By Kevin M

Last night my wife learned something disturbing—not for herself but for some of her coworkers. She has a part time job with a company that just announced that fulltime employees are losing their benefits and being converted to part time status.

Now the optimist may say, “it could have been worse—at least they didn’t lose their jobs”. And while there may be a grain of truth to that assumption, the bad news outweighs the good here, and I’d say by a wide margin. First of all, part time isn’t full time—it’s part time. That means even if you keep your hourly rate of pay, there’s no guarantee of 40 hours a week, or even of 30 or 20. That looks an awful lot like a pay cut to me.

Second is suddenly going from a job with benefits to one without—that includes health insurance. Charles Hugh Smith has made a strong case that the middle class isn’t middle class without health insurance coverage, and I think that point is beyond debate. What we’re looking at here, in addition to the pay cut, is the loss of socio-economic class status. They’ve been demoted to “the working poor” without ever losing their jobs. That’s pretty radical.

There ain’t no more job security

The example on my wife’s job isn’t isolated either. More employers are moving toward some variation of this all the time. Here’s the bottom line: from day to day, you can never tell what will happen with your job. A full-time job can turn into semi-employment with a single policy decision by people you don’t even know. It isn’t just layoffs anymore; its hours and schedule, pay cuts, job re-classification, job stagnation, loss of benefits—you name it. I’d even argue that the unemployment rate issued by the government is now mostly irrelevant.

Employment Realty #1 is that employers are figuring out ways to eliminate people and payrolls through a relentless shift to cheaper workers offshore, the latest computer technology or a combination of both. Translation: as much as we want to buy into the economy-is-recovering projections, it’s becoming painfully obvious that if that is happening, it’s fully capable of doing so without employees. The stagnant employment picture has less to do with the state of the economy than it does with the progression of options available to employers.

At least since World War II job security and benefits have always been major reasons why most people prefer to work for someone else rather than for themselves. Job security means insulation from the ups and downs of both the economy and the employers business, and benefits provided the safety net protecting against many of life’s uncertainties. Who wouldn’t want that if they could get it?

Now that neither job security nor benefits are guaranteed through employment, has the playing field been leveled, is there now less risk in being self-employed than there has been in the recent past? I think so.

Job security and self-employment

Here’s why I think that the case for self-employment is growing all the time, and why it may be the ultimate solution to the employment meltdown of the 21st Century:

1. As discussed above, jobs no longer carry the promise of stability or benefits
2. Self-employment was the primary income source of most people for thousands of years prior to the 20th Century—it is entirely possible that after nearly 100 years of large scale employment by large organizations, conditions are now returning to the historic norm of the family farm or shop (though it won’t look that way)
3. The same computer technology that’s putting people out of jobs is also making it easier to start your own business—we’ll spend a bit of time on this one in a minute
4. As the number of people who are self-employed expands, so will networking opportunities. The way you used to job network with people at other companies coverts to networking with those in the same or related businesses
5. The same instability that is making the job market less secure also opens up opportunities for part time, seasonal or contract work that can be used to supplement self-employment income—in the start up phase and later on an “as needed” basis
6. Employers who are reducing staff are often subbing out the work once done by employees—that’s an opportunity for a small business
7. Because you’re smaller and have much greater freedom in a small business you may be in a better position to react to changes in the economy, such as the ones we’re seeing now

This really is a “glass half full” situation—if we recognize what’s really happening and learn to use it to our advantage. Reality is going where reality is going; we can either embrace change as an opportunity, or let it roll over us while we look to the past for answers.

How the internet helps the self-employed

Many might curse computers and the internet for the negative affect they’re having on employment, but that’s the wrong approach.

In #3 above we touched on how computers are making it easier to be self-employed and that’s absolutely true. I’m an example of this. Earlier this week, in How Blogging Solved My Mid-Life Career Crisis, I spilled my guts about being disenfranchised at the age of 50. I was a textbook case of an economic casualty. But I chose to embrace the change rather than fight it.

Here’s the thing…people are making money working from home on their computers, and I decided that I needed to join them. Difficult? Most certainly. Impossible? No way!

Yes, there is more than enough get-rich-quick-on-the-internet snake oil being peddled out there, but beneath the phony claims, thousands of people are making a living (or better) on the internet.

I’m not saying that everyone could or should blog like I and many others are doing. But at a minimum you can use the internet to grow a local “bricks and mortar” business, in a way that wasn’t available even ten years ago. One of my best friends is running a very successful trash hauling business here in my neck of the woods and gets nearly all his business from the web. I believe that’s increasingly possible for most businesses.

If you have any idea for a business, fully investigate how you can use the internet to make it work. And if you don’t have any, look closely into ways you can make money on the web. Some ideas include blogging (my favorite!), freelance blog writing for other sites, and providing marketing, technical and administrative support to the many commercial websites and blogs that are out there on the web.

Because of the internet, nearly any skill you have or can acquire can be converted into some form of self-employment, if only as a side business. And these days, that’s looking a lot more secure than the average job.

Have you considered starting some sort of internet business? If not, what’s stopping you?

Monday’s post: Self-employment in the Internet Age

Related Posts:

7 Reasons to be Self-Employed
Why Most New Businesses Fail – And How Not to Become One of Them
5 Tips to Go From a Job to Self-Employment
The Self-Employed Health Insurance Dilemma
7 Ways to Improve the Success of Your New Business
Starting a Side Business – Why Now is the Time

And one college’s “Employment Pledge” to ease the transition

Guest Post by Philip Reed

Even at the best of times, mounting a job search can be intimidating and often, disheartening. With today’s unemployment numbers and still shaky economy, a job search can be downright terrifying.

It’s important that you don’t let the whole process of it overwhelm you by taking it one day, one resume, or one interview at a time. If you can remain focused on the individual tasks required you will present yourself to prospective employers in a far more confident and positive manner. The more confident that you appear; the higher your chances are for a successful interview and—ultimately—a job offer.

