@Work

CEO John Challenger Discusses Employment On NBC Nightly News

2012-01-06T10:56:00.003-06:00

Visit msnbc.com for breaking news, world news, and news about the economy

2011 Year-End Job Cut Report & Economic Outlook

2012-01-06T10:51:00.000-06:00

Who's Hiring via ABC 7 Chicago

2011-12-07T09:56:00.001-06:00

Get Hired For The Holidays via TheStreet

2011-11-30T07:50:00.001-06:00

October Job Cuts Plummet to 42,759

2011-11-02T10:55:00.000-05:00

CEO John Challenger Discusses The Job Search On CBS Early Show

2011-10-27T11:24:00.003-05:00

September Job Cuts Surge To 115,730 on Bank, Military Cuts

2011-10-05T09:50:00.003-05:00

Who's Hiring? MSNBC Video 9/6/2011

2011-10-05T09:47:00.003-05:00

Visit msnbc.com for breaking news, world news, and news about the economy

CEO John Challenger Discusses Holiday Hiring via Marketplace Radio

2011-09-30T10:38:00.001-05:00

CEO John Challenger With CBS Early Show Jobs Summit 7/9/2011

2011-09-27T09:10:00.001-05:00

CEO John Challenger Discusses Holiday Hiring 2011 via CNBC

2011-09-22T09:19:00.000-05:00

Challenger Is Hiring

2011-09-15T12:36:00.000-05:00

Job Title: JOB SEARCH COACH, Chicago IL

Challenger, Gray & Christmas, the nation's oldest outplacement firm, is seeking some outstanding individuals with at least 8-10 years of real world business experience for a full time, temporary position for 3 to 6 months. Subsequent opportunities may also be available as required by business needs.

Successful candidates will become traveling job search coaches and present the Challenger program in-person, as well as provide support to our clients across the country. Job coaches travel extensively throughout the United States and must be available to travel as much as 90%.

Other qualifications for this role include:

-Outstanding communication, presentation and listening skills
-Efficient time management skills
-Strong decision-making skills and ability to receive and follow direction
-Must be greatly flexible
-Bachelor’s degree (or equivalent work experience)
-Must live in the Chicago, IL or Milwaukee,WI area

Our coaches come from a wide range of industries including: technology (IT including help desk experience), advertising and marketing, human resources, recruiting, training and development, accounting and finance, sales, retail, telecommunications, engineering, and non-profit. The right candidate will be empathetic, optimistic, adaptable, and sincerely enjoy helping others.

If you are interested in learning more and you are looking to join one of Chicago's premier firms, please submit your resume to jobcoach@challengergray.com and please tell us how you heard about the opportunity.

For more information about Challenger, Gray & Christmas, please visit our website at: www.challengergray.com.

CEO John Challenger Discusses August Job Cuts

2011-09-01T11:29:00.000-05:00

CEO John Challenger Discusses The Surge Of July Job Cuts

2011-08-03T09:06:00.001-05:00

The State Of Long Term Unemployment

2011-07-27T15:32:00.001-05:00

CEO John Challenger Discusses Social Media In The Workplace

2011-07-26T15:00:00.001-05:00

John Challenger Discusses The Latest Jobs Report on CBS Evening News

2011-07-11T11:10:00.001-05:00

John Challenger Discusses June Job Cuts via CNBC

2011-07-06T08:46:00.001-05:00

CEO John Challenger Discusses May Job Cuts Via Fox Business

2011-06-07T15:00:00.001-05:00

CEO John Challenger Discusses May Job Cuts On BNN

2011-06-01T08:36:00.000-05:00

Watch CEO John Challenger discuss job cuts in May on the Business News Network.

CEO John Challenger on The Teen Job Market: PBS Nightly Business Report

2011-05-24T07:23:00.001-05:00

Watch the full episode. See more Nightly Business Report.

CEO John Challenger Discusses April Job Cuts On Marketplace Radio

2011-05-04T08:30:00.001-05:00

CEO John Challenger On CNBC: April Job Cuts Fall

2011-05-04T08:26:00.002-05:00

CEO John Challenger On NPR: The Youth Job Hunt

2011-04-25T09:18:00.001-05:00

ABC Chicago - CEO John Challenger On McDonald's Hiring

2011-04-21T14:59:00.002-05:00

CEO John Challenger On CNBC: Why McDonald's Hiring Matters

2011-04-20T11:06:00.002-05:00

CEO John Challenger with Moody's CEO Zandi on Jobs

2011-03-29T12:40:00.001-05:00

CEO John Challenger Discusses Teen Jobs

2011-03-24T09:54:00.002-05:00

CEO John Challenger Discusses February Job Cuts via Marketplace Radio

2011-03-10T09:19:00.000-06:00

CEO John Challenger Discusses Entrepreneurialism, Risk-Taking

2011-03-02T06:22:00.001-06:00

CEO John Challenger Discusses January Job Cuts

2011-03-02T06:21:00.000-06:00

CEO John Challenger On Nightly Business Report

2011-03-02T06:20:00.001-06:00

Watch the full episode. See more Nightly Business Report.

CEO John Challenger On Holiday Retail Hiring

2011-03-02T06:19:00.001-06:00

As Companies Free Up Cash, Could Raises Follow?

2011-02-11T14:15:00.000-06:00

U.S. workers may have reason to hope this year as companies may free up some of their stock piles of cash, according to an article in the online version of the Wall Street Journal. Challenger offered some tips on how to ask for a raise this year.

ADVICE FOR REQUESTING A RAISE

Do your homework. Finding out how your company is faring through the economic slump and recovery is a critical piece of information to know before you even broach the subject of a raise with your boss. If your company is doing well, you can use this information to determine how much of an increase in pay to ask for. However, if your company is still struggling to turn a profit, showing you understand the organization’s precarious financial situation can help eliminate your boss’ immediate resistance to you asking for a raise and open the door for compromise.

Prepare to make your case. Arm yourself with facts that support your request for increased compensation. Gather emails from superiors praising your performance and make note of your achievements since your last raise. Documenting your contributions to an organization is more important than ever in an unstable economy. Employers need to see exactly what you have accomplished to warrant a salary increase. Maybe you’ve taken on extra responsibilities after your company laid off workers or you found ways to cut wasteful spending. These kinds of achievements showcase your worth to the company, especially in today’s tight economy, and help support your claim that you should be compensated accordingly.

Research your salary. You should also research and find out what other professionals in your field and location are making. If your salary is below average, this data is a great bargaining chip in getting a bump in payment. If it is on target, it gives you a starting point from which to adjust according to your value as an employee.

If at first refused, try again. Listen to your boss’ explanation for refusing to grant you a raise. If it is budgetary, ask for non-monetary things like more vacation days or the opportunity for company-paid training. If it is based on performance, work with your boss to set goals and a date to review the topic again.

Don’t make ultimatums. You definitely want to keep the tone of the meeting positive and focused on your contributions to the company. The second you say or even imply that a salary increase is requisite for you to remain with the company, the conversation takes a negative turn and becomes an adversarial process. That is the last thing you want.

Tips To Help Make A Case For A Raise

Seek more responsibility. Volunteer for challenging tasks and exhibit a take-charge attitude. By assuming additional responsibilities, you demonstrate how you can increase value for the corporation.

Meet your boss’s boss. At the next company event, go out of your way to meet those at least two rungs higher on the corporate ladder. They are the ones who can advance your career.

Join a company committee. Whether it is a committee developing new workplace policies or simply planning the company holiday party, joining or volunteering can help you build relationships with other people in your company whom you might otherwise never meet.

Find and/or become a mentor. Mentoring and being mentored provide perspectives and new ideas about career goals and how to achieve them.

Align individual and company goals. Evaluate your company’s goals and identify the similarities and differences in comparison to your personal career objectives. Look to bridge the gap in differences by attending meetings and company-offered development courses. This illustrates your willingness to be on board with the company’s future plans.

Discover ways to save money. Find ways to increase efficiency and performance while decreasing costs. This is especially important in a time when employers are looking for ways to reduce spending. You will be making a significant contribution to the organization’s profitability.

Become an expert on one facet of your field. It is important to be a generalist, but knowing more than anyone else on a specific issue or topic will help make you the “go-to” person for anyone in the company who has a question on that area. This specialized knowledge makes you extremely valuable and should be covered in your resume.

Source: Challenger, Gray & Christmas, Inc.^©

SOTU and Jobs, Abbott Cuts 1,900

2011-01-26T11:20:00.000-06:00

State of the Job Market

Not surprisingly, President Obama’s Tuesday night State of the Union address focused heavily on the economy and, more specifically, job creation. The job market certainly appears to be poised for a comeback. Planned layoffs have fallen to the lowest levels since 2000 and hiring is slowly picking up steam. However, the job gains have been too small to make any discernable dent in unemployment, so many are still waiting for the catalyst that will re-ignite accelerated and larger increases in hiring. The question is: can Washington policies, whether they come from the Left or the Right, provide that catalyst? It is well known that American companies are sitting on large sums of cash saved from two years of significant cost-cutting, yet they appear to be reluctant to start spending it. That may change this year amid rising demand. In a recent survey of CEOs from the nation’s largest employers, 80 percent expect their company’s sales to increase over the next six months, and 45 percent expected to add employees, which is the highest hiring level in records going back to the fourth quarter of 2002. What, if any, government policies will have the most impact on job creation? Will more stimulus spending or federal spending cuts be more effective in spurring employment growth? What will compel American companies to start spending their accumulated savings and will that spending be on additional workers or something else?

Will Heavy Pharmaceutical Cuts Continue in 2011?

Abbott Laboratories announced a restructuring this morning that will cost the Chicago-based pharmaceutical company 1,900 jobs. The company blamed difficult regulatory conditions for the need to reduce expenses that will save the company $300 million over the next several years. The pharmaceutical industry came off a challenging year in 2010, as companies in the industry announced 53,636 job cuts, the second highest industry total of the year and the second largest job-cut year for the sector on record. Are today’s Abbott cuts an indication that heavy downsizing will continue for the pharmaceutical sector in 2011? Even as other areas in the health care sector thrive amid increased demand for products and services, why does the pharmaceutical industry appear to be losing ground? What other areas of the economy are at risk in 2011? What areas are positioned to achieve growth?

2010 Tech Cuts Fall To Record Low

2011-01-24T09:12:00.000-06:00

While the pace of downsizing declined significantly for most industries in 2010, the technology sector fared particularly well, with employers announcing plans to cut 46,825 during the year. That was 73 percent lower than the 174,629 technology job cuts in 2009 and the lowest annual total for the sector in records going back to 2000.

The latest report on technology sector job cuts released Monday by global outplacement firm Challenger, Gray & Christmas, Inc. reveals that planned layoffs plummeted in the second half of 2010. Employers in the sector, which includes computer, electronics, and telecommunications firms, announced 35,375 job cuts between January and the end of June 2010. From July through the end of the year, job cuts totaled 11,450; a 68 percent drop.

Full Report (PDF): http://www.challengergray.com/press/PressRelease.aspx?PressUid=159

Telecommuting On The Rise, Jobless Claims Fall

2011-01-20T09:39:00.002-06:00

Increased traffic congestion, higher gas prices and rising rents for office space could spike interest in telecommuting as companies continue to seek ways to contain costs. A new report out today shows that traffic congestion is beginning to climb back toward pre-recession levels. The Texas Transportation Institute estimates that traffic cost the U.S. economy nearly $115 billion in time and fuel in 2009. That figure probably increased further in 2010 as the economy continued to improve. Meanwhile, in the fourth quarter of 2010 Manhattan office rents rose for the first time in more than two years, according to brokerage firm Cushman & Wakefield. Employers and employees are also facing rising gasoline prices. At least one employer sees the cost-benefit of increased telecommuting. In December, President Obama signed the Telework Enhancement Act, which will encourage telecommuting for federal employees through a number of measures. What are the biggest obstacles blocking increased adoption of telecommuting? What are the challenges of implementing a broader telecommuting strategy? What are the pros and cons of telecommuting?

Weekly jobless claims fell by 37,000 to 400,000 last week, the largest weekly drop since the week ending February 6. The four-week moving average dropped to 411,750, larger than expected possibly due to the holiday season skewing results. Most economists agree that weekly jobless claims have to drop below 400,000 before the job market begins to see significant improvement, as hiring remains slow. Which industries could see an uptick in hiring in the coming months? Will announced job cuts continue to trend downward? Is the job market on the cusp of experiencing greater and faster improvement?

Municipal Bankruptcies May Soar - Dimon Warns

2011-01-13T09:34:00.000-06:00

JP Morgan Chase CEO Jamie Dimon warned today that more U.S. municipalities may file for bankruptcy in coming months, with five filing in 2010 after 10 filings in 2009. Increased bankruptcy filings could lead to more layoffs. Over the last two years, government and non-profit sector employers announced 313,108 job cuts, 50,667 of which were announced by cities (28,493 in 2009 and 22,174 in 2010). Those figures do not include retirements or furloughs. Moreover, bankruptcy across all sectors resulted in 50,911 job cuts in 2009 and 10,172 in 2010. How at risk are government workers in the coming months? What cost-cutting measures can municipalities make to avoid layoffs? What sectors are likely to stay strong in 2011?

