HIRING IN 2010

HIRING BY INDUSTRY
Comparing selected industries, hiring is expected to increase in information technology, manufacturing, financial services professional and business services, and sales in the coming year. Thirty-two percent of IT, 27 percent of manufacturing, and 23 percent of financial service employers plan to add full-time permanent employees in 2009, followed by 22 percent of employers in professional and business services and 21 percent in sales. Health care employers are also planning to expand staffs at 21 percent followed by 18 percent of transportation employers and 15 percent of retail

HIRING BY JOB TITLE
When asked what areas employers plan to hire for in 2010, one-third pointed to technology followed by 28 percent in customer service. Nearly one-quarter (23 percent) plan to add sales people, 18 percent will add in research/ development, 15 percent in accounting/finance and 14 percent in marketing.

COMPENSATION
Even as companies continue to watch their spending, they still plan slight increases to salaries in the coming year. Fifty-seven percent of employers report their companies will increase salaries for existing employees in 2010, down from 65 percent in 2009. Thirty-six percent expect to raise salaries of existing employees by 3 percent or more, while 11 percent anticipate increases of 5 percent or more.

Twenty-nine of employers plan to increase salaries on initial offers to new employees, down from 33 percent in 2009. Nearly one-in-five (18 percent) employers will raise salaries on initial offers by 3 percent or more while 7 percent anticipate increases of 5 percent or more.

Interviewing to Take Home the Gold

Interviewing is like being selected to compete in the Olympics: you have outperformed hundreds or thousands of competitors and are down to the final round. You are now competing with the best of the best. How can you leave with the gold? Here are keys to making your interview a day for the champion.

• Get the company's annual report from its Web site, if available
• Visit its Web site to read about the direction of the company and any current media coverage
• Look over the Standard and Poors Corporate Records
• For smaller companies, call the city's Chamber of Commerce

For every company, you want the following company information:

• Services and/or products
• Competition
• Sales: any large increase or decrease and why
• New products/services available from the company
• International operations
• Any media information on the company in the last year

The Handshake

It tells a story about each person. Do you come from the top and give the power handshake? Do you shake hands very lightly? These examples may seem simple, but it is easy to start off poorly with a bad handshake. Avoid the light delicate handshake and the powerful over-the-top controlling handshake. Give a firm, full-handed handshake with members of both sexes.

Prepare Yourself but do not Memorize

If you try to memorize a response to the question, "What is your biggest strength?" you will blurt it out, privately congratulating yourself on your memory while the interviewer stares in disbelief at how quickly you answered that question without seeming to give it much consideration. When your interviewer follows with, "Why do you consider that your biggest strength?" you realize that you were not prepared for that one. Instead, think of some challenges in your work background--positive and negative--and tie your answer to those challenges, your response, and the results. For example:

Challenge: Your sales division's productivity decreased, and it seemed your division would not meet/exceed annual goals.

Response: You observed the staff to see where bottlenecks were occurring and determined a need for additional employee development and training. Then you focused on employee development through intense training.

Results: You were responsible for hitting corporate budget at year-end, and was noted by management for exceptional problem-solving and turnaround capabilities.

Now when asked, "What is one of your biggest strengths?" your response might be: "My biggest strength is my ability to identify potential problem areas, solve the problem, and produce results. An example of this would be when my division's productivity decreased and it seemed as though we would not meet/exceed our annual goals..." and continue with the story above.

This same scenario would also work if the interviewer had asked, "Describe a difficult situation and how you handled it" or, "What would management say about you?" Thinking through specific situations will allow you to choose scenarios most appropriate to the question.


Have Questions for the Interviewer
Here are some good ones:

• How does my job fit with the mission of the organization, corporate performance, or profitability?
• What will I be contributing to the organization?
• What makes your company different from others?
• What is your corporate culture?
• What differentiates your company from your competition?
• What significant changes has the company experienced in the past couple of years?
• How would you describe the most successful employees in your company?

Mental Preparation

This may seem hokey, but mental preparation is proven to be a good tactic in any high-stress situation. As you arrive early for the interview (at least 15 minutes), and you are waiting to be called in, mentally prepare for your interview. Picture the interview going smoothly, the interviewer asking questions, and your answering them perfectly. Imagine the interviewer telling you that you seem perfect for the job, as you leave even more excited about the position. These are some of the things that should be going through your mind. If you are nervous, start your mental preparation by taking deep breaths and thinking, "You are" as you inhale and, "relaxed" as you exhale. Repeat this procedure until you are relaxed. Avoid thinking, "What if they don't like me?" or "What if I get stumped?" and focus instead on relaxing. Just try it--mental visualization worked for the Bulls and Phil Jackson, and it will work for you.