New college graduates

New graduates are facing a difficult road in getting that first job. If you’re just out of college, or will be in the next year or two, your major area of study will be a critical factor in both how quickly you land a job and how much you will earn.

If your undergraduate degree is in a field that isn’t in great demand, you may want to consider going for a masters degree in a field that is. Forbes offers a list of the best masters degrees to have in order to get a job. The top five on the list includes:

1. Physician’s assistant

2. Computer science

3. Civil engineering

4. Mathematics (statistician, actuary, high school teacher)

5. Physics

There are five others on the list, and all have mid-career earnings near the $100,000 range, and solid prospects for future employment growth. If the job prospects in the undergraduate degree you signed up for a few years ago are looking slim, a masters in any of the careers listed on the Forbes list may be advisable.

Speaking of colleges, something new is being rolled out to ease the transition from school to employment. Westwood College has a program called the “Employment Pledge”. I haven’t used the program myself, but if you were lucky enough to have obtained your training, degree, or certification at a university or college that offers it then you may have an advantage when you enter what has become a competitive and difficult job market.

An employment pledge claims that the educational institute is so confident in their training and teaching that they will pay you if you cannot find a job in your field within a predetermined amount of time. The payments aren’t enormous, but they will help you pay your bills at a critical time of your life (for up to six months) and that can take some of that job search pressure off of your shoulders. Westwood does offer degrees in some of the fields on the Forbes list.

Even without a degree in a top field—or an employment pledge—you can still conquer the job market frenzy by setting specific goals and tackling them one by one. The following list is an excellent place to start.

The resume

Make sure that yours highlights your qualifications while still giving an impression of your personality. There are many resume building tools available free online to help you structure it in the most flattering and effective way possible.

When writing a resume there’s always a temptation to overkill—don’t! No one will read a resume that’s much longer than one or two pages! Keep it as concise as possible being sure that your strongest skills and abilities are immediately obvious. An employer will sift through hundreds, perhaps thousands of resumes in an effort to fill a single job. Your resume must make the case that you are the one best suited for the job.

It will be time consuming, but it’s best to customize your resume for each job you are applying for. Highlight the skills you have that best match the job description given. If you’re skills don’t fit, it may be better to move onto the next prospect where you’ll be a better fit.

The cover letter

Separate from your resume, the cover letter should be directed to the specific person you are applying to and should outline all the additional skills, qualification or benefits that you can offer the company if hired.

The cover letter shouldn’t restate your resume so much as to highlight and supplement it. What you want to do is use the cover letter to create that “glove fit” between you and the job that’s being offered. Keep it personal, and spell out specifics on how you will be the answer to the employer’s problems.

When you approach employers, be sure to avoid the beaten path where all the heavy traffic is. Far better to make contact by unconventional means that are likely to make you stand out from the crowd.

Your personal appearance and attitude

It sounds so obvious and yet people mess it up all the time- dress appropriately for the position that you are seeking- even if you don’t have a scheduled appointment and are just dropping off a resume. If you are applying for a position in a professional office then showing up in flip flops and sweatpants is not going to get you the job.

Should you get an interview, make sure you speak clearly, make eye contact, and smile. It can be intimidating but employers want to know that you are confident in yourself and your skills because that will give them confidence in you.

No matter what job or career you are seeking, there is an employer out there that would be perfect for you. Your job now is to find them and to make sure they understand the value that you will bring to your new position.

What are you doing to find a job in this economy? Is there anything you’ve done that’s worked? Would you like to share your experience?

Related Posts:

Why Skills are More Important than a Job

Check Your Salary: Five Free Salary Analysis Tools

Staying Motivated When You’re Stuck in Neutral

Steady Paycheck VS Self-Employment; Which is Right for You?

Surviving Unemployment – One Woman’s Story

All Jobs are Temporary! (And What You Can Do About It)

By Kevin M

Having a job is a good thing—the problem is complete reliance on it! That, unfortunately, is where most people are. The loss of a job can set a chain of financial catastrophes in motion, and even threaten the survival of a person or an entire household. Is there an answer to this dilemma? Is there a way to enjoy the benefits of a steady paycheck—preferably one with medical insurance—without being so totally dependent on your employer?

There is—the answer is skills, your skills. And not just any skills but two specific types that rise above all others: transferable skills and retail skills.

Everyone brings general skills to their work—management, administrative and organizational skills, typing, computer skills, “people skills”—we can think of them as the minimum requirements for employment.

But transferable and retail skills are much deeper. They’re skills that are in demand, easily recognizable, portable and have application across different industries and business types. When you have them, your ability to earn a living is never in doubt—even if your current job is.

Transferable skills—the ticket to employment security

Transferable skills are valuable throughout your industry and even beyond. They’re the type of skills that can have a direct impact on a company’s bottom line, such as sales or web design, and can easily be verified by production numbers, a portfolio of your work or some other easily recognizable form. They’re even more valuable if you have them to a greater degree than most in the field–that means being better than average.

If you have transferable skills and you’re work is known outside your company, you probably enjoy a great deal of employment security—there’s always someone willing to hire you even if your current employer doesn’t need you any more. If you’re not at that level, you need to get there.

Most employees are content to master only the minimum skill levels needed to perform their jobs and remain with their employers. Others develop skills that are so specific to their current employer that they have little value anywhere else. There’s little thought to preparing for the next layoff, the next job or the next economic cycle. Retooling, if it comes, happens only after a long periods of unemployment and often involves a costly return to school for yet another degree.

How do you develop transferable skills before a job crisis forces your hand?

• Pick a function in your company that’s crucial to the operation of the business—or any business—and take steps to gravitate into it. All functions in a business might be important, but some are more valuable than others and that’s where you need to be.

• Take a course or two at a local college to learn the basics of a desirable new skill. That may not get you a job in the field, but it could open up some opportunities that will.

• Look for a part time job where you can “apprentice” into the new skill set.

• Develop the skill as a hobby or even as a side business and then grow into it.

