Tuesday, March 24, 2009
I Just Got Fired
--Highly recommended
Monday, March 2, 2009
Success Techniques: On line Job Search (I)
Posted by: William W. (Woody) WilliamsOver the past 12 or 13 years, every job offer I accepted came about as a direct result of using online tools. That's a bold statement but it's true. Others tell different tales about their on line experiences but this story is about a 100% success rate.
Online tools are not the only resources used, or useful, and they are not the only key to success. I don't recommend relying solely on online tools. That said, online tools are quite important, especially when synchronized with offline networking, face time, and other activities.
Having been a project manager for ten years or so, there's a reliance in my personal life on repeatable methods and processes. I treat searching for employment opportunities in the same manner as any other project. After all: Why not? It works.
What follows is a distillation / summary in three parts of some successful working methods and processes.
Online Job Search: Recommendations for Success (I)
Online, Public, Searchable Resumes: The Job Boards
First Agonizing Reality: There is No Common Ground
An agonizing reality faced by every job seeker playing the online "resume roulette" game, is the multitude of format requirements across different sites and venues. Job boards, networking sites, recruiters, and employers all require something a little different in profiles or resumes.
Resume File Size
In the resume department, there are sites cutting off uploads at 100K (HotJobs is one), others cut off at 200K (CareerBuilder is one), and still others that accept any file size we throw at them.
For the successful online job seeker, several resume file sizes may be needed and, regardless of file size, all must be crafted to convey the same message and communicate virtually the same information. It's a challenge and it requires a full time approach and careful attention to detail.
Smaller file size requirements obviously favor the "no more than one" or "no more than three" page approach to creating resumes. For recent grads and folks with less than five years experience, that's simple enough. For the contractor or consultant with 10 gigs in the last five years, or folks with 10 or more years experience, creating a resume in MS Word with a file size less than 100K is daunting.
The simplest approach is probably the best and, in this case, simpler means less "version control" across multiple resumes. That could mean one version (.doc, .pdf, or other document format) at less than 100k used for submissions and uploads everywhere. A more realistic approach involving minimal version control is creating two versions: One at less than 100K and the other at less than 200K.
Use the less than 100K file for submissions to sites with restrictive upload limits and the less than 200K file for everything else.
Resume file format
Some boards require resumes in plain text only, others take MS Word, Rich Text, and/or PDF. Some accept HTML and others: No way.
Some job boards reformat resumes sent as documents into HTML for on-line display. These sites have various formatting requirements (some stated; some not) to help manage that conversion in a relatively friendly fashion.
Most sites have a link to information on how to optimize the resume format for submissions. Do not ignore that link: Use it if they offer it and customize the resume format for optimal results. Optimal is always the better choice.
For better results, create three versions: MS Word, Adobe PDF, and plain text. Don't forget that each of these three versions needs to meet the file size criteria previously discussed. That could mean, given both less than 100K and less than 200k file size versions, creating each in a different file type as well. Fortunately, that usually isn't required.
For one thing, plain text versions rarely present issues with file size constraints. A 200K MS Word resume, for example, saved as plain text should be easily less than 30K and submit without issue to just about any site that accepts plain text. It won't be pretty, but it will upload.
Plain text resumes may not display well when converted to HTML compared to more sophisticated formats. They also lack formatting options that lead to easy reading. Plain text, on the plus side, easily scans into databases used by job boards, employers, and recruiters. Job seekers must have a plain text resume version but it shouldn't be the only version.
Converting or printing to Adobe's Portable Document Format (PDF) usually reduces the file size of an MS Word document. At the very least, it won't be a larger file size. Another advantage to PDF is that conversion to HTML is usually pretty smooth. However, PDF documents scan to some but not all databases. In a case where it is known that a resume is going to a database (recruiters, most large HR departments), it's better to send MS Word, RTF, or Plain Text instead of PDF.
PDF is an excellent format for personal email since file size is smaller, formatting is retained, changes are not allowed, and almost everyone has the capability to view PDF documents. Job seekers should have this file type but remember it's not scannable into all databases.
MS Word documents get big fairly quickly, especially if colors, multiple fonts, and a lot of formatting options are added. For a short resume ( 1 - 3 pages), this shouldn't represent a file size issue. If the resume is five pages, it's probably north of 100K. If the resume is eight to ten pages, it's probably north of 200K. When creating a resume in Word, keep a close watch on the file size and choice of formatting options.
One MS Word formatting option worth mentioning concerns tables vs columns. Most job boards that convert resumes to HTML render tables as expected -- the same way it looks in Word. Columns, however, do not render the same -- the columns are lost, becoming long paragraphs.
On the other hand, converting a Word document with tables into other formats (Rich Text or Plain Text) requires a lot of manual clean-up. Not so with columns. Some job boards recommend against tables for this reason.
Using tabs or spaces to create table-like sections in MS Word is not recommended. They rarely render well or convert easily.
There are open source options for document creation that get away from relying on MS Word.Google Docs is one "cloud" or on line example. Open Office is another, downloadable, runs-from-the-desktop option. Most open source applications allow saving in MS Word, PDF, and other formats.
For job seekers without MS Word, cloud and open source applications may represent the best solution. It may be a good option for any job seeker wanting to maintain one source file with multiple compatibility options.
No matter which or how many sites or job boards used or their file formats, focus on consistency in content and message across all.
Success Techniques: On line Job Search (II)
Posted by: William W. (Woody) WilliamsOnline Job Search: Recommendations for Success (II)
Other Job Board Vagaries and Twists of Fate
One job board -- don't remember which at the moment and it might be more than one -- won't accept a school added to a member profile unless a degree is selected. If career related courses were taken, for example, at a community college but no degree obtained from that institution, it can't be included in the profile. Other job boards have a "no degree" option available.
