Wage negotiation: money v total package

As it is coming up to Christmas – first mention of that word on this blog this year – I thought it would be a good idea to have a few “seasonal” blog entries. Some will be socially observational, some will be new years planning – but all will have an action in mind to help you improve your career in 2010.

Today blog entry is about wage negotiation, in the form of getting what you may have thought you could not achieve, let alone tough.

Wage negotiation: new employees

One of the advantages of being a successful job applicant who has not yet signed their contract, is that you know:

• They want you
• And they will be more flexible than you in negotiation of sorting out the details!

Companies are run on hard budgets: wages mainly. But most managers will ignore the small stuff until admin, HR or finance reminds them they have a budget allocation for something, eg training, and they have not spent it. Then all hell breaks lose, and there are often staff shortages in the last quarter as managers try to use up bitsa-budgets.

This should tell you much. You will only be able to negotiate so far on hard issues: there is a definitive limit, and thought shalt not pass it. Yes, there are ways of passing it, and applying via a recruiter is one of the easiest, but unless the expectation is already set beyond the nominal HR limit, then not much you can do about it.

But, the bitsa-budget items are there for negotiation for everyone. You always fancied a course in Hawaii – might not be possible, but full payment of an MBA is. You want a better car? Depends on the company, but extra allowance is possible. You need extra time to move home, or 5days extra holiday because your in laws live in Australia: all possible, and negotiated. You just have to know what is important to you, and soft for them.

Wage negotiation: existing employees

If you are an existing employee, wage negotiation gets tough. I always encourage new employees when in negotiation to think and talk about total package over total wage.  Total wage focus’s the employer on money, which is hard budget; total package focuses on soft items and new projects.

Part of the key in annualised wage negotiation for existing employees is to negotiate new responsibilities, while adding people below you. The simple reason for this is that responsibility means power, power means risk, and greater risk owned by a manager means more remuneration!

Secondly, HR undertake out of cycle pay reviews for those who have more responsibility.  Out of cycle pay reviews come with virtually unlimited budgets, as there is not a huge step increase in the wage budget like there would be as a result of the annualised pay review.

Hence, successful existing employee wage negotiation is associated more with delivered plans=, over actual hard nose negotiation. If you want an idea over how you could expand your role, then look at your managers existing job, and ask what you could take away from them that they currently don’t like doing?

Good Luck!

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Employment Dismissal

Sarah asks: I am looking for work after employment dismissal, and need some help. I was dismissed from my last job as I didn’t meet the targets, was making mistakes as a result of being stressed, and was late on two occasions. So, in summary, I think that has also gone against me. I was employed there from November 2008 to March 2009, and I had a job for a month earlier in 2008. If I delete either job from my CV, how can explain the massive gap?

In answer:
Firstly, and I keep saying this because so many people look for excuses over the ease of telling the truth rather than being rejected later – never ever lie in a job application!

I realise this next question may be seem daft, but have you actually looked at the dismissal letter they gave you at your exit interview? You probably did listen to the words they were saying – certainly, from what you confess in asking this question could add up to a series of minor incidents and hence dismissal – but have you actually read the dismissal letter?

Reasons for Employment Dismissal

Why do I ask this? Because of the rise in legal cases involving dismissed employees suing ex-employer for either constructive dismissal, wrongful dismissal or unfair dismissal, employers seek the strongest legal way of dismissing employees. Hence, much as though an employee may have factually committed errors in a particular area, as long as they didn’t commit a crime and create a resultant crown case, employers will seek a mutual and method of clear dismissal which allows the employee a better/at worst neutral chance of later employment. This one issue, aside from money which is normally only available in constructive dismissal cases, is the issue most unfair dismissal cases will be created on.

I think if you look at the dismissal letter, I think therefore the simple answer will be: as the job lasted less than six months (ie: the trial period), you and the job just didn’t work out in trial. You hence were probably not technically dismissed, you just didn’t complete the trial period. The worst thing your reference will say are your dates of employment, and the fact you were not offered a permanent contract.

Now, here’s the answer on moving forward and gaining employment. With such a patchy recent record of short periods of employment, any future employer will have two question:

• Why you are applying for their job
• Why you will stick at this job

You hence need to come up with the answers to these two questions. This needs to encompass the reason as to why you won’t make the same mistakes in your next job application, why its the right career/job for you, and why you are wholly committed.

Hence, there is no need to explain the massive gap. Just focus on why the next job is wholly right for you.

Good Luck!

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Return to former Employer

Steve asks: I have applied to return to previous employer, would anything stop a former employer taking you back on? I used to work at this bank, and left after 6 months for another job with more money – BIG MISTAKE AS I NOW HATE THE PLACE. I left because the company got taken over and there was threat of redundancy: I have my own house so couldn’t risk waiting for possible redundancy. I have applied for a post at my former employer via their internet system. I have not heard anything back yet, and put on the email that I have worked there before as they will see from my CV, and hope they can consider me for the role.