Workplace discrimination complaints soared in 2010, as 99,922 workers filed grievances with the EEOC. Grievances typically increase during an economic slump due to increased downsizing activity and the increased difficulty of finding new employment. Making matters worse is the fact that workplace stress is on the rise as depleted workforces are being asked to maintain high output with less support and fewer resources. For companies that are not quite ready to accelerate hiring, what are some ways to keep existing employees motivated and maintain morale? What can workers do to reduce stress in their jobs?

CEO Turnover Surges As Year Ends

2011-01-12T08:46:00.001-06:00

107 DECEMBER CEO CHANGES BRINGS TOTAL TO 1,234

Departures among the nation’s chief executive officers rose 35 percent in December to 107, the highest total since September. Despite the year-end surge, CEO turnover for the year was virtually unchanged from 2009 levels, according to the final 2010 CEO turnover report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

The 107 CEO changes announced last month was up from 79 in November. It was just ahead of the 105 departures announced in December 2009. The December total was slightly higher than the 103 departures-per-month average recorded in 2010.

Full Report Found Here: http://www.challengergray.com/press/press.aspx

2010 Retail Hiring Up 29%

2011-01-10T09:17:00.000-06:00

NEARLY 650,000 HOLIDAY WORKERS HIRED

Retail employment experienced a net gain of 646,300 jobs between October and December, according to an analysis of employment data released today by the Bureau of Labor Statistics. That is a 28.9 percent improvement over 2009, when seasonal hiring led to 501,400 net new jobs.

The analysis conducted by global outplacement consultancy Challenger, Gray & Christmas, Inc. found that while November hiring was about the same as a year earlier, October and December hiring was the heaviest it’s been in several years. Last month, retail employment grew by 181,900 positions, which is the largest December gain since 2005. October’s increase of 146,800 retail jobs was the largest for that month since 2006.

Note: Today’s report from the Bureau of Labor Statistics shows that retail employment increased by a seasonally-adjusted 12,000 jobs. For the purposes of this report, Challenger refers to the non-seasonally adjusted data provided by the BLS.

Full Report (PDF) http://www.challengergray.com/press/PressRelease.aspx?PressUid=155

Year-End Job Cut Report 2010: Downsizing At Lowest Level Since 1997

2011-01-05T06:30:00.001-06:00

2010 Lowest Job-Cut Year Since 1997

DECEMBER JOB CUTS DROP 34%;
LOWEST MONTHLY TOTAL SINCE 2000

After reaching a seven-year high in 2009, downsizing activity in 2010 fell to its lowest level since 1997, as employers announced plans to eliminate 529,973 positions. The year came to a close with the lowest monthly job-cut total since 2000.

Planned layoffs totaled 32,004 in December, down 34 percent from 48,711 in November, according to the 2010 year-end job-cut report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc. December job cuts were 29 percent lower than the same month a year ago when 45,094 cuts were announced.

Full Report: http://www.challengergray.com/press/PressRelease.aspx?PressUid=154

2010 Call-In Survey Results

2011-01-03T09:01:00.002-06:00

Job Seekers Frustrated, Uncertain About Job Prospects

IN SURVEY, NEARLY HALF OUT OF WORK FOR MORE THAN A YEAR

The job market made marginal improvements in 2010, but large numbers of job seekers were left out in the cold with many experiencing prolonged unemployment lasting six months or more. This fact was on display during the job-search advice call-in conducted last week by global outplacement firm Challenger, Gray & Christmas, Inc., with nearly 40 percent of all callers reporting that they have been out of work for more than a year.

In a random sampling of 400 callers, just over 80 percent were unemployed. Of those, 47.5 percent have been seeking employment for at least 12 months. The next largest group of jobless callers was the 19 percent who have been out of work for one to three months. Eighteen percent of the unemployed callers have been looking for four to six months.

Overall, more than 1,500 job seekers took advantage of the free advice offered during the two-day public service held December 27 and 28. This was the 25th job-search advice call-in conducted by Challenger.

The 80 percent of jobless callers was about the same level as a year ago. In 2008, 76 percent of callers were unemployed, while in 2007, only 55 percent of callers were out of work at the time of the call-in.

Despite prolonged unemployment, callers were slightly more optimistic than a year ago. Nearly one in five callers (18.4 percent) believed they would find a job in the next one to three months. Meanwhile, 21 percent felt they were with six months of finding employment. A year ago, only 12 percent thought they would find a job in three months, while another 12 percent thought a job could be found in four to six months.

Furthermore, only four percent of callers thought it would take another year or longer to find employment, down from nearly 16 percent of last year’s callers who thought it would take at least a year to find work.

While there was slightly more optimism than a year ago, the general feeling among callers was uncertainty. Nearly half (48 percent) did not know how much longer the job search would take, about the same as in 2009. Among those out of work for more than a year, the uncertainty was even more widespread, with nearly 60 percent saying they were not sure how long it would take to find employment.

“Obviously, there was a lot of frustration in callers’ voices this year. Not only were most of them out of work, many have been out of work for so long that they are losing confidence and hope. Our coaches' primary objective was to restore some of that hope by providing some new strategies they could utilize to jump-start their job search,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“Under the frustration, there was sense of optimism, with many feeling that 2011 would be a stronger year for the job market. And, that indeed should prove to be the case. Planned job cuts have slowed to the lowest levels we have seen since 2000. Private sector employment has experienced 11 consecutive months of net employment growth. And, companies are sitting on mountains of cash saved through two years of dramatic cost-cutting initiatives,” said Challenger.

“We expect private-sector hiring to continue to ramp up in 2011. However, this will not necessarily lead to an easier job search. In fact, it could be even more competitive. As hiring accelerates, two things will happen. First, people who abandoned their job search last year out of frustration will re-enter the labor pool as prospects improve. Second, people who are currently employed will start seeking greener pastures,” said Challenger.

“Additionally, while private sector employers are expected to increase hiring in 2011, government agencies at all levels – local, state and federal – are still feeling the impact of the recession and could be instituting massive job cuts to address significant budget deficits,” said Challenger.

Despite these challenges, Challenger said job seekers should not despair. At the moment, employers are adding just enough workers to replace people who retire, quit or let go for reasons other than cost-cutting. However, this number is not insignificant. According to the Bureau of Labor Statistics, employers hired an average of 4.3 million workers each month between May and October.

“There are a lot of things people can do to improve their chances of being among those four million new hires. The one thing they should not do is simply sit at a computer all day, responding to online job ads,” Challenger advised.

“Answering ads is just one part of the job search; and it is probably the least effective. Classified ads, whether online or in the newspaper, represent a small fraction of the available jobs out there – perhaps as small as 20 percent. The hidden job market, representing as much as 80 percent of the available jobs, can only be accessed through aggressive networking, cold-calling and persistence,” said Challenger.

The hidden job market is the hardest to uncover, a frustration felt by many callers, 36 percent of whom said the most difficult part of the job search is finding openings. In the same vein, another 31 percent said the biggest challenge is getting interviews.

“A big part of a successful job search is being in the right place, at the right time. To do this, you have to cast the widest net possible. Your network should include friends, family, former business associates, former college professors, fellow college alumni, etc. You basically need to broadcast to your entire universe of acquaintances that you are looking for a job,” said Challenger.

“We strongly urge job seekers to take advantage of social networking sites like Facebook or professional networking sites, such as LinkedIn. Even if you can only add 10 people at first, those 10 people are each going to know at least 10 more people who know 10 more people. You might just be two links away from someone who can get you in the door for an interview,” he concluded.

Companies Plan Bonuses Despite Economy

2010-12-16T09:21:00.000-06:00

While more companies are faring better than a year ago, most remain in a relatively fragile state and appear unwilling to break from the cost-containment measures that saw them through the worst recession in decades. The latest evidence of this can be seen in a new survey showing that the number of employers giving year-end bonuses is virtually unchanged from a year ago.
In the survey of approximately 100 human resources professionals, 63 percent said their companies were giving year-end bonuses this year. That is about the same level as a year ago, when 64 percent were expecting bonuses to be awarded. The non-scientific survey was conducted by global outplacement consultancy Challenger, Gray & Christmas, Inc.

However, as a testament to just how precarious the recovery is for many companies, 16 percent of survey respondents said their companies were planning to give smaller bonuses this year. Only four percent said the same in 2009.

Nearly one in three (30 percent) said bonuses will be about the same as last year, while only eight percent said bonuses will increase. Nine percent said their companies were reinstating bonuses after one or more years of not awarding any.

Even as some companies slowly begin to feel the effects of the recovery, others are still struggling. Twelve percent of respondents said their companies gave out year-end bonuses last year, but are not planning to do so this year. That is a slight improvement from 2009, when 16 percent of companies canceled year-end bonuses.

“According to economists, the recovery began in July 2009. But, for many companies, the recovery simply means they are no longer hemorrhaging money. They are definitely more stable; a fact that is evidenced by the significant decline in monthly job-cut announcements. However, most employers are still not at a point where profits are taking off. As a result, we are not seeing much hiring or other expansion efforts,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“In this environment, it is not very surprising that bonus activity was stagnant. The fact that it remained above 60 percent indicates how bonuses have become part of employee-retention programs. While companies are not quite ready to ramp up hiring, they are definitely making efforts to hold onto the employees they have,” said Challenger.

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.

A San Francisco Chronicle blog reported that Swedish retailer IKEA delivered bicycles to all of its 12,400 American employees as a year-end bonus. The company’s press release stated, "This is our way of saying 'thanks IKEA co-workers for being strongly committed to working together.' We hope this bike will be taken in the spirit of the season while supporting a healthy lifestyle and everyday sustainable transport."

“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.

CHALLENGER HOLIDAY BONUS SURVEY RESULTS

Yes 63%

Yes - Bonuses will be about the same as last year. 30%
Yes-We plan to decrease them. 16%
Yes-Reinstating bonuses after one or more years of no bonus. 9%
Yes-We plan to increase them. 8%

No 37%

No-We awarded bonuses last year, but not this year. 12%
No-We never give bonuses. 25%

Source: Challenger, Gray & Christmas, Inc.

79 CEO's Leave Positions In November

2010-12-08T09:16:00.001-06:00

Turnover among the nation’s chief executive officers declined for the second consecutive month, as 79 CEO announcing their departures in November. That is the lowest monthly total since April 2009, when CEO exits totaled 78.

The latest report on CEO turnover, released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc., showed that November departures were down slightly from 81 CEO changes were recorded. Last month’s total was down 16 percent from 94 CEO departures in the same month last year.

For the year, 2010 CEO departures are virtually unchanged from a year ago. To date, 1,127 chief executive departures have been announced, compared to 1,122 departures announced by this point last year.

Full report: http://www.challengergray.com/press/PressRelease.aspx?PressUid=152

November Update: Hiring Slips After Strong October

2010-12-03T10:22:00.000-06:00

Seasonal Hiring Numbers

Holiday hiring, which got off to a strong start in October, dipped somewhat in November, according to an analysis of Bureau of Labor Statistics data by global outplacement firm Challenger, Gray & Christmas, Inc.

Today’s employment situation report showed that retail payrolls experienced non-seasonally adjusted net gain of 300,800* in November. That is down slightly from November 2009, when 318,900 retail jobs were added. However, last month’s retail hiring was still a significant improvement over 2008, when only 213,500 holiday workers were added in November.

Even with the dip in November, overall holiday hiring is up over 2009, due to solid gains in October. Retailers have added 432,600 workers since October 1, an 18 percent increase over the same period a year ago when retail employment grew by 366,700.

*The widely-reported seasonally adjusted data, which is intended to “smooth out” the volatile fluctuations of seasonal hiring, showed a net loss of 28,100 jobs in retail. Challenger uses the non-seasonally adjusted data to capture the actual holiday hiring activity.

In October, retailers added 131,800 (adjusted downward from an originally-reported figure of 150, 900). Despite the downward adjustment, the October hiring was still far stronger than a year earlier when retail employment grew by only 47,800 in the first month of the holiday hiring period (October – December).

“It appears that retailers really wanted to get an early jump on the holiday season. Many were offering heavily discounted merchandise before Black Friday. In order to make sure they were staffed for the earlier sales push, retailers ramped up hiring earlier. However, the stronger hiring in October may have resulted in more subdued employment gains last month,” said Challenger.

The good news is that retail sales have been strong so far this year. That may lead to continued hiring in December, according to Challenger. Last year, retail employment grew by nearly 135,000 in December. Since 1999, December retail gains have averaged about 183,500.