Most job boards won't accept a school added to a member profile (degree or not) unless a physical location / address for the institution is selected. "Online" is not an option. That is non-intuitive since there are numerous online colleges with no brick and mortar attached. So, if a certification course was completed online from Villanova, for example, then the profile shows the location as a suburb of Philadelphia, Pennsylvania.
The "school locations" constraint is probably there to avoid confusion between schools with the same name in different locations. However, it may result in employers or recruiters assuming this means a residency in Philadelphia, for example, when that is not the case. At the very least, for those with credentials from on line educational organizations, it means digging around and finding a physical address.
The amount and kind of similar vagaries are too numerous to list or categorize logically.
Bottom line: Be prepared to accept and handle these things on a one-off basis. Be flexible; take a deep breath; move on.
Employer web sites
Job applicants, in most cases, should expect corporate HR sites to be onerous, capricious, complex, less rational, and more time consuming than any other on line entity. Only the largest and most conscientious organizations make an attempt to provide a clean, friendly, user experience. These are few and far between.
The odds are good that one of the resume file formats and sizes created can be uploaded to a corporate HR site. But, be prepared, many do not accept a resume at all preferring, instead, for applicants to build a resume or application from scratch using their proprietary system. Some require opening an account with log on and password, profile building, and more.
Bottom Line Again: Be flexible; accept what comes and move on.
Other online documents
References
Create a list of references in a couple of file formats -- one document (.doc, .rtf, pdf) format for submissions and email and one in plain text. References are not typically required unless an interview is scheduled, however some HR / corporate websites require references up front. Use the plain text version to easily cut and paste into on line forms.
Never send references unless requested to do so and the recipient is trusted.
Cover Letter
Probably not as meaningful for contract opportunities as for permanent positions but a good idea for all.
Create a simple template document. Include a section for "Requirements and Response" and a Value Proposition. An "availability statement" is particularly important if relocating or working away from home .
For each submission, cut and paste the specific job requirements to the "Requirements and Response" section and bullet the list. For each requirement, briefly note if it's met or not (Yes/No) and a brief statement. "Yes, expert, 10 years," for example. Be sure to include all the job requirements posted.
Research the company, its culture, and goals. Tell them why/how those goals are fulfilled and the culture a good fit. Quantify the value brought to the table and tell them what it means for this position.
If the position, for example, requires experience in process improvement, include a statement based on verifiable personal experience such as...
- Reduced call center resource needs by over 30% through process improvement initiatives.
- Increased retention rates in key resources by 25% in one year through team building, advocacy, and leadership.
Most job boards allow members to save cover letters. Use the same template on all and customize for each submission.
Documents: The Point
The point of the cover letter is to motivate a real person to take the next step and look at the resume rather than hit the "next" key. Be very brief and focused on meeting the specific needs of the employer and, therefore, generating interest in reading / viewing the resume.
The point of the resume is to motivate a real person to take the next step and schedule an interview. Customize each submission to the needs of the employer. Be specific and be brief about the quantified, verifiable value the candidate brings in terms of the specific position and specific corporate culture.
The point of the interview is to get the job... but that's not in scope at the moment. It is important to understand the flow of things... from cover letter to resume to interview, and what the point is for each document submitted.
Success Techniques: On line Job Search (III)
Posted by: William W. (Woody) WilliamsOnline Job Search: Recommendations for Success (III)
A Systematic Approach
Develop a systematic approach... a process by which resumes, cover letters, and the data points required for submission are close at hand, organized, and systematically used.
At the very least, create various resume versions -- all conveying the same message and synchronized content -- to meet typical on line submission requirements.
Resumes should be designed and crafted for ease in customization -- to speak to a specific submission. Customize for each submission -- usually by deleting irrelevant content.
In other words the "basic" resume versions that are public on the job boards are broad -- they include the full experience and skill set. A customized resume for a specific submission is usually briefer and only includes the experience and skill set relevant to this particular position. Big resume = broad coverage. Smaller resume = Specific submission.
Store different "basic" versions (file size and formats) in a logical file system. Ditto for cover letters and references. Store specific (customized) submissions in a different file system -- more below on that point.
In addition, a text file or other document with data required for submissions (especially employer HR sites) but not typically included on a resume is also helpful. Previous residence information, is one example.
Become very fast and efficient -- a cut-and-paste daemon of mythical proportions.
Keep all submissions. Store them in a logical file structure. Here's one way to do so.
- Create a folder named "Resume" to hold the basic versions
- Create a sub-folder under "Resume" named "Submitted."
- Create sub-folders under "Submitted" with company names: XYZ_Inc or ABC_Agency.
- Stash each submission in its company named folder.
Critical: Synchronizing the Public View
When a recruiter or employer views a LinkedIn profile, then looks at a resume, they may also have access to the Dice or Monster profile of a candidate. Everything should "synch" and look the same. If a skill on the resume shows 5 years experience, the same skill on Monster shows 3 years, and on LinkedIn the skill isn't mentioned at all, they will not offer the job to that candidate.
The "basic" resume and profile across all platforms should say the same thing in terms of message and content even though the look and feel varies depending on the site. Even if it's not a best-in-class, professionally produced resume, at least the job seeker is consistent. That's a good thing.
An Online List and Updates
Make a list of job boards, recruiters, organizations, business networking, and personal networking sites. Ones used currently and those targeted for future use. Make sure log on / password information is saved (securely) for quick access and sign-on.
