The economy has turned once again, this time empowering employers. Last year's seesaw, tilted dramatically toward the job seeker, is now weighted on the opposite side. Even as
the market begins to stir, this probably won't change. Competition has heated up with strong candidates for every opening.
Despite keener competition and fewer slots in the market, you can win in the job hunting process if you prepare yourself and heed a few professional tips.
- It is essential that you not rush to accept an offer despite pressure to do so. Be extremely careful to avoid a misstep because mistakes are hard to correct in a down
cycle. Seeking a new job with the expectation of receiving a counter offer (to force salary renegotiation) is not a very good strategy anytime, particularly now. - Before putting one toe in the job market, be fully prepared to respond to an offer. This means knowing every element of your current compensation program. Ask yourself: if
someone wanted to hire me tomorrow, do I know what I am taking home in total compensation and what would I leave behind? If you cannot answer this double-ended question, then you
should stop job hunting and immediately find the answers before moving ahead. - A myriad of special perks and traditions at your current company are worth money. Unless you remember a company-specific bonus, it is impossible to ask for an offsetting cash
adjustment in a sign-on bonus. List all your perks and give them an estimated dollar value. Being thoroughly prepared gives you a speed advantage against others vying for the same
position. If the company is interested in you today, don't give them a chance to find other candidates while you take time to do your homework.
The components of a total compensation package
Stock options create a new challenge because so many are currently "under water," (a common phrase heard today). If you are with a small company that is vanishing, you will
just write those off and chalk it up to experience. If you are with a major company and believe the stock has fallen on hard times but will rebound; the problem is far more
complex. Ultimately, your new employer will not offset phantom value but will simply decide if an attractive sign-on bonus will ease the transition. The "paper losses" can be
staggering but that is a choice to be made.
The value of basic benefits varies from one company to the next. Be sure you have a copy of your benefits program and know the healthcare, insurance and company contributions
to savings and stock purchase plans. Also, what are the average percentage increases you have received over the past few years? Are you just about due for a pay raise? Note these
items, since your current employer may counter by immediately giving you the raise you would have gotten in a few weeks. A savvy new employer needs to factor that amount into
their offer.
If you relocate, be sure your cash allowance meets your requirements in net dollars. For example, a sign-on bonus of $20,000 (gross) nets less than $15,000 depending on your
tax bracket. Will your new company "gross up" your bonus so that the gross figure becomes your net gain? The same formula applies to a cash allowance or sign-on bonus.
It is essential to provide your potential new employer with a complete written list of your compensation whether they ask for it or not. Volunteer it or attach it in a note to
the hiring manager or the human resources liaison. Don't overlook a savings plan worth $6,000 in company contributions that you are leaving behind or the fact that you will lose
your 401K company contribution this year and won't become eligible for the new company's plan until a year from your date of employment. This information, all carefully spelled
out, does not become a "greedy" request for a sign-on bonus but instead a factual and accurate accounting that points out why a sign-on should be more than a token figure.
If you have planned time off for a pre-paid vacation, negotiate leave (without pay) to guarantee that you will not suffer a loss. If your employer is eager for you to start but
you want time off to regroup, consent in writing to take the time in a few months. The key is to have everything agreed in writing. If your new employer doesn't include these
terms in an offer letter, confirm them in your acceptance letter and request that your employer acknowledge them. A handshake is great but special understandings can be lost if
the management changes or your boss is promoted or leaves the company.
Finally, when you receive an offer, don't accept it on the spot unless all the preliminaries have been agreed upon and the actual offer is a formality. Give yourself a few days
to consider the terms and let the reality sink in. Usually a few loose items remain to be clarified.
Good luck, be patient and, above all, thorough.
Job Hunting Arsenal
- Know the value of your current compensation package.
- Consider stock optionsand the terms that govern your vesting schedule.
- Consider future appreciation and potential value of your "under water" stock.
- Plan how you would handle a counter offer from your current employer and stick to your decision.
- Assign value to everything that can be considered a benefit. Provide the list to your potential new employer whether you are asked to or not.
- Accept an offer with a letter outlining all the terms. If your new employer omits anything, include those items in an acceptance letter that you write.
- Put in writing any agreements with your new employer that could otherwise lead to disappointment later.
Judith Cushman is president of Judith Cushman & Associates, an executive search firm based in the Seattle area. Contact her at 425/392-8660 or via e-mail at: jcushman@jc-a.com