Counter-Offers

Let's examine the idea of counter-offers.

If you're a shinning example of the perfect employee, at some point, you're going to quietly explore your options in the hospitality market. Perhaps you'll contact a recruiter so as to ensure your interest is kept confidential - always a good choice! But what if this exploring leads to a first interview, then a working interview, and then a third? And in due time, you receive an extremely attractive job offer. Do you accept straight away and cheerily return to your current employer with a letter of resignation?

You might be surprised when your boss reads this resignation and implores you to postpone a final decision for a day or two. In a mere few hours, this executive returns and presents you with an even more attractive counter-offer. "We simply can't afford to lose you," your boss explains.

Who knew? And more importantly - what do you do now?

Before you start wishing you had such "problems", let me mention that because of marketplace demands, it's primarily highly qualified managers and executives that are more likely to face this particular conundrum.

There are many legitimate reasons to leave a position for greener pastures...perhaps the company has executed it's expansion plans a couple years ago and is now in maintenance mode, with no fresh challenges on the horizon. Or perhaps a training budget has been slashed to bits - thwartying your intention of upgrading your skills. Or perhaps you just learned the $15,000 yearly bonus you were counting on isn't likely to materialize. Bummer.

So, hence the passive career search for new positions....the terrifc offer....and impending resignation where your boss says, "Tell me what's wrong here, and I'll fix it. But you have to promise to stay. And by the way, here's more money."

Perhaps you should accept the offer, but that won't rectify all problems. Think about your reasons for wanting to leave in the first place. Let's review the situation and consider the following worst-case scenarios that might play out if you decide to stay with your employer.

You're action can change the culture of your organization.

A resignation is the business equivalent of holding your boss at gunpoint: "Give me what I want, or I'm history." The counter-offer is the equivalent of your boss handing over cash, a promotion, less travel or more time off, and putting your gun back into its holster.

But the incident isn't over. In fact, it may never be. You have upset an apple cart and provoked a panic-buy. Those apples can never be stacked the same way, and everything, including the company's pecking order, is now different. Passive aggression and veiled hostility might arise later from some unexpected sources.

If co-workers hear of your new title and/or perks, a new dynamic will develop. You won't exactly be the most popular guy or gal on campus. However minor your perks, don't underestimate how little it takes to make co-workers angry; inequality within the ranks is lethal. If you decide to stay where you are because it is familiar, you might be surprised. By accepting the counteroffer's perks, that familiar office dynamic will become foreign.

You'll raise the stakes.

Your acceptance of a counteroffer will change expectation levels - both for your boss and for yourself.

After bestowing rewards, it is human nature for your boss to expect more from you. You'll be held to a higher performance standard, which you might also hold yourself because of guilt from stirring up muddy waters. Your every misstep will be scrutinized, and every minor error in judgment will be magnified. In other words, you'll earn every penny of that increased salary and every minute of that family leave time with your blood, sweat and tears.

You won't be trusted.

You're no longer a team player, but someone who, first and foremost, looks out for No. 1. You've already stated in effect, "I don't really want to be here." Because you've broken the loyalty oath and held your employer hostage, you'll be henceforth viewed as less than committed. Your allegiance also will be compromised in your own mind; something about the job just won't feel "right."

Perceived lack of loyalty in addition to co-worker resentment and an employer's feelings of disempowerment could lead to a short-lived position. I've witnessed many workers who've happily accepted counter-offers in winter only to leave by the next summer. Unfortunately, upon leaving this upheaval, the employee no longer will receive a good solid reference. S/he more than likely will receive a two-word negative response, if any.

Accepting a counter-offer isn't always a bad decision, but as a professional recruiter, I'd be remiss if I didn't urge a very close look at the possible pitfalls. My ultimate goal is seeing candidates happy and successful in permanent placements, whatever and wherever those might be. So I'd also encourage a talk with the boss before you start shopping around, rather than after. Address your misgivings and dissatisfactions early; give him a fair chance to rectify them. It's quite possible that nothing will change - but be assured that you haven't wasted your time.

You've called the boss' attention to the situation in an honest, straightforward way. You've acted with integrity while gaining the assurance of knowing how much you're truly valued - without jeopardizing your career, your economic stability or your positive relationships with peers. And without pulling out the verbal equivalent of an Uzi.

What's more, if you ultimately decide to leave the company for a warmer climate, your boss will be able to accept this and not be suprised.

Money Talk in an Interview

The Money Question – it always comes up in interviews …

The money question always comes up in job interviews. If you are a candidate looking at a new position, you can safely assume the person on the other side of the desk will ask some form of the money question. Your answer may be the difference between moving forward and being eliminated.

In an interview, the employer has four basic questions in mind. However they dress them up, whatever creative spin they put on them, employers really want to know four things:

Who are you?
Why are you here?
What can you do for me?
How much will it cost?

That final question can make or break the situation. If you answer it wrong, you're done. The correct answer is non - numerical. A number, whether too high or too low, is ALWAYS wrong.

