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Abi Hunter
The Real Talent War
Playing to Win
The Power of Information
Why Both Sides Must Win
Things Jobseekers Can Remember
Abi Hunter
As the unemployment rate has hovered near a record
four percent for the better part of a year, the overall job market has been
worked to a frenzy. Reports are everywhere of companies suffering for lack of
workers, and somewhere out there new hires are supposedly collecting big bucks
and fancy perks.
Proof of this has been long in coming. But sure enough, March 2000 employment
figures as reported by the Department of Labor indicate that employers are
indeed hiring faster and paying more just to get jobs filled so that business
can continue to expand.
This apparent opportunity for better money has some jobseekers licking their
chops. On career web sites all over the Internet, so-called career experts
are advising jobseekers with all manner of ways to cash in. "Now is not the
time to sell yourself short or leave items on the table" an article on a
popular job board reads. "Instead, focus on what you feel you need and
ought to have."
But are these really times for jobseekers to play fast and loose with the
rules of negotiating a new job? Are times really all that great?
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The Real Talent War
For all the hoopla over e-business and the change it is making to the workforce, the sober fact remains that workers are not really making more money. Yes, a few high profile occupations continue to make headlines with their ever-spiraling incomes. But for the working majority, wages are going nowhere.
According to the Economic Policy Institute, the years of making continual gains in income ended a quarter century ago. From 1947 through 1973, median family income grew annually at a rate of two-point-eight percent. Such a rate represents a doubling of income every 25 years. However, for the period after 1974, the rate has been a miniscule point-thirty-five percent per year. At that pace, it will take nearly two hundred years for income to double.
Furthermore, the wage increases as tracked by the Labor Department are largely the result of rising executive pay and increases in the amounts of stock options a select few receive. The March 2000 employment data also includes a dramatic spike in the costs of benefits. When all these factors are taken into consideration, the outlook for more money might not be as rosy as the hopeful jobseeker would think.
The much-ballyhooed war for talent then is not necessarily a contest to see which companies can come up with the most bodies. It is the companies that must hire workers within set budgetary limits that are waging the real war for talent. And while the war for talent blows hot and cold over time, the battle for higher earnings and better profits always rages.
For jobseekers negotiating a job offer, these realities make landing the new job somewhat challenging. The real power in negotiating a job lies in knowing what the job market realities are and how to mold them into a win for both the worker and the employer.
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Playing to Win
Take Brad Higgam* for example. Brad is a certified Microsoft systems engineer. He lives near a high tech center in California. Given his skills, his experience and the job market, it would seem likely that Brad would not have a problem finding a job.
Indeed, Brad found plenty of people to talk to. Brad proudly admits that out of the nine resumes he sent out, he received seven invitations to interview. And yet, Brad remained unemployed.
There is nothing wrong with Brad`s references, his credentials, his experience or his abilities. In fact, Brad received five different job offers over a two-week period. Brad`s ability to secure the offer he was hoping for has been hampered by one thing: an inability to create a win for both himself and the prospective employer.
Like all of us, Brad has bills. He felt the conditions of the job market allowed him an advantage in expecting a great deal more than at his present employer. With some added responsibility and compensation closer to what Brad feels is appropriate for his skills, he felt his personal goals would be met faster by finding a new employer than staying at his current job.
As the offers came forward, Brad rejected them without much further discussion because he felt another, better offer would come along soon. He never thought that getting what he wanted meant he needed to discuss ways with his prospective employer to obtain it. Brad honestly felt that all he had to do was to name his price.
And that is where Brad failed. The essence of negotiating anything is not winning for one side over another. It is balancing the equation so that value is achieved on both sides. And for that to happen, a great deal of information needs to be exchanged and evaluated before anyone can truly talk turkey.
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The Power of Information
Companies hire people to work for them after going through a process of information gathering. After sufficient information is gathered, they make a hiring decision.
Unfortunately, many jobseekers do not take such a clinical approach to their side of the process. Many times, the only information about a prospective employer they gather in advance is stripped from a newspaper advertisement or an online job posting.
The job interview then represents the best opportunity for a jobseeker to discover the details necessary to make a good job choice. And it is also vital to knowing what is appropriate in negotiating an offer if the process has left both parties to conclude there is a potential job match.
Understanding the job creation process is key. Jobseekers sometimes fail to realize that the very reason an employer is even considering a new hire is because they have a problem. It might be caused by one of a million things - from new business to excessive turnover. But it really boils down to a problem that only a new hire can solve. By getting down to the root of the problem - or, the employer`s reason for hiring in the first place - a jobseeker can then address the most important parts of the employer`s side of the equation to be balanced in negotiating a job offer.
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Why Both Sides Must Win
Balancing the equation is critical because an imbalance will result in failure. And nobody wants that. If a job is accepted and the jobseeker finds it pays too little or expects too much, chances are they will leave soon for something else.
If the company ends up making extraordinary accommodations in the short term, the value of the decision may be questioned in the long term. Sadly, there are many tales in the workforce of jobseekers that have negotiated higher salaries and better compensation packages only to be the first to be let go because they were too expensive to retain during periods of financial duress for a company.
Inequity in job negotiations usually creates these situations. By seeking balance throughout the negotiations, the jobseeker demonstrates value, and elevates trust too.
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Things Jobseekers Can Remember
Every negotiation has its own set of rules. The differences in circumstances dictate that no matter what, every jobseeker and hiring manager must maintain flexibility and an attitude of compromise in order to achieve a balanced win. Nevertheless, here are some good general rules for jobseekers to remember:
Start on the employer side of the equation. While they interview you, remember to interview them. Ask questions and find out what is most important to them. What`s the problem? What is needed to solve it?
Negotiate the job description first. Leave money and compensation out of the conversation until the other details about the job are discussed and agreed upon. You can`t negotiate the price of a car until you know exactly what kind it is, can you?
Think: How can I increase the perceived value on their side? Listen carefully and watch for the emotional signals, the buzzwords and the repeated phrases the employer makes in an interview. You want to position your particular skills and abilities to answer the most compelling needs they have. They won`t always make these things obvious, so watch and listen carefully.
Avoid entrapment. In some circumstances, you may find the opportunity to grab a great deal more money or responsibility. While it is great to make a jump up, it`s difficult to fall back to a previous level. Try to objectively question why they would do it and measure whether or not you can handle it if it does not work out in the long term. Many people stay in jobs they cannot stand because they are "trapped" at a high income to support a lifestyle that cannot be supported in another job. Also, for those that do fall back in salary or position, new employers look warily upon hiring back-trackers because they are rarely happy over the long haul.
Unemployment at four percent will not last. There may come a time when finding a job is not so simple. Many in the workforce cannot remember back to the days of eight percent unemployment in 1990-91. But history shows a continuous cycle of up and down movement in unemployment rates. Negotiate for the long haul and for the moves that will best serve the momentum of your career. Some sell out the long term for a short-term benefit, thinking that it is always easy to go find another job. It is never easy.
Finding a job you love is easier when you present yourself as a candidate the employer will love. That does not mean giving lip service to an employer`s needs in telling them what you think they want to hear. It means sincerely demonstrating behavior that seeks a balance of the job negotiating equation.
By actively seeking a win for both parties, a jobseeker immediately demonstrates value that permeates all parts of any job. And it makes hiring such a candidate irresistible.
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