Use the list to ensure alignment between all public profiles and resumes. It's like a 2-do or checklist when making changes or additions to resumes or profile information... a map of where the change should flow. This is invaluable (critical) for "version control."
When the next job is landed, use this list to systematically back-out or go private. It serves as a map showing where the public items are posted. Going through the list means going "private" again very quickly.
Make systematic and regular updates to public profiles and resumes on job boards, LinkedIn, and recruiter / corporate web sites. For active job seekers, monthly is not too often. Recently updated resumes and profiles generate more interest from employers and recruiters alike. Create a calendar event and include a reminder -- the first or last weekend of each month, for example -- and update everything on a regular basis.
Social Networks & Business Networks
Facebook, MySpace, Flickr, and Ning, for example, are social networks. LinkedIn, in contrast, is a business network. Both social and business networks are important, especially how they are managed.
Social networks, even though not necessarily business related, may contain connections that are... Either now or in the future. What is said on social networks does matter -- or may matter in the future -- in ways that affect career advancement. Another important point: Potential employers and recruiters can view public profile information on social networks. Manage social networks with these points in mind.
One good approach is making a clean separation between business and social online networks. For example: LinkedIn -- only for business; Facebook -- only for friends. Don't connect on Facebook with the same people connected with on LinkedIn. Keep connection preferences and profile views on social networks private -- "friends only." Be careful in selection of those friends. Usually just family and close personal friends.
At the very least, "clean up" the public parts of social networks when actively job seeking. Comments about previous employers, opinions about people in business organizations or the organizations themselves, comments about politics, religion, news, events, and the like -- even when positive -- can be, and are subject to interpretation. Seemingly innocuous remarks made in a public, online venue may result in another individual being selected for a desirable position.
Going a step further... make sure profiles posted on social networks are synchronized with profiles elsewhere.
Email updates
Build an email list based on previous email contacts and friendly connections on LinkedIn or other networks. Include recruiters who have shown interest in the past, people who are willing to personally help, hiring managers, and the like.
The list should only include people with whom we had previous contact concerning job opportunities. That last bit is important -- people with whom we had previous contact. It's an "interested party" list, not spamola. Keep it updated; current.
When the job search begins, send an updated resume, perhaps an availability statement (where / when), and, perhaps an updated value proposition statement to the list. With each regular update of on line profiles and resumes, send an update to the list. Not every week... but once a month is probably OK.
In each email update, mention the "previous contact" thing briefly to refresh any lagging memory banks. Say, again briefly, that this is an update to the resume, "for your review and comment." Attach it, include it in the email, and/or provide a link to it. Just that: No begging. No "pitch." Just an update.
When the new, "next" job becomes reality, send an email update to the list signaling success and ending the need for assistance. If it's a contract and there are recruiters on the list, mention the contract end date and ask for future job recommendations after that date.
Conclusion
It is what it is.
For first time job seekers or those just beginning the online job search process after some time in a permanent position, ramp-up is considerable and frustration a constant companion. It will take time, especially in today's market, so be prepared for a lengthy process. Be patient, work online and offline networks -- and synchronize.
Bottom Line: Be flexible; every challenge has an opportunity in it somewhere. Get a system together and use it. Success will come.
Friday, February 27, 2009
How to Negotiate Salary Like a Pro
Posted by: William W. (Woody) WilliamsA recent discussion on LinkedIn -- in the "Answers" area -- prompted some thought on our part and a response that was tagged as "Best Answer" to the question.
The question: "You are about to receive a job offer – how do YOU negotiate salary…?"
Posted by Dennis Abenanty, founder of KareerKit in preparation for an upcoming article on salary negotiation.
That article is now published on KareerKit and well worth a read -- nice format, easy to assimilate, great advice.
Here are our negotiation points, reformatted from the LinkedIn answer.
Negotiating for permanent, direct-hire positions is a bit different than for contract or contract-to-hire. In either case, an approach based on "total compensation" is generally better thinking than relying on salary alone. Not that salary isn't important; total compensation is simply better.
A caveat: When looking at "benefits" and "total compensation," don't give too much -- or any weight to benefits requiring three years or more tenure to achieve. At least not in the initial negotiation / calculation. Most of us change jobs so frequently and companies change hands or policies so frequently that getting to "five weeks paid vacation" after six years is not something we're likely to actually see.
Before we go into what's on the table for total compensation, a brief comment on "value."
One thing every job seeker should know and understand is their "value proposition." Many of us make the mistake of simply listing education and experience on our resumes without making the jump to defining ourselves in terms of value to the business. This puts us at an extreme disadvantage in any negotiation.
Our value proposition must be a part of our resume (perhaps the most important part), our "elevator pitch," our interview checklist, and the basis for our negotiation. That value proposition must be quantifiable and verifiable. For more on that, Google "value proposition" and "resume." Mine is here or here for comparison.
What's on the table in terms of total compensation?
A few total compensation items from our personal short list.
Base Rate
- The salary component of the equation
- Signing bonus
- Performance bonus
- Stock options
- Profit sharing
- Other annual bonus
- Disability Insurance
- Dental/Vision Coverage
- Health insurance
- Paid time off ( Sick leave, Personal, Holidays, Vacation, Maternity / Family Leave)
- Flex Time and/or Alternative Schedules
- Work from Home
- 401K matching
- Education (stipends, paid, or time allowed)
- Training: (In-house provided @ no cost; Outside allowed and/or reimbursed)
- Company equipment: (cell phone, laptop, blackberry, transportation, use of corporate facilities, and the like)
- Relocation expenses
- Personal travel assistance
If the position is contract or contract-to-hire, another option is to take some of the hourly rate as per diem. For the employer, per diem is not "wages" -- ditto for the employee. In other words, a better tax situation for all.