• Become the resident expert at what ever you do in your job. For example, if you work in an administrative capacity, learn all you can about common software applications like Word, Excel and Power Point. With software applications, there are many practitioners but few experts. But those skills are highly transferable and if you become an expert with them, your future prospects will improve significantly.

”Retail” skills—the ticket to a future without limits

Retail skills are just what the term implies–it’s the ability to sell your product, service, or trade directly to the general public. They’re the kind of skills that are not only valuable to employers, but can readily be converted to self-employment. All options are open to you if you have them.

I had this explained to me many years ago by a plumber who came to fix my dishwasher hook-up. He pointed out the difference between plumbers who work in the building trades—where layoffs run with the boom/bust cycle in housing—and repair plumbers who work on existing systems and therefore have work (and plenty of it) on a continuous basis. Building trade plumbers don’t know repair plumbing—it’s a different function entirely—they need someone to hire them and become employer dependent. But a repair plumber can work for someone else or for himself—he’s never unemployed.

Not all jobs and careers lend themselves to retail skills, but many do. Some examples include:

• A corporate accountant who has his CPA license and also prepares income taxes seasonally.

• An IT worker in a large company who also does computer repair or web design work for private clients.

• A company salesman who develops a sideline selling a product direct to the public that’s unrelated to the one he sells for his employer. He’s good enough at selling that he can sell nearly anything so self-employment is always an option.

• A manager who has worked for several companies during her career, solving significant problems at each, and developing a substantial referral network, all of which providing the ability to develop an independent consulting business if ever she chooses to do so.

Any of these people could quickly convert to full time self-employment, selling their services direct to the general public in the event they lost their jobs or decided they no longer want one. No matter what happens, they’ll always have an income. This is the optimal situation to be in because it enables you to move back and forth between a job and your own business, or even to have both at the same time.

What if you don’t have either transferable skills or retail skills?

You can develop them–and you don’t have to wait until a job loss forces your hand.

We all have some spare time for something as important as insuring your income in the future. Identify the skills that will be a good fit for you, learn them, and then put them into practice. You can do it gradually if you have a job, or fast forward it of you don’t. If you’re unemployed, or under-employed—and many millions of people are right now—you owe it to yourself to do what you need to do to retool with the right skills.

I decided that had to develop a retail skill of my own and chose freelance blog writing. I’ve never done any kind of professional writing in my life but it’s working well for me. If you decide you need to develop retail skills, make sure that what ever it is will be something you’ll enjoy doing, comes naturally to you and is something you can sustain over the long haul.

Look at what others are doing and see if you can work that into your own skill set. It doesn’t even have to relate to your current job, but can be an adventure into something completely new. As long there’s a market for what you want to do and you have the skills to fill it, go for it.

If blog writing is a retail skill you’d like to learn check out my post, The Freelance Blog Writer Side Hustle. It’s a skill that you can work into gradually, in your spare time and from your home computer.

Related Posts:

Buy a Business OR Build One From the Ground Up?

Why Most New Businesses Fail – And How Not to Become One of Them

A Successful Online Business Requires Realistic Expectations

7 Ways to Improve the Success of Your New Business

The Perfect Side Hustle: Freelance Blog Writer

7 Reasons to be Self-Employed

By Tim Eyre

Life in today’s corporate world can be difficult to adjust to. Change is a fact of life and when that change means pulling up your roots and relocating to a different part of the country, the effects can range anywhere from short-term annoyance to long-term trauma. But there are many occasions when people need to confront the difficult decision of whether to uproot or stay put.

Sometimes the choice is stark: relocate and keep the job, or stick around but look for a new line of work. In other cases, the choice is whether to settle for the status quo or to improve your professional and/or financial status by relocating. In most cases, there are no easy answers. But there are always good questions to ask that can help clarify the options. Here are a few questions to consider that might help the decision-making become a little easier:

How much will it cost to move? The cost of moving your belongings and settling in a completely new city or state can be considerable, often enough so that moving costs can become one of the critical factors in your decision. There will be moving fees, which can be compounded if the movers need to hold on to your belongings for a considerable time while you look for a new place to live.

In many cases your company will cover all or most of these expenses if they are asking you to relocate. In many others, your new company will cover them if you are switching jobs or starting a new one. But companies do not always cover the full expense and you need to find out what your actual moving costs will be before you take the plunge.

OK, now how much more will it cost to move? When it comes to knowing how much your move is really going to cost, there is a lot more to consider than just moving expenses. Many people decide to relocate because they are getting a big raise. They think that the move will benefit them financially, only to encounter a large dose of sticker shock when they discover otherwise after they are there. There are numerous factors that can make your financial profile much different in your new surroundings than in the old. Some of them include:

1. Taxes: Every state has its own tax laws. Some states have zero income tax whereas in other states the income tax can be quite high. The same is true with sales tax. You should check the tax rates of the state you are thinking of moving to, and compare them with the rates in your current state.
2. Housing costs: Housing prices also vary widely in different parts of the country. So do rental fees.
3. Transportation: Will your new job require you to use public transportation? If so, their costs need to be factored in as well.
4. Energy: There’s no getting around the fact that you need heat in your home and gas in your car. Be sure to look up the average prices for gas, oil, electricity, and other energy sources in your new town.
5. Education prices: Whether it’s your own education or private schools for your kids, you will need to know the cost of education in the area you may be living in.
6. Health costs: This will be a major concern if you’re out of the country.
7. Other family member income: If your spouse or other family member had a job in your old locale, can they get a new one? Will their income be as good? When analyzing the finances involved in making the move, you will need to account for their employment in your new locale.

