Monthly Archives: June 2009

Full U.S. Unemployment Picture (Even the Hidden Numbers)

There are a lot of numbers and percentages thrown around in the world of employment, especially as it relates to unemployment. There are no shortage of people talking and writing about typical unemployment numbers as though they are an Area 51 conspiracy. The talk typically swirls around the ominous U6 unemployment number, and that everything else that is released is smoke and mirrors. The articles have a very Illuminati sound and intrigue attached to the words.

 While the U6 numbers are not talked about a whole lot, they are also not top secret. They are part of a list of unemployment numbers that give a full picture of the current state of unemployment. So does that mean the traditional percentages we hear are wrong? No, those percentages are accurate. As you will see the U6 includes a lot more data and information in its rendering. So in my quest to expose the on-going mystery’s in the world of work, I present to you the U6 — and a bunch of other unemployment data.

A12 May 2009

Click the image to make it larger.

Put Down the Ax: 5 Alternatives to Layoffs

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Trying to keep the lights on is challenging for many small businesses these days. But while laying off employees can save the company the expense of salaries and paying for benefits, such a move is often not the most cost-effective answer.

In fact, layoffs can actually cost your business money, especially if you expect things to pick up once the economy recovers.

“It’s hard to save money if the jobs will be refilled within a year or so,” explains Peter Cappelli, director of the Center for Human Resources at the Wharton School of the University of Pennsylvania. “There are lots of costs of laying people off – severance, unemployment insurance, risks of litigation. And then there are the costs of re-hiring – search, training, productivity losses while waiting for performance to get up to speed.”

So if you can’t save money by letting people go, how can you balance the books? Here are five steps you can take to cut costs without cutting employees loose.

To see the 5 alternatives click here.

Friday Funnies: Is Math a Religion?

calvin and hobbes math

Temp Execs Gaining Favor in a Troubled Economy

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Objectivity and the lack of a political agenda allow a temporary executive to make tough decisions like layoffs and cutbacks.

Many employers today are finding the need to shift course given the changing economy, but they don’t have the leadership they need to do so. In hard times, firms want executives who can make difficult decisions and not worry about relationships, experts say. And that’s why more employers are turning to temporary executives.  

Los Angeles-based Business Talent Group, which has more than 1,500 temporary executives and 100 clients, has seen its business grow 47 percent year over year since its inception 2½ years ago. “We hear a lot from companies that want to bring in an interim executive to deal with a turnaround or crisis and who can make tough calls and be the bad guy,” COO Amelia Warren Tyagi says. “And then the next person can come in and rebuild loyalty and culture.”

Workforce Management New York bureau chief Jessica Marquez recently spoke to three temporary executives who work with BTG—William Kuehn, who often temps as an interim CEO; Philip Deming, who temps as a head of HR; and Sydney Drell Reiner, who temps as a chief marketing officer—about their experiences.

To continue reading click here.

Crazy Business or Brilliant Start-up? #15

pointbanner

As is true in so many business decisions, companies in need of banner ads typically face the choice between creating their own or hiring a professional to create it for them. Many do-it-yourself sites use templates, however—which can result in a cookie-cutter look—while using professionals can be expensive and time-consuming. Aiming to offer a third alternative, PointBanner promises custom-created banners in just 48 hours for $49.

Customers submit a banner request with New York-based PointBanner in three simple steps: they upload their logo, enter their desired text and URL, and then pick a size. Eschewing templates, the company’s design team works on each banner individually, guaranteeing a result for $49 within 48 hours. Three free revisions are included for each banner, and an assortment of multi-banner packages are also available with per-banner pricing as low as $11.

Much like Inkd, which offers a third alternative in the realm of graphic (print) design, PointBanner seems like a natural next step in the evolution of web advertising, making professional quality more accessible to all. One to adapt locally—or, more broadly, find another area where the niche between cookie-cutter and professional approaches is currently unfilled, and offer a middle ground of your own!

HT: Springwise

Visual: Growing Industries – What’s Hot? What’s Not?

As usual my friends over at Indeed.com have some great information to help you pinpoint your job search. Below is the graph for May 2009 and while everything is at a minus the best bets for opportunities are probably not a surprise. Education and Healthcare are leading the pack - nonetheless the overall amount of postings for jobs out there is encouraging (1,873,158).

If you are not familiar with Indeed.com I would encourage you to add it to your repertoire of job sites. I would also be remiss if I did not mention our own job board at manpowerjobs.com which will put you in touch with the latest and greatest job openings from Manpower.

Indeed Major Industries Graph May 2009

Does the World Need More Engineers?

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“Imagine what life would be like without pollution controls to preserve the environment, life-saving medical equipment, or low-cost building materials for fighting global poverty. All this takes engineering,” states the National Academy of Engineering’s Web site for high-school girls and the adults in their lives.

