Virtus Recruiting - Job Offers

How To Give Notice

Giving notice and leaving a job can be one of the most difficult and emotional parts of a job search, but it doesn’t have to be. Whether you are miserable in your job and can’t wait to resign, or leaving is bittersweet, there are some things you can do to make the resignation process smooth. Here are some guidelines to follow:

Clean things up – while it’s a good idea to keep your business and personal life separated, most of us have sent personal emails from a work account, logged into personal websites, etc., from work. Before you give notice, it’s a good idea to delete personal files, stored passwords for personal online accounts, and make sure you have any personal information that you’ll need after you are gone.
Write a resignation letter and tell your boss first – avoid the temptation of telling friends or colleagues in the office first. Write a short professional letter and have a few copies available (for your boss, HR, etc.). The letter should simply state that you are resigning and offering 2 weeks notice, and your last date will be on a specific day. You are under no obligation to tell your employer anything about where you are going, why you are leaving, or the offer amount you received. In fact, you are much better off not telling this information to anybody during your resignation process. I advise candidates to take this approach because it makes the transition period out a lot easier. If you tell your current employer anything about the reasons for your departure, you are giving them all the ammunition they need to make you feel guilty, make you susceptible to a counteroffer, and manipulate you! This is a bad scenario and should be avoided at all costs! Counteroffers almost NEVER work out. Industry research shows that over 80% of people who take counter offers leave within six months of taking them. I’ll talk more about counteroffers in a later post and link to it here.
Offer to be helpful but be mindful of your soon-to-be employer’s needs – it’s a good idea to tell the company you are leaving that you will do what you can in order to make the transition period out as smooth as possible. Offering to put in some extra hours during the notice period, to be available after you leave to answer brief questions, etc., is a professional and thoughtful gesture. However, in very few instances is it acceptable to give more than two weeks notice. I often see job changers get hung up on a sense of loyalty to the employer they are leaving, or a belief that things will come crashing down if they aren’t there to help. The reality is that life will go on for the employer you are leaving. It is important to start the new job on the best terms possible. The new employer will probably want you there ASAP, so don’t forget that they are waiting for you!
Don’t go off the rails in an exit interview – if your company asks you to do an exit interview, don’t turn it into an airing of grievances session. Be mindful about what questions you answer, and politely decline to answer any questions you aren’t comfortable with. Keep in mind that the employer may not be done making a run at a counteroffer yet. Anything you tell them about your motivations for leaving, new offer, etc., can easily be turned around and used to make you second guess your decision. Second, any criticism of coworkers, bosses, and culture can create animosity and negative opinions of you.

Giving notice is hard, but you have a lot of control over how easy the process will be by following these guidelines. In general, I advise candidates to follow the “less is more” approach. Remember, you are moving on to something you are excited about!

By David Staiti|April 15th, 2019|Job Offers, job search, professional development|0 Comments

CFO Compensation Packages – What’s a CFO Worth?

The market for senior level finance talent is hot. This is especially true for small to middle market companies ($20mm to $100mm in annual revenue) across a range of industries to include technology, products, software, etc. I’m often asked by CFOs what their market value is, and how compensation packages vary with regards to base salary, bonus, equity, incentives, etc. Unfortunately, there is no short answer, and it depends on many variables. For non-financial service companies in this revenue range, we see salaries from $250k – $500k, bonuses from 25-50%+, and equity from 0-2% or more.

If you are exploring the market, negotiating an offer, or lobbying for a raise at your current job, here are some factors to consider:

Size of Company — the size of the company can have a big impact on the compensation level for a CFO. $20-$50mm companies generally price CFOs in the NYC/Boston areas between $250k and $400k base salary. $50mm-$100mm companies will see that range increase by 10-20%. Bonuses can vary, but a 25%-50% bonus range is standard, with some compensation packages exceeding 50% bonus. As the revenue of the company increases, and finance team size grows, so does the cash compensation component for most CFOs.
Stage of Company — where the company is in its life cycle plays a large role in the variability of equity compensation for CFOs. Earlier stage companies obviously have more ability to bring in CFOs with the lure of equity vs. a more established business. A CFO joining a hot startup company early on can sometimes get 1-2% of the total equity. An established company would typically fall into the .25%-.75% equity range. Turnaround and company sale situations are special circumstances, and the increased element of risk often demands a higher equity incentive.
CFO Duties — what type of CFO you are can have a large impact on the structure of a compensation package. For simplification purposes, we’ll look at “outward facing CFOs”, those hired with a mandate to do things like fundraising, dealing with company Board of Directors, possible transactions, IPO, etc.; and “inward facing CFOs”, those hired for more general management of broad accounting and finance operations at the company. Outward facing CFOs are often able to negotiate more lucrative equity grants. Back end cash bonuses are also common for a successful fund raise, sale, etc. If a client retains us to find a CFO who will assist in outward facing activities, we are generally able to negotiate a change of control clause for a liquidity event, larger equity grants, or cash payouts based on predefined objectives related to their hire (i.e. payouts triggered by specific dollar value capital raise, sale of company, etc.). Inward facing CFOs aren’t likely to get a change of control clause, unless they were a founding member of the company. Compensation for internally facing CFOs is often determined by their years of experience and size of the company. Also noteworthy is that the modern CFO in a company below $100mm in revenue can often play a dual role of COO. If non-finance duties are included in a CFO job, base salary tends to increase slightly, say 5-15%.
Contract vs. “At-Will” — if there is a contract, CFOs should carefully consider the terms, and the consideration given. Separation terms, severance agreements, and executive perks are all negotiable. An experienced attorney should review your employment contract. An attorney can also provide good bench marking advice on the contract’s relative fairness.

With the labor market tight, there is generally more inflationary pressure than not on compensation packages for CFOs. As a result, total compensation for CFOs doesn’t tend to vary too greatly among peer level CFOs.

By David Staiti|February 11th, 2019|Job Offers, job search, professional development, Uncategorized|0 Comments

Don’t Lose the Talent War – Fix Your Hiring Process

2018 saw one of the most hectic labor markets in decades. The economy is at full employment, and labor demand is sky high. The war for talent is in full swing. Some companies are losing this war however; and here are the two main areas where they go wrong:

Broken Hiring Process – the #1 reason we see clients lose candidates to other employers is a slow or convoluted interview process. Job seekers in this market have multiple options. The company who makes the best hire is very often the company who moves the candidate through the interview process the most quickly and efficiently. This doesn’t mean you have to rush hires, but go into each hiring process with a plan. I suggest that clients:

Identify who will conduct interviews in advance. Don’t have candidates interview with people for no reason. Pick the key decision makers, or the primary people that this position will interact with, and limit the interview panel to those people. Also, have an idea of who should meet with them, in what order, in how many rounds. If you cause delays or add unnecessary steps, you’ll lose candidates.
Give up on the idea of interviewing or comparing multiple candidates multiple candidates against each other. When interviewing candidates for a high demand position, be prepared to offer the job to the first qualified candidate you meet. In a perfect world, you could meet multiple candidates, compare them side by side, and pick the best one. That is NOT a reality in this job market. Know what you are looking for in advance. Decide on “must have” and “nice to have” qualities. When you meet someone you like, hire them! Waiting to see other candidates is not going to guarantee a better hire. It will however guarantee that you’ll lose good candidates.

Make Good Offers – I’ve had several clients lose candidates in 2018 by starting with low-ball offers. Recent changes in Massachusetts and New York have disallowed employers and recruiters from asking applicants their current compensation. This has made offer negotiations a bit of a guessing game at times. Some succumb to the urge to start by offering a low compensation package, with the idea that they can negotiate up if necessary. This is a mistake. For one thing, candidates are generally insulted or put off by low offers. Second, more astute companies who understand candidate supply and demand are making strong offers to start, in order to show candidates that they really want them. I advise that clients lead with a strong offer. It’s always smart to have some wiggle room if needed, but starting too low can leave a company in a hole that is too big to dig out from. A few ways to make sure your offer is competitive:

If working with a headhunter, talk to them about the offer. The recruiter will hopefully know the candidate, and has already talked about their compensation expectations. Recruiters will also know what the market value is for candidates. Get the recruiter’s advice on what the candidate is worth and what they are looking for.
Compare the prospect against the person they are replacing, or peer level rolls internally. If you are hiring someone to replace Employee Y, use their current salary to benchmark an offer. Is the candidate as good or better than the incumbent? Make the offer reflect how they stack up against known comparisons.

Hiring is a huge challenge for companies right now. Streamlining the process and making competitive offers can go a long way to ensure you staff up with the best possible talent in 2019!