What will the cost be to my mental and emotional well-being? You’ve probably given a lot of thought to whether you will like your new job. But your job is not where you will be spending most of your time. And your job is where none of your family members will be spending any of their time. Making the move will be a whole lot easier if you know that the place you end up will end up being a happy place for you and your family. The following factors may give you a clue
as to whether this will be the case:

1. Climate: If you and your family don’t really care much about the weather or local environment, this may not matter. But many of us have certain preferences: year-round warmth, snow activities in winter, dry air, proximity to the ocean, etc. Consider your family’s likes and dislikes before deciding whether to move.
2. School systems: School quality is one of the biggest considerations when families make a move. Investigate the local school system in your new town to see how close their standards are to your own.
3. Daily commute: Consider how far you will need to commute every day and make sure the commute is something you are comfortable with.
4. Neighborhoods: If possible, consider scouting out the area beforehand. Ideally, bring your family with you. If you spend some time in the area, you may be able to get a feel for how comfortable you and your family would be if you were to end up living there.

The relocation decision involves more than deciding whether or not to relocate. It also involves deciding which factors to consider and which questions to ask. By asking the right questions beforehand, you can make your choice the right one. When it’s time to decide, don’t make a blind leap – make a strategic one.

In his role in the self storage industry, Tim Eyre helps customers care for their
cherished belongings that must be put in storage. Tim regularly visits his facilities
including a Orlando Self Storage center. He also was recently meeting customers and staff at the San Leandro Self Storage Center.

Related Posts:

8 Reasons to Work While Collecting Unemployment Benefits

Where Have All the GOOD Jobs Gone?

Pursuing Your Passion Isn’t as Risky as it Used to Be

Making Work-at-Home Work For You

Steady Paycheck vs. Self-Employment; Which is Right for You?

No Luck on the Job Boards? You’re Not Alone

By Kevin M

As if the poor economy, high taxes, too much regulation, advancing technology and globalization weren’t doing enough to torpedo the job market, there’s yet another obstacle to finding a job, one of a more personal nature and it’s having a bigger impact all the time.

It’s the background check.

Background checks now go farther and wider than they ever have, but it’s happening against the backdrop of a time when life is getting uglier and more complicated than ever for tens of millions of people.

It’s getting more difficult for a job seeker to pass a background check; in fact, at times it looks like a conspiracy. With computerization and the increased availability of data at progressively lower cost, more information is available about us than ever before. And unfortunately, economic, legal and social conditions are combining to make it more difficult than ever for the average person to pass employment muster.

Consider some of the information employers seek in background checks against the state of the world we now live in.

Deeper background checks

With computerization, employers can dig deeper now than they ever could when background checks were done manually. The deeper they dig, the more “dirt” they’re likely to find.

Consider that it’s fairly common for job seekers to leave temporary or short term jobs off their resume or a job application in an attempt to look more stable; if he’s held enough jobs, he might even forget to list one. Chances are those jobs will show up somewhere in a background check, opening up questions as to the candidate’s honesty or work history. An employer may conclude that the job was left off because the candidate was fired, or worse. Employment application denied, next candidate.

Now set this against the backdrop of an employment environment that’s been unstable for years now, forcing people to take a series of short term jobs in order to stay afloat. The possibility of some sort of conflict at application is substantial and growing.

Credit History

Pulling credit history is standard procedure by employers today. Yet we’re at a time when record numbers of people have experienced foreclosures, bankruptcies and other credit-impairing conditions. It’s a paradox that people with damaged credit—who probably need a job precisely to improve their credit situations—may be disqualified as a result.

Criminal background

It can be difficult to impossible to get a job if you have a criminal conviction in your past, and more companies are checking into this than ever. This comes at a time when there are more people with criminal records than ever, and it’s a much bigger issue than most people know.

Right now in America there are 65 million people who have criminal records–convictions either for misdemeanors or felonies. That’s more than one out of every four adults in the country. Most are for relatively minor offenses, often early in life, but that may be all it takes to put an end to an employment application.

Social media behavior

The social media are where technology and humanity merge, and as much as we might enjoy participating, employers are increasingly checking our public comments to get an idea as to how we think. This can work in your favor if the reviewer is partial to your interests and ways of thinking. But if the reviewer doesn’t like what he or she sees, or considers that it might be contrary to the employers interests, you candidacy could end on a few comments you thought nothing of at the time you wrote them.

How many people could potentially have their candidacy ended by comments on the social media? Anyone who’s ever made a comment on the internet!

With all of these factors added together it’s amazing any one ever gets a job, isn’t it?

Now, you may be thinking ”It’s a free country, I’m entitled to say what I want,” or, ”I have a right to privacy” but both of those notions are false assumptions when it comes to employer background checks. When you fill out a job application, the fine print gives them your permission to conduct a search on you in nearly any direction you can imagine.

Computers are only getting more powerful and consequently background checks can be expected to go even deeper. So how do we deal with that in connection with finding employment?

Improving your personal profile

Knowing that nearly every move you make is being recorded somewhere means being mindful of the records you leave behind where ever you go. Most people have something in their past that an employer might find disagreeable, but going forward make an effort to:

• Keep your credit clean, if you have derogatory information do what you need to do to clean it up. Time usually heals credit wounds, so get started today.
   

• Be more careful when driving—checking driving records has become standard. Some employers may disqualify you if you have a certain number of citations in a given time frame.
   

• Avoid behaviors and activities that could land you in front of a judge.
   

• Be careful what you put out on the web, especially on the social media.
   

• Build friends, not enemies. In any job you hold, do the best work you can and try to get along with everyone. Most important, do your best to leave on good terms.

Making an end run around background checks

Let’s say that you’ve been fired from a few jobs, your credit is less than sterling, there’s a criminal conviction in your past, or maybe you’ve been pretty, shall we say, outspoken in the content you’ve written on Facebook—any one or a combination of two or more could render you “damaged goods” to an employer. If this describes you, it might be in your best interest to make an end run around background checks entirely.

• Gravitate toward skill sets that are in such high demand that you’ll be less likely to have your candidacy destroyed by a background check.
   

• Work for smaller companies—they’re usually less likely to rely on background checks for needed employees, and might not go too deep if they do run one.
   

• Become self-employed. Except for certain business licenses, no background checks are needed. I know it’s not as easy as just hanging a shingle and working for yourself, but if your background is impaired, this might be the best long term solution.
   