Engineering is vital to problem solving and, as a career, offers an opportunity to make a real difference in the world. Using stories of real women and student peers engaging in these activities, the program encourages more young women to enter the field in all its varieties, such as civil, aeronautic, biomedical, environmental, industrial, and computer engineering.

Resources for counselors, teachers, parents, and adult engineers are also available at the site. “In very real and concrete ways, women that become engineers save lives, prevent disease, reduce poverty, and protect our planet,” it states. “Dream Big. Love what you do.

Bonus Click: Become an engineer.” http://www.engineergirl.org/ for middle-school girls.

Friday Funnies: When Benefits Get Cut

dilbert strip

7 Questions You Must Ask Before Firing

yourfired

Faced with a firing, managers are typically upset and uncomfortable. They want to just “get it over with.” Stop right there. Slow them down, and ask these 7 questions first. Otherwise, you’re likely headed for an expensive lawsuit.

Here are the 7 questions BLR experts recommend you ask before any termination. If your answer to any of these questions rings a worrisome note, review the situation carefully before making a termination decision.

1. Have you followed your own policies?

Most organizations have a discipline policy that covers termination. Check your policy to be sure that you have followed it, especially if your policy calls for “progressive discipline” or suggests that employees are fired only for cause.

Policies generally reserve the right to skip steps in the progressive discipline system and fire immediately for certain offenses such as stealing or violence. However, you should exercise this right with caution.

2. Is there a contract or other guarantee?

If the employee in question has a written employment contract, you will probably be bound by its terms. Even in the absence of written contracts, many courts have found that certain documents, such as employee handbooks or offer letters, can create implied employment contracts. For example, your policy or handbook might inadvertently:

  • “Guarantee” a job as long as work is satisfactory.
  • Require arbitration or other alternate dispute resolution approaches.
  • Mandate progressive discipline.

3. Is there a union agreement?

If the employee in question is covered by a union contract, you must determine whether this termination would be contrary to union contract provisions.

Furthermore, if the employee has been involved in union organizing, you must weigh whether the offense for which the employee is to be terminated could be considered “concerted activity” or whether the termination could be considered retaliation for union activity.

4. Have you been consistent?

Consistency is an important part of fair treatment. If you have consistently terminated others for the same offense for which you want to terminate this employee, you are probably going to be all right. If, however, you have never terminated a white male for a certain offense, and now you intend to terminate a black male for that offense, you could be on thin ice.

5. Could this firing be viewed as discriminatory?

Could the employee claim that he or she was fired not for the reason the organization claims, but because of discrimination? (“You fired me because I am [old, black, Muslim, gay, disabled, etc.], not because I broke a rule.”)

6. Could this firing be viewed as retaliatory?

Could the employee claim that he or she was fired for performing a protected activity? For example, making a complaint to a government agency, making accusations of sexual harassment, or making a workers’ compensation claim? If so, look at the situation carefully.

7. Is the employee pregnant?

In general, treat pregnant women the same way you treat any employee with a disability. You may not fire a woman because she is pregnant.

Have some pre-firing questions that you think should be added?

Economic Downturn Rattles Younger Workers While Older Employees Tough It Out

olderworkers

Younger workers are bearing the brunt of the current economic crisis, while older employees show greater resiliency in a recession-battered workplace where employers seek to do more with less, according to a new study by Boston College’s Sloan Center on Aging & Work.  

The onset of the greatest economic crisis since the Great Depression has negatively altered perceptions about job security, supervisor support, job quality, inclusion and overall employee engagement in the workplace, according to the new report, “The Difference a Downturn Can Make,” part of the Center’s far-reaching Age & Generations Study. And as businesses strive to cut costs and increase productivity, American workers are reporting they are overloaded.

 Looking across different generations of workers, researchers found employees of all ages reporting a drop in employee engagement, a measure of how invested and enthusiastic employees are in their work. While employees overall report declining engagement, older workers in this study appear to be weathering the economic storm better than their younger peers.

 Workers among “Generation Y” — ages 26 and younger — report the greatest decrease in engagement. Those slightly older workers in “Generation X” — ages 27 to 42 — reported less of a decrease, while Baby Boomers and older “Traditionalists” — ages 43 or older — reported that their levels of engagement hardly changed at all.

 America’s older workers show all the signs of being more resilient in the face of threatening economic conditions, drawing on hard-earned experiences from the downturns of the past and a battle-tested perspective on the peaks and valleys of the market.

 ”Some older workers have seen it all, and that gives them experiential resilience,” says Marcie Pitt-Catsouphes, director of Boston College’s Sloan Center on Aging & Work. “Younger workers just don’t have the depth of experience, which leaves them feeling less engaged in their jobs. But younger workers bring energy, enthusiasm, and idealism. In a workplace where older and younger employees work side-by-side, the give and take between young and old is a valuable resource employers should leverage to survive the downturn.”