By David Staiti|December 17th, 2018|Job Offers, job search, recruiting strategy|0 Comments

Unintended Consequences of Salary Disclosure Laws – Why They Are Bad News For Applicants, Recruiters, and Employers

To address pay equity issues, New York City has joined 20+ other jurisdictions in implementing legislation aimed at prohibiting employers from obtaining salary history from applicants during the hiring process. On April 5, the New York City Council passed legislation outlawing salary history inquiries. The law takes effect on October 31, 2017. Once enacted, the new legislation will impose significant changes on the hiring process. The New York City law makes it an unlawful discriminatory practice for an employer to inquire about a prospective applicant’s salary history during all stages of the employment process. In addition, the bill would make it an unlawful discriminatory practice to rely on a job applicant’s salary history in determining the applicant’s salary, benefits or compensation.

While this law does have the noble intention of narrowing the wage gap between men and women, there are also some potential unintended consequences. These unintended consequences are particularly likely to happen to high wage, high skill workers, recruiters, and their employers. At best, this law will complicate the hiring process. At worse, it may adversely impact those it seeks to protect.

I write this from an executive recruiter perspective. In my 20 years of experience, the market sets predictable compensation levels for high demand talent, and there is rarely a huge degree of difference between what “Company A” and “Company B” pays. In the normal course of business, executive recruiters collect salary history for potential applicants. There are rarely instances where a potential applicant falls too far outside established salary norms. Obtaining this information up front helps the recruiter and potential employer benchmark the candidate, as well as manage expectations about a future offer.

By outlawing salary history inquiries, it becomes nearly impossible to advise candidates and clients on what is realistic or reasonable regarding candidate compensation. Employers will be put in a position where their offers will be a shot in the dark, versus the current system where salary and expectations are handled up front. This could lead to a lot of wasted interview time and effort by all parties because compensation is not aligned.

Job applicants are also potentially opening themselves up to earning less money due to the “back end” style of salary negotiation. Without having recent salary information on a potential applicant, it is very likely that companies will begin the negotiation process by making as low an offer as possible. Employers will have no incentive to make strong offers up front, as they risk paying more than they otherwise could. Candidates in turn are going to have to begin a negotiation process by fielding “low ball” offers, and will likely have contentious back-and-forth compensation discussions. Beginning a negotiation from the bottom of a range and working up is the exact opposite of how salary negotiations are currently handled. Under the current system, if an employer knows a candidate is currently earning $X, their initial offer is typically some increase above that current level. A good headhunter, or astute job seeker, can then determine if the offer is fair, or negotiate if the offer is not in line with market factors. If the starting point begins at the lowest possible number and works slowly up to what is minimally acceptable, strong talent risks leaving money on the table. In turn, employers will run a greater risk of losing good employees to companies with more aggressive offer practices.

The risk of miscommunication and misunderstanding also increases dramatically due to this law. People hear what they want to hear. If employers and executive recruiters are now put in a position where they will tell an applicant the salary range of the position up front, the candidate will likely fixate on the top of the range, while the employer is very likely to be focused on the bottom. Thus, when it comes time to negotiate the offer, the applicant and employer will likely be working from two very different starting points.

It’s important to note that our opinion comes from a very specific section of the employment market – low supply, high demand / high wage talent. There is strong evidence for serious wage gap problems in many sectors of the economy, and this law may very well improve those conditions in certain employment sectors. That said, as with any change, there are often unintended consequences.

By David Staiti|October 5th, 2017|interview, Job Offers, job search|0 Comments

When Can You Start?

As you get deeper into the interview process and begin to anticipate an offer, it’s a good idea to prepare for the question “when can you start?” It is usually safe to assume that the sooner you can start, the better! Here is some general advice on how to handle this question:

The “Two Week Notice” Rule – generally speaking, giving a two week notice to your current employer is totally adequate. It’s quite possible your employer may ask for more notice, but you are not obligated to yield. Two weeks is an appropriate amount of notice at almost any job level. Unless you have an employment contract that stipulates specific notice terms, you are well within business norms by sticking to a two week notice.
New Employer Considerations – if the hiring company is making you an offer, it’s because they need and want you. If they ask, “when can you start?” during the interview process, it’s a sign that they like you, but the speed with which you can start may also be a hiring consideration. Before you start thinking about giving notice, taking a couple of weeks off, etc., put yourself in the employer’s shoes and think about your answer from their perspective. The sooner you can start, the better.
Necessary Delays – if there are good reasons you must delay a start date beyond two weeks, discuss them openly with the new employer. A vacation you’ve already paid for, relocation, waiting for a bonus payout, etc., are good reasons for delay. Wanting to take a week off to relax is not a good reason. If you must delay the start date, just remember to do so for good reasons.
If You Are Unemployed – if unemployed be prepared to start immediately. While unemployed job seekers are generally at a tactical disadvantage to employed candidates, this is one area where the ability to start ASAP is an advantage.