• Live beneath your means. If you have difficulty getting hired, you probably want to avoid living a lifestyle that might require a high income job—and the detailed background check that usually comes with it.
   

• Build a strong professional network. Sometimes having influential people going to bat for you will be enough to overcome negative background information. It will depend on the influence of your referral, the severity of your background issue and the flexibility of the employer.

Just a few years ago, background checks were more of a formality than anything else. But back then far fewer people had credit problems or criminal convictions, the job market was much more stable, and the social media didn’t exist. Today is a new ball game entirely.

Even if you don’t fall into any of the categories above, the world is in a constant state of flux and employment background checks are becoming one of THE employment issues of the day. Our financial futures may very well rest on our ability to pass them—or to make other arrangements if we can’t.

Do you have any experiences or advice on how to deal with these or any other background check issues that might help a job seeker?

Related Posts:

8 Reasons to Work While Collecting Unemployment Benefits

Suviving Unemployment – One Woman’s Story

Pursuing Your Passion Isn’t as Risky as it Used to Be

Where Have All the GOOD Jobs Gone?

Steady Paycheck vs. Self-Employment; Which is Right for You?

No Luck on the Job Boards? You’re Not Alone

By Kevin M

The official unemployment rate has finally fallen below the 9% level (8.9% in February), but does that mean the job market is finally turning around?

Yahoo! News had a revealing—but disturbing—article on the state of the job market last week. In Jobs returning—but good ones not so much, Zachary Roth reports some of the deeper details behind the unemployment benchmark:

• 49% of the new jobs created over the past year are in low wage industries, such as retail and food processing
   

• Higher wage jobs represent only 14% of the new jobs, thought they accounted for 40% of the jobs lost during the recession
   

• 9.6% of the workforce are working part time but want full time jobs
   

• On the topic of wage levels, the article reported that “though productivity rose 5.2 percent from mid 2009 to the end of 2010, wages increased by just 0.3 percent. That means only 6 percent of productivity gains were shared with workers. In past recoveries, that figure has averaged 58 percent.”

The last point is, in my opinion, the most telling of the group because it tracks the money actually changing hands. If employers aren’t sharing productivity gains with workers, then earning a living will only be harder in the future. Flat wages are effective pay cuts in an environment of rising prices.

In taking a closer look at under-employment—a statistic that I believe is now more important than the basic unemployment rate—a Gallop poll conducted in mid-February (and linked in the post above) reported the under-employment rate–the combination of the unemployed plus under-employed workers—stands at 19.6%. That’s one out of every five workers in the economy!

Are statistics giving us a legitimate picture of reality?

OK, we can look at as many statistics as we like but the numbers often don’t reflect the reality that we’re experiencing or seeing around us. From what I’m seeing, there are two types of workers right now—those who kept their jobs through the recession and have been largely unaffected by it, and those who lost their jobs and have been unable to get much traction since.

While the first group tend to have a more optimistic view of the job market and of the economy in general, those in the second group go from job to job, often without benefits of any kind, and almost always without any permanence. Re-employment as it played out in past recessions seems to be something of a myth this time around.

The high level of under-employment, in combination with flat earnings and apparent job growth concentrated in low wage industries cries out for a personal plan of action, and I’ll give my thoughts on this in my next post. In the meantime,

What has your employment experience been, and what are you seeing in the people around you?

Did you lose your job during the recession?

If you’ve been re-employed since, are you working full time or part time? Contract/temporary or permanent? Do you have benefits (or at least health insurance coverage)?

If you’re working full time, how does your current income compare to what you had before you lost your job?

Have you started your own business? If so, did you do so because of a lack of opportunities in the job market?

We’re trying to get past statistics here in favor of real life experience, so all opinions are welcome.

Related Posts:

8 Reasons to Work While Collecting Unemployment Benefits

Suviving Unemployment – One Woman’s Story

Pursuing Your Passion Isn’t as Risky as it Used to Be

Making Work-at-Home Work For You

Steady Paycheck vs. Self-Employment; Which is Right for You?

No Luck on the Job Boards? You’re Not Alone

By Kevin M

You hate your job; you can’t even stand the thought of staying one more week. You don’t like your boss, and you’re pretty sure he doesn’t like you. You’re not going anywhere and haven’t been for a long time. It’s been a few years since your last raise, and you’re not sure if another one’s ever coming. You’d quit tomorrow, if only…but the job market is lousy, and the economy looks so uncertain. You’d like to move on, but it doesn’t look like there’s any place to go—not any place decent at least.

Are you in this situation right now? You probably have a lot of company. This recession, poor economy—or what ever we want to call it—is getting old, very old. The job market has been weak for several years now, and many workers have been trapped in that uncomfortable “lucky-to-have-a-job” limbo for a very long time.

Not only have jobs and opportunities evaporated, but raises, promotions, bonuses and benefits have also been cut or disappeared completely for the survivors.

Despite signs of an improving economy, the job market remains stubbornly tight. Unfortunately, all the signs of a “jobless recovery” seem to be in place. And if it is, how long should you wait before making a move?

The reality of the moment

Much as we don’t like to think about it, when economic conditions are as poor as they are right now, the lucky-to-have-a-job mantra IS the order of the day. Realize that having a paying job—even one you don’t particularly like—is far better than having none at all.

As emotionally appealing and liberating as picking up and leaving a bad job might seem at some moments, I can tell you that based on the people I know who are out of work and looking, the pressures of surviving each month with very limited means is usually a lot more stressful than trying to manage a crappy job. The fundamental difference is that if nothing else, money is coming in while you’re struggling with the crappy job.

Concentrate on cash flow

For many today, the idea of connecting work primarily or exclusively with money is a bit distasteful.

In the TV and entertainment dominated world that we’ve been living in for quite a few years now, it’s often easy to forget that employment is first and foremost about survival. On TV, characters are out trying to “find themselves”, find happiness, self-actualize or to find the cure for the world’s problems. It really would be nice if we could find these things through our work, and maybe we come closer to it during more robust times.

