HOW EMPLOYERS PLAN TO MOVE FORWARD IN THE NEW YEAR

1. REPLACING LOWER-PERFORMING EMPLOYEES
Employers are taking advantage of the large number of top talent in the current labor pool to strengthen their work force. Thirty-seven percent of employers say they plan to replace lower-performing employees with higher performers in 2010. When asked to grade their current work force, 25 percent rated them an “A” 60 percent a “B”, 15 percent a “C” and 1 percent a “D”. Less than one-half of a percent felt their current staff was a failure.

2. EMPHASIS ON SOCIAL MEDIA TO STRENGTHEN BRAND
The economy required companies to make some tough decisions about their businesses, which had a negative impact o their brands. Close to four-in-ten (37 percent) employers plan to put a greater emphasis on social media in 2010 to create a more positive brand for their organization. One-in-five employers plan to add social media responsibilities to a current employee, while close to one-in-twelve (8 percent) plan to hire someone new to focus or partially focus on social media.

3. REHIRING LAID-OFF WORKERS
Companies needed to scale their businesses to market last year and four-in-ten employers say they were forced to lay off workers. Among those who had lay-offs in 2009, thirty-two percent of employers now say they plan to bring back workers and the-in-ten are either doing it now or plan to do so in the first six months of 2010.

4. FLEXIBLE WORK ARRANGEMENTS
Companies plan to continue providing employees with greater flexibility in hopes of maintaining a better work-life balance. Thirty-five percent of employers say they plan to provide more flexible work arrangements in 2010, compared to 31 percent last year. Among those who will offer flexible work arrangements, these arrangements include:

5. CUTTING PERKS AND BENEFITS
Even as companies look to the new year and toward growth opportunities for their businesses, many are still choosing to trim perks and benefits. Thirty-seven percent of employers say the will cut perks and benefits in 2010, up from 32 percent who said they trimmed in 2009. Perks and benefits employers plan to trim in the new year included bonuses, medical coverage, suspended 401k matching and office perks such as coffee, tea and condiments.

6. REHIRING RETIREES AND POSTPONING RETIREMENT
Companies understand the intellectual capital mature workers bring to their organization and 27 percent say they are open to retaining their workers who are approaching retirement. Sixteen percent say they are likely to rehire retirees from other companies in 2010. Additionally, one-in-ten are likely to provide incentives for workers at or approaching retirement age to stay on wit the company longer.

At the same time, workers have expressed interest in postponing retirement. Thirty percent of employers report they have received request from workers approaching retirement age to stay on with their company, up from 22 percent last year.

7. FREELANCE OR CONTRACT HIRING
While employers still plan to be cautious regarding the number of full-time employees they add in the new year, many will turn to freelance or contract employees to help keep their businesses moving forward. Three-in-ten employers anticipate hiring freelancers or contractors in 2010, up slightly from 28 percent in 2009. Six percent expect to employ more freelance workers or contractors than last year, while 15 percent expect to hire the same amount and 10 percent plan to hire fewer.

8. GREEN JOBS
Employers will continue to turn some of their focus to the environment in the new year. Eleven percent of employers say they plan to add “green jobs” in 2010 the same amount who said they added them in 2009. “Green Jobs” are positions that implement environmentally conscious design, policy and technology to improve conservation and sustainability.

9. BILINGUAL RECRUITMENT
Employers have identified having a diverse work force as an important measure of success as they begin to rebuild their businesses after the economic downturn. One area they plan to focus on is building a bilingual team. Four-in-ten employers said they plan to hire bilingual candidates in 2010 and half said that they had two equally qualified candidates; they would be more inclined to hire the bilingual candidate.

10. BUSINESS TRAVEL
While employers are inching away from cost containment and more into growth, one area they still plan to save money on is business travel. Forty-three percent of employers say that in their organizations there will be less business travel in 2010 than in 2009.

Questions You Should Ask During The Job Interview

At some point, usually at the conclusion of the interview, you may be asked, “Do you have any questions?” A common answer to this question is, “No, I think you’ve covered everything very well.” This is the wrong answer! You have passed up your opportunity to ask some critical questions that may make a a difference as to whether you want to work for this company.

Here are some rules and basic questions to consider asking when asked if you have questions:

Rule #1

Ask questions. This is a critical time for you to find out insider information about the company or position.

Rule #2

Formulate your questions based on information you hear during the interview.

Rule #3

Bring a list of potential questions to ask, at least four or five, as a back up. Example: You’ve been discussing your system; could you tell me what has been tried in the past to deal with the problem? (Listen carefully to the answer given, as this may be your chance to inform the interviewer of our past experience with the same type of problem.)

"Paying attention to clues and listening are the keys to asking intelligent questions."

Question #1

There are a lot of companies laying off right now. How has this company been able to maintain the workforce and continue to hire new employees? (You’ve done your research and know some of the reasons, but are interested in the insider point of view.)

Question #2

Could you tell me about the way the job has been performed in the past? And, what improvements you’d like to see happen? (This is an opportunity to convince the interviewer that you have what he/she is looking for by giving a specific, similar past experience story.)

Question #3

How would you describe the culture or spirit in this company? (One of the interviewer’s concerns is whether you will fit into the company culture. You need more information to see if this would be a good environment and fit for you.)

Question #4
What are the challenges I would face in this position over the next three months?(Your first 90 days on the job is a critical time for any new hire. You need to know what will be expected of you as you start your learning curve.)

Question #5

When I responded to your question regarding my past experience handling stress, you commented that you have your share of that here. Could you tell me more about the stress level here? (Clues are given and problems alluded to during the interview – listen carefully and turn up your intuition. Ask questions if you need clarification.

Question #6

May I ask what your background with the company is? (There’s a big difference between showing an interest in someone and grilling them. Interviewers don’t like being cross-examined. Ask friendly questions and be alert to clues regarding this person’s satisfaction with the company.)

Question #7

How would you describe your management style and interaction with your staff? (You may need to read between the lines here. Make sure this manager’s communication and style fit with your ideas and values.)

Question #8

Ideally, what qualities are needed to get this job done? (This is a chance for you to sell yourself, and tell once more why you are such an excellent fit for the position – the added-value you would bring to the company.)

Question #9

I am very interested in pursuing this job further. What is the next step in the hiring process? (It is best to find out what the hiring plan is so that you will know the sense of urgency and how to follow up.)

The types of questions you ask will be determined by the conversation and types of questions asked of you during the interview. Pay attention to the interviewer’s body language to determine how many questions to ask – relaxed and willing to talk, or in a hurry and running late?

Lastly, make sure your questions are succinct and to the point, demonstrating your knowledge and interest.

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.
  

BEYOND SENDING YOUR RESUME

YOU’VE DISTRIBUTED YOUR RESUME…… SO WHAT

Now that you’ve faxed, mailed or e-mailed your resume you’re probably wondering why your phone is not ringing off the wall or e-mails are not filling you’re in box.

It’s an employer’s market and you are competing against a number of qualified individuals for each position. So what can you do to stand out from the crowd? What can you do to capture their attention?

You must do what others are not doing! Namely use your own Marketing Campaign.

• Make multiple quality contacts using Phone, e-mail, letters, video e-mail and post cards.
  
• Using Networking, find a way to get an introduction.
  
• Show up at the work site or location and ask to speak with the hiring manager. If you don’t get to see the manager, leave a hand written note.
  
• Invest $2 in a McCafe card and mail to the hiring manager with a note indicating what’s a time to meet and you’ll spring for the coffee.
  
• Send a funny e-card.
  

Want to know more? 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.