Some of us are genuine "Type A" negotiators -- extroverts who love to compete. Others are less so and not as comfortable in the negotiating chair.
If we are in the second category, we may need help... professional assistance. Training and counseling is available to develop or hone our skills. Toastmasters International is one excellent example venue to train and hone those skills. Professional recruiters, agencies, and "head hunters" can do some of that for us as well. Those of us who simply can't bear the stress of negotiation or who are admittedly ineffective at it should seek assistance.
There are other requirements in the build-up to successful negotiation -- more than just a laundry list of total compensation items.
- We must research potential employers -- know them well, talk with employees and ex-employees, research the company financials... and especially know their compensation history and reputation.
- We must research and understanding the current market -- know what we are worth in terms of median salaries in the area and comparable positions.
- We need our (quantifiable, verifiable) value proposition down pat.
- If we are not comfortable as a negotiator, we should get assistance from professionals as needed.
Saturday, February 21, 2009
More: Jobs and Wages
Posted by: William W. (Woody) WilliamsWow.
Let's just say we received some interesting feedback on the previous post (Jobs & Wages: Whose Price is Right). We appreciate, as always, all comments and opinions but we are especially appreciative when they are intriguing, thought provoking, and lead to new understanding. So... Thanks!
In the spirit of clarification, continued refinement, and spirited response to the opinions of others, here's more...
It is not difficult to understand the situation of people who are caught in a wage squeeze. More to the point, there is deep understanding and great sympathy. After all, we are in the business of IT and compete in that wage market as well. Let's just say it's personal but there is value in stepping back and taking a larger view of the situation.
Let's go back to the housing part of the wages and compensation formula for a moment. If we review the history of home prices in the US, perhaps that will clarify the previous post. It is an eye opening experience.
Take a look at this graph from a New York Times article. It shows housing prices from around 1900 up to the start of the housing price bubble.
There are ups and downs. After all, cycles are the norm in the natural as well as man-made world. Looking at the trend line is a different matter. Over the hundred year (+/-) time period from about 1900 through 1997 - 1998, the median price of a single family home in the US kept up with inflation -- no more than that.
For a hundred years, our home was one of the safest investments we could make. Homes held their value... Returns were not at stock market levels but we got back what we paid for our home plus inflation which is a better return than if we had kept our money in CDs.
In 1997 - 1998 that changed. The bubble began, fueled by a global hunger for asset based credit and real estate backed investments. We're now on the downside of that bubble but nowhere near reasonable or sustainable levels.
In order for the housing market to "get healthy" again, the price of homes should settle, after some fluctuation, to at or slightly above 1997 - 1998 levels. If it does not or if it is propped up artificially, the consequences are dire. There is a tawdry, catastrophic history of what happens when prices are kept at artificially high levels. Been there; done that.
This bubble had and still has a huge impact on our perception of fair wages. The cost of purchasing and maintaining a home is a significant part of our employment and financial survival strategy. When home prices fall back in line with historical trends, our perception of wages and compensation will improve along with our standard of living.
The market will take care of that but, since government is intervening, the process may take longer.
On wages...
There is no dispute that wages in a particular field or job classification are directly affected by the number of qualified candidates on the market... both upward and downward. The previous post made that point clear. That is supply and demand.
One point we did not specifically call out in our previous post -- apologies tendered -- is that wages and compensation for engineering and technical jobs have been on a bubble just like home prices but for different reasons.
Even with increasing numbers of US college graduates in engineering and technical fields since the 1950's or so, median salaries for those fields have increased disproportionately compared with wage increases in other fields. That is indicative of a supply / demand imbalance.
The US is at the bottom of the list in terms of the percentage of 24 year olds holding a degree in an engineering or technical field when compared with the rest of the world. In 2007 the US was 5th from the bottom, just above Kyrgyzstan. We are not, despite the disproportionate wage differential, a powerhouse in producing engineering and technical professionals.
Reference for wage statistics (MIT paper).
Yet our future is highly dependent on just this type of talent. Bill Gates, and others, are generally correct in their assessment that more technically skilled labor is needed than we produce in the US.
In the cyclical nature of things, corrections occur... sometimes they are over corrections. In the area of engineering and technical salaries, a correction is in progress and it should be allowed to progress. The market is, in this case, working and working well. Included in that "working well" assessment is the assistance of a large and highly available global pool of skilled labor.
Until we -- the US -- can produce engineering and technical graduates at a market stabilizing level, businesses will continue to use that foreign labor pool. They should, in our opinion, be allowed to do so freely. As mentioned in the previous post, keeping wages "off a bubble" is a direct driver of lower prices for everyone in the country. Artificially propping up wages is an exercise in disaster with plenty of history to show the dire consequences. Again: Been there; done that; don't go there again.
Granted: At a personal level, we can't eat averages, markets, or cycles for dinner or pay our bills with them. Adjustments and changes are uncomfortable and sometimes we can't agree on what, at a personal or national level, should be done about being caught on the downside of a correction. However at the personal level, adjustments are essential even if we can't agree on a cause.
We can, at a national level, agree on defining what the real, underlying problems are and begin to address them instead of taking one symptom at a time and treating each symptom in a way that hinders our overall recovery. That is the point and conclusion of the previous post.
Gnash it!
Friday, February 20, 2009
Jobs & Wages: Whose Price is Right?