By David Staiti|February 8th, 2016|interview, Job Offers, job search|0 Comments

How To Evaluate a Job Offer

The good news – the job market is great and the demand for talented people is on the rise. The bad news – more job options don’t necessarily mean that people make good decisions.

I see a lot of candidates juggling multiple offers right now. Having competing job offers does sound like a great problem to have, but more options don’t always lead to great decisions. In this market, I feel it’s very important to have a game plan on how you will evaluate opportunities. I recommend job seekers consider three things:

Determine what you want and why are looking BEFORE you start — when I interview a potential job seeker, I have a detailed conversation about what they like, and don’t like about their current role. I want to uncover the “what’s missing” aspects of their current job, as well what they really enjoy. Second, I have an equally detailed conversation about what they want in their next job. I figure this out before I ever tell them about a potential job opportunity. If you are looking for a job on your own, write down on paper the pros and cons of your current job, as well as what you’d like to do in your next job. This is a great list to refer back to when you start meeting with potential employers.
Evaluate potential growth — when considering a job offer, it’s important to look at the growth potential you will have over the next 3+ years. Obviously, it’s impossible to predict the future, but during the interview process you should try to uncover the potential career path and learning/development opportunities you will get. Ask yourself how much you believe in the potential of the company. Compare competing job offers to your current job and make your best guesses as to where you might be in a few years with each opportunity.
Don’t get hung up on money –money is important, but it should rarely, if ever, be a primary motivating factor when looking for a job. If the job offer is going to provide you with a growth and development path that is solid, and it addresses the reasons you were looking for a new job in the first place, you should take the job. A few thousand dollars is not going to change your lifestyle drastically in the near term, but a better opportunity and career path can add up to big future potential earnings. For more about the financial realities of job offers, click here.

By David Staiti|January 18th, 2016|Job Offers|0 Comments

Realities of an Offer

The realities of an offer are important to consider when negotiating compensation. In an blog post from February this year, I discussed what a “good” job offer is in this competitive market. In short, a 5-10% bump in total compensation would be considered a strong offer. A link to that article is here.

In this post, I wanted to look at some realities of an offer and why a 5-10% increase is the market norm. The offer stage can be a highly emotional part of the search process. It’s important to remember that on both sides of the negotiation, this is a business decision. Money is important, and negotiating is part of the process, but remember these realities of an offer when approaching the negotiating table:

Friends sort of lie – do not listen to friends or colleagues about their salary. Friends provide some of some of the most unreliable data available. First, people have egos and they tend to fudge the numbers. Second, even if your friend is completely honest about a huge job offer they got, one example does not represent the market as a whole.
You aren’t underpaid – most job seekers I talk to feel they are underpaid. In reality, very few people are underpaid. If you are a top performer with good skills, you are much more likely to be on the upper end of the pay scale for your experience and skills. The economic law of supply and demand sets a pretty standard pay scale for a given skill, years of experience, credentials, etc.
Titles don’t matter – don’t get hung up on titles. I was quoted in a Fortune magazine article the other day about this (link to Fortune article here). In short, titles aren’t universally defined. One firm’s Director is another’s Manager. The responsibilities of the job, how you will develop professionally, and what you are being paid is all that really matters.
Evaluate money last – I always talk about job search motivations at length with a candidate – well before we look at an actual opportunity. Money is important, but it should almost never be a primary motivating factor when changing jobs. A reasonable offer that accomplishes many of the career goals and objectives you were seeking is a great job offer. Even if you receive a lateral offer, why would you not take a job that offered more responsibility, more growth, learning opportunities, etc.?

By David Staiti|January 18th, 2016|Job Offers, job search|0 Comments

A Good Job Offer

I get a lot of questions from potential job seekers about what type of job offer to expect when they make a move. “What is a good job offer?”, “What is the current market rate for my skills and experience?”, “What will company X pay me?”

The short answer is, your offer will reflect what you are worth. And right now, for professional positions that require college degrees or greater, relevant experience, etc., that is just about a 5-10% increase in base compensation.

Do some people get more? Sure! Is it rare? YES! The reason for this “standard” level of increase is twofold:

First, supply and demand sets the price. Think back to Economics 101 in college. If demand is high and supply is low, price goes up. If supply suddenly increases relative to demand, price decreases. A given skill set and experience level comes with a pretty narrowly definable price point. Employers don’t wildly overpay for a skill set because they don’t need to. Conversely, they don’t underpay, otherwise people would leave for better pay elsewhere. Thus, the market has essentially set the rate for your skills and experience.