“So, even if December hires are somewhere in between the 2009 figure and the 11-year average, overall holiday hiring for the year could reach at least 550,000,” noted Challenger.

# # #

MAJOR HOLIDAY HIRING ANNOUNCEMENTS TO DATE

Macy’s 65,000

UPS 50,000

Toys R Us 45,000

Kohl’s 40,000

J.C. Penney 30,000

Best Buy 29,000

American Eagle Outfitters 15,500

Michaels Stores 10,000

Hickory Farms Inc. 4,000

Pier 1 Imports *

American Eagle Outfitters *

Borders *

Target *

Wal-mart *

*No figures have been reported, but these retailers have said that they plan to increase seasonal hiring in 2010.

November Job Cuts Surge To 8-Month High

2010-12-01T06:35:00.000-06:00

The pace of downsizing surged to its highest level in eight months, as employers announced plans to reduce payrolls by 48,711 jobs in November, according to the report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc.

November job cuts were 28 percent higher than the 37,986 planned layoffs reported in October. It was the highest job-cut total since March, when employers announced plans to cut 67,611.

Despite the increase, job cuts this year are still well below last year’s levels. Last month’s total was 3.3 percent lower than the 50,349 job cuts announced in November 2009. Overall, employers announced 497,969 job cuts from January through November, a 60 percent decline from the 1,242,936 layoffs in the same period a year ago.

Full report here: http://www.challengergray.com/press/press.aspx

Companies Keep Celebration Light

2010-11-30T08:46:00.002-06:00

As a growing number of companies benefit from a slowly improving economy, there are indications that workplace holiday parties are starting to make a comeback. However, with the bitter taste of cost-cutting measures still fresh in employees’ minds, some companies appear to be keeping festivities relatively subdued, according to a new survey and interviews with employers.

In its annual survey on holiday parties, global outplacement and business coaching firm Challenger, Gray & Christmas, Inc. found that 64 percent of companies are planning holiday parties this year, up slightly from 62 percent a year ago. About four percent of those holding parties this year are doing so after one or more years with no party due to the recession.

The non-scientific survey of approximately 100 human resources professionals found that only six percent of those companies holding parties are planning to spend more this year. The majority of respondents (76 percent) said party budgets would be about the same as last year. Eighteen percent of companies are spending less, down from 29 percent a year ago.

Full Report Here: http://www.challengergray.com/press/PressRelease.aspx?PressUid=150

Bulletin: Overqualified Workers, Cash-Rich Companies

2010-11-17T12:11:00.001-06:00

Companies Could See Exodus of Talent

As the economic recovery slowly gains momentum, employers may find it increasingly difficult to retain their best talent. Turnover may be particularly high among employees who “settled” for their current position during the downturn. The latest data from the Bureau of Labor Statistics show that 50 percent of private-sector separations in September were voluntary departures (i.e., quits). In contrast, quits accounted for 41 percent of separations in September 2009. In a Wall Street Journal article this week, one Illinois-based recruiter stated that one in five job seekers who contact him now are people who have been with their current employer for a year or less and are seeking positions at their pre-recession salary level. What can companies do to hold on to “overqualified” employees? As an “overqualified” employee, is there any benefit to sticking it out with your current employer? Is this type of turnover necessary in order to ignite increased hiring?

Will Corporate Cash Lead to Job Creation or Job Cuts?

Due largely to massive cost-cutting initiatives, including large-scale layoffs, the country’s corporations have amassed large amounts of cash. As of September, the Federal Reserve put the sum of corporate cash at a near-record-level $1.84 trillion. The big questions are when will companies start spending their stockpile and what will they spend it on? The nation’s unemployed are hoping they spend it on expansion and job creation. But, we may have received the real answer earlier this week, when heavy equipment manufacturer Caterpillar announced a record-breaking $7.6 billion acquisition of Wisconsin-based mining equipment manufacturer Bucyrus International. Overall, mergers and acquisitions are up sharply in 2010. Unfortunately, these deals often lead to job cuts; not job creation. So far this year, job cuts related to mergers and acquisitions total 36,865. That is actually down from 2009 (62,863 through October), but many of the deals announced this year have not been finalized. It could take months for the Caterpillar-Bucyrus deal to close and several more months to determine if job cuts will be necessary. Could we see a surge in M&A-related job cuts in 2011? Why are layoffs typically part of merger and acquisition transactions? Is there anything employees can do to protect their jobs following a merger?

CEO Exits Fall To Lowest Level Since April 2009 with 81

2010-11-10T09:00:00.001-06:00

Turnover among the nation’s chief executive officers fell to its lowest level in 18 months, as 81 CEO changes were announced in October. That was down 27 percent from 111 CEO departures in September, according to the latest report on CEO turnover released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

October turnover was nine percent lower than the 89 CEO departures recorded the same month a year ago. It was the lowest monthly total since April 2009, when 78 CEOs left their posts.

For the year, the pace of CEO departures is virtually even with 2009. To date, 1,048 chief executive departures have been announced, up just slightly from the 1,028 departures announced by this point last year.

Read the full report here: http://www.challengergray.com/press/press.aspx

Holiday Hiring Update: October Payroll Gains Portend Strong Seasonal Hiring

2010-11-08T09:17:00.000-06:00

The holiday hiring season is off to its strongest start since 2006, according to an analysis of Labor Department data by global outplacement firm Challenger, Gray & Christmas, Inc.
The latest employment situation report showed that retail payrolls experienced a net gain of 150,900 in October. That is three times greater than October 2009, when just 47,600 retail jobs were added. In 2008 -- the worst holiday-hiring season in 22 years -- retailers added only 38,600 seasonal workers.

To find a similar October kick-off to seasonal hiring, one would have to go back to 2006, when retail payrolls expanded by 150,600. Another 596,200 retail workers were added in November and December, bringing total seasonal hiring to 746,800 that year.

“This is a good sign that retailers feel more optimistic this year. Even if November and December hiring remains flat from a year ago, seasonal job growth will top 600,000 for the first time since 2007,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

In its annual holiday hiring forecast released in September, Challenger predicted that seasonal hiring would improve over 2008 and 2009, but would probably fall short of the job creation achieved in 2006 or 2007 when retail payrolls grew by 746,800 and 720,800, respectively.

“Increased hiring will not make it any easier to find a job for those seeking these types of seasonal positions. The competition remains stiff with so many people out of work. People who may have never considered working in retail previously, may now be willing to do so in light of long-term unemployment,” said Challenger.

“Job seekers who apply for positions online or blindly blanket retail outlets with completed applications will lose out to those who take more aggressive steps, such as visiting stores during slower hours and initiating face-to-face interactions with store managers.

“Additionally, while big holiday hiring plans have been announced by such stores as Toys R Us and Macy’s, job seekers should not overlook smaller mom-and-pop stores, as well as businesses outside of the retail sector that could see a holiday surge. Restaurants, shipping offices, event venues, caterers, etc., should also be on the target list for holiday job seekers,” Challenger advised.

JOBS ADDED IN RETAIL TRADE

October, November, December, 1999-2010

           Oct         Nov        Dec        TOTAL    Job Growth
                                                                        Compared to Previous Year
1999 172,300 369,000 308,100 849,400 8.0%

2000 143,700 393,800 250,600 788,100 -7.2%

2001   95,700   352,000   137,600   585,300 -25.7%

2002   125,900 350,400 193,300    669,600 14.4%

2003 145,100 305,000 189,900   640,000 -4.4%

2004   157,800 371,800 180,600 710,200 11.0%

2005 122,300 392,700 196,400 711,400 0.2%

2006 150,600   427,200 169,000   746,800  5.0%

2007   87,900   465,400   167,500 720,800 -3.5%

2008   38,600 213,500 72,800   324,900   -54.9%

2009 47,800 318,900 134,700 501,400 54.3%

2010 150,900                                  150,900

AVG 126,040 361,809   183,564    664,300

Source: Challenger, Gray & Christmas, Inc., using non-seasonally adjusted data provided by the Bureau of Labor Statistics

MAJOR HOLIDAY HIRING PLANS

September, October

Macy’s 65,000

Toys R Us 45,000

Kohl’s 40,000

UPS 50,000

J.C. Penney 30,000

Best Buy 29,000

Job Cuts Slightly Edge Up In October, Continues Decade-Low Pace

2010-11-03T06:32:00.002-05:00

Downsizing activity remained flat in October, as employers announced job cuts totaling 37,986 during the month. That was 2.2 percent more than the 37,151 planned layoffs in September, according to the latest job-cuts report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

October marks the sixth month in the last seven in which fewer than 40,000 job cuts were announced. It was the tenth consecutive month this year that saw fewer job cuts than the same period a year ago. Last month’s total was 32 percent lower than October 2009, when 55,679 job cuts were announced.

Overall, the pace of job cutting is down 62 percent from a year ago, with employers announcing 449,258 job cuts year to date, compared to 1,192,587 over the same period in 2009.

Full Report Here: http://www.challengergray.com/press/PressRelease.aspx?PressUid=149

Job-Seeker Relocation At Record Low

2010-10-28T08:00:00.001-05:00

Job Seeker Relocation Drops to Record Low
HOME VALUES KEEP JOB SEEKERS NEAR HOME;
WORKER IMMOBILITY COULD SLOW RECOVERY

The percentage of unemployed managers and executives relocating for a new position fell to a record low in the third quarter of 2010, as a slightly improved job market and greatly depreciated home values combined to eliminate this option for most job seekers.

Just 6.9 percent of job seekers who found employment in the third quarter relocated for the new position. That was down from a relocation rate of 13.4 percent in the same quarter a year ago, according to the latest Challenger Job Market Index, a quarterly survey conducted by global outplacement consultancy Challenger, Gray & Christmas, Inc. among approximately 3,000 successful job seekers from a wide range of industries nationwide.

The relocation rate has been low for four consecutive quarters, averaging just 7.3 percent since the fourth quarter of 2009. The 6.9 percent figure in the quarter ending September 30 was the lowest ever recorded by the firm, which began its tracking in 1986.

“Continued weakness in the housing market is undoubtedly the biggest factor suppressing relocation. Job seekers who own a home – even if they are open to relocating for a new job – are basically stuck where they are if they are unable or unwilling to sell their homes without incurring a significant loss,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“In a strong job market, where talent is difficult to find, employers might be more willing to help offset some of the financial loss associated with relocation. However, at this early stage of the recovery, companies are still in cost-containment mode,” he added.

Job seekers may also be opting to eschew relocation due to increased confidence in their ability to find employment locally.

“Many areas have seen a slight improvement in the job market over the past year. While the gains have been small, for the most part, they may have been enough to lift job seekers from the sense of desperation that often compels people to relocate,” said Challenger.

According to state and local employment data from the Bureau of Labor Statistics, 167 metropolitan areas have seen their unemployment rates decline over the past 12 months, with 45 of those dropping by a percentage point or more. As of August, there were 232 metropolitan areas with unemployment rates below the national average of 9.6 percent. There were 91 cities with unemployment rates of 7.5 percent or below.

Furthermore, 27 states have experienced net gains in payroll levels over the 12-month period ending in August. Overall, a total of 500,600 new jobs have been added to payrolls in these states, or an average of 18,500 jobs added per state.

“The job market is expected to continue to improve in 2011. If it improves faster than the housing market, the inability of job seekers to relocate will become a major obstacle to sustained job creation,” warned Challenger.

“Right now, demand for new workers is not at a level that would force companies to bring in talent from outside their region. However, as the local talent pool starts to become depleted as the economy improves, companies will be compelled to cast a wider recruiting net. Unfortunately, the immobility of the workforce may mean that some employers will have to delay expansion plans, thus slowing the recovery,” he said.

“At that point, some large companies might have the financial ability to increase their relocation budgets and help offset the difference between the home value and selling price. However, small- and medium-size companies, where most of the new job growth is expected to occur, probably will be unable to cover the costs of relocation and make up for a candidate’s lost home value,” said Challenger.

Surprisingly, small companies currently appear more willing to cover relocation expenses. A 2010 Atlas Van Lines survey of companies found that 51 percent of companies with fewer than 500 employees offer full reimbursement of relocation expenses to new hires. Among companies with 500 to 4,999 employees, the percentage offering full reimbursement drops to 45 percent, while 47 percent of companies with 5,000 employees or more cover all moving expenses for new hires.

However, most companies draw the line when it comes to covering any losses on the sale of a home. Only 28 percent of all employers are willing to reimburse new hires for any loss on the sale of their home. The percentage of employers that reimburse for financial loss drops to 14 percent for companies with less than 500 employees.

“Even if business conditions improve to the point where more employers are willing and able reimburse new hires for relocation costs and for the financial losses experience by home sellers, there is no guarantee that candidates will be willing to move,” said Challenger.

