I Recruit, Therefore I Am

Month: May 2014

The Job Titles Are Out Of Control

One of the worst kinds of candidates for a Recruiter to deal with are those that are hung up on job titles.

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Let me get this out in the open:

Job Titles Are Irrelevant

In most cases anyway.

The job title is the first thing any applicant sees when looking at a job, and sometimes, for candidates caught up on chasing titles, it’s also the last.

I understand. Everyone wants to feel as though, when they are moving positions, they are moving up and becoming more senior. I’ve had Technical Support Team Leads who have said they didn’t want to talk to me about anything less than a Management position.

Be wary of assuming this kind of attitude. Had this person stopped to talk to me or read the job description, they would have realized that the Team Lead position I was calling about was more senior, included greater responsibility, would have allowed them to put new technologies on their resume and would have been an increase in pay.

Oh well. That’s one less resume on the pile.

Because not all job titles are created equally. One company’s IT Manager is another company’s Senior Help Desk Support Technician. One company’s AVP is another company’s Team Lead and so on.

I once scheduled a meeting with a Director of IT at a Toronto law firm. I went into the meeting well groomed, well prepared and with the gleam of dollar signs in my eyes.

On site this man informed me that he was the company’s only internal IT resource. Here I was thinking I was meeting a senior decision maker. Turns out he was a Senior Support Analyst who knew how to look after the admin side of being a Manager. The meeting was a bust. Shouldn’t have listened to the job title.

Granted, some companies do take job titles very seriously for the purposes of internal administration. The job title is used to determine which pay band a position will fall into. A Manager is worth this, a Director is worth this, an AVP is worth this, etc.

But more often than not our society’s obsession with titles has reduced most of them to no more than irrelevant verbage. I’ve met Managers who don’t manage anyone, Directors who don’t direct anything and AVPs who don’t assist anyone. For some banks, a Manager title doesn’t indicate much more than that you’re one or two steps higher than the person who cleans the washrooms.

When I got my first job out of school in Toronto, my boss asked me what I wanted my title to be. I chose Sales Executive. No need for anyone to know that we were two guys working out of the back of a house and that I was an Administrative Assistant at best. I never sold anything. I never negotiated a contract. I never executed a single project. I had a nice title though.

And that’s what most job title’s amount to. They are instant psychological gratification to make employees feel better about their position. You can call your Receptionist a Manager of First Impressions or Director of First Contact but, at the end of the day, to quote Shakespeare, a rose by any other name…

So next time a Recruiter calls, don’t get caught up in the job title. Instead concern yourself with the scope of the duties and responsibilities, the size of the environment, the potential for growth; anything tangible. And at the very least, if the only thing standing between you accepting an offer is whether or not it has the word Senior in your title, ask if it can be changed. Most companies won’t lose good talent over one word. Don’t be so quick to lose a good job over the same thing.

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Incorporated or Sole Proprietorship and Which is Best for Me?

Good question.

The default answer that every Recruitment Agent in the city, if they’re any good, should give is:

Incorporated!

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Why? One reason.

Financially, it’s best for them if you are incorporated.

Alas, you are not in the business of doing what is best for someone else. You are in the business of doing What is Best for You, which is why you need to be informed on what your options are before going on contract with an agency.

In any contract scenario you have three choices.

1) Go on company payroll.
2) Work as a Sole Proprietor

OR

3) Work through your own Incorporation.

Agencies cringe at the thought of contractors going on their payroll because when they do, they lose money. If you’re working on contract as an employee of an agency, that means the agency needs to set you up on their payroll and perform all applicable deductions for you.

That costs them money. They don’t like that.

A Sole Proprietorship is like having your own business, but as far as the law is concerned, you are that business. That means your name and the name of your Sole Proprietorship are one in the same. You are the sole proprietor after all.

This means you can contract out as a company, and that all the money, all the assets and all the liability are yours. You’re still a burden because payroll needs to deduct CPP and EI, but not as much of one.

For you, this option is cheaper than becoming Incorporated (last time I checked it was in the $60 dollar range), you can do it online, and it comes with several tax incentives that regular working folks don’t get.  

I recommend this option for people who want to take on contracts, but don’t intend on being a long term contractor. That way you don’t incur the risks associated with owning a Corporation but still get to reap some of the same benefits as owning a business.

If all you do is dream of contracts however, Incorporation is the best option.

It’s more expensive, but the tax benefits are plenty, you’ll command a higher hourly wage, you get to own their own business like this guy:

Or this guy:

And, most importantly from the agency’s viewpoint, you’re not a payroll burden. You do all of your own deductions. All we have to do is make sure that your invoices get paid and that the money is going into your company’s bank account.

I know what you’re thinking:

But Mike, if I’m less of a burden as a Sole Proprietor than an employee and I’m less of a burden as a Corporation than a Sole Proprietor, shouldn’t my hourly rate be different?

You Betcha! 

One of the key mistakes new contractors make when working through an agency is that they don’t ask what the difference in pay is between an employee, a Sole Proprietor and an Incorporation. 

Before you take on your next contract with an agent, ask them what the difference in rate is between the three. If they tell you that it’s the same for all, call bullshit and run for the hills. That agency is trying to play funny business, and funny business is not What is Best for You.

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