But for the vast majority of us who don’t live in TV Land, most of what we do through our work is creating and maintaining a cash flow.

If we can get back to that basic view of work, holding any job—even one we might hate—becomes more tolerable. To borrow a phrase, income is Job 1!

While it’s certainly preferable to generate a cash flow doing a job we like, as adults we also understand that this is not always possible. Sometimes you have to do what you have to do—but that doesn’t mean you have to sit still and die on the vine either!

Creating a better future

OK, all of this might help us to put the situation into some kind of perspective that makes the moment more tolerable, but what about the future? Are you doomed to the current state of affairs for many more years, or even forever?

Feel free to disagree, but I think it’s fair to say that, based on developments in recent years, we have solid reason to believe that the current poor state of the job market may not be as temporary as we’d like to believe. Business, it seems, has found ways to survive and expand with fewer employees, and none of that bodes well for the future of the job market.

Simply put, if we’re looking for a brighter future, we may have to look for it outside of work. We may have to find our own ways to promote ourselves, to increase our incomes and to improve future prospects that have nothing to do with our jobs.

Decide what you actually like to do. If it looks like there are no promotions in your future, it may be more important than ever to be happy with what you do for a living. Think about what kind of work you’d like to do if money were no object—then start thinking about how you can make it happen. If what it is that you like to do doesn’t pay particularly well, think of ways to supplement your income doing something else—something that will compliment your passion while providing extra cash. Then start working right now on a plan to make it all happen. As you move forward, doors of opportunity will open for you, but only if you’re ready.

Work into a new industry or career field on a part time basis. If it looks as if prospects in your current industry have faded for good and you feel it may be time to make a wholesale change, see if you can gradually move into a new career or industry on a part time basis. This will be a way of getting needed experience without a taking a big drop in income. Only when you’re ready to make it a full time venture do you quit your current job, at which time the income disruption will be minimal.

Develop a business idea as a side venture. Have you been nursing a business idea for a long time but haven’t felt ready or able to get it going? Now might be the perfect time. Increasingly, having your own business may be the best way to move forward in your life. There is a lot of risk in starting a business, especially in this economy, but you can minimize that risk by keeping your full time job and working the new venture as a side business. Your full time job will keep your cash flow coming in while the new business helps you to build the future you’ve been looking for.

Get your finances in order. Many times we leave our financial security to our employers. But you can offset a sense of powerlessness on the job by taking action outside. Start building savings and paying off any debt you have—as your financial situation improves you’ll begin to feel a sense of control over your destiny. At that point, the sense of dependence on your job may drop, enabling you to like your job a little better. Also, if you plan to start a side business, or transition into a new industry or career, a stronger balance sheet will help grease the wheels.

So should you leave your job if you’re really unhappy with it? That always depends mostly on the options you have available outside your job. But if you’re feeling trapped on the job, try taking a few calculated risks on the outside and you’ll develop a clearer idea of what you should do next. Forward motion has a way of bringing us to our destination, even if we’re not always certain where that destination is.

If you absolutely hated your job, would you leave it in this economy? What would you do to prepare for departure?

Related Posts:

All Jobs are Temporary! (And What You Can Do About It)
Pursuing Your Passion Isn’t as Risky as it Used to Be
What Career Coaching Can do for You
Steady Paycheck vs. Self-Employment; Which is Right For You?
Staying Motivated When You’re Stuck in Neutral
Changing Careers In A Recession

By Kevin M

Even with hints of economic recovery in the air, getting a hired into a new job has never been harder, even for the fully qualified. I know many people who are or have been on extended periods of unemployment in the past year and one common theme is that the usual methods of getting hired aren’t working.

Getting a job is largely about getting noticed, and the best ways to do that are to approach employers in ways most other job seekers aren’t using. Try one or more of these and see if your luck doesn’t improve.

1. Send a letter without a resume

This sounds about as unconventional as it gets, but that’s the point. Try sending a letter without a resume. Think of it a strong cover letter, but it should summarize your abilities to fill the job with an emphasis on further discussions of the job and your qualifications.

Sometimes a resume can be a disqualifier since employers use them to cull the list of prospects. Sometimes it’s best to get them interested before sending a resume. It’s a back door approach in a job market crowded with good looking and often embellished resumes.

The idea is to approach the hiring process as though you’re entering a multi-step business deal. You can write something like “my resume is quite lengthy, but here’s a summary of my skills, this is what I believe I can do for your company, please call me at your earliest convenience and perhaps we can explore this further.”

A good letter may get the interviewer to pick up the phone and call you, at which point you have three advantages: direct contact, a request for more information and the forcing of all important multiple contacts with a prospective employer. The more contact you have the better your chances of getting an interview and of getting hired.

Everyone sends a resume and cover letter, and at that point the employer has all that they need to begin comparing your resume to dozens or hundreds of others. Using a letter as an ad can invite a phone interview which exponentially speeds up the process. The central idea is to begin a dialogue with someone in a position to hire you and as much as we like to think that resumes do that, they don’t always.

Try it and see what happens.

You wouldn’t do this as a matter of course, but it would be worth the effort if you’re not having luck going the more traditional route.

It works best with small employers or for jobs you’re very well qualified for and can speak the language of the business fluently. A resume won’t necessarily show any of that. You have to come accross as being the solution to a problem–which harder to do with large employers of course.

The letter can be really effective with a reference or two included in the letter. I’ve had a couple of situations where I’d gotten far enough into the hiring process that the resume became an after thought. This isn’t a one-size-fits-all way to reach employers but it’s certainly worth trying.

2. Make contact by snail mail.

As old school as it may seem, your cover letter and/or resume might have a better chance of being read if you send it to prospective employers by traditonal mail rather than by automated means.

In todays employment culture, contacting a prospective employer via email or a job site has become second nature. It’s the first (and often the only) course of action for most people but evidence is piling up that it may also be close to ineffective. The problem is sheer numbers—if everyone is using the same contact method the traffic gets so heavy that you become one of the herd.