Relocation has been on the decline since the early-1990s. In 1986, the quarterly relocation rate averaged 42 percent. In 1993, relocation averaged 35 percent over the year, but reached a record high of 49.2 percent in the second quarter. From 1994 through 2000, the quarterly average sank to 22 percent from 1994 through 2000. Since January 2001, the relocation rate has remained below 20 percent for 39 consecutive quarters.

“Several factors probably contributed to the decline in relocation. The country experienced a period of phenomenal growth, with many cities and states diversifying their economies. As a result, it was no longer necessary to relocate to Silicon Valley for a technology job, for example.” said Challenger.

“Furthermore, the same Internet technology that makes it easier to conduct an out-of-town job search also makes it easier for people to work from anywhere. Faster and cheaper Internet connections, coupled with relatively low air-travels costs, made it possible for job seekers to gain out-of-town employment without actually moving out of town,” he added.

See full chart here: http://www.challengergray.com/press/PressRelease.aspx?PressUid=131

Bulletin: Tribune CEO Under Fire, Hostile Workplaces An Issue

2010-10-20T10:04:00.001-05:00

TRIBUNE CO. CEO UNDER PRESSURE TO RESIGN

This morning, the Chicago Tribune, citing inside sources, reported that the Tribune Company’s controversial CEO Randy Michaels will retire by end of the week, though no confirmation was provided by company executives. Michaels has come under fire for instilling a “frat boy” culture at the once-venerable media company, an allegation that gained traction last week with the suspension and then resignation of chief innovation officer Lee Abrams, who sent a company-wide email containing highly offensive material. The situation at the Tribune Company raises many important issues that should be discussed by employers around the country. It is one thing when a co-worker or department manager is creating a hostile or uncomfortable work environment, but what do employees and employers do when that environment stems from the highest ranking executives? What challenges will the Tribune Company face in finding a CEO who will be able to restore the company’s reputation while, at the same time, “shaking things up” in a media industry that is in a volatile state of change? What lessons can other companies learn from this when it comes to selecting a CEO; is it more important to find a leader who will define the culture or one who fits the existing culture?

SPEAKING OF HOSTILE WORKPLACES…

According to a recent poll created by the Workplace Bullying Institute and conducted by Zogby International, 35 percent of workers have witnessed workplace bullying this year. Of those bullied, 68 percent was same-gender harassment and 80 percent of women bullies target other women, the study found. The Workplace Bullying Institute recommended full screenings of new hires, thorough background checks, in addition to human resources scanning the environment for any potential trouble. What behaviors indicate a workplace bully? What policies can be used to protect the workforce? What are best practices for handling a bully?

Announced Holiday Hiring Puts 200,000 To Work

2010-10-11T09:25:00.003-05:00

A flurry of announcements touting significant holiday hiring plans provides some much-needed hope to those seeking temporary, seasonal employment this year.

Over the past two weeks, a handful of employers announced seasonal hiring plans that will add a total of 200,000 workers to their collective payrolls, according to Challenger, Gray & Christmas, Inc., the global outplacement firm that tracks job-cut and hiring announcements. The holiday hirers included Toys R Us, Macy’s, Kohl’s, and UPS.

The announcements came at the onset of the 2010 holiday hiring season, which Challenger expects to be better than 2009, though not as strong as the pre-recession year of 2007.

Last year, retail payrolls experienced a net gain of 501,400 workers in October, November and December, according to non-seasonally adjusted data from the Bureau of Labor Statistics. That was a 54 percent increase from 2008, when holiday hiring fell to a 22-year low of 324,900.

“This year we expect to see further gains in seasonal hiring, but it probably will not achieve the levels we saw in 2006 or 2007 when retailers’ holiday payrolls grew by 746,800 and 720,800, respectively. Consumer spending is still well below pre-recession levels, so retailers and other sectors adding workers will be careful not to over-hire,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

While the holiday hiring outlook focuses on retailers, Challenger is quick to point out that they are not the only employers adding seasonal workers. This is evidenced by the fact that UPS announced plans to hiring 50,000 workers to help meet increased holiday demand.

“Opportunities also exist in areas such as food service, hospitality and leisure. Job seekers also should not limit their searches to the biggest employers. Toys R Us will undoubtedly be swamped with applicants, making it extremely competitive. Meanwhile small, mom-and-pop toy stores may be overlooked,” said Challenger.

MAJOR HOLIDAY HIRING ANNOUNCEMENTS TO DATE

9/23/10 Macy’s 65,000

9/28/10 Toys R Us 45,000

10/6/10 Kohl’s 40,000

10/6/10 UPS 50,000

Source: Challenger, Gray & Christmas, Inc.

September Job Cuts Inch Up To 37,151

2010-10-06T06:35:00.000-05:00

The pace of downsizing remained virtually unchanged in September as employers announced plans to cut 37,151 jobs during the month; a seven percent increase from the 34,768 job cuts reported in August.

The September figure is the second lowest of the year and comes on the heels of the lowest monthly job-cut total since June 2000 (17,241), according to the report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc. Last month’s total was 44 percent lower than the 66,404 job cuts announced in September 2009.

View Full Report Here: http://www.challengergray.com/press/PressRelease.aspx?PressUid=146

Fantasy Football: Not Killing Productivity

2010-09-30T10:09:00.001-05:00

Fantasy Football Is Not Killing the Economy

With three weeks of the NFL season in the books, the big question is whether fantasy football leagues are sapping the nation’s workplace productivity. According to human resource professionals from around the country, the answer is a resounding NO.

In a survey by global outplacement consultancy Challenger, Gray & Christmas, Inc., the majority of respondents said fantasy football had little to no impact on productivity. Ranking the level of distraction on a scale of 1 to 10, with 1 being no noticeable impact, nearly 70 percent said four or lower. Less than eight percent of respondents said the level of distraction rated a 7 or 8 and none of the respondents felt the phenomenon deserved a 9 or 10.

“Other surveys show that people are indeed managing their fantasy teams from work. However, what we are hearing from the human resources community is that this is not at all affecting the level of output workers are expected to deliver,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

The Challenger survey found that about one in five employers block access to sports and fantasy football websites. However, many simply look the other way with nearly half (46.2 percent) saying they do not care if employees spend part of their workday on fantasy football, as long as the quality and quantity of output does not decline. About 22 percent said they merely ask workers to limit fantasy football and other personal activities to lunch and other break times.

“It is difficult for companies to take a hard-line stance against fantasy football. The internet technology that helped fuel the rapid growth of fantasy football participation and makes it possible to manage teams from one’s desk also makes it possible for employees to attend to work duties during their personal time,” said Challenger.

Fantasy football is becoming so popular it may be difficult for employers to stop it, even if they wanted to. A 2008 study by the Fantasy Sports Trade Association estimated that 27.1 million Americans participate in fantasy sports, with 75 percent of those or roughly 20.3 million playing fantasy football. That was up from 17 million fantasy sports participants and 13.6 million fantasy football players estimated by the Association just a couple of years prior.

Meanwhile, other studies from the Fantasy Sports Trade Association indicate that fantasy sports participants spend about three to four hours on the Internet per week, with nearly 1.2 hours of that time at the office.

“Managers should only crack down on those whose work is clearly suffering from the added distraction. An across-the-board ban on all fantasy football or sports websites could backfire in the form of reduced morale and loyalty. The result could be far worse than the loss of productivity caused by 10 to 20 minutes of team management each day,” said Challenger.

“Companies that not only allow workers to indulge in fantasy football, but actually encourage it by organizing a company leagues are likely to see significant benefits in morale as well as productivity,” Challenger said. “In the long run, this may lead to increased employee retention.”

A 2006 Ipsos Survey, 40 percent of respondents said fantasy sports participation was a positive influence in the workplace. Another 40 percent said it increases camaraderie among employees. One in five said their involvement in fantasy sports enabled them to make a valuable business contact.

Despite these impressive figures, less than eight percent of the Challenger survey participants said their companies “embrace” fantasy football participation as a morale-boosting activity and none of the employers represented officially organized leagues.

The Challenger survey was conducted online among approximately 100 respondents from the end of August through late-September. Interestingly, about 65 percent of those polled said they participate in fantasy football leagues, either with co-workers, friends outside of work or both.

2010 FANTASY FOOTBALL SURVEY

On a scale of 1 to 10, please rate the level of distraction or impact on the workplace productivity resulting from employee participation in fantasy football leagues.

(1 being no noticeable impact at all and 10 being an obvious or measurable impact)

1: 19.2%
2: 26.9%
3: 12.5%
4: 10.5%
5: 7.7%
6: 15.4%
7: 4.6%
8: 3.2%
9: 0
10: 0
Average Rating: 3.42

Does your company take any steps to discourage employees from partaking in fantasy football activities at the office?

No, we don't care, as long as the quality of worker output does not decline. 46.2%

We block access to sports and fantasy football websites. 24.0%

We ask that they limit such activities to lunch or other breaks. 22.1%

No. In fact, we embrace fantasy football as a morale-boosting activity. 7.7%

We prohibit use of company computers for personal activities. 0

Does your company formally organize a fantasy football league for workers?

No, but I am aware of one or more employee-organized leagues. 65.4%

No, we see fantasy football as a distraction. 30.8%

No, but we don't discourage it. 3.8%

Yes 0

We leave it up to department heads. 0

Do you participate in a fantasy football league, either with co-workers or friends outside of work?

Yes, with friends 38.5%

I do not participate in a fantasy football league 34.6%

Yes, with both co-workers and friends 19.2%

Yes, with co-workers 7.7%

Source: Challenger, Gray & Christmas, Inc.©

Mixed Signals on Economy, Hiring

2010-09-23T10:36:00.000-05:00

Mixed Signals on Economy

Is the good news beginning to outweigh the bad? It was reported today that initial jobless claims unexpectedly increased by 12,000 last week to 465,000. However, the weekly claims is notoriously volatile measurement that fluctuates wildly even in the best of times. The good news is that the four-week moving average, which is considered by most to be a more reliable indicator, fell to the lowest level since July 31. Meanwhile, the number of people who continued to receive jobless benefits fell by 48,000. In other good news, the index of leading economic indicators rose by a better-than-expected 0.3 percent in August and existing home sales increased by 7.6 percent last month. While, home sales and other economic measurements still remain severely depressed from pre-recession levels, they are heading in the right direction. When will the recovery begin to look and feel like a recovery? Should the unemployed be looking at these national economic measurements for readings on the job market?

* * *

Retailers Already Announcing Mass Hiring

This morning, Macy’s Inc. announced it would hire 65,000 temporary seasonal workers, expecting sales to grow between 3 and 3.5 percent over last year. The announcement comes on the heels of a similar one from Toys R Us, which announced it will hire 10,000 seasonal workers this year. Challenger predicts hiring will increase this holiday season over last year, due to two consecutive months of sales gains in addition to a 65 percent decline in retail-sector job cut announcements since 2009. What other businesses could see an uptick in hiring as the holidays approach? Do sales gains necessarily predict hiring? Will the workers hired for the holidays be able to retain their positions into the new year?

Read Full Holiday Hiring Outlook Here: http://www.challengergray.com/press/press.aspx

Employment Trends: Good News, Bad News

2010-09-16T09:07:00.000-05:00

Employment Trends Bulletin: Good News/Bad News

First, the Bad News…
This morning, FedEx posted a higher net income and an 18% increase in revenue over last year, but announced 1,700 job cuts, in spite of expectations of global growth over the coming year, according to reports. They will also close 100 facilities as it consolidates business divisions. The pace of job cut announcements has slowed considerably over last year, according to Challenger data. Transportation companies have announced 20,102 job cuts through August, compared to 65,591 in the same period last year. Are companies likely to increase job cutting before the end of the year? What other industries are seeing layoffs? Will retail hiring offset these losses, as retailers beef up for the holidays? What will the job market look like next year?

Now, the Good News…
Jobless claims fell last week to 450,000, the lowest in 2 months. This marks the third consecutive decline for the historically volatile employment measure. Meanwhile, Toys R Us announced that it will open 600 temporary “Express” stores in malls and other shopping centers across the country for the holidays. This doubles the retailer’s 2009 holiday store openings and requires hiring 10,000 seasonal workers. How much of a boost do temporary stores associated primarily with Halloween and Christmas give to retail hiring? When will retailers and other employers begin their holiday hiring push?

ALERT: Will Retail Sales Lead To Retail Hiring

2010-09-14T10:56:00.000-05:00

Could the second consecutive month of increased retail sales bode well for holiday hiring? With October quickly approaching, retailers are assessing their need for extra workers during the holiday sales season. Last year, retail payrolls grew by 501,400 workers in October, November and December. That was a 16 percent increase from 2008, when retailers added only 384,300 extra holiday helpers. As this holiday season approaches, the economy is showing signs of recovery, but it remains fragile. Retail sales increased 0.3 percent in July and 0.4 percent in August, but some retailers remain less than optimistic heading into the final quarter of the year. What can job seekers do to increase their chances of finding a holiday job? Outside of retail, what opportunities might exist for holiday job seekers?