Posted by: William W. (Woody) WilliamsWorkers in the US loudly lament the low cost of offshoring technology with much wailing and gnashing of teeth. Software development and related costs are the ones we hear most often (because that's our business) but there are other areas as well. It's disturbing. That teeth gnashing sound in particular.
Gnashers claim offshoring is lowering US wages and causing highly educated people great financial difficulty even to the point of loosing the ability to adequately support their families. Other doom-and-gloomsters make a slightly different point: That wages are being "globalized." They mean some kind of world-wide equalization of pay is occurring. The standard of living for everyone in the US is, according to the doomsters, moving smartly along in the proverbial hand basket on its way to mud hovels and pointy sticks.
We've all heard this before, albeit for different reasons at different times. There's always a "great menace" growing out there in the dark just waiting to overwhelm us while taking out the trash.
Despite copious quoting of statistics and vehement rhetoric from the gnashers, they substantially miss the point. Perhaps they should give up gnashing in favor of a more wholesome, comprehensive approach. That's not happening yet but perhaps we can help point out the obvious.
The "problem" isn't wages. Wages are symptomatic but not the problem. A guy who just had an on-the-job accident at a construction site with a piece of pipe embedded in his forehead isn't given a couple of aspirin and told to "get over it" because he's complaining of headache. Symptoms are recognized, aggregated, analyzed, and integrated to arrive at a comprehensive diagnosis. At least that's how intelligent people do it.
Where does thinking like this come from?
From the same place and people who brought us this classic: Since wheat costs six dollar a bushel (or whatever it is), bread should cost about three cents a loaf. Or conversely, since bread cost three dollars a loaf (or whatever it is) and the farmer gets three cents for the wheat in a loaf, the farmer should get more for their wheat... or bread should only cost three cents a loaf depending on who is doing the gnashing. We've all heard that or something similar and offshore wage gnashing is based on similar logic... or, lack thereof.
Businesses that manufacture and sell cars pay for a lot more than steel. Ditto breadmakers and their wheat. We won't go cruising through Excel spreadsheets, overhead costs, or operating expense reports here but, suffice to say, steel and wheat are only part of the story. Everyone can easily understand and appreciate that fact but that's just where the gnashers get it wrong. They select specific bits and pieces of a story and ignore the rest -- especially ignore anything that might cast doubt on their preordained conclusion.
Gnashers already have an opinion (always a negative one) and are only going to tell us things that back their negativity even if they have to make it up as they go. Kind of a reverse play on the scientific method.
That's how intelligent people develop theories; the scientific method.
The complete structure of how and why wages are what they are over the entire planet, solar system, and known universe is not quite in scope for this blog entry. We can, however, broaden our horizons greatly and take on some of the most important, overlooked aspects of wages. We are heading into a space beyond gnashing.
In any particular place and time, there is a cost associated with becoming qualifed by education to take on a specific job. Let's leave aside the question of whether or not we are capable of or have the potential, assume we do, and look at our cost.
Our "qualification cost" could be the cost associated with apprenticeship programs or indentured labor or working with the old man in the family business as a cobbler starting out with sweeping floors. Apprenticeship and internships are still currently viable -- indentured servants in the US disappeared a few centuries back. Currently, for the majority of us, the cost of becoming qualified for a particular job involves educational expenses at a college or university: Tuition, fees, books, and living expenses.
Suppose after some research we determined that earning the average annual starting salary for our chosen job over a five year period allows us to live comfortably within our means and pay back our total cost of education including any loans.
Is that a good deal?
Sure it is. We'd do it. A lot of people have... sometimes flooding a particular market with new candidates.
Suppose after similar research we found that, for a different occupation, it takes 20 years or more to break even on our education cost.
Is that a good deal?
Not so much.
Suppose we found out that earning at the top of our profession, we could never recoup what we paid for the degree.
Bummer, huh. Some people would probably still do it but that's another discussion. There are gnashers out there working on this right now.
The lesson here is that there is a very close relationship between education cost and wages, especially from the workers perspective. The math is simple: If if costs us more to get the job than we can make from it, we probably won't go there. That has an effect on wages in the supply and demand world.
There are further complexities to this relationship but this is enough to go on for now. The cost of education is not the only thing affecting wages and compensation.
Apartments in Boston and New York city cost a lot more than apartments almost anywhere in Kansas or Oklahoma -- just an example; no disrespect intended to any city, state, or apartment building.
Lemons are commercially grown in only the southern most parts of the US. Shipping produce long distances has a cost. Lemons probably cost more in Quebec than in San Antonio, TX or San Diego, CA. Again, no disrespect intended.
Some states have income tax; others don't. Hospital district, school, and property taxes vary a great deal from place to place. Homes and property values: Ditto.
It all adds up to COL -- cost of living. Another term for it with a little different twist is "lifestyle" although lifestyle includes more and implies choice, which COL doesn't... Unless we move.
COL has an relationship on several levels with wages and compensation. For one thing a locally owned, small business operating in a very poor nation with a very low COL isn't seeing much in terms of total sales dollars and total profits compared to a similar business in a wealthier nation. The prices for their goods and services are low (definition of low COL). Therefore since their financial resources are less, their wages are as well.
COL may seem like one of those "relative things." However, for any particular person -- a potential employee earning wages, it is a local thing.
The equation here is a simple one and there are some caveats but in most comparisons, a lower COL = lower wages. COL, as a general rule, is directly related to wages and compensation in any specific area. From the standpoint of a potential, qualified employee under most circumstances, we won't take a job unless the odds are pretty good we'll at least cover COL.
The global relationship is more complex but... well, let's press on for now.
