Career Move- How you decide if the salary offered is lower than what you are currently getting....

So finally you are in the situation wherein you are just ready to move on and say goodbye to your current company. Reasons are very important such as (Poor leadership and organization, you have not seen the company grow in the last 2 years- in fact, they laid off people and they are trying to downsize the office to lower down the rent, very unorganized and everything is changing everyday i.e. company policies, what they promise the consultanst etc, also an increase in bad feedback posted on the internet etcetera...etcetera.... and oh yeah...the people on billing went down and the placement has slowed down too and they do not have direct client requirements nor do they have any business plan or strategy to improve that aspect..nor they have done any brainstorming/business planning sinve you started in the company 2 years ago).

And then you finally found a good company- everything is good..especially when you think of Long term effect (healthcare recruiting, commision scheme, the mamagement are professional and very knowledgeable ot the business, the company is growing- they are opening 2 new offices in different states and they are expanding) Also- the experience you will get can make you more marketable in the recruiting industry. Of course- the job entails making placements and meeting a certain quota.

When you opened the offer letter though...the base salary is about $10k lower than what you are currently making...then suddenly..it becomes harder for you to make a decision...Of course the commissions will increase your potential income...but still...it becomes a bit hard to make a decision...

I guess I would like to get your two cents worth..especially if you have been in this situation..how do you make a decision and what are the factors that you ultimately cosider the most when making such a career move?

Thanks in advance:)

Have a good day:)

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Permalink Reply by pam claughton on January 15, 2009 at 12:25pm

I think you have to realistically evaluate yourself. How good are you at recruiting? If you are very good, then the 10k difference on your base is nothing, because you will make far more in commissions. If you are not that strong a recruiter, then maybe going into a role that has an emphasis on commission and production isn't right for you.

Top producers in the agency world don't put much thought on what their draw or base number is. The real money is made in commissions.

Good luck!
~Pam

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Permalink Reply by Jennifer LaVigne on January 15, 2009 at 12:32pm

Thanks Pam! I appreciate that advice and you are absolutely right and have made a very very good point. Thanks again!=)

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Permalink Reply by Jason Monastra on January 15, 2009 at 1:02pm

I have had the opportunity to lead large recruiting teams of people (70+) and thus negotiated a great deal from the other side of the table. In addition, as a partner now in a niche firm - I find your situation not unique. One thing that I stress to all candidates is the communication of expectations. One needs to understand before interviewing for a role the importance of certain factors ranging from (workspace, location, management, and of course compensation). When that evaluation is complete, compensation needs to be ranked within the factors of why we are moving and thus given the proper amount of attention.

Compensation is a tricky subject when commission comes into line, as one will need to understand their role in the process. Are you working a full desk or are you relying on someone else to sell. How good will that person be - as that will directly effect commissions. All factors that need to be evaluated when looking at a new role. Consider that new recruiters will get matched with the lower end of the sales force, as seasoned recruiters in the company will demand partnerships with top performing sales people. All in all, if you are working a full desk - no big deal.

In addition, we can look at this positive and a negotiation technique. Lower salary means higher commission. You are working and taking a pay decrease, therefore the upside needs to look more attractive. Negotiate better terms for commission.

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Permalink Reply by Jennifer LaVigne on January 15, 2009 at 1:09pm

Jason Monastra said:

I have had the opportunity to lead large recruiting teams of people (70+) and thus negotiated a great deal from the other side of the table. In addition, as a partner now in a niche firm - I find your situation not unique. One thing that I stress to all candidates is the communication of expectations. One needs to understand before interviewing for a role the importance of certain factors ranging from (workspace, location, management, and of course compensation). When that evaluation is complete, compensation needs to be ranked within the factors of why we are moving and thus given the proper amount of attention.

Compensation is a tricky subject when commission comes into line, as one will need to understand their role in the process. Are you working a full desk or are you relying on someone else to sell. How good will that person be - as that will directly effect commissions. All factors that need to be evaluated when looking at a new role. Consider that new recruiters will get matched with the lower end of the sales force, as seasoned recruiters in the company will demand partnerships with top performing sales people. All in all, if you are working a full desk - no big deal.

In addition, we can look at this positive and a negotiation technique. Lower salary means higher commission. You are working and taking a pay decrease, therefore the upside needs to look more attractive. Negotiate better terms for commission.

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Permalink Reply by Jerry Albright on January 15, 2009 at 1:10pm

Pam - I'm not quite sure how this is happening - but you seem to be able to somehow post exactly what I would say - but with your name on it. Hmmmmmm.

I'll just say "Ditto" which is "I'll 2nd that" for those of you in Rio Linda.....

Jennifer - if you are planning on making commissions - do not let the amount of their initial "get started" loan influence you too much. If you can recruit then just look at their brand, their systems, their clients, their marketplace and then decide if you will make more placements there vs. where you are now.

Good luck!

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Permalink Reply by Jennifer LaVigne on January 15, 2009 at 1:12pm

Thanks a lot Jason- it will be a full desk one so that is a great thing. I apprecaite your two cents worth.This site is really great! I am learning a lot and get to pick the brains of really seasoned and intelligent people =)

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Permalink Reply by Jason Monastra on January 15, 2009 at 1:21pm

Full desk, well then - first and foremost I assume you are well versed. With the amount of people I have hired (and fired), solid full desk people are difficult to attract and retain. Solid professionals that manage both sides of the business are a diamond in this business. Therefore, in saying that, you should be able to discuss better commission numbers than the original offer. This will offset the lower salary, showing you have "skin in the game" however when producing expect a larger piece of the pie. Any seasoned manager will appreciate the perspective and you can squeeze some more money.

Jennifer LaVigne said:

Thanks a lot Jason- it will be a full desk one so that is a great thing. I apprecaite your two cents worth.This site is really great! I am learning a lot and get to pick the brains of really seasoned and intelligent people =)

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Permalink Reply by Jennifer LaVigne on January 15, 2009 at 1:42pm

Thanks Jerry! and to all of you guys:) I truly appreciate it- sometimes you just need more people to actually encourage you even though you know to yourself and even if you got good gut feel about it- still you need great people who know what they are talking about to encourage you. It did help a lot guys! thanks!=)

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Permalink Reply by Jennifer LaVigne on January 15, 2009 at 1:51pm

Thanks Jason- Yes they actually did discuss a pretty good commission scheme that comes with the base..I guess...the human nature in me being a little worrier made it a bit complicated with regards to making the decision and taking the risk- I guess in this economy it makes you a bit insecure with taking risks and making big decisions like this..you tend to just stay in your comfort zone thinking that it is better to just be safe because there is no option out there in this economy.

Thanks soo much! I truly apprecaite it and I look forward to sharing some great discussions like this in the near future:)

Kind regards,

Jennifer :)

Jason Monastra said:

Full desk, well then - first and foremost I assume you are well versed. With the amount of people I have hired (and fired), solid full desk people are difficult to attract and retain. Solid professionals that manage both sides of the business are a diamond in this business. Therefore, in saying that, you should be able to discuss better commission numbers than the original offer. This will offset the lower salary, showing you have "skin in the game" however when producing expect a larger piece of the pie. Any seasoned manager will appreciate the perspective and you can squeeze some more money.

Jennifer LaVigne said:
Thanks a lot Jason- it will be a full desk one so that is a great thing. I apprecaite your two cents worth.This site is really great! I am learning a lot and get to pick the brains of really seasoned and intelligent people =)