Challenger, Gray & Christmas will release its annual holiday retail hiring outlook on Monday, September 20 at 8:00 A.M. ET.

Bulletin: Increased Suit Sales Suggest Increased Interviewing; Hiring Trends

2010-09-09T09:59:00.002-05:00

Is the recession helping Men’s Warehouse sell more suits? The Houston-based tuxedo and suit retailer reported better-than-expected second-quarter earnings, thanks in part to increased sales. While there was no indication from the company as the reason behind the increased sales, workplace authority John Challenger believes it could be a surge in suit-buying by out-of-work Americans trying to look their best for job interviews. “After years of many workplaces going casual, a trend that hurt suit retailers, job seekers wanting to dress up for interviews don’t have anything in their closet that fits or is in fashion. So, they are heading out to restock their suit collections. Places like Men’s Warehouse that offer good value are going to do better than high-end retailers selling $1,000 suits,” noted Challenger. With the job market so competitive, is it important to dress up for interviews? Are dress codes in the office returning to a more formal or traditional business attire because of the economy?

* * *

A look at the monthly employment figures from the government can be somewhat disheartening for the millions of job seekers hoping to land a position in the slowly recovering economy. After all, total non-farm payrolls suffered a net loss of 54,000 jobs in August while private payrolls grew by only 67,000, well short of the growth needed to make a dent in unemployment. If you are in an industry like construction, manufacturing or retail, the picture looks even worse. Construction added 19,000 jobs after two months of losses totaling 13,000 jobs. Manufacturing payrolls fell by 27,000 last month while retailers’ payrolls shrank by nearly 5,000. Looking at those numbers, one might simply assume that there are no jobs available in these industries. However, that is not the case. While it is true that employers in these areas lost more employees than they gained, there was still plenty of hiring. The Bureau of Labor Statistics latest Job Openings and Labor Turnover survey provides a clearer picture of hiring activity, albeit a month behind the other employment data. In July, for example, the report shows that construction companies hired 351,000 new people, up from 289,000 a month earlier. Additionally, there were another 76,000 job openings that were left unfilled at the end of the month. Manufacturers hired 294,000 in July and had 228,000 more openings. Retailers hired 603,000 and still had nearly 300,000 openings to fill heading into August. So, yes, payrolls are still showing net losses, but these numbers show that hiring is occurring. It is critical that job seekers not give up or even let up on their searches due to the assumption that no jobs are available. What can job seekers do to improve their chances of being one of the people hired? Are all of the job openings reported by employers advertised in the help wanted sections or online? If not, what can job seekers do to uncover this hidden job market?

August CEO Departures Jump To 95, Include Changes at HP, Sara Lee

2010-09-08T09:38:00.000-05:00

95 August CEO Departures Put 2010 Total Over 2009

Turnover among the nation’s chief executive officers increased slightly in August, as 95 CEOs announced their departures, 8.0 percent more than a 16-month low of 88 in July. Perhaps more notable than the number of CEO departures in August was the fact that they included high-profile and unexpected exits at such major companies as Hewlett-Packard, Sara Lee and General Motors.

While the August figure was up from the previous month, it represents the third lowest departure total of the year, according to the CEO turnover report released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc. August turnover was six percent lower than the same month a year ago, when 101 CEO changes were recorded. This marks just the third time in 2010 that monthly CEO turnover was lower than the corresponding period in 2009.

Overall, the pace of CEO departures is slightly higher than a year ago with 856 changes announced through August, compared to 834 at this point last year.

Health care led all industries in turnover in August with 19 CEO changes, bringing the year-to-date total for the sector to 142. That is 19 percent more than the 119 CEO changes announced this year in the second-ranked government and non-profit sector. The third most volatile sector, financial services, has seen 81 CEO departures this year, including eight in August.

The computer sector had 10 chief executives leave their post, including one of the most notable departures of the month, Hewlett-Packard’s Mark Hurd, who resigned under pressure from the board of directors after an investigation uncovered an inappropriate relationship and falsified expense reports. The Hurd story continues to grab headlines, as Oracle CEO Larry Ellison, who was outspokenly critical of HP’s decision to force its leader to resign, hired Hurd as co-president on September 6. Within 24 hours, Hewlett-Packard filed suit to block the hire, claiming Hurd could reveal trade secrets to his new employer.

Other high-profile CEO departures in August included Brenda Barnes, chairman and CEO of Sara Lee Corp., who left to focus on her health after recovering from a 2005 stroke. General Motor’s CEO Ed Whitacre, who replaced ousted CEO Fritz Henderson on December 1st, announced he will leave GM at the end of the year, after overseeing vast improvement in GMs operations. Ann Moore, CEO of Time, announced that she will retire in September.

“These high-profile CEO exits often shine a spotlight on the company and it is not always flattering. Many questioned HP’s wisdom in forcing out a CEO who was responsible for turning the company around. Making matters worse is that they did not have much a succession plan. As a result, the company was hammered on Wall Street. GM, on the other hand, did it right. Whitacre always said he would only stay until the company got turned around. He accomplished that, announced his departure well in advance and named his successor,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“However, even high-profile departures executed well can leave companies in a state of volatility. New CEOs often mean changes for the other c-level positions as the new leader brings in his or her own team. It may not happen overnight, but it usually happens. A new CEO does not just mean change in personnel. It usually means structural or operational change. In the case of Time Inc., for example, the new CEO will oversee the company’s publications conversion from a money-losing print format to a digital format, which is still unproven in terms of being profitable,” said Challenger.

August BLS Commentary: Job Market Stuck In Neutral

2010-09-03T09:18:00.001-05:00

SMALL PRIVATE SECTOR JOB GAINS NOT ENOUGH TO DENT UNEMPLOYMENT

“Overall, today’s report on the employment situation was fairly lackluster. The job market appears to be stuck in neutral as employers hang on to the workers they have, but are unable or unwilling to add new workers. As a result, private sector payrolls grew by just 67,000 in August, well short of the level needed to make a dent in unemployment,” said John A. Challenger, chief executive officer of global outplacement consultancy Challenger, Gray & Christmas, Inc.

In the household survey, which is used to determine the unemployment rate and more likely to capture the number of Americans who are self-employed or working for very small firms, employment gains of 290,000 were offset by 261,000 added to the ranks of the unemployed. Some of the newly unemployed may not have lost their jobs. Instead, they may have re-entered the labor force after sitting on the sidelines. The number of people categorized as not in the labor force fell by 341,000.

Other statistics were also mixed. The number of people unemployed 27 weeks or longer fell by 323,000. However, the number of people working part-time because of slack business conditions or lack of full-time positions increased by 331,000. This suggests that more people are simply trying to get their foot in the door by taking part-time assignments.

“The job market has a long way to go before it starts to look and feel like a recovery, which makes stagnant reports like today’s all the more frustrating. Progress is indeed being made, but it is occurring in such small increments and it is so tenuous that it doesn’t seem like progress at all. It is also important to remember that today’s numbers are the national averages; the view from 30,000 feet. Down on the ground, in the cities and towns, the reality is probably much different. In some areas, the situation may actually be better than today’s report suggests. Unfortunately, in many areas, the situation is far worse,” said Challenger.

August Job Cuts Plummet to 34,768

2010-09-01T06:35:00.000-05:00

CHICAGO, September 1, 2010 – While the pace of job creation continues to disappoint, job security appears to be stronger than ever. The latest report on downsizing activity reveals that planned job cuts announced by employers in August fell to 34,768, the lowest monthly total in over a decade.

August job cuts were down 17 percent from the 41,676 cuts announced in July, according to the report released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc. This marks the first decline following three consecutive months of increases. August not only replaces April as the lowest job-cut month of the year, it represents the lowest job-cut month since June 2000, when employers announced only 17,241 planned layoffs.

Full Report Available Here: http://www.challengergray.com/press/press.aspx

Challenger 2010 Labor Day Outlook: Jobless Recovery Stronger Than Thought

2010-08-23T09:52:00.000-05:00

JOB MARKET RECOVERY STRONGER THAN MANY THINK; STRONGER THAN 2001 RECOVERY

As Labor Day approaches, many Americans want signs of a job-market recovery. While many are frustrated with the pace of job creation, a new analysis reveals that the job market is well on the road to recovery and that it is rebounding sooner and faster compared to the jobless recoveries that followed the previous two recessions.

In its annual Labor Day outlook, global outplacement consultancy Challenger, Gray & Christmas, Inc. says that positive trends in a number of employment indicators, including the pace of layoffs, the unemployment rate and job creation, are shrouded by the fact that the economy began its recovery in a much deeper hole; the deepest since the Great Depression.

Full report found here: http://www.challengergray.com/press/press.aspx

Back-To-School Report: Internships Critical

2010-08-19T05:26:00.000-05:00

As the roughly 12 million students enrolled in four-year degree-granting colleges and universities prepare to begin their fall semester over the coming days and weeks, many will attempt to supplement their classroom education with real-world lessons gained through part-time internships. Internships have never been more important, according to one workplace authority, but he warns that landing one has never been more difficult.

“The job market will continue to be tough for college students graduating next spring. Chances are good that it will still be tough in four years for those entering their freshman year this fall. Getting on-the-job experience through internships will be critical. Unfortunately, the number of internships nationwide has not returned to pre-recession levels and competition for those spots are fierce,” said John A. Challenger, chief executive officer of global outplacement consultancy Challenger, Gray & Christmas, Inc.

The latest figures from the Bureau of Labor Statistics indicate that the job market is beginning to make a comeback. While the government has shed tens of thousands of temporary Census workers over the last couple of months, payrolls in the private sector have seen seven consecutive months of net gains, adding a total of 630,000 new jobs to the economy.

While the employment statistics are trending in a positive direction, it could take years for the job market to fully recover. Following the relatively mild 2001 recession, it took nearly four years for the unemployment rate to fall below 5.0 percent and it never achieved its pre-recession level of 4.2 percent.

“Each new class of spring graduates should see some improvement in the job market, but it will remain extremely competitive for several years. In this environment it becomes necessary to set yourself apart from fellow classmates, not to mention their job-search competitors with a few years of experience. Internships are vital in this respect,” said Challenger.

A recent survey by the National Association of Colleges and Employers (NACE) found that 42.3 percent of graduating seniors with internship experience received at least one job offer when applying for post-college employment. Meanwhile, only 30.7 percent of seniors without internship experience who applied for a job received an offer.

“As far as employers are concerned, what you learn in the classroom is not nearly as important as what you can learn on the job. When an employer sees an internship on an applicant’s resume, it immediately signals that this person has experience working in a professional environment with deadlines, objectives, expectations and with people of varying personalities, skill sets and at different levels of an organization,” said Challenger.

As the overall job market continues to improve, the internship market should also see gains. In fact, it already has. According to the NACE internship survey, employers plan to increase the number of internships by 2.9 percent in 2010. This follows a bleak 2009 internship market, which shrank by 20 percent.

“Unfortunately, the increase in internships may not be much help for underclassmen and seniors seeking positions during the fall or spring semester. Unlike a decade ago, when internships were reserved almost exclusively for those still in school, today’s college interns are competing with candidates who recently graduated. And, in this economy, they are just as likely to compete with professionals who graduated 10 years ago,” noted Challenger.

In a survey of 2,534 employers by online job-search site CareerBuilder.com, nearly one-quarter (23 percent) said they are seeing seasoned veterans, those with more than 10 years of experience as well as mature workers, age 50 and older, apply for internships.

“College internship seekers can greatly improve their odds of success by going through their school’s career center or finding opportunities through professors. Many colleges and universities maintain close relationships with companies in their communities, so these will be natural targets for openings,” Challenger advised.

“Students seeking internships also should not hesitate to approach companies that are not officially seeking interns. Many smaller firms are so focused on day-to-day operations that establishing internship programs fall off the radar. However, if approached by an enthusiastic student about creating an internship position, many will acquiesce,” he added.

“Once an intern is on the job, it is critical to treat each day like a job interview. Internships frequently lead to full-time positions following graduation, but you must set yourself apart from your fellow interns. With the job market in recovery and employers slow to add new workers, it is critical that interns exceed expectations. Those who merely meet expectations probably will not get the full-time job offer,” said Challenger.

“Meeting the right people during your internship is also critical. It is likely that the person supervising the interns is relatively low on the corporate totem pole. In fact, he or she may be only a year or two out of college. The intern with full-time job aspirations should make a daily effort to meet the managers and executives who make the hiring decisions. The higher up the executive you impress, the greater the odds that a permanent position will be found for you,” he added.

“Students who do not receive an offer from the company where they interned can still benefit from the experience. Managers and executives in the company represent the beginning of your job-search network. Even if they cannot find a spot for you in their company, they may know executives in another company that may have openings.”

