December Call-In Video

Fired For Fantasty Football; New Home Constructions Rise

Fidelity Investments fired four workers after they were discovered playing in a paid fantasy football league at work. The company cited its anti-gambling policy as cause for the dismissals. Evidence was found not in work emails, but in two instant messages sent during work hours. Last year, Challenger estimated that employers lost $615 million per week in lost productivity due to fantasy football, despite gains in workplace morale and camaraderie. What other dangers lurk in using social media in the office? How can employers foster morale during 10 percent unemployment? Does fantasy football significantly hurt productivity?

November new home constructions increased 8.9 percent over October with 547,000, according to the government report issued Wednesday. November’s total is still well below the level in November 2008 when 655,000 new homes were constructed. So far this year, employers in the construction sector have announced 24,670 job cuts compared to 28,801 through November 2008. Do the latest numbers support claims that the economy is recovering? What other signs are pointing toward recovery? What industries are hiring?

John Challenger On Holiday Bonuses 2009

As the economy struggles to crawl out of the worst recession in decades, many companies remain focused on containing costs. However, one new survey shows that, despite continued worries about costs, 64 percent of employers are planning to hand out holiday bonus checks this year.

The survey of approximately 100 human resource executives conducted in November by global outplacement consultancy Challenger, Gray & Christmas, Inc. suggests that while companies are not quite ready to accelerate hiring, they are cognizant of the potential to lose high performing workers when the job market begins to improve and job creation gains momentum.

The percentage of companies awarding holiday bonuses this year represents a marked improvement over 2008, when 54 percent of companies planned to give bonuses. Not only are more employers planning to give bonuses this year, but some are planning to give bigger checks. Eight percent of those polled said their companies were increasing the size of bonus checks. Last year, none of the companies planning bonuses were giving bigger ones.

While the survey shows an overall increase in the percentage of companies awarding bonuses, it also demonstrates the impact that the recession has had on many companies. Sixteen percent of respondents said that, while they awarded bonuses in 2008, they did not plan to do so this year. That is up from 13 percent of companies that saw the cancellation of bonuses from one year to the next.

Another four percent of companies planned to give smaller bonuses than a year ago, which the same percentage who said as much in the 2008 survey.

“Companies are not quite ready to ramp up hiring, but they are beginning to see the light at the end of the tunnel. While most can probably justify postponing bonuses another year, there are growing concerns that job market improvements in 2010 could bring an exodus of workers. Companies are also sending a message that we appreciate that this has been a tough year for everyone, and that the workers’ part in ensuring continued survival is recognized,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

Many employers are indeed expecting a rapid surge in turnover when the economy improves, according to a survey by consultancy firm Deloitte. The survey found that nearly two-thirds of managers were highly or very highly concerned about losing high-potential talent in the year after the recession ended.

“In addition to layoffs, the recession forced many employers to decrease workers’ hours, institute pay cuts, force employees to take unpaid vacations and halt matching 401(k) contributions. While some of these measures have saved jobs, they undoubtedly left many workers disgruntled, frustrated and ready to move on as soon as the market improves. Year-end bonuses may not ensure the loyalty of all unhappy workers, but they could help entice some to stay aboard,” said Challenger.

Most companies are tying the size of year-end bonus checks to the performance of the company and/or individual. According to the survey, 63 percent of those awarding holiday bonuses are basing them on performance. About 19 percent are planning to keep the size of bonus checks the same as last year.

While the human resource executives surveyed did not provide details on the amount of bonus checks, John Challenger said some companies may choose to be creative when it comes to year-end rewards.

“In some respects, it truly is the thought that counts. Employees want to be recognized for their contribution to the company. It doesn’t have to be a Wall Street sized bonus check. Many workers would be happy with a $100 gift certificate to a local restaurant or store. Many would probably be happy with a couple of extra days of paid vacation at the end of the year. Many are simply happy to have a job in this economy,” said Challenger.

“Of course, those who are just happy to have a job are usually the first ones seeking greener pastures at the first sign of improvement. Companies understand this and it is why nearly two-thirds of them are finding a way to give bonuses this year,” he concluded.

		2009	2008	2007
Does your company plan to give year-end bonuses?	Yes-Size of bonus is based on performance.	40.0%	26.6%	38%
	No-We never give bonuses.	20.0%	26.6%	28%
	Yes-bonuses will be about the same as last year.	12.0%	23.3%	14%
	No-We awarded bonuses last year, but not this year.	16.0%	13.3%	3%
	Other		6.0%	14%
	Yes-We plan to decrease them.	4.0%	4.2%	0
	Yes-We plan to increase them.	8.0%	0.0%	3%
Source: Challenger, Gray & Christmas, Inc.

Job Summit To Spotlight Economy

white house jobs summit returns economy to front burner

After taking a backseat to health care reform and the Afghanistan strategy, the economy returns to the spotlight today. As the White House gets ready for Thursday’s Jobs Summit with business leaders from a number of industries across the country, there are more signs that job losses continue to slow. November job-cut announcements were at the lowest level since December 2007, according to yesterday’s report from Challenger, Gray & Christmas. Today, the Department of Labor reported that weekly jobless claims declined to 457,000. It was the fifth decline in as many weeks and the lowest number of new claims in 14 months.