While it’s true that many large employers may send you a form letter or email telling you that they require that you apply on line, there will almost certainly be a few who will take the time to read it since it will be so different from what they’re used to.

3. Make contact by phone.

Many years ago, during a similar downturn in the economy, I found myself looking for work in the accounting profession. I did the usual thing of going to employment agencies and distributing my resume, but the competition was intense for the few positions that existed.

In a near act of desperation I decided to try cold calling the yellow pages for work in small accounting firms. After all, if no one would look at my resume and the agencies wrung their hands at the dreadful state of the job market, maybe I could at least get someone to answer the phone.

Bingo! By calling small firms close to home, I actually managed to speak with the hiring partner in most firms I called. Most didn’t have jobs, but one did and that’s all it took.

4. Make an offer to work on a contract basis.

Full time, benefitted jobs are getting harder to find these days but there may be a way to package yourself to get one through the back door. Offer to work as a contract worker and you make yourself hiring-friendly. You’re not asking for guaranteed employment, full time hours or costly benefits and that will remove a bunch of hurdles to a nervous employer.

In this way you’re approaching the job hunt as a vendor looking to provide a service for the employer. This is a less intimate arrangement than an employer-employee relationship and might therefore be more acceptable to the employer.

Not only will you be giving an employer a flexible way of bringing you on board, but you may also be demonstrating a level of flexibility and creativity the employer isn’t seeing in other candidates. And though you may begin working as a contractor, once you’re in the door and demonstrating your value to the business, an offer for a full time, permanent position with benefits may be just a question of time.

5. Offer to work for free on a trial basis.

Last week in What Can Career Coaching Do For You? guest poster and career coach Ed Burns wrote about job shadowing, which he described as working along side a person in an unfamiliar career, usually for free, to learn what “a day in the life of a dog trainer” is like, as an example. I think the advice is well taken in a more general sense as well.

There are two circumstances under which you might want to try offering to work for free: if you’re desperate to get a job and all other methods have failed, or if you’re trying to change careers and need a foot in the door somewhere. And if either situation is the case it may be well worth the time and effort.

The attraction for a would-be employer is that it’s a virtually risk free hiring situation. It will cost no money and carry no promises. From your standpoint, it’s a chance to demonstrate what you’re capable of in a real life environment. Some employers may have difficulty envisioning you in a certain job based on your resume, but it will become obvious if you can somehow get in and actually do the job.

If you go this route, you’ll want to limit your time of free service to not more than a few weeks, otherwise the employer may be taking advantage of you. You’ll also need to be pretty certain you have the skills and willingness to do the job so that you’ll be able to impress an employer into hiring into a paying situation.

One other element this approach can add to the mix: even if the employer doesn’t hire you into a paid job, he or she may be sufficiently convinced of your abilities that they’ll provide a reference to another employer who does need someone. In this way you’re creating connections where none exist, and that’s a major advantage by itself.

What ever method you use to get a job, once you’re in one be competitive and work to earn your keep every day. Our productivity is the only security we have in todays job market.

What methods have you used to get a job when more conventional ones didn’t work? Have you ever tried any of the above? What happened?

By Kevin M

Work for free—preposterous on the surface, I’ll admit! But it’s an effort that could pay off in a big way, especially in this economy. Think of it as though you’re starting a new business and you’re working to build a customer base by giving out free samples.

Just so you don’t think this is just an idea I heard somewhere and decided to write about, here’s my story…

After leaving the accounting world for a brief hiatus of about, ohhh–15 years—to pursue a career in the mortgage world, the time had come to return to my career of origin. (You’ve no doubt heard or read about the Great Mortgage Tribulation of the past few years.)

But how do you find work in a field that you’ve been out of for a decade and a half? Some would say that once you learn to ride a bike you never forget, and that’s true. But convincing nervous employers that you haven’t forgotten is another matter entirely, and calls for some creative thinking.

I sent out hundreds of resumes and responded to ads, and the return on the effort was pathetically low. Just three responses in about 200 tries—that’s enough to discourage anyone. The first response I got liked my resume, but was “concerned” over my lack of current experience. Duh!?!? Like I was trying to hide it! A second response was positively non-committal. I vowed that if I got any other responses, that I’d do what ever I needed to do to land the job.

Third response…I made the free trial period offer early on. I was taken up on it. And it worked, I got the job. It was just a contract situation, but it was a start back and a big fat “mission accomplished” in a tight job market.

Working for free to start a new business

Dave Kelly, whose posts appear here on OutOfYourRut.com, has done something similar, but on a much more dramatic scale.

Like me, he had worked in the mortgage business for many years (20 actually) and wanted to go into professional speaking. Going from the mortgage business to professional speaking isn’t exactly what you would call a natural transition so not many doors were open.

Dave had done speaking in the non-profit realm on a casual basis, and discovered early on that it was his passion. But the problem was that not many institutions were willing to pay money to an unknown mortgage guy to speak before their businesses or student groups. Before Dave could charge a fee for his speaking, he first had to get some experience and develop a list of credits and referrals.

And that’s what he did. Dave took speaking assignments where ever he could get them. He spoke for free…he spoke for meals…he spoke for gas money…he spoke for $50 tips…then for $100 tips…he spoke for travel expense reimbursements.

Then a funny thing happened. After a few months and dozens of un- and under-compensated speaking engagements, he began to develop a decent list of credits and referrals, and made some important contacts along the way. Then he started charging fees for his services; little early on, but steadily higher as his experience and book of business grew. Within a couple of years, he was speaking as a full time career.

These are real life stories of working for free, so I know it can work.

Before giving it a try…

Some points to consider if you’re thinking of giving working for free a try:

It’s especially applicable in a weak job market. Employers are on tight budgets right now and we need to work outside the box just to get noticed. Offering a free trial period removes the risk of hiring (and paying) someone who doesn’t work out. You may move your candidacy to the top of a pile of resumes sitting on the desk of a business owner or hiring manager by making this offer.