John Challenger provided the following advice for this school year’s crop of fall and spring interns to improve their chances of being offered a full-time job or the opportunity to return next summer, in the case of non-graduating college students:

TURNING THE INTERNSHIP INTO A FULL-TIME JOB

Treat your internship as a real job.

The best way to prove you are qualified for a permanent position is through action. Think of your internship as a trial period or extended interview for obtaining the position you desire. Always be on time and meet deadlines. Maintain a positive attitude and show that you are eager to learn and succeed by seeking out feedback to improve your performance and develop new skills.

Take initiative and exceed expectations.

By taking initiative you can show management what you are capable of. Do not be afraid to voice your own ideas, offer solutions, and ask questions. Show interest in attending meetings and seek out extra work and new projects. When you go above and beyond the minimum, you demonstrate your commitment level and gain the attention of management.

Dress according to company dress codes.

While you want to stand out from the pack, you don’t want to draw attention to yourself for the wrong reasons. By dressing professionally you reinforce the impression that you can adapt to and fit in with the company’s culture.

Keep track of your contributions and accomplishments.

Keep track of the projects you worked on, your individual contributions, and the results achieved. Having a tangible record of your achievements with the company is a helpful tool in convincing a manager why you should be hired full time.

Network, network, network.

Developing contacts inside and outside of your department is extremely important. Schedule lunches or meetings with company managers and executives to give them a better understanding of who you are and what you plan on accomplishing. Find a mentor to teach you the ropes of the organization and offer advice on company politics. The contacts you make through your internship could prove invaluable throughout your time at the organization and throughout your career.

Ask about available entry-level positions.

Ask about what positions are available and express your interest in them. An employer will be more likely to consider you for a position if they know you are interested in it.

Stay in contact.

If you don’t get hired for a position immediately after your internship ends, stay in touch. Check-in with your contacts and provide updates on your progress. This will keep you in the forefront of the employer’s mind when a position becomes available.

88 CEO Departures In July, Lowest Since 78 In April 2009

2010-08-11T10:49:00.000-05:00

While notable chief executive officer departures by Hewlett-Packard’s Mark Hurd and Sara Lee’s Brenda Barnes have grabbed headlines in early August, CEO turnover in July was relatively subdued; falling to its lowest level in 16 months.

A total of 88 CEO changes were recorded in July, 18 percent fewer than June’s 107 and 30 percent fewer than the 126 CEO changes announced in July 2009. The July total is the lowest since April 2009 when 78 CEOs left their posts, according to the latest report on CEO turnover released Wednesday by global outplacement firm Challenger, Gray & Christmas, Inc.

So far this year, 761 CEO exits have been announced. That is just four percent more than the 733 departures at the same point a year ago. Despite the slight uptick in CEO changes this year, turnover remains well below the record pace set in 2008, which saw 848 departures announced from January through July, and ended the year with 1,484 CEO exits.

“It is not unusual to see a drop in CEO departures during the summer months. In four of the past five years, CEO turnover was lower in July than in June and, in three of the past five years, the July total was lower than the annual average,” noted John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

“It is too soon to tell if this July’s decline is part of a bigger downward trend in CEO turnover or simply a byproduct of the typical seasonal cycle that seems to slow corporate activities and decision-making during the summer,” he added.

The most common reason for CEO departures in July was resignation, which accounted for 34 (39 percent) of the 88 exits. The relatively vague “resignation” has been used as the reason for departure 235 times this year, which represents nearly one-third (31 percent) of all the announced departures. Retirement accounts for 205 departures this year, including 14 in July.

The service sector saw the heaviest CEO turnover in July, with 12 departures. It was closely followed by the health care and government/non-profit sectors, which each had 11 CEO changes during the month. While tying for second in July, these two sectors lead all others in CEO turnover for the year. The health care sector has seen 123 CEOs leave their posts, while government and non-profit agencies have lost 108 CEOs.

“These sectors are still trying to find their footing in this recovery. Both continue to struggle amid massive budget shortfalls and may be seeing higher turnover as they lose leaders who are unwilling or unable to guide the organizations through the rough patch,” said Challenger.

HP Ousts Hurd, Teen Employment Worst In 61 Years

2010-08-09T10:49:00.000-05:00

The sudden ouster Hewlett-Packard CEO Mark Hurd after an investigation uncovered inaccurate expense reports and a questionable relationship with a contractor leaves many questions about the future of the tech company, as well as the future of the executive who leaves under a dark cloud of scandal. Hurd was credited with bringing much-needed stability to a company that struggled to find its footing after the dot.com collapse. Under Hurd’s leadership, HP surpassed Dell as the top PC maker and expanded further into computer services, networking equipment and smartphones. Can HP maintain the momentum started by Hurd? Will other companies overlook the scandal and consider Hurd for a CEO post? How does the Hurd situation compare to other scandals resulting in ousted CEOs?

In related news, Challenger, Gray & Christmas, Inc. will release its report on July CEO turnover Wednesday, August 11, at 10:00 A.M. EDT.

* * *

Friday’s employment situation report confirmed that 2010 was the worst summer teen job market in 61 years. According to a Challenger analysis of the report, employment among 16- to 19-year-olds grew by just 960,000 jobs between May and the typical summer hiring peak of July. That is 17.5 percent fewer summer jobs than 2009 and the lowest summer hiring figure since 1949, when 932,000 teenagers found jobs during the summer months. The summer ended on a strong note, with employment growing by 457,000 in July. That was the largest July teen employment gain since 2007, when employment among the youngest workers grew by 459,000. The next bump in teen hiring usually occurs in December, as employers add teen job seekers on winter break. However, the winter surge is typically much smaller and short-lived. Why was teen hiring so much lower in a year that began to see job growth, compared to 2009 when the economy was still losing jobs? What will have to happen in the economy to see an improvement in summer hiring next year?

July Job Cuts Increase For Third Consecutive Month; Well Below 2009 Pace

2010-08-04T06:30:00.000-05:00

CHICAGO, August 4, 2010 – Employers announced plans to shed 41,676 workers in July, a six-percent increase from the 39,358 layoffs in June. While July marks the third consecutive monthly gain in announced job cuts, downsizing activity remains at its lowest level since before the 2001 recession, according to global outplacement consultancy Challenger, Gray & Christmas, Inc., which released its latest report on planned job cuts Wednesday.

View full report: http://www.challengergray.com/press/PressRelease.aspx?PressUid=141

Hiring Surge On The Way; Employers Find Perks, Benefits Aid Employee Engagement

2010-07-28T14:41:00.000-05:00

Hiring remains far from robust, but recent signs of life suggest that employers are poised for a possible surge by year’s end. A recent report from the Bureau of Labor Statistics indicates that both hiring activity and job openings have improved significantly in recent months. The latest statistics show that companies hired 4.5 million new workers in May, up from 3.96 million the same month a year ago. In addition to those hired, employers reported having another 3.2 million job openings at the end of the month, compared to less than 2.5 million openings at the end of May 2009. Separations – both voluntary and involuntary – remain at a level (4.1 million in May) that makes it difficult to create a dent in the number of unemployed, which stands at 14.6 million. However, as USA Today reported Wednesday, public companies are sitting on record levels of cash and appear ready to go on a hiring binge as soon as they see evidence that this recovery is sustainable. What are employers waiting for when it comes to hiring? Could hiring accelerate this year or is a 2011 increase more likely? Since many of the 3 million job openings are not officially advertised, how do job seekers uncover the hidden opportunities?

* * *

A new survey conducted by WorldatWork, Loyola University Chicago and the Hay Group suggests employees are becoming more interested in shaping their compensation packages to include work/life balance, especially in a time when employers are increasingly concerned with employee engagement. The survey found that 48 percent of employers surveyed agree that benefits and prerequisite programs have a high or very high impact on employee engagement, compared to 42 percent who believe raises have a high or very high impact and 41 percent who believe base salaries determine employee engagement. What kinds of perks will reengage employees? How can organizations strike a balance between their employees’ work and life? What other ways can companies foster and gauge their workers’ engagement?

Could Tattoos Make Tough Job Search Even Tougher?

2010-07-22T09:14:00.000-05:00

EMPLOYERS ARE MORE SELECTIVE, BUT BODY ART NOT A ROADBLOCK TO SUCCESS

While certain areas of the economy are showing signs of recovery, the pace of job creation remains brutally slow. The job market remains extremely competitive with more than 14.5 million out-of-work Americans vying for employment. As job seekers try to find new ways to stand out from the crowd, some are undoubtedly asking themselves if their tattoos and body piercings are helping them stand out but in a negative way.

Workplace authority John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc., says while some employers might frown upon conspicuous body art, the practice is becoming so commonplace that companies would be severely limiting the pool of candidates if they rejected everyone with a tattoo or nose ring.

“Employers’ anti-tattoo stance probably softened considerably during the labor shortages of the late 1990s. Today, even in this tight job market, most companies are not going to view tattoos too harshly. One reason is that with everyone from soccer moms to MIT computer science graduates sporting tattoos, preconceptions about tattooed individuals are no longer valid. Secondly, and more importantly, companies have a vested interest in hiring the most qualified candidate,” said Challenger.

Indeed, employers might have a difficult time finding candidates without some type of body embellishment. Overall, the Food and Drug Administration estimates that as many as 45 million Americans have at least one tattoo. A 2010 Pew Research Center report on Millennials (18- to 29-year-olds) revealed that 38 percent have tattoos. Tattooed Gen Xers aged 30 to 45 were not far behind at 32 percent.

Despite concerns of how potential employers and others might perceive tattoos and piercings, a surprisingly large percentage do not make any efforts to conceal them. While the majority of people keep their tattoos covered, the Pew Research study found that 30 percent of tattooed Millennials have their body art on full display for the public. Additionally, nearly one in four (23 percent) Millennials have a piercing somewhere other than the ear lobe.

“Two decades ago, showing off tattoos and body piercings would be a surefire way to get your resume placed in the ‘No Way!’ pile. Times have changed. Those making the hiring decisions are younger and not as adherent to traditions about workplace appearance,” said Challenger.

“There are definitely certain industries where more conservative standards of appearance persist. We may never see visible tattoos on bankers, lawyers, accountants or the clergy. However, areas such as advertising, marketing, sales and technology are more inclined to be progressive and more accepting of new fashion and lifestyle trends,” said Challenger.

“As a job seeker, you have to judge whether the employer you are interviewing with is going to be accepting of your body art. If that is not the case, and that is where you really want to work, then you will have to make an effort to conceal your tattoos and take out your piercings,” said Challenger.

“The best way to determine if body art is acceptable is by asking someone, preferably not the person you are to meet. However, if you know someone else at the company or if you have established rapport with a secretary or receptionist, you can ask that person,” Challenger advised.

Challenger offered some additional advice on issues that could come up for young job seekers steeped in the latest fashion and youth-oriented trends:

Tattoos: Show them off, unless they are offensive, in which case you should plan on concealing it in the interview and even after getting the job. The other time you would want to conceal your tattoos is if you know that a certain employer would frown upon such decorations.

Piercings: Beware! With increased security at many corporate offices, too much bling could set off metal detectors. You do not want to be late to the interview because you were forced to remove 12 body piercings at the security desk. In addition to the security issue, too many piercings might be a distraction for the interviewer and could hurt your chances. Also, it would be prudent to remove tongue and lip piercings, as these often make it difficult for others to understand what you are saying.

Cell phones: Cell phones have no place in the job interview. They should be turned off and stashed away in a bag or briefcase. Imagine being in the middle of answering an interview question and your personalized ring tone featuring the latest hip-hop anthem interrupts. Even on vibrate, a cell phone going off can be a major distraction in the interview.

Portable Music Players: Although it seems that everyone has them attached to their pocket, purse or hip, keep the iPods at home. If co-workers see you with ear buds in your ears all day long, they will assume you are not listening, and possibly not working very hard.

Dress for the Job You Want: The old adage is still true today. Upper management will be likelier to recognize you if you begin to dress and groom yourself professionally. They may see it as taking initiative or acting as a role model for the office.

Unemployment Benefits Extended, Economic Solutions From Abroad

2010-07-21T10:13:00.000-05:00

Late yesterday, the Senate passed legislation extending unemployment benefits for Americans whose standard 26-weeks of assistance offered by most states expired. The measure now moves to the House, where it is expected to gain quick approval and be sent to the President, who has vowed to sign it. The bill impacts about 2.5 million Americans whose benefits ran out in June. It will not provide further extensions for the more than 1.5 million Americans who are approaching their 99th and final week of emergency assistance. Do the severity of the recession and slow job creation in the early stages of the recovery warrant an extension of benefits beyond the maximum 99 weeks? Or, do additional extensions provide a disincentive for aggressive job searching, as some have suggested? What can 99ers do to turn their job-search fortunes around and overcome the obstacle of long-term joblessness?