The mega equation, in English, now reads: Education Cost and COL affect and/or are related to Wages and Compensation. There are other market forces at work here but education cost and COL are huge drivers.
The other huge driver is the limited ability of any business to pay wages at a particular level and remain competitive. Yes, businesses are constrained... there are hard stop limits and understanding (quantifying) those limits becomes increasingly complex and global when we get away from the locally owned, small business scenario. For the purposes of this discussion, we'll keep it focused on the local level but keep in mind that local examples, with some caveats, scale to the global level. Gnashers pay attention to that last sentence; it's important.
In addition to cost of goods or cost of materials, businesses have fixed expenses, operational expenses, taxes, upgrade and maintenance expenses, and a whole host of other quantifiable cost factors in addition to wages. Despite that fact, wages represent a large portion of any business outlay -- something on the order of 30% but it varies from sector to sector. Human beings count a lot in producing goods and services despite gnashings to the contrary.
Because wages and compensation are such a large part of the overall operating budget, businesses focus on them and focus carefully. Suppose we are selling shoes from a store front in Omaha, Nebraska and paying $30 an hour for staff while the competition in Omaha is paying minimum wage. While that $30/hr might seem like the "dream job" for our new hire, it won't last long. We are doomed because we have to sell our product at no greater than market prices (+/-) and pay the same overhead and expenses as every other shoe store in town as well as compete with internet retailers. So much for that dream job in retail sales.
The lesson at this point is that wages and compensation aren't paid for out of some magic bucket of money -- the money comes from the goods and services we produce. So... the wages we make can't be more than sales can cover. Put another way, total wages and compensation can't be more than the remainder after all other expenses of doing business are subtracted from the gross receipts. This is a hard stop constraint on wages. Yes gnashers, that is a simplistic statement but accept the truth of it and move on.
So if a potential employer is constrained by market conditions to a certain pay range and a qualified, potential candidate demands something in excess of that, they won't get the job. Another piece of simple math to gnash on.
Our new mega equation for wages and compensation for the prospective employee now includes
- Education Cost
- COL affect
- Current business budget
A fellow from India says that the entire cost of his advanced degree (tuition, fees, books, and living expenses) was the equivalent of US $100. Education cost is obviously low in India. So is COL. Those two things, if our equation is working today, should mean wages in India are lower than in the US.
Yep; just checked: They are. Other places as well for roughly similar reasons.
Assuming the fellow from India produces as well as similarly educated workers in the US -- most people agree that is the case but if anyone has heartburn over it just read on anyway -- what does that mean to workers or "the system" in the US?
Well, it doesn't mean that wages are a problem or that wages are being globalized. It means that education in India is largely subsidized, for one thing. It's not the "wages and compensation" part of the equation that's out of whack, it's the "education cost."
The "hundred dollar guy" from India was talking about costs when he went through college... A while back. Currently, in India, the total cost of a good degree (tuition, fees, books, living expenses -- everything) is about the same as the cost of one year in a local community college for tuition alone. One (1) year; tuition alone. Now that's something to gnash about.
We're not going to fix the disparities between offshore and US sourcing of products, service, or resources by driving US wages up or price fixing. Attempts to do so or impose tariffs, embargoes, or other protectionist firewalls only makes matters worse.
Why?
Because not one of those things will drive the cost of education down in the US and it's the cost of education that's out of kilter. Education costs continue to spiral upward and only exacerbate the problem.
Education costs are not included in COL calculations. COL is based on:
- Housing: Includes purchasing, renting or maintaining a house or an apartment.
- Food: Standard basket of food purchased in the place.
- Utilities: Includes electricity, gas for heating, telephone etc.
- Health: Expenses related with health.
- Transportation: Includes expenses like auto insurance, gas for vehicles, maintenance and repair, transportation etc.
- Miscellaneous: Other costs associated with daily living.
We can substantially reduce the COL without negative impact to our "lifestyle" by reducing the cost of housing and the cost of health care. This isn't about wages, it's about COL. Reducing COL has the effect of giving everyone a big, fat raise. For workers in the US, wages are not the problem, COL and particularly housing and health care costs is.
We can gnash about whether or not businesses should source from the lowest cost suppliers no matter where their location. We can ponder the US corporations moving offshore or loosing markets to foreign competion. We can gnash about whether solutions are best delivered by government programs, market forces, or some combination of both. But before we talk about solutions, we'd better get set on the problem.
Feeling the pinch from falling wages and compensation is a symptom. Offshore enterprises gaining market share in the US is a symptom. US businesses relocating on foreign soil is a symptom. Competitors for jobs in the workplace willing and happy to work for less than half of US wages is a symptom. A couple of aspirin won't do it here, gnashers.
Education costs and COL are problems.
This is a good time to point out that the cost of housing needs to continue going down, not stabilize or go up. That should set the gnashers off for sure.
We're better off focusing the rhetorical, public, and political debate on reducing the cost of education, health care, and housing where solutions will actually do some good.
Gnash it!
Thursday, February 19, 2009
Job Posting: Most Bizarre
Posted by: William W. (Woody) Williams
Yesterday while checking feeds from major job boards, we noticed what must be one of -- if not the most bizarre job postings ever seen.
Someone at an agency posted publicly what appears to be an internal memo. A quick check later in the day showed the posting had been removed.
All identifying pieces of the posting are replaced with XXXXXXX, but otherwise it's reproduced below as found.
Enjoy...
We need to start resourcing folks with the following experience.
We need Business Analysts, PM*s, Functional resources.
This is for our direct client.
Client is XXXXXXX. Try to get US Citizens . Comm skills must be 10/10 NO Excuses
Project is scheduled to get going in three weeks.