 Researchers at Boston College’s Sloan Center on Aging & Work report other findings from the Age & Generations study that suggest: 

  • Perceptions of engagement, supervisor support, inclusion, and job quality declined after the onset of the economic downturn for employees who felt that their job security had decreased, but it stayed the same or only slightly declined for those whose job security had stayed the same or increased.
  • Those whose job security decreased or stayed the same experienced a slight increase in work overload after the onset of the economic downturn, whereas those whose job security increased experienced a slight decrease in work overload.
  • Those whose job security decreased perceived a slight decrease in team effectiveness after the onset of the economic downturn, whereas those whose job security increased experienced a slight increase in their perceptions of team effectiveness.
  • While younger workers felt the effectiveness of their work team as a whole dropped as their job security declined, older workers felt the effectiveness of their team held steady even though they too reported a decreased sense of job security. 

In tough economic times, the multi-generational American workplace requires employers to take cost-effective steps to support their workers. It isn’t enough for employees to be grateful for their jobs; according to one researcher, employers need to show they are grateful to the employees that keep them in business.

“Employee engagement can be greatly enhanced by simple and cost-efficient efforts,” adds Christina Matz-Costa, research associate at the Sloan Center and one of the study’s authors. “Providing strong training and development opportunities, encouraging work team inclusion, and promoting a culture of workplace flexibility and supervisor supportiveness are all effective strategies that can maintain or boost engagement.”

To download a PDF copy of the full report click here.

Friday Funnies: Police Humor

farside_cops

Crazy Business or Brilliant Start-up? #14

runmyerrand

RunMyErrand is a web and mobile marketplace that gives individuals and businesses an easy way to get everyday tasks done. Members in need of help with errands begin by prepaying into an account of credits that will be used to pay the people who run them; 10 credits cost USD $13.00, and most errands range from 7 to 10 credits—equivalent to the same number of dollars—paid to the “runner.” They then post an errand they need to get done—picking up dry cleaning, for example, or dropping off a donation to Goodwill—along with the number of credits they’re willing to pay; additional amounts for tabs that need to be paid during the errand can also be included. RunMyErrand’s network of pre-qualified “runners” is then alerted immediately via email and text message. Generally within 10 minutes a runner accepts the errand, proceeding from there to coordinate with the “sender” and complete the errand within the specified timeframe. When the errand is complete, the sender confirms online; RunMyErrand then transfers payment into the runner’s account. To ensure quality, ratings, reviews, profiles and background checks for selected runners are all available. In addition to serving individuals, RunMyErrand also acts as an outsourcing delivery partner for locally owned retail businesses.

Besides simply helping busy people get things done, RunMyErrand promises environmental benefits by aggregating errands more efficiently and also offers sellsumers a flexible way to earn a little extra money as runners. Founded in early 2008, RunMyErrand was recently named by Facebook as a winner in its fbFund REV incubation program. It currently serves only the Boston area, however; are you the one to help bring this to a city near you…?

Walking Wounded: Instructions for Working when Salaries are Cut

Veriatas Logo

The link below is to my recent article for Veritas Magazine called Walking Wounded: Instructions for Working when Salaries are Cut. I think this is a very important topic that I wanted to address in a fair amount of detail as it is affecting so many people in the workforce.

What should our attitude be?

What should our effort look like? 

Ultimately who are we really working for?

Walking Wounded: Instructions for Working when Salaries are Cut

Corporate Casual is the Latest Casualty

business_record

I recently wrote an article for the Des Moines Business Record dealing with what is appearing to be the demise of Corporate Casual (to some degree). In these times of stress and economic hardship it is interesting how it is affecting what people wear to work.

To your possible dismay I do make my case for why the demise or at least shake-up of Corporate Casual is definitely a good thing. While personally I am for Casual work environments I think when you see my reasoning you will join me in my opinion.

Click here to read the article.

Video: Challenge Yourself to “Think Differently”

This video is a good reminder of what we can accomplish when we dare to be different and think outside the box. Actually, it is more than just thinking outside the box – it is living outside the box.

Friday Funnies: The Vet

Far Side Tutor

A Pressure Cooker in the Economy?

pressure_gauge_pressure_cooker

With employment and inventory cut to the bone, there could be some scrambling in the manufacturing sector amid a recovery.

The manufacturing sector showed strong signs of life for the month of May, based on data from the Institute of Supply Management. Manufacturing along with construction have been by far the worst-performing sectors this recession, so it was particularly pleasing to see such a sharp improvement.