Close of the Interview

You are ahead of the competition and on your way to the gold medal, but you get a cramp. Do you stop? Not a chance. You have to cross that finish line, just as you have to close the sale of yourself in the interview. The end of the interview is your time to close with a positive, "very interested in what you have learned" finale. When the interviewer is closing with, "Well, if you have no further questions, then we are done," that is your cue to say one of the following:

• Actually, I'd like to know how I should proceed from here. Should I contact you or will you be in contact?
• How soon will I hear from you?
• What is the process from here?
• What would distinguish one potential candidate joining your company from another?
• How do I prove my commitment to the organization?

Follow-up

You leave the interview and feel good about the position. Now go to your car and write down what just happened. Write the topics discussed, the characteristics the interviewer described for the position, and other details. This will help you write a thank you letter that shows both your interest and that you are a perfect match for the position.

There are, of course, as many ways to succeed in an interview as there are Olympic gold medal winners. The best advice is to relax and be yourself. Remember that your interviewer once interviewed for his/her job and understands the intensity of the interview process. By being as prepared as possible for your interview, you will enhance the qualities that have already made you a great candidate. Just remember that it takes preparation and know-how to play the game with strategy and excellence to win.

ERROR ON THE SIDE OF EXECUTION

For every hour, day and or week you delay in developing and executing your plan for obtaining a job, developing a career plan or taking an in depth assessment of where your skills, experience and flexibility are relative to the demand for your skills will affect your employability and earnings.

AVOID ERRORS OF EXECUTION

• You don't have to have everything perfect to start. The key is to Start Now.
  
• Use the available technology, coaching and other tools to leverage yourself.
  
• Your Competitors have the pedal on the medal and their eye on the prize.
  
• The elephant in the room is "raising the bar" each day.
  
• Over your employment life, waiting can cost you a significant amount of cash.
  

EMPLOYEES ECONOMIC RECOVERY TUNE-UP

According to a number of economist the sun is beginning to shine on the economic recovery. It's not White hot just yet but it's warming. With that in mind, it's important to take an assessment of where you are positioned regarding the recovery, regardless of your employment status:

• Have you completed an assessment of your skills?
  
• Have you updated your resume using a format that's appropriate for your skills and background?
  
• Do you have more than 1 resume?
  
• Does your resume support your accomplishments, unique personal brand and will it lead to an interview?
  
• Does your resume focus on results and not duties?
  

For help preparing you for the recovery, contact bdaniel@pridestaff.com

Cost of Turnover

The following is a comprehensive checklist of items to include when calculating the cost of turnover in any organization. To determine the costs, have the hourly and weekly cost of fully loaded payroll costs (i.e. salary plus benefits) of the vacant position, the management staff, the recruitment staff and others as outlined below.

It should be noted that the costs of time and lost productivity are no less important or real than the costs associated with paying cash to vendors for services such as advertising or temporary staff. These are all very real costs to the employer.

These calculations will easily reach 150% of the employees' annual compensation figure. The cost will be significantly higher (200% to 250% of annual compensation) for managerial and sales positions.

To put this into perspective, let's assume the average salary of employees in a given company is $50,000 per year. Taking the cost of turnover at 150% of salary, the cost of turnover is then $75,000 per employee who leaves the company. For the mid-sized company of 1,000 employees that has a 10% annual rate of turnover, the annual cost of turnover is $7.5 million!

Do you know any CEO who would not want to add $7.5 million to their revenue? And, by the way, most of that figure would be carried over to the profit line as well. What about the company with 10,000 employees? The cost of turnover equals $75 million!

Here is the list:


Costs Due to a Person Leaving:
1. Calculate the cost of the person(s) who fills in while the position is vacant. This can be either the cost of a temporary or the cost of existing employees performing the vacant job as well as their own. Include the cost at overtime rates.
2. Calculate the cost of lost productivity at a minimum of 50% of the person's compensation and benefits cost for each week the position is vacant, even if there are people performing the work. Calculate the lost productivity at 100% if the position is completely vacant for any period of time.
3. Calculate the cost of conducting an exit interview to include the time of the person conducting the interview, the time of the person leaving, the administrative costs of stopping payroll, benefit deductions, benefit enrollments, COBRA notification and administration, and the cost of the various forms needed to process a resigning employee.
4. Calculate the cost of the manager who has to understand what work remains, and how to cover that work until a replacement is found. Calculate the cost of the manager who conducts their own version of the employee exit interview.
5. Calculate the cost of training your company has invested in this employee who is leaving. Include internal training, external programs and external academic education. Include licenses or certifications the company has helped the employee obtain to do their job effectively.
6. Calculate the impact on departmental productivity because the person is leaving. Who will pick up the work, whose work will suffer, what departmental deadlines will not be met or delivered late. Calculate the cost of department staff discussing their reactions to the vacancy.
7. Calculate the cost of severance and benefits continuation provided to employees who are leaving that are eligible for coverage under these programs.
8. Calculate the cost of lost knowledge, skills and contacts that the person who is leaving is taking with them out of your door. Use a formula of 50% of the person's annual salary for one year of service, increasing each year of service by 10%.
9. Calculate the cost impact of unemployment insurance premiums as well as the time spent to prepare for an unemployment hearing, or the cost paid to a third party to handle the unemployment claim process on your behalf.
10. Calculate the cost of losing customers that the employee is going to take with them or the amount it will cost you to retain the customers of the salesperson or customer service representative who leaves.
11. Subtract the cost of the person who is leaving for the amount of time the position is vacant.