Of course, the biggest issue that the Summit will need to address is how to ignite hiring, which remains woefully slow – too slow to offset the jobs being lost to downsizing, voluntary departures, retirements, etc. The White House is seeking ways to encourage more private sector job creation without resorting to a second stimulus package. At this point, only one-third of the original $787 billion in stimulus money has been spent.

· What conditions need to exist before employers begin hiring new workers?

· Is there much the White House or Congress can do to stimulate hiring?

· Why will job creation be slow even if conditions are ideal for increased hiring?

Social Networking In The Job Search Plus!

As the nation’s job seekers attempt to find any advantage in a tight job market, more and more are turning to social networking to stand out from the crowd. However, while these sites have the potential to revolutionize the job search, they could also prove harmful for those who rely too heavily on them or misuse them, warns one employment authority.

The job search has changed radically over the last two decades with the advent of electronic mail, the Internet, social networking, smart phones, etc. However, it is important to remember that all of these technologies simply enhance the job search; they will never replace the face-to-face connections that are critical to a successful search.

That being said, we feel that these new networking tools are essential and now advise all of the job seekers going through our program to open LinkedIn accounts and to consider other services such as Facebook and Twitter.

Of course, many of the job seekers going through our program do not need the advice as they are already among the millions who have signed up on social networking sites in recent years,” he added.

The number of Americans belonging to social networking sites has grown exponentially in the last five years. It is now estimated that 51 percent of online U.S. adults utilize social networking sites such as Facebook or LinkedIn, according to a recent survey by Forrester Research. That is up from the 25 percent of users who reported using social networking sites in 2007.

One reason the number of social networkers is on the rise is due to increased use among business professionals. In fact, the most rapidly growing age group represented on Facebook is the 35-and-older population.

Meanwhile, a study from the Pew Internet & American Life Project reveals that 19 percent of Internet users are sharing personal and business updates on Twitter or other status-update services, up from 11 percent earlier this year.

Social networking is an easy way for job seekers to build their network by reaching out to former colleagues and classmates, as well as fellow alumni and industry professionals. Job seekers can then use their networks to uncover available positions and to establish relationships with hiring managers or contacts who can give them a recommendation.

Just a few years ago, job seekers’ only search tools were newspapers and cold calls. Now, technology serves to instantly connect seekers with employers, recruiters and job leads.

Job seekers are not the only ones taking advantage of these new tools. Employers are also jumping on the social networking bandwagon. A recent survey by Jobvite found that 80 percent of companies use or are planning to use social networking sites to fill vacant positions. While LinkedIn is still the most popular site used by employers, with 95 percent of companies using it, Facebook and Twitter are gaining ground. The use of Facebook has grown from 36 percent of recruiters in 2008 to 59 percent in 2009, while Twitter is currently being used by 42 percent of recruiters.

Social networking should be used cautiously, however. As these sites become increasingly intertwined, it will becomes easier and easier for potential employers to access the more personal aspects of job seekers’ lives.

Status updates on Facebook can now be sent automatically to Twitter followers. A similar cross-service status updates was recently initiated between Twitter and LinkedIn. The problem is that people tend to use these services in different ways, and these ways are not always compatible with the job search.

In fact, a job seeker is twice as likely to be eliminated from consideration than be hired based on his or her social networking site content, according to a survey of human resources professionals by Careerbuilder.com. In the survey, 35 percent of respondents said they ceased consideration of an applicant due to a social networking gaffe, with reasons ranging from provocative/inappropriate photographs and information to candidates having poor communication skills. Only 18 percent said they offered a position to a prospective employee due to social networking research, attributing that decision to seeing the candidate as a good fit for the company or the candidate’s site conveying a professional image.

Perhaps the most dangerous aspect of the Internet is the permanency and pervasiveness of any and all information that finds its way there. Comments on a friend’s blog, reviews on consumer sites and inside jokes made for a private audience on a social networking site’s public group page are all available at the click of a mouse to potential employers.

The other danger is that many job seekers tend to let the Internet become their primary, if not sole, job-search tool. It is too easy to simply sit in front of one’s computer all day, scanning job boards and expanding one’s virtual network through LinkedIn. However, these online connections are superficial at best. It takes a lot more work to turn them into meaningful relationships that can advance your job search. In the end, face-to-face meetings are still the most effective relationship-building tool available.

Challenger offered some of the guidelines provided to job seekers going through its job-search training program.

USING SOCIAL NETWORKING SITES TO FIND A JOB

Build your network. Utilize every person in your personal and professional networks. With Twitter, you can grow this network to include hundreds of people.

Build your brand. Your Twitter page can show a little something about yourself with the pictures and colors you choose to use. The interface allows you to post links to websites or blogs, so when building your Twitter page, make sure to include links to these. Start a blog discussing industry trends as you see them. Include discussions about your work. Basically, talk yourself up. You are a product employers must have.