* * *

After a painful economic recession, Germany has seemingly bounced back as consumers begin buying German cars, so much so that BMW has reported giving bonuses to their dedicated employees, according to an Associated Press article. Moreover, since German employers reduced hours instead of staff, workers kept their jobs, allowing them spending money to pump back into the economy. Meanwhile, the labor market at home continues to suffer from high unemployment and long-term joblessness. However, manufacturing and consumer prices continue to improve over a year ago. What can we expect in the second half of 2010? Have tactics such as the ones employed in Germany been employed in the US? What other policies could improve the economy long-term?

Challenger Start-Up Report: Lowest Rate On Record

2010-07-19T06:33:00.000-05:00

A new survey shows that start- up activity plummeted in the first half of 2010 as would-be entrepreneurs were either scooped up by employers or scared off by fragile economic conditions, a tight lending market and uncertainty over the sustainability of the recovery.

Results of a survey of job seekers released by global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc., show that an average of 3.7 percent opted to start their own business in the first half of 2010. That was down from 7.6 percent in the first half of 2009 and the 9.6 percent start-up rate averaged over the last two quarters of 2009.

The 3.4 percent start-up rate in the first quarter and the 3.9 percent rate in the second quarter represent the lowest two-quarter average on record, according to Challenger, which began tracking in 1986. The highest two-quarter average on record occurred in the first half of 1989, when 21.5 percent of job seekers ended up starting a business.

View Full Report Here

Small Business Confidence Falls; Aon Buys Hewitt

2010-07-13T10:28:00.000-05:00

The latest reading of small business optimism conducted by the National Federation of Independent Business (NFIB) was not very positive, falling from an index level of 92.2 in May to 89 in June. This does not bode well for the nation’s job seekers, as small businesses represent more than 99 percent of all U.S. employers and account for about 60 percent of gross job creation. The NFIB optimism index found that a net of just 1 percent of small firms are planning to hire in the coming months.

Making matters worse for small business owners is a dramatic decline in the amount of lending to these firms. The New York Times cited federal data showing that lending to such small businesses fell more than $710 billion in the second quarter of 2008 to below $670 billion in the first quarter of this year.

The tough business environment certainly is not attracting new entrepreneurs into the game. A quarterly Challenger survey of jobless managers and executives found that an average of 3.7 percent started their own business in the first half of 2010. That was down from 7.6 percent in the first half of 2009. Challenger will release a more detailed report on start-up activity on Monday, July 19. What will small business owners need to see before their confidence level and hiring begin to increase? What are the biggest obstacles to starting a business?

* * *

Yesterday’s announced acquisition of human resources consultancy Hewitt Associates by the Chicago-based insurance-broker Aon Corp., is undoubtedly creating some anxiety among the employees at both firms. The Chicago Sun-Times reported that the 4,500 people employed by Hewitt in the Chicago area will become part of 6,300-employee Aon Consulting unit. While both companies said it was too early to anticipate the need for or extent of job cutting, such measures are typical in the wake of corporate marriages. Indeed, Aon said it expects the deal to save $355 million annually beginning in 2013, primarily from reducing back-office areas, management overlap and public company costs and utilizing technology platforms. According to Challenger tracking, mergers and acquisitions have resulted in 27,880 planned job cuts through June of this year. That is down 40 percent from the 46,448 merger-related job cuts announced in the first six months of 2009. Will merger activity increase as the economy improves and will it lead to more job cutting? What challenges do companies face when combining varying corporate cultures? What can workers at merging firms do to protect their jobs?

Employers Announce 39,358 Job Cuts In June

2010-07-01T06:31:00.000-05:00

Job-Cut Announcements Remain Flat

EMPLOYERS ANNOUNCE 39,358 CUTS IN JUNE

CHICAGO, July 1, 2010 – Employers announced plans to cut 39,358 jobs from their payrolls in June, a slight (1.4 percent) increase from the previous month’s 38,810 announced layoffs. This marks the third consecutive month in which announced job cuts totaled less than 40,000, according to the latest job-cuts report released by global outplacement consultancy Challenger, Gray & Christmas, Inc.

Full Report: http://www.challengergray.com/press/PressRelease.aspx?PressUid=141

June Job Cut Report Moved Up to THURSDAY, JULY 1

2010-06-28T14:54:00.001-05:00

June Challenger Reports

May’s report showed that job cuts were virtually unchanged at 38,810, up slightly from a four-year low of 38,326 planned job cuts in April. Overall, planned layoffs are down 69 percent from a year ago. The report on June job-cut announcements, originally scheduled for Wednesday, July 7, will be released on Thursday, July 1, at 7:30 A.M. EDT.

May chief executive officer turnover jumped 23.7 percent from April to 125, the most since July 2009 when 126 CEOs left their posts. The Challenger report on CEO turnover in June will be released on Thursday, July 8, at 10:00 A.M. EDT.

General McChrystal's Fate Won't Be Decided By Comments - Challenger

2010-06-23T10:54:00.000-05:00

Commentary on Gen. McChrystal's situation from workplace authority CEO John Challenger:

“In the corporate world, public comments by a senior executive that are critical of the CEO or other top executives would most likely result in that person’s removal. This type of second-guessing and backbiting is not uncommon in the corporate world, but once the behind-closed-doors infighting becomes public, someone usually pays the price,” said workplace expert John A. Challenger, chief executive officer of global outplacement firm Challenger, Gray & Christmas, Inc.

“Of course, the biggest difference between the General McChrystal situation and anything in the corporate world is that he is in charge of a war. The other difference is that President Obama has embraced a team-of-rivals strategy throughout his presidency. He wants the best-of-the-best, even if they disagree. He would undoubtedly prefer that these disagreements not be aired in such a petty way on the national stage, but that is the risk a leader takes when he decides not to surround himself with ‘yes men.’

“The fact that Obama has not fired General McChrystal already is evidence of the measured approach he takes to problem solving. His calling for a face-to-face meeting demonstrates the graveness of the situation, but Obama does not seem like one who would make a decision about the leadership of a war because he may feel personally slighted,” Challenger continued.

“If General McChyrstal is removed from his position today by President Obama, it will not be because of his comments. If he believes that General McChyrstal is still the best person to manage the war in Afghanistan, then his job will be safe, regardless of any flip comments made in public."

FATHER’S DAY GIFT IDEAS FOR THE JOB-SEEKING DAD

2010-06-17T09:27:00.000-05:00

Smart phone with data plan

This may be beyond the financial reach of many kids, but teens with summer jobs can maybe chip in with mom to get dad a smart phone that will allow him to not only make and receive calls while he is out interviewing, but also receive and respond quickly to emails. More and more recruiters are using electronic communications and not seeing an email in response to an interview request until the end of the day could be a set back. At the very least, kids can probably teach their dad the ins and outs of operating these tech devices.

Help with Inter-networking

Networking is critical in a successful job search and the Internet and social networking sites represent powerful new tools for connecting with professionals, friends, family, former classmates, etc. For mid-career managers this form of “Internetworking” is a new experience with which they may be unfamiliar or uncomfortable. For young people, however, these new methods of communication are second nature.

Online job searching services

The most effective use of a job seeker’s day is to be out meeting with people and interviewing. Sitting in front of the computer, scouring job boards and employer websites for opportunities, is something that should be reserved for night time. Unfortunately, that does not leave much time for exploring the large haystack that is the Internet. This is where Net-savvy kids can be very helpful. Provided with some search criteria and job details, kids can be very productive ad researchers.

Ironing services

The loss of dad’s income is likely to lead to cutbacks in household spending, particularly on discretionary extras, such as lawn care, house cleaning services and dry cleaning. However, dad needs to look his best on job interviews, so kids can give the gift of laundering and ironing dad’s shirts, making sure his shoes are polished and taking care of other household chores like mowing the lawn and taking out the garbage (without being asked).

Fun, low-cost weekends

Finding a job is a full-time job. It is important to leave the rigors of the job search behind on the weekends in order to recharge. The worst thing one can do is sit around and stew about the frustrations of unemployment. Kids can help by putting off their own weekend plans with friends to focus on keeping dad occupied with low-budget family activities, whether it’s renting movies, game night or a day at the zoo.

Issues Bulletin: Manufacturing, Small Business Tax Credits

2010-06-15T12:27:00.000-05:00

Challenger Workplace Issues Bulletin

MANUFACTURING: “WE’RE NOT DEAD, YET!”

Were warnings of manufacturing’s demise premature? A report out today from the New York Federal Reserve Bank revealed that manufacturing in the state expanded in June at a faster pace and is not just weathering the storm, but actually driving the recovery. Nationwide, manufacturing payrolls have seen a net gain of 126,000 new workers since the beginning of the year, according to data from the Bureau of Labor Statistics. Manufacturers not only added 29,000 workers in May, marking the fifth consecutive gain, but the workweek was longer and the overtime climbed to the highest level in two years. It is unlikely that manufacturing will ever reach its 1979 peak, when factories employed more than 19.5 million workers. However, continued gains could see manufacturing employment return to pre-recession levels, particularly if the country continues to expand research and development in renewable energy technologies, such as wind power. What is driving the gains in the manufacturing sector? What could be the biggest obstacles to sustained growth?

ILLINOIS ACTS TO HELP SMALL BUSINESSES

Illinois small businesses with 50 or fewer employees will now receive a tax credit for hiring full-time workers after Governor Pat Quinn signed the Illinois Small Business Job Creation Tax Credit Act. The governor’s comments indicated that he believes entrepreneurs will lead the country out of the economic downturn and expects the act to create over 20,000 jobs over the next year. Challenger statistics show that start-ups by former managers and executives jumped to a four-year high in 2009, as an average of 8.6 percent of job seekers started their own businesses. The highest period for start-ups came in the third quarter of 2009, as 11.8 percent started their own firms. Will start-ups continue to rise into 2010? Will tax incentives such as these increase hiring?

Sports In The Workplace: Top Productivity Sappers

2010-06-08T10:37:00.000-05:00

Employers around the globe may be preparing for a month of lower-than-normal productivity, as the world’s most popular sport prepares to kick off the 2010 World Cup. The impact on workplaces in United States is expected to be less dramatic, even as soccer continues to grow in popularity here, according to global outplacement consultancy Challenger, Gray & Christmas, Inc.

“Soccer simply has not caught on with the majority of American sports fans. However, the World Cup is a unique event and could attract a lot of viewers who might not typically go out of the way to watch a match. Even as the sport grows in popularity, though, it will have far less of an impact on workplace productivity than the March Madness basketball tournament, for example,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

The Challenger firm generated a non-scientific, non-binding ranking of the sporting events that have the most potential to affect workplace productivity.

TOP PRODUCTIVITY-SAPPING SPORTS EVENTS

NCAA Men’s Basketball Tournament (AKA, March Madness) – Widespread office tournament pools and the fact that about half of the first 32 games are played during work hours (and streamed live on CBS Sports March Madness on Demand) make this the granddaddy of productivity sappers. Proof of the event’s impact on productivity: the “Boss Button,” which instantly hides the webcast behind a fake spreadsheet, was hit 3.3 million times during the 2010 Tournament.

NFL Fantasy Football – Millions of fantasy football participants manage their teams from their office, whether it’s preparing for the fantasy draft or initiating a four-way trade. The time devoted to such transactions each week may seem minor, but over the 17-week course of the season, the hit to productivity can add up.

The Super Bowl – While the game is not played during traditional work hours (unless you work at one of the millions of sports bars broadcasting the game), the impact on the workplace comes the following day, when many Super Bowl revelers find this particular Monday especially difficult to manage. Some Super fans have even started a campaign to make the post-Super Bowl Monday a national work holiday.

World Cup Soccer – While soccer has not taken off in the U.S., this still makes the list for the impact it has on workplace productivity worldwide. Some companies in Europe and South America may even shut down on the day of a big match.

College Football Bowl Season – Bowl games start in mid-December and many die-hard college football fans attempt to watch every game. Some of these games are played during the day, while others go late into the evening. The impact on workplace productivity is less severe, however, due to the fact that the period around the holidays is typically slower than normal.

Baseball Playoffs and World Series – Games are mostly played in the evening, but often stretch into the wee hours due to the natural pace of the game and the tendency for competitive match-ups to extend into extra innings. Groggy fans, particularly in cities with playoff/World Series teams, may be less productive the day after these prolonged games.

NHL Playoffs/Stanley Cup Finals – Professional hockey playoffs last almost two months. For cities with teams playing, this can create considerable distractions as fans critique their team’s performance and plan post-game celebrations.

NBA Playoffs/Finals – Much like with baseball and hockey, productivity is mostly killed in cities with competing teams. The biggest threat comes from late night game-watching on work nights.

The Olympics – Since there are four years between winter Olympics and summer Olympics, these events tend to attract a lot of viewers. While most people get their fill through prime-time coverage, faster Internet connections are making it possible to watch live streaming of events from one’s desk.