Recruitment Costs:
1. The cost of advertisements (from a $200.00 classified to a $5,000.00 or more display advertisement); agency costs at 20 - 30% of annual compensation; employee referral costs of $500.00 - $2,000.00 or more; internet posting costs of $300.00 - $500.00 per listing.
2. The cost of the internal recruiter's time to understand the position requirements, develop and implement a sourcing strategy, review candidates' backgrounds, prepare for interviews, conduct interviews, prepare candidate assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of a recruiter's assistant who will spend 20 or more hours in basic-level review of resumes, developing candidate interview schedules and making any travel arrangements for out-of-town candidates.
4. The cost of the hiring department (immediate supervisor, next level manager, peers and other people on the selection list) time to review and explain position requirements, review candidate's background, conduct interviews, discuss their assessments and select a finalist. Also include their time to do their own sourcing of candidates from networks, contacts and other referrals. This can take upwards of 100 hours of total time.
5. Calculate the administrative cost of handling, processing and responding to the average number of resumes considered for each opening at $1.50 per resume.
6. Calculate the number of hours spent by the internal recruiter interviewing internal candidates along with the cost of those internal candidates to be away from their jobs while interviewing.
7. Calculate the cost of drug screens, educational and criminal background checks and other reference checks, especially if these tasks are outsourced. Don't forget to calculate the number of times these are done per open position, as some companies conduct this process for the final 2 or 3 candidates.
8. Calculate the cost of the various candidate pre-employment tests to help assess a candidates' skills, abilities, aptitude, attitude, values and behaviors.

Training Costs:
1. Calculate the cost of orientation in terms of the new person's salary and the cost of the person who conducts the orientation. Also include the cost of orientation materials.
2. Calculate the cost of departmental training as the actual development and delivery cost plus the cost of the salary of the new employee. Note that the cost will be significantly higher for some positions such as sales representatives and call center agents who require 4 - 6 weeks or more of classroom training.
3. Calculate the cost of the person(s) who conduct the training.
4. Calculate the cost of various training materials needed including company or product manuals, computer or other technology equipment used in the delivery of training.
5. Calculate the cost of supervisory time spent in assigning, explaining and reviewing work assignments and output. This represents lost productivity of the supervisor. Consider the amount of time spent at 7 hours per week for at least 8 weeks.





Lost Productivity Costs:

As the new employee is learning the new job, the company policies and practices, etc., they are not fully productive. Use the following guidelines to calculate the cost of this lost productivity:
1. Upon completion of whatever training is provided, the employee is contributing at a 25% productivity level for the first 2 - 4 weeks. The cost therefore is 75% of the new employee's full salary during that time period.
2. During weeks 5 - 12, the employee is contributing at a 50% productivity level. The cost is therefore 50% of full salary during that time period.
3. During weeks 13 - 20, the employee is contributing at a 75% productivity level. The cost is therefore 25% of full salary during that time period.
4. Calculate the cost of coworkers and supervisory lost productivity due to their time spent on bringing the new employee "up to speed."
5. Calculate the cost of mistakes the new employee makes during this elongated indoctrination period.
6. Calculate the cost of lost department productivity caused by a departing member of management who is no longer available to guide and direct the remaining staff.
7. Calculate the impact cost on the completion or delivery of a critical project where the departing employee is a key participant.
8. Calculate the cost of reduced productivity of a manager or director who loses a key staff member, such as an assistant, who handled a great deal of routine, administrative tasks that the manager will now have to handle.

New Hire Costs:
1. Calculate the cost of bring the new person on board including the cost to put the person on the payroll, establish computer and security passwords and identification cards, business cards, internal and external publicity announcements, telephone hookups, cost of establishing email accounts, costs of establishing credit card accounts, or leasing other equipment such as cell phones, automobiles, pagers.
2. Calculate the cost of a manager's time spent developing trust and building confidence in the new employee's work.

Lost Sales Costs:
1. For sales staff, divide the budgeted revenue per sales territory into weekly amounts and multiply that amount for each week the territory is vacant, including training time. Also use the lost productivity calculations above to calculate the lost sales until the sales representative is fully productive. Can also be used for telemarketing and inside sales representatives.
2. For non-sales staff, calculate the revenue per employee by dividing total company revenue by the average number of employees in a given year. Whether an employee contributes directly or indirectly to the generation of revenue, their purpose is to provide some defined set of responsibilities that are necessary to the generation of revenue. Calculate the lost revenue by multiplying the number of weeks the position is vacant by the average weekly revenue per employee.