Advertise your job loss. Although a job loss can be a trying time for families and loved ones, telling your "followers" that you are looking for a job can be not only therapeutic, but also incredibly useful to finding a new position. Hundreds of recruiters are on Twitter and have no problem following your tweets. You can cast a very wide net on Twitter with potential to net incredible results.

Get Recommended. LinkedIn allows users the ability to recommend each other’s work. As professional networking sites become the new resume, ask colleagues to advocate on your behalf on your LinkedIn profile. Recruiters trolling these sites are much more likely to be impressed if past colleagues rave about your performance.

Join Groups. LinkedIn also allows users to create and join professional groups, allowing you to instantly communicate with others in your field. Join and/or start building those relationships.

Think before you tweet. Twitter can be as anonymous as you want it to be. However, if you want to find a new position, you might want to spend some time on each tweet. Remember that you're marketing yourself, you're a product. As with blogs, LinkedIn, Facebook, etc., you don't want to post anything that might cause pause (i.e., racy photos, questionable content, etc.). Moreover, having only 140 characters to express yourself limits your literary ability. What you read as witty, another might read as acerbic. What you think is funny, someone else might find offensive. Obviously, you want to show the world your best face, so keep this in mind when fashioning those 140 characters.

FIVE BEST WAYS TO USE TWITTER FOR YOUR JOB SEARCH

1. Follow and read job search experts. The amount of excellent ideas, tips, leads, news, informative articles, and best practices going by all day long is amazing. Use Twellow’s directory for Employment > Career > Job Search to find excellent people to follow. You’ll find outstanding advice that applies to your situation… guaranteed.

2. Search for posted positions. Use Twitter’s search function to look for #jobs, or TwitterJobSearch to find a wealth of open positions that aren’t necessarily posted on job boards or company sites. Also search #splits for positions that recruiters use to split open searches with other recruiters. New positions are posted with excellent companies, large and small, every minute of every day. Get them in real time, early, and often.

3. Follow and read people in your field or industry. Industry chatter is incredible. News items, rumors, and trends get discussed daily. You can become much better versed in your field by ‘listening’. It can provide you with new and valuable information that can make you a better candidate in the interview process. Use Twellow to find appropriate people to follow.

4. Engage! Get in conversations with people. Ask questions, offer help, ReTweet (re-post) good information you see. Make sure to proofread everything you Tweet, and keep everything professional. Offering opinions about politics (unless you’re looking for a job in politics), or talking about your weekend at the bar will alienate half the people you want to connect to. Don’t sound discouraged or be a spreader of bad news. Keep your conversations focused on your area of expertise, or job search topics, and keep them positive.

5. Connect with people at your target companies. Many companies have an official presence on Twitter and post positions. There are also obviously many people on Twitter on their own that work at companies you many have an interest in. Professionally, ask questions, ask for referrals, offer information, and seek advice.

10 LinkedIn GROUPS JOB SEEKERS SHOULD JOIN

• The Talent Buzz
• Executive Suite
• Linked:HR
• JobsDirectUS
• Star:Candidate For Hire
• Indeed
• Career Rocketeer
• Project:Get Hired
• MyCredentials: Career Presentation
• Job Search Help

Source: Challenger, Gray & Christmas, Inc.

Developing and Retaining Talent

Much has been said about the importance of retaining talent in this recession in anticipation of a recovery. But how do you make your talent stay?

A Challenger survey of about 150 HR execs found that the biggest contributor to low workplace morale was poor leadership - not money, which is generally blamed. The second cause was the work itself.

How do you keep employees engaged and happy? How do you keep senior talent from jumping ship?

An October 2009 Towers Perrin study “Managing Talent In Tough Times,” found that 66 percent of U.S. companies plan to “assess and develop high potentials and top talent” in the next 18 months, and 57 percent consider “recognizing exceptional performers” a top priority.

This same study found that 55 percent of respondents deem “performance management” and “assessing/developing senior leaders” in the next 18 months a top priority, while 54 percent value “strengthening the talent pipeline and succession management.”

Moreover, 44 percent of US companies have implemented a plan to develop talent by giving them the tools to search and apply for different roles within the organization.

Employee Engagement

§ Keep talent engaged and aware of their contributions to the company. (SHRM Talent Management Series: Employee Engagement. July 2005)

§ A 2009 Hays Group Survey found that companies with high levels of engagement show turnover rates 40 percent lower than companies with low levels of engagement. But companies that both engage and enable employees demonstrate a total reduction in voluntary turnover of 54 percent. (Hays Group. Tough Decisions in a Downturn Don’t Have to Lead to Disengaged Employees. August 2009)

Company Trustworthiness

§ The SHRM survey shows that increased loyalty through trustworthiness may result in as much as a 57 percent increase in discretionary effort and as much as 87 percent reduction in the desire to leave a company. (SHRM Talent Management Series: Employee Engagement. July 2005)

Colleen Madden

Research Consultant

Challenger on Seasonal Hiring