Second, that the average annual increase when you stay at the same employer is close to 2-3% annually, outside employers don’t need to create more of a financial incentive to attract talent. A 5-10% increase is actually quite generous when compared to what you can expect if you stay with your current employer!

Many people are surprised to hear this information. There is a common belief that a good job offer wildly increases your pay. It’s important to keep money in perspective. It really should not be a primary motivating factor when changing jobs! Making a career move should be motivated by better long term prospects, exposure to new skills and experiences, expanding your responsibility, etc. Money will always come to those who work hard and smart! Don’t let short term dollars cloud long term thinking!

By David Staiti|January 18th, 2016|Job Offers|0 Comments

Competing Job Offers

In a hot market, you may find yourself balancing competing job opportunities. More and more, we are seeing skilled candidates find themselves in exactly this situation. While it may seem like a great problem to have, it can definitely make the decision making process more difficult. Here are a few things you can do to balance competing job opportunities.

Evaluate Competing Job Opportunities in a Vacuum – if you have two or more job opportunities coming your way, try to evaluate each on its own merits. Consider the factors that were important to you in the beginning of your job search (i.e. more responsibility, a better commute, a growing company, etc.). If one opportunity doesn’t stack up, dismiss it and don’t let it bog down your decision making process.
Look at Money Last – if you get competing job offers, look at money last. If two opportunities are very close in qualitative measures, looking at the financial compensation may tip the scales. However, don’t make a decision that is largely motivated by a slightly higher compensation package, where the opportunity itself is not as strong. If a second choice offer is substantially more money than first choice offer, you can always go back to the first choice potential employer and let them know that you’ve received a competing offer that is more money, but that you’d rather be working for them. They may not necessarily match it, but they might close the gap a bit and you’ll get to work at your first choice company.
Be Mindful of Timing – timing can be a big factor in a job search. One potential employer may not move as quickly as another. If you have two or more potential employers speaking with you, be open and honest about where you stand in the process with other suitors. Tell them how many interviews you’ve had, if you are expecting an offer, if you receive an offer, etc. When a potential employer finally makes you a job offer, they are generally going to want an answer quickly. You won’t have too much time to sit on the offer while you wait for another company to pull the trigger. It’s OK to hold a company’s feet to the fire a little in order to keep the process moving along.

By David Staiti|January 18th, 2016|Job Offers|0 Comments

Having Only One Resume – There are no one-size-fits-all resumes. If you use a single resume for your job search, you are making a big mistake! Resumes are usually glanced over very quickly to pick those candidates selected for interviews. It is critically important for you to target your resume to the specific company/job. A bit of minor tweaking can often make the difference between getting the interview, or not. Refer to my earlier post on how to target your resume here.
Applying Online – this is a classic job search mistake to avoid. The main reason is because it is what everybody else is doing! It is very easy to get lost in flood of applicants who apply indiscriminately online. Second, many recruiters hold the belief that top-notch candidates don’t apply online. Top candidates are either sought out, or come in through other methods. Finally, applying online may hurt your chances of getting an interview or proper consideration at a company. You are far better off being evaluated as an employee referral, represented by a recruiter, or recommended by someone known to the company.
Not Being Selective – whether you are actively or passively job searching, BE SELECTIVE. I generally advise people to take initial interviews liberally. Meeting the people and company face to face is the best way to see if there might be a fit. After an initial interview, I suggest people get much more selective. Don’t get deep into the interview process, or take things to the offer stage, if you can’t see yourself working at the company. You’ll not only be wasting your time, but you could leave a negative impression with the people who feel like you wasted theirs.
Not Networking – this is the ultimate job search mistake. Study after study shows that the best jobs, and the best chances of landing your next job lies in networking. Friends, classmates, recruiters, alumni organizations, professional organizations, and former coworkers are just some of the categories of contacts you should tap into when considering a job change. Many people don’t do this because it involves more effort, but it is absolutely worth it!

David Staiti is the founder and Managing Partner of Virtus Recruiting, LLC. He has almost two decades of executive search and recruiting experience. He’s published numerous articles on job search and career management topics for The Wall Street Journal, CareerBuilder, and Forbes.com

By admin|October 18th, 2015|interview, Job Offers, job search, professional development, Uncategorized|0 Comments