In answer:
This is a difficult question to answer precisely, as the exact answer is defined by human relationships over technical or mechanical yes/no positions.

Firstly, you left them before your trial period was up. Most modern employment contracts allow you to leave or be dismissed quickly during the first year termed a trial period, and most HR departments would consider someone leaving before 12months a non-social fit with their culture

Secondly, having stayed with them for a less than 12month period, I am guessing you are applying back there after another employment period of less than 12months. The risk is that if you add a third period to that with any employer, your rejection ratios will escalate and you will have a lot of explaining in interview to do. High job turnover (particularly inside trial periods) suggest to an employer either that you don’t fit, or don’t know what you want to do – neither are traits employers wish to engage with.

Return to previous employer

Thirdly, HR will have a series of notes on you. You may think they are 100% positive, but there could be much in there which is not negative, but not good either. A fresh through the door employee won’t have a sickness record, or an expenses claim record, or many other things which an ex-employee will.

If they do ask you for interview, then the biggest issue you have to explain is why you left, and now why you want to return. Accepting your question here is more open than in an interview, the “I saw problems and jumped for more money” answer will get you a rejection. Jumping to somewhere also where you found you didn’t fit is also a negative. It says you jumped without looking, just for the money, so would easily leave them again if offered more money. Employers want employees who will stick with them, and you seem to show high loyalty to money.

Personally, from experience I would give you a less than 30% chance of employment with a former employer, unless they approach you. If you were outstanding and loyal, of course they want you back – but just another ex-employee is just a job seeker with a known track record.

Good Luck!

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Job Offers

photo credit: pheezy

Charmaine asks: I have received a better job offer from one company after starting a new job in another company. What is the best way to handle this?

In answer:
It used to happen a great deal before the current economy, and still does for some people, but the two step process is still the same: what is best for you; once you have decided on that, be open.

You hopefully choose the current employer and job for very solid reasons, based mostly on what you want to achieve and hence what they can provide you with in skills, capability and experience you can write on your CV/resume. If you choose them because that was the only job offer you had, then that changes the situation, but most don’t choose a job because they know they will hate it.

• Money is temporary: it is simply a reward for donating your time to do someone else’s job.
• Time is irreplaceable: it is how you effectively use your time which defines how fulfilled life you will have

Smart Goals

Accepting that anyone can become a millionaire these days in what ever they really want to do, it is what you use that money for which gets you what you want in life. Although the money may be better, if you have to effectively work twice as many hours or spend large amounts of time away from home, what is the total job return?

Hence, before making any career choice, always think:

If that’s my goal, how quickly can I reach it using pathA over pathB?

I get further clarity for CV4.biz’s clients by asking them:

What will you be able to write on your CV/resume in 2years time, if you took that job?

If you have clear goals, then the skills and experience you gain will provide the rewards – on both a personal as well as financial level – that you desire.

Once you are clear on which job gets you to your goals quicker and in a more assured way, be open with both companies. If you decide to accept the alternate, get the key issues to reach your goals written down in the contract offer: they are asking you to leave, and nice words don’t count! If you decide to stay, sit down with your boss and say why you decided to stay: you should find he says thank you, and pays more attention to you reaching those goals than before.

I see too many unhappy in life people who have taken better paying jobs, and only later realised the pay was not the main gain.

Good Luck!

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Pregnant Job Seeker

photo credit: TheOm3ga

Ann asks: I’m 17 weeks pregnant, and a fortnight ago I got made redundant. My partner and I are living together and he does work, but his wage barely covers our monthly bills without even thinking of starting to buy things for baby. I’m desperately looking for another job, anything – permanent, temporary, full time or part time – just to bulk up some money coming in. After handing out a few CV’s I’ve heard NOTHING back from anyone. I was honest, informing potential employers about my pregnancy: should I not do this? I don’t want to keep it quiet from anyone as:

• I have a bump that is rather large
• All my midwife appointments are on a weekday basis, and I would need time off to go to them (granted there are only every few weeks)
• It’s obviously going to come out that I’m pregnant during the basic 12week contract trial

A question:

1. If they found out about the pregnancy, could they then get rid of me for not telling them?

I don’t know what to do for the best. I know employers are not suppose to discriminate against pregnant women, but there will be no evidence of this, but my partner and I think they all still will, especially with this recession, employers are not going to want to employ someone who is going to be going on maternity leave in a months of starting. I really really want to get back into work!!!

In answer:

Some simple steps here:

1. Legally, you don’t have to tell a prospective employer. But, if you do – much as the case with a disability – then they can’t use that as a reason for rejecting you at interview/once on trial
2. Even if you don’t tell them, once you are employed, they can’t get rid of you in the trial period for the reason that you are pregnant

However, lets be clear here. Once they notice you are pregnant, which employer is going to not find almost any reason not to employ you? Unless you have the only skill in a 1000mile radius, then the fact that an employer legally in the UK now has to hold a position open for almost two years means most will run a mile from a pregnant women – particularly small employers.