Client location is XXXXXXX. It is a pretty reasonable place to live in. So use your negotiation skills. We don*t have detailed job description as yet.
please shoot me resumes asap to XXXXXXX @ XXXXXXX
Thanks
XXXXXXX
Wednesday, February 18, 2009
The Match Game: Are You What I Want?
Posted by: William W. (Woody) Williams
In the wonderful revolving door of what I refer to as "resume roulette" -- job hunting to rest of humanity -- emotions run the gamut and humor is one of the most common. I suppose it's due to my nature (somewhat laid back and almost always cheerful) that I see things as funny when others may not.
It's not that I don't appreciate the serious nature of whatever thing it is we're collectively in the midst of... I do. Especially if we're out of work and lacking good prospects.
I just don't see complaining and griping about it as a way forward -- a way out. And, it's probably not the end of civilization as we know it no matter how bad it seems at the moment. And, if it is the end of civilization, whatever little problem is on our plate right now really won't matter. I'm not Chicken Little. I'm not hooked up that way.
There is some healthy grieving that goes along with any change but, as a contract / consultant project manager, I've seen a lot of change both personally and as an affected observer. And that is especially the case for ups and notable downs in job markets.
Over the years, as a consequence, I've reinvented myself several times. Yes, with a little grieving, but more with a healthy sense of adventure and heightened sense of taking on a new challenge. A little reinvention is good for the soul.
I admit it: I've been a hiring manager. Sometimes in a consulting role assisting a functional manager with project resources, sometimes as a lead forming teams of other contractors / consultants; sometimes as a functional manager myself; other times as the owner of the business. Yep, the secret is out; I admit it.
Those of you who have filled this role yourself know the process of combing through resumes, due diligence, phone interviews, sitting through excrutiating face-to-face interviews, and working through a sometimes intractable HR department to finally get the thing done. If you haven't, you know the game from the other side of the table.
I've seen a lot of resumes and people put weird stuff on their resumes. A Tweet from a recruiter the other day noted a resume received that included a three month gig in professional sports about 15 years ago for a candidate applying for a technical position.
It's sad but also humorous -- not in the "laughing at you" way but... well, I've seen worse and funnier.
I once had a gentleman tell me in a interview -- this was probably 1998 or 1999 -- that he had fifeteen years experience using Microsoft FrontPage.
Long pause.
I probed a bit to make sure we were talking about the same thing and he stuck to his guns. I made absolutely sure that FrontPage guy was telling me he started using this (code-chopping WYSIWYG) web editor in or around 1983 -- at about the same time Tim Berners-Lee completed writing a notebook program, "Enquire-Within-Upon-Everything", which allowed links to be made between arbitrary nodes.
In fact, Microsoft released FrontPage in 1996 so it was relatively new at the time of the interview.
FrontPage guy got some laughs from our group later... And not in that nice, "laughing with you" way either.
The lesson there is don't make stuff up when you don't know enough about it to fake it. FrontPage guy might have been a dynamite technical writer but he certainly wasn't joining my team -- I can't work with people like that and my team doesn't deserve that kind of grief either.
Another, even worse, thing I see people do a lot is apply for positions where the requirements don't match their skillset. They do this on purpose and with malice aforethought. I mean this seriously: It's a very bad thing to do and leads to no good outcome for you. Do not do this.
If the job requirement says, "Advanced Degree Required," and you don't have one, forget it. No matter what you might think about whether or not that degree is really necessary, it's wanted; it's a job requirement. If you don't have it, you are not wanted... Stay away. Move on.
If the posting is for a "development manager with enterprise software experience" and you are a project manager with experience running web development projects, keep your resume out of the pile. Even if you think you could become the best development manager on the planet, they are not looking for you... Don't do it. Move on.
If the hiring manager, the VP and the Director all decide they need a resource with 15 years experience and you don't have that experience, don't do it. No matter if you think you can do the job better than anyone on the planet and are dead certain they have the requirement wrong, don't do it. Move on.
Why? Because this is a very, very small world and not getting bigger.
Your reputation as a responsible, reputable professional is based on your actions. When recruiters and hiring managers in your market get to know you as the kind of person who continually displays this kind of arrogance and callous disregard, they will shun you. You can't get that back. Once it's done, it's done forever.
Remember Frontpage guy? Do you think I would seriously consider him again for any position in any organization?
No.
I don't know why he did what he did but if his resume came up again, I would chunk it without a second thought. If you play FrontPage guy frequently enough and in enough of your market, your career is over. You couldn't get an interview taping thousand dollar bills to your resume.
Now that last paragraph may not jibe with my casual, laid-back, happy-go-lucky attitude thing earlier. That's OK: I still think FrontPage guy is hilarious... and, the three-month sports guy... and, a lot more like them. But there's a serious side here as well.
I don't want to see people do things because of fear, insecurity, or frustration in a down economy that could hurt them for years to come.
Be honest about yourself... represent yourself wisely and responsibly... don't become a joke around HR or with your market recruiters. Play the Match Game with integrity.
And if you see FrontPage guy, tell him that opening is filled.
Value Proposition: Got Yours Handy
Posted by: William W. (Woody) Williams
I posted this over on my blog at door64 this morning. Reworked a bit for this format...
Every recruiter, head hunter, or consultant in the HR/Recruiting sector hammers the "value proposition" in our resumes. There's a ton of good reasons for that and... Well, it just makes sense.
