccessful applicants retain a positive experience of the company, if a too-often-overlooked link is maintained: clear, unambiguous communication.

Hiring Communication

Most people just want to know they’ve been heard. We need the organizations we engage with – as consumers, as personal brands, as parents, as just about anything  – to be clear, to set or correct expectations, and to do us the courtesy of responding. There’s even an annual award for companies that maintain a good candidate experience, the Candidate Experience Awards. I’m proud to be on the council for this organization because it’s such an important cause. The most recent awards report, issued in 2013, highlighted 63 companies that excel at creating a positive candidate experience. Before you roll your eyes and say ‘ugh, another vanity report,” let’s consider the following:

  • Nearly 60% of survey respondents (candidates at surveyed companies) feel they have a relationship with a company before they apply for a job. In the Internet age, what recruiter or company would expect anything less? Most people research a company before they decide to apply, using social media, career pages, LinkedIn and networks of acquaintances and friends who work for the target company.
  • A staggering 75% of candidates who apply for a job never hear back, according to a recent CareerBuilder survey. Yes, this is staggering and not good. This is unacceptable.

How can any rational Leader or HR team justify this? How can any responsible company decide it isn’t worth the time to respond to an applicant? We’re not even talking constructive feedback here: we’re talking common courtesy. Even an auto-generated email, followed up with a note or call, would be 100 times better than dead silence.

There’s tremendous risk in ignoring applicants, even unqualified applicants, when sites like Glassdoor and blogs are so easy to access – and so simple to use to leave anonymous critique of an employer.

And criticism of an employer brand does not begin and end with a spurned candidate. Your own employees are looking at those sites too. The more often they see their employer called out for shoddy recruiting practices, the more likely they are to decide it’s not a company they want to work for. Then your recruiting problem morphs into a retention problem.

So what’s the solution?

Communication. It’s that simple, and that hard. You must respond and acknowledge applicants, even if it’s via an automated response from an HR software package. If you can provide direct and constructive feedback, so much the better.

Why does communication matter so much?

A 2013-2014 study (download the PDF) by Towers Watson proves the link between ROI and effective communications.  Quoting directly from the report summary (emphasis is mine):

  • “Companies with high effectiveness in change management and communication are three and a half times more likely to significantly outperform their industry peers than firms that are not effective in these areas.
  • The most effective companies build a differentiated employee value proposition (EVP), and are three times more likely to focus on behaviors that drive organization success instead of focusing on program cost.”

That last point bears repeating: “focus on behaviors that drive organization success.” It’s simple, elemental, and utterly dependent on good communications. To be a successful company, you need to focus on behaviors that foster a culture of success.  Communications is one of those behaviors. Towers Watson reminds readers of its report, quote, Cultivate a culture of community and information sharing.” Within and without, with employees and candidates, the key to success – and attracting the candidates who will help your business grow – is good communications. There’s just no substitute.

So I’ll throw down a challenge for HR practitioners and Leaders everywhere: tell me about how you communicate successfully. Share how you communicate progress – with job applicants? Where does data fit in? How do you create a workplace culture of open and honest communications with employees, so they recommend your workplace to their peers? What tools do you use – software, back of the envelope, or other – to remind yourself daily that good, honest and direct communications are fundamental HR and Leadership skills?

Let’s close the gap between candidate experience and communications, even if it’s one applicant at a time. Let’s be good communicators, more than just stewards of process and regulations. Let’s take back good HR and Leadership that drives a better culture, before it’s taken away from us. What do you say?

 

Meghan M Biro Talks TalentThis article was written by Meghan M. Biro from Forbes and was legally licensed through the NewsCred publisher network. Learn more about SmartRecruiters, the only hiring platform managers and candidates love.

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