The ISM Composite Index for manufacturing improved from 41.1 to 42.7 between April and May. The index has been up every month since December 2008, when the index bottomed at 23.7. Generally an extended reading above 41.2 is consistent with growth in GDP. The complete survey (not the index) shows data on nine categories ranging from new orders to backlogs and pricing. Seven of the nine categories showed improvement in May, with employment basically flat and inventories down. Although counted as a negative in the index, we view declining inventories at this point in the cycle as creating long-term growth potential as businesses are forced to restock inventories that are too low.

The new orders component of the ISM report was particularly positive, increasing to 51.1 in May from 47.2 in April. This statistic indicates that companies reporting an increase in orders exceeded companies reporting a decline in orders. This is the first month in the last 17 that this index has been above 50%. Just as importantly, nine of 18 industry sub-groups showed improving order trends, so the trend appears to be broadly based. The new orders component of the ISM index typically leads an economic recovery by just over four months. Given that the index bottomed in December, the economy could have bottomed as early as May based on this metric.

Supplier deliveries, also known as order lead times, increased in the month from 44.9 to 49.8. This particular part of the index is closely watched because it is one of the key indicators in the Conference Board’s Leading Economic Indicators.

The qualitative comments in the ISM release were also very interesting. One respondent indicated, “Some amount of havoc is about to erupt, with companies pushing for increased capacity as suppliers have taken capacity off line.”

To continue reading click here.

532,000 Private Sector Jobs Lost in May

This does not include public sector jobs. The jobs report on Friday should be interesting: U.S. private employers chopped more than half a million jobs in May, signaling job conditions remain tough and dashing some hopes the economy was not deteriorating as rapidly as thought, a report on Wednesday showed. U.S. companies axed 532,000 jobs last month, though this was fewer than the revised 545,000 jobs lost in April, according to the ADP National Employment Report.

ADP Chart May 2009

Click on picture to enlarge.

Manpower Chief looks to Virtual Growth

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On Second Life, the virtual-reality website, Jeff Joerres is a barrel-chested bodybuilder with a mop of bright blonde hair.

In the flesh, the chief executive of Manpower is somewhat less muscle-bound and his hair is starting to thin. “What am I going to do, be a 90-year-old man?” he laughs. “It’s called Second Life for a reason.”

Aesthetic improvement is only one reason Mr Joerres is enthusiastic about Second Life. From his perspective at the top of one of the world’s biggest recruitment companies, Mr Joerres says that such virtual worlds and social networking websites are transforming the world of work. Increasingly, he says, “work will get done that way and people will find work that way”.

The economic downturn has accelerated this trend, Mr Joerres believes. He cites a new tie-up between Manpower and LinkedIn, the professional networking website, in which Manpower is offering career services to LinkedIn members – a collaboration prompted by a flood of requests to the networking website for career services in recent months.

Mr Joerres says he is becoming more optimistic about the employment scene in the US. Although he says the unemployment rate – a six-nine-month lagging indicator – will not recover until well into 2010, he sees signs the economy is becoming more stable.

At the start of the year, the Manpower chief said he would not be surprised if 2009 saw an average unemployment rate of 9 per cent , but now says that may have been too gloomy.

Mr Joerres is critical of how some companies slashed jobs during the downward cycle, a phenomenon he says they may pay for when growth returns. “There’s been a lot of blunt instruments out there, companies cutting 10 percent across the board. But what about cutting the right 10 percent?” he says.

“Companies that had the right type of workforce strategy had a better sense of what levers to pull when the downturn hit,” he observes. “But we’ve seen some really good companies panic and hit the trap door. That wasn’t necessarily wrong, but they now have a period to recover and if they don’t use this time carefully, they could find themselves losing market share, or spending more on training new staff.”

Manpower released a surprising global survey last week that underlined this conundrum: it showed that 30 percent of employers around the world are struggling to find the right people to fill jobs even though unemployment is at or near record levels in many countries.

To continue reading click here.

Top 10 Hardest to Fill Jobs – 2009

top-ten-gold

We just released our Manpower Top 10 hardest positions to fill study (yes even in these tough recessionary times it is still difficult to fill some positions -crazy I know). Below are the results for America.

The top 10 jobs that employers are having difficulty filling across America are:

1.Technicians (primarily production/operations, engineering or maintenance
2.Production Operators
3. Accounting & Finance Staff
4. Laborers
5. Engineers
6. Sales Representatives
7. Management/Executives
8. Sales Managers
9. Skilled Trades
10.Secretaries, PAs, Administration Assistants & Office Support

Vacancies for technicians are the most difficult to fill for the second year in succession. After not appearing among the top 10 hard-to-fill positions in the 2008 survey, employers are identifying Accounting & Finance positions as the third most difficult to fill.

Click here to see the Global Study including America in a pdf format.