In the workplace and "on the market," we offer a certain value to our employer. We are not, as people, exactly a commodity in this sense but, to a current or future employer, there is a cost/benefit calculation to the role we play, the training and experience we bring, and our ability to convert that experience into dollars for the business.
In some ways that value is quantifiable but in every way it is essential that we remain keenly aware of and can accurately state / communicate our personal value proposition. This applies whether we are seeking advancement, a career change, or a new position.
So... got your value proposition handy?
I do.
As a project manager, I'm comfortable with quantification, communication, and putting things into executive form. I'm not saying my value proposition is the best ever or that it can't be improved, just saying that I'm comfortable hashing it together quickly... perhaps more so than most folks. Also as a project manager, value propositions are a part of my daily inbox.
My value proposition is a part of my resume, my elevator pitch, and my interview script. Here's what it looks like.
Value Proposition
Organizational skills, leadership ability, and repeatable methodology successfully delivered cost savings and ROI in excess of one billion dollars over past ten years in complex, enterprise-level project environments with disparate stakeholder groups primarily within financial services organizations.
Strong communication skills, extensive experience in multiple environments, solid soft skills, excellence as an influencer and negotiator, coaching and mentoring experience, background with PMI/PMBOK, and PMO leadership experience means ten things to your organization:
- Saving effort and cost through proactive scope management
- Better solution fit the first time through better alignment & planning
- Resolving problems more quickly
- Resolving future risk before problems occur
- Managing expectations more effectively
- Building a higher quality product the first time
- Improved project financial management
- Stopping 'bad' projects more quickly
- More focus on metrics and fact-based decision-making
- Improved work environment through team building & success
Now there's one more point to make about the value proposition: It must be verifiable and real. Moreover, it should show that you are capable of self assessment and that you understand what your value is to the business.
In a resume, the value proposition must integrate or synch with recommendations, references, and background so it's not just hanging out there by itself. You have to back it up with solid stuff.
I have my value proposition memorized.
How about yours?
Thursday, February 12, 2009
Job Talk: How You Can Help
Posted by: William W. (Woody) Williams
I've been travelling the last few days -- with more trips upcoming -- and haven't focused on the blog enough. A recent conversation, however, is worth an entry.
I was chatting with a friend of mine Tuesday morning; a senior recruiter with one of the major firms. It was our first face-to-face but we have spoken frequently on the phone and traded a few emails. I like this person -- their "values" are good... but that's a different entry.
What caught my attention was a recent job req. for an IT project manager. It contained the usual specificity that many of us find troubling. Suffice to say that this requirement was very specific.
In an ordinary job market filling this kind of request might take several weeks and perhaps several months. Winnowing the resumes received to those who actually qualified based on the requirements would leave an available pool of two or three for the interview process. But, this job market isn't ordinary.
In the course of a few days, thirty-eight qualified resumes were received for the opening. Any of these thirty-eight could interview but the client / employer (by request) wanted only three. The best of the best.
You'd think my friend, the senior recruiter, would be overjoyed at the overabundance of talent available for their client. On the contrary, they were struggling.
- Concerned about how to be fair in the selection process
- Concerned about how to tell obviously qualified candidates they didn't make the cut
- Concerned about their inability to place highly qualified people obviously in need in good jobs in a stagnant market.
I don't know how many resumes were reviewed to cut the total down to thirty eight qualified applicants. I do know the ratio of qualified applicants to spots at the interview table is almost 4:1.
In "glass half-full mode, that's not as bad as it could be and, I've seen worse. In Houston following the dotCom bubble burst and 911, I saw a guy under a bridge with a sign saying, "Will write HTML for food." True story.
In "half-empty mode," there are not very many project managers qualified for the requirements of this position -- probably something less than a tenth... maybe just one percent or so of the available pool. To have 38 qualified applicants from a small metro area (Austin, TX) actively seeking employment is not a good sign... no matter what you think of IT project managers.
To those currently seeking jobs: Don't give up. There are positions available and if you keep shooting, you'll hit the target. There are not many and it will take time so plan for that and don't overlook a single option. The good news here is that three people will interview and one of them will get the job.
To those currently working in stable jobs: Give your unemployed friends and connections a break. Support them; make referrals; write a recommendation; pass their resume around. You never know what little thing that you can do with minimal effort is the one thing that makes a huge difference in the life of someone close to you.
Pick one person you know who is out of work, qualified, and looking. Do something for them -- refer them to a friend, write a recommendation for them on LinkedIn, take them out to lunch or for a drink and talk to them -- ask questions and figure out what you can do to help. The good news here is that, if we work together, every one of us can make a significant difference to an individual and to the community at large.
Monday, February 2, 2009
Drug Screens for the Boss
Posted by: William W. (Woody) Williams
My friend D. experienced a certain amount of turmoil in employment over the past year -- I'm sure most of us can relate, if not personally, at least by association. Suffice to say that D. was involved in some bizarre situations and witnessed some rather extreme behavior on the part of management recently.
D. stopped me on the way to lunch the other day, looked around to see who was watching, and whispered in a conspiratorial manner, "Next job offer I get, I'm going to ask the management team to take a drug screen before I accept." Whispered quickly and then, after cautious -- not to say paranoid -- glances at passers-by, D. continued walking without a backward look.
It left me wondering what kind of interview or piece of workplace insanity D had just experienced. I found out later but... that's a different post.
What about drug testing the management team? Does this idea have any traction?
What if, at the end of an interview where the interview was successful and the offer made, we could say, "OK, I'm on board but only if you and the senior managers pass a drug screen."
Friends and acquaintances say, "No way" pretty much unanimously and, I suppose, I have to agree. Still... it's an interesting fantasy... only in dreams.