The employer will invariably ask something like, "How much money do you need to consider for this position?" Or else, "What will it take for you to come to work for our company?"

If you want to be considered for the position do NOT, under any circumstances, give a numerical answer. The correct answer is something on the order of, "I'm here to discuss the position and assess my fit with your organization. I want to make sure my talents are a good match for the duties you're outlining. You're probably thinking along the same lines. I am sure, if we get to that place, we can reach an accommodation."

Why answer that way? Because it's the truth.

The demand - interest barometer tells us that, for a candidate, as demands go up, interest goes down. And as interest goes up, demands go down. If you as a candidate articulate a number too early in the process, you're drawing a line in the sand and creating an impression that you're more about reward than effort, more about price than value.

A number which is either too high or too low is wrong for several reasons.

The interviewer will eliminate you from consideration if you articulate a number that's too high. Whether they can afford the amount you say or whether you're worth that amount is immaterial. If you as the candidate create the impression that you overvalue your skills (in other words say any number above the range they've calculated), they are concerned you will never "settle" for the amount they're offering. So they will remove you from the process.

Conversely, if you say a number that's too low, you might inadvertently wind up accepting compensation less than the amount the company budgeted because that's what you said. You reduced your ability to negotiate because you have too little information.

Over the years, in coaching people on successful interviewing techniques, the money question is the one where people stumble most often. Many times people will tell me, "I just wasn't prepared for the question ... the number just popped out of my mouth." Or else they will say, "I told her $X because I think I'm worth it."

Bottom line, it doesn't matter what YOU think you're worth. The magic number is always somewhere in the range between what they want to pay and what you think you should get. This has been my experience.

When the employer asks, "How much ... ? " the right answer is, "We'll know when we get there." If they ask again, insisting on an answer, defer diplomatically a second time. Something on the order of, "I appreciate you want a number. I'm a little uncomfortable making anything which could be perceived as a demand at this early stage. I'm interested in the position and would like to learn more."

And if they ask a third time, the correct answer is, "My year to date compensation is $Z."

But why give a number that way? Simple. It's a statement of fact, not an estimate of self-esteem. You compensation is verifiable. An employer can ask for and receive verification of income. You pay taxes. Your income is a public record. In the real world, your current or most recent employer valued you at an identified level. That's the number to share.

So ... don't get caught by the money question. Role play with a friend or practice in the mirror. Be prepared for this inevitable question. Your ability to answer the money question with an non-answer can get you the job or get you more money for the job you really want.

Salary Negotiations

SALARY NEGOTIATIONS

Talking about money during the hiring process can feellike being in a contest on a nerve-wracking game show. Job candidates who prepare before the interview and adhere to some specific principles during the negotiation will eliminate much of the guesswork in the equation and come out of the interview feeling like you handled it professionally and have a better idea of what the position offers.


Before the Interview

For most hospitality management roles, the salary negotiation will take place at the last interview. That can be the 2nd or 5th interview, depending on the process with the hiring company. You can expect an offer on the spot at the end of the interview or sent to you in writing the next day should you be the chosen one. In any event, get your ducks in a row - know what you want and prioritize what's most important to you in your next role --money, more responsibility, work/life balance, a shorter commute, corporate culture-- before you begin interviewing.

Use a salary calculator, ie www.payscale.com, or locate an industry association contact that can provide you with relevant compensation information. This will also help you know that jobs you apply for pay well enough for you. Remember, however, that variables such as company size, economic conditions, and availability of qualified candidates in the market need to be factored into your information-gathering process.

Keep in mind that companies typically have salary ranges budgeted for specific roles within the organization. Exceptions aren't all that common. The only flexible items in a job offer may come down to things other than salary -- a signing bonus, moving up your review date, additional vacation time -- and could be an alternative to a higher salary.

Be prepared. You should be ready to convince the recruiter that you are worth the dollar amount at the higher end of the salary range. The easiest way to do this is to provide very specific examples of how you can add value to this organization -- just like you've done throughout your entire career.

Be upfront. When asked about your compensation requirements during the initial telephone interview, let the recruiter know where you stand. "I'm looking at opportunities in the $60-70,000 range, but can be flexible for the right opportunity." It's acceptable to ask if you're in the correct range for the position, and important to know so that both parties can make an informed decision about moving forward without wasting time. Remember, the role of the recruiter differs at each organization, so don't underestimate the influence this person has on the decision-making process.

Be respectful. If an offer is presented that is lower than what you hoped, thank the presenter. Ask if there is any flexibility in one or two of the areas that you've identified as being a priority for you. Regardless of the answer, always say you need time to consider the offer. Don't start negotiating new terms immediately.

Be firm. If there is no flexibility in the offer, you can accept it as is, or politely refuse and walk away. If the company is flexible on your terms, agree on all the new details in one conversation so that you can move forward with the next step in the process -- signing and returning the written offer letter.

Above all, be professional. Your actions during the negotiation process will be remembered by everyone involved long after you're hired, and may be helpful when it comes time to ask for a raise. As before, early preparation is the key to success in getting the salary you want.