Plus, thanks to “no win, no fee,” employers insurance liability on pregnant women is horrendous. You lose the baby, blame it on work, and the claim could run to millions. This issue or costs does not effect women in employment who get pregnant, but employers taking on pregnant women.

I think you have to be realistic here on two counts:

1. Do you know what you will feel like post birth? You might want/need to work now, but afterwards I have seen many change their minds the other way
2. Any career will be secondary to your child and childcare. You will want and need something flexible

I think you should focus on getting the driving license, and then looking at getting flexible work which you can dip-in to as required until you have settled your child, yourself and your child care into a routine. Most women up until a child is of school age need some form of flexible working, and even if they have that sorted most employers will want to be assured that it is stable: much as thought again, that is not a legal option for not-hiring.

Employers need to become more flexible around child care for existing employees they have invested in, and there probably needs to be more legislation around this. But expecting to be able to easily find work when pregnant, let alone in a recession, and expecting the employer to pick up the costs – you will probably be disappointed. You need to get transportable skills, and get creative in finding more flexible work.

Good Luck!

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CV Writing

photo credit: me and the sysop

When I sit down with someone, either as a recruiter or a CV writer, everyone asks: What should I include in my CV/resume?

So, glad that they and I are sat down, we now chat for any where between 15 minutes or 15 days – some times they never get it – until they suddenly realise that a Professional CV/resume is a factual sales document pitched against a specific job, and not a compact life history.

The people who get it realise that they will not be personally valued on what their CV/resume says, but will be interviewed by what it says – employment only occurs after an interview and once both parties are happy with the deal of time for money in the contract of employment.

But those who don’t get it perceive when they are rejected from a job application, that they are only and wholly personally valued on their CV/resume, and will think as they reel from the rejection: what else have I got to add, so that they recognise how good I am? Honestly, unless you include a prison record, HR people and recruiters start out by thinking all people are good, and its just the skills and competencies they are assessing – not you!

The problem is rooted in the fact that when you were in school, your teacher sat you all down and started talking about the big world of work. Unfortunately, they did this just before your final school exams (hence, passing Biology was more important to getting work, than how to write a CV/resume – which could wait until later); and secondly for those who did listen, they got you to write out everything you had ever done in two pages or more – and you probably needed some filler text to get to two pages.

At that stage of your career, that could be appropriate. Unfortunately, every CV/resume you have ever written since has been a personal life history extension of the school CV/resume you ever wrote. Or possibly you edited it a bit, and focus most of the words to get it within the suggested two pages on your most recent posts – but the first job you ever got still apears, together with the dates you got your apprenticeship signed off. Oh, plus it still includes hobbies you don’t have time for, and a family summary – with a clean driving license. It’s a mini biography in 2pages – or more, most often

Lets turn the tables here. Say you were an employer, and you needed to fill a job. Would you look for people who had every skill including the kitchen sink listed on their CV/resume, or would you look for people who had the skills to fulfil the job you needed fulfilling? You can’t – rightly – thanks to modern discrimination laws, say any more in your advert than the skills, qualifications and competencies that the job needs. So, you make up a shopping list, and after the HR department come back and tell you that some of those skills are rare and some are horribly expensive, you finalise an advert that asks the applicants for some core skills – those they have got to have; and some nice to have skills – things you would want in a wholly ideal candidate. You give the applicants an idea of the company or firm that you are, the work hours and remuneration package – no one gives a salary these days, everything is a package – and you send it out to the local newspaper and a jobs board for distribution. So having spent around £6,000 and 100hrs, do you think when reading the applications that come back, that flying fishing as a hobby would be more important for choosing people to interview – or the fact the applicant has all the required core skills?

Rejected applicants get into bad habits. They include things which are valuable to them – because it prop’s up their flagging ego’s from so many job application rejections – as opposed to those skills and competencies which the job they are applying for needs. Often I find, that people who started out with 1 interview in 3 job applications are after 3months down to 1interview in 50 applications.

What they have gotten into is a cycle of perceived personal rejection: resulting in adding things to the CV/resume; resulting in less focus on the core skills and wider job application; which results in more rejection; which results in more addition. And so the cycle repeats downwards.

What should you add to your CV/resume? The proof that you have the skills to do the job, as outlined in the job advert. Take a highlighter pen to each job advert, and highlight the required skills – then take your CV/resume, and find those exact skills. Don’t have 90% of the required skills, don’t apply for the job. And once you do take the highlighter pen to your CV/resume, you will be amazed how much of it is irrelevant to that job application – you are now seeing your CV/resume as the potential employer does.

If you follow this system to the ultimate level, then there is an argument that you and your soul will be taken out of your CV/resume, and all employers want to know they are employing people over robots! But what you should include in your CV/resume are the skills the jobs asks for, with some supporting evidence – most of the rest of it is for you.

So, in summary, the things to include in your CV/resume are: the skills required by the job advert.

Good Luck!

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