It won’t interfere with unemployment benefits. You’re working for free, so there’s no income to report to the unemployment office. If you are receiving unemployment benefits, think of it as a stipend for the work you’re doing and not being paid for on the job. In fact, where possible, it’s best done while you do have benefits coming in.

It’s not recommended or necessary if you currently have a job. Obviously, this isn’t something you’d need to consider unless a layoff is imminent, then consider doing it on weekends or vacation time.

If you are employed but looking, consider gratis contract work. This may enable you to work your way into a new company or even a new industry. Offer to fix a prospective employers problem for free—that’s an offer almost no one can refuse.

The offer will work best with small employers. Small businesses are more personal in nature and have jobs to be done and often no one to do them. Offer to step up and fill the empty void on a trial basis. Small business tends to be more flexible than large ones, and you’re impact will be greater.

Keep your time to a specific limit. Two weeks should be more than enough time for an employer to assess your skills and make a decision. Be careful that it doesn’t become an open ended situation where you’re being taken advantage of. Remember, this is a trial period for the purpose of securing employment, not a commitment of free labor.

Don’t offer to do this unless you’re reasonably certain you know you can do the job. The purpose isn’t to take blind shots at jobs you can’t do in the hope that it will somehow work out. The purpose is to convince a skeptical employer that you’re the one for the job. It will be a complete waste of time if you can’t do what you say you can.

It gives you a chance to see if you want to work for an employer. Obviously, Job 1 is impressing a prospective employer with your skills and convincing him or her to hire you, but you may also get into a job and find out it isn’t for you. In my experience, you usually know a job is a bad one within the first few days.

You have nothing to lose. If you’re currently unemployed, you have nothing to lose by giving this a try.

Have you ever tried working for free as a way to get a job? Do you know anyone who has? How did it work out?

By Kevin M

One of the driving purposes of OutOfYourRut.com is the identification of career and business opportunities, primarily for people engaged in one line of work but seeking entry into another.

In that vein, a noteworthy article appeared on Yahoo! Finance yesterday, 10 Jobs With High Pay and Minimal Schooling Required! written by Michael King. The article lists 10 careers that don’t require a bachelor’s degree for entry, but pay wages which are generally above average.

There are several articles with this same theme here on OutOfYourRut.com, either as full reprints or by excerpt, but in this time of career transition for so many people, it’s one worth revisiting often. The jobs appearing on each list tend to be at least somewhat different from one list to another, either because of the time of compilation, or the orientation of the source.

The List

Depending on your current education and career experience, one or more of these careers might be worth investigating further. As listed by the original article, the ten careers, including median incomes (for 2006 according to the Bureau of Labor Statistics) and general training requirements for entry include:

1. Air Traffic Controllers. Median income: $117,000; training: “Typically, two to four years of training are needed in order to become fully certified, although previous military experience can cut that time down significantly.” Bonus: air traffic controllers can retire after just 25 years of service at any age.

2. Industrial Production Managers. Median income: $77,670; training: “A college degree is preferred, but not necessarily mandatory.”

3. First-Line police and detective supervisors. Median income: $69,300; training: “Police officers can advance through the ranks to become supervisors by passing exams and achieving good performance reviews, and advanced training can help win promotions.”

4. Funeral Director. Median income: $49,620; training: “College programs in mortuary science usually last from two to four years. You typically must also serve a one-year apprenticeship, pass an exam and obtain a state license.”

5. Police and Sheriff Patrol Officers. Median income: $47,460; training: “Applicants usually must have at least a high school education, and some departments require a year or two of college or even a degree. Rookies are trained at police academies.”

6. Advertising Sales Agents. Median income: $42,750; training: “20% have a high school degree or less, and 10% have an Associate’s degree.”

7. Real Estate Brokers and Sales Agents. Median income: $39,760; training: “While advanced coursework is not necessarily required, new entrants must pass an exam and get a state license. Connections in the community and a willingness to work hard are what really count, but experience and a good housing market also help.”

8. Occupational Therapist Assistants. Median income: $42,060; training: “These workers usually need an associate degree or a certificate…(but)…Job prospects are good in the growing health care field, especially for those with some post-secondary education.”

9. Occupational Therapist Aides. Median income: $25,000; training: “These employees receive most training on the job…Competition for jobs is tougher for those with only a high school diploma.”

10. Physical Therapist Assistants. Median income: $41,360; training: “typically need an associate’s degree.”

(The list above is greatly excerpted from the original article, so it’s recommended that you visit the original for greater detail.)

Some Caveats…

While none of the careers on the list require a bachelors degree (or higher) for entry, it is clear that having one would be advantageous for many, especially for future promotion. If you already have a degree in an unrelated field, you may have an inside track.

There are some challenges on this list. Not everyone is emotionally cut out to be a funeral director, police officer or air traffic controller, so personality has to be factored into the mix. As well, advertising sales agents and real estate brokers and sales agents all involve SALES! If you have been successful in sales in the past, these fields may hold promise, but if you’ve never done anything similar, selling is a vastly different way to make a living than being on a steady paycheck. Consider also that sales are usually an uphill climb in recessions as consumers and businesses are more reluctant to make purchases. In particular, real estate sales are in an especially difficult period of time as has been well documented in the media.

Finally, industrial production managers may be a limited field, despite the high earnings potential. Jobs in the field are in manufacturing, a sector which has been hit harder than most by globalization and advancing technology. I’m no expert in the field, but competition for what positions are available is likely to be fierce against such a backdrop, and it must also be considered that much of the troubles in manufacturing have been happening for considerably longer than the recent recession.

But again, if you have parallel skills to any of the fields on the list, and have considered trying your hand at one in the past, now might be an outstanding time to take the plunge, especially if you’re unemployed or working in a dead end job. The key is to find a field that most closely matches the skill set you do have so that the jump won’t be so great.

Good luck!