Apple Product Announcements – While this technically is not a sporting event, these announcements feature almost as much pre-event hype and watercooler speculation about what will transpire, particularly among members of the IT staff. Most events, which occur in the middle of the workday, are covered via live blogging, so those who cannot wait for news reports after the fact are able to be among the first to learn about Apple’s latest creation or product update.

Big Job Gains Not Enough To Stem Worries

2010-06-04T08:58:00.000-05:00

Despite the fact that today’s employment report saw the largest one-month payroll gain in a decade, the news was somewhat disheartening, since the overwhelming majority of the gain was the result of the temporary hiring of Census takers. Meanwhile, the private sector, which added 158,000 jobs in March and 218,000 in April, saw payrolls grow by just 41,000 last month.

There were some positive trends in today’s report. The number of people working part time for economic reasons fell by nearly 350,000. Average weekly hours rose to its highest level since January 2009 and the alternative measure of unemployment, which takes into account those marginally attached to the labor force and involuntary part-timers, fell to 16.6 percent from 17.1 percent in April.

The question is whether the dip in payroll gains is simply one of the minor but inevitable hiccups we will hit on the path toward recovery or is it indicative of larger issues that could result in a double-dip recession. It may be too early to tell; the next several months should provide better clues as to the sustainability of the recovery.

- John A. Challenger, Chief Executive Officer
Challenger, Gray & Christmas, Inc.

2010 Vacation Outlook: As Economy Recovers, So Will Worker Vacations

2010-05-27T08:58:00.001-05:00

With the pace of downsizing and the price of gasoline on the decline as we head into the peak vacation season, the nation’s workers may be more willing and able to use additional paid leave this summer, according to the workplace experts at Challenger, Gray & Christmas, Inc.

Increased travel this summer will boost consumer spending in tourist destinations, which will lead to increased hiring among hotels, restaurants, shops and amusement venues.

“The travel industry and all of the related beneficiaries will not see a return to pre-recession boom times, but it will be a significant improvement over the last couple of years. It is important to remember that many Americans are still unemployed and are likely to postpone most travel plans until they regain employment,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc., the global outplacement and executive coaching firm.

“Where we will see the change this year is among the employed who, despite their job status, were hesitant to take paid leave during the recession for fear that it would further erode their already fragile job security. This year, while employers have been slow to ramp up hiring, they have clearly shifted from a strategy focused on downsizing to one emphasizing retention. In this environment, it is much easier to put in for vacation days,” said Challenger.

Indeed Challenger data shows a dramatic decline in job cuts. Through the first quarter, employers announced plans to cut 181,183 jobs, 69 percent fewer than the 578,510 layoffs announced in the first quarter of 2009. The first-quarter total was, in fact, the lowest Q1 total since 2000. The declining pace of downsizing continued in April, as monthly job cuts dropped to 38,326, the lowest since July 2006.

“Last summer, workers were in job-protection mode. Those who didn’t have enough work to keep them busy were doing whatever they could to appear busy. For others, the layoffs brought on by the recession increased workloads, as remaining workers were asked to do more with less – fewer support staff, less productivity-enhancing technology and less training.

“The threat of downsizing never really disappears, but job security is in a much better place this year. Some employers may, in fact, encourage workers to use vacation time to decompress. The temporary and very mild impact on workplace productivity caused by vacationing staff is more than offset by a rested workforce that is likely to be more productive over the long term and probably more loyal, as well,” said Challenger.

Helping to spur overworked employees’ travel plans are falling gas prices at a time when they typically increase. The most recent data show that the nationwide average price for a gallon of gas heading into the Memorial Day weekend dropped to $2.79, according to the weekly survey issued by AAA, Wright Express and Oil Price Information Service.

The combination of improving job stability and falling gas prices are already leading to increased travel plans. A separate AAA survey shows that 28 million Americans plan to travel by car over the Memorial Day weekend. The AAA found that overall 32.1 million Americans will take trips away from home over the upcoming holiday weekend, which is up 5.4 percent from the 30.5 million Memorial Day travellers in 2009.

Further evidence that Americans are ready to spend more on summer travel comes from travel website TripAdvisor.com, whose 2010 family travel survey found that 92 percent of travelers with children plan to take at least one family vacation this year, up from 88 percent in 2009. Meanwhile, 28 percent of travelers with children expect to spend more on family trips in the coming 12 months than they did in the past 12 months, with 22 percent expecting to spend between $3,000 and $5,000 and another 19 percent expecting to spend $5,000 to $8,000.

These spending levels will undoubtedly help the local economies that serve as tourist destinations. Employment within tourism-related industries is already reaping the benefits. The latest data from the Bureau of Labor Statistics show that employment in the leisure and hospitality industry grew by a non-seasonally adjusted 581,000 in March and April, including 403,500 in the accommodation and food services sector.

“We may continue to see job growth throughout the summer, if some employers underestimated the number of seasonal hires they will need. The areas that could see the biggest hiring boom are destinations favored by driving vacationers. Seasonal job seekers who are willing to go where the jobs are could find ample opportunities,” said Challenger.

As for vacationing workers, Challenger said that while job security is improving, it is still recommended that they keep the lines of communication open with their employers.

“You don’t have to spend a part of every vacation day working, but you want to take your cell phone and laptop and make an effort to occasionally check in with the office. If you want to be missed a lot, do not disconnect. If you are a team manager, stay in touch with your team members. Make sure supervisors know your e-mail and cell phone number just in case you are needed," said Challenger.

“As employers shift toward retention mode, many will be eager to let you enjoy your vacation without interruptions from work, but make no mistake, your efforts to remain connected, even if unnecessary, will be appreciated and remembered.

“Technology has become so portable and so affordable that there really is no excuse anymore for not staying in touch. You really don’t even have to lug your laptop around anymore. Innovations like the Blackberry and iPhone make it possible to stay connected without being obtrusive.

"It is very possible to have an enjoyable, relaxing vacation and still maintain communications with employers and/or customers," said Challenger.

Teen Summer Job Search Tips

2010-05-24T09:38:00.002-05:00

ADVICE FOR TEEN SUMMER JOB SEEKERS

Search where others are not. Outdoor jobs involving heavy labor or behind-the-scenes jobs are often not as sought-after by teen job seekers.

Look for odd jobs at odd hours. Offer to work evening and night shifts and to fill in for vacationing employees. As a job-search strategy, conduct a search for these types of positions during the hours they operate.

Become a door-to-door salesman when selling your skills. Do what good salesmen do -- start on one block and go from business to business, door to door. Don’t simply ask for an application. Take the time to introduce yourself and build some rapport with the hiring manager.

Call relatives. Young people have not built much of a network; at least, the type of network needed to find a job. Relatives are often the best source for information on job leads.

Be a job-search ninja. Wait outside the store or offices of a prospective employer to attempt to intercept a hiring manager upon his or her arrival.

Dress for the part. Even if you are applying to work on a road crew, show up to all interviews in nice clothes. You want the interviewer to focus on you and your skills, not on your ripped jeans and paint-splattered t-shirt.

Be Punctual. If the interviewer says to be there at 4pm, don’t stroll in around 4:30. Customarily, interviewees should show up about 10-15 minutes before the designated time. You don’t want to show up too early; that may be viewed as a bother to the busy employer. Once you land a position, make sure to arrive on time for your shifts.

Turn Off The Cell Phone. Just like at a movie theater, cell phone noise is distracting, especially during a job interview or on-the-job training. Turn the cell phone completely off or set it to silent. Nothing is more off-putting to an employer than the constant buzz of incoming text-messages or phone calls. This includes MP3 players and video gaming devices. Your attention should be directed toward the task at hand at all times.

Don’t Forget To Smile. We all know how intimidating a job interview can be; however, if you think of it as just another conversation, you may be able to relax. Take a moment to breathe and smile from time to time. Employers want someone who is upbeat and has a good attitude, so make sure to display these attributes in the interview and while on the job.

Job Market Issues: Long-Term Joblessness, Vacation Recovery

2010-05-11T09:59:00.000-05:00

BIGGEST THREAT TO JOBS RECOVERY: LONG-TERM JOBLESSNESS

Friday’s employment situation report contained many positive aspects: payrolls saw their biggest gain in four years; job creation was spread across several industries; and while the unemployment rate increased, it was due largely to discouraged job seekers re-entering the labor pool. Of course, not all the news was good. Perhaps, the most worrisome statistic from Friday’s report was continued growth in the number of long-term unemployed. In April, the Bureau of Labor Statistics counted 6.7 million Americans who have been unemployed for 27 weeks or more. That is about 45 percent of all out-of-work Americans. The biggest problem with this trend is that prolonged unemployment itself becomes a profound obstacle to finding a position. Employers who want candidates with up-to-date skills may be less likely to consider those who have been out of work for an extended period. Meanwhile, it becomes increasingly difficult for unsuccessful and frustrated job seekers to maintain the type of positive outlook and demeanor that is critical to the job search. How can long-term job seekers keep their skills sharp while out of work? Should employers be more accepting of longer work gaps on candidates’ resumes? How can job seekers overcome the stigma associated with prolonged unemployment?

WILL EMPLOYEE VACATIONS RECOVER ALONG WITH ECONOMY?

With spring in full bloom and summer just around the corner, workers and employers are gearing up for vacation requests. An Expedia.com 2009 survey found 34 percent of workers did not use all their allowed vacation time, giving up an average of 3 days. Moreover, the number of workers taking extended vacations – 2 weeks are longer – fell from 14 percent in 2008 to 10 percent in 2009. Some of the decline in vacations last year was undoubtedly due to worker concerns about using vacation with job security still in such a precarious state. Will the expected economic recovery lead more workers to use their vacation time in 2010? What other factors might make workers throw away vacation days? With gas prices on the rise, will more workers use vacation time just to avoid commuting and save gas money?

April Jobs Report Shows Uphill Climb, Some Hope

2010-05-07T12:12:00.000-05:00

Today’s employment situation report is a perfect example of the uphill climb the economy faces when it comes to the stubbornly high unemployment rate. Today’s report showed solid job gains in both the employer survey and the household survey, yet unemployment still increased from 9.7 percent to 9.9 percent.
However, when you look at the report on the whole, is very positive overall. The net increase of 290,000 payroll jobs were spread across several sectors, including manufacturing, construction, retail trade, professional and business services, health care and the federal government. Employment among temporary help agencies grew for the seventh consecutive month, but by a smaller margin, suggesting that employers may be transitioning from temporary hires to permanent hires.

There are still some trouble spots. The number of people working part-time for economic reasons increased in April, but people simply may be determined to get their foot in the door. The good news is that employers may be poised to quickly turn these part-timers into full-timers.

While some might view the uptick in unemployment as a negative, it is actually a sign that the job market is improving. The April increase to 9.9 percent was due largely to people jumping back into the labor pool after sitting on the sidelines from frustration. Of the 255,000 people who joined the ranks of the unemployed in April, 135,000 or more than half were reentrants. Another 78,000 were new entrants or people who left their jobs voluntarily. These individuals are gaining confidence in their ability to find a job and are now throwing their hats into the ring.

Billion-Dollar Merger-Mania Monday!

2010-04-26T09:22:00.003-05:00

This morning, according to an article in the Financial Times, Wilmington, Massachusettes-based pharmaceutical developer Charles River Laboratories agreed to purchase Chinese rival WuXi PharmaTech for $1.6billion allowing greater presence in the Chinese market. The pharmaceutical industry has already seen massive job cuts due to mergers with the January announcement of Merck's takeover by Schering-Plough. Through March, over 26,000 job cuts have been announced by US-based pharmaceutical companies. While job cuts may follow the integration of WuXi into Charles River, since the latter is increasing presence in a foreign market, we may see more management changes than layoffs of rank-in-file. Charles River is listed with 8,500 employees, while WuXi is reported to have just over 3,600.

Q1 Pharmaceutical Cuts:
   2010       2009
26,165    48,665
Source: Challenger, Gray & Christmas, Inc.

Additionally, Hertz Rental based out of New Jersey has agreed to buy their Oklahoma-based rival Dollar Thrifty for $1.7billion in stock and cash, according to an AP article in the USA Today. So far this year, over 20,000 job cuts have been announced due to mergers and acquisitions according to Challenger tracking.

Q1 Merger/Acquisition Cuts:
       2010      2009
     20,515   44,379
Source: Challenger, Gray & Christmas, Inc.

HR ISSUES: Contingent Workforce On The Rise; Workplace Privacy At Issue

2010-04-20T12:12:00.001-05:00

NEW REPORT PREDICTS RISE OF CONTINGENT WORKFORCE

Human resources trade publication Workforce Management provided details today about a new report from labor law firm Littler Mendelson, which predicts that contingent labor, or temporary workers, could soon account for as much as 30 to 50 percent of the entire U.S. workforce, as companies shift toward a more permanent strategy tied to lean and flexible staffing. After falling to 1.7 million during the recession, the number of Americans employed by temporary staffing has grown by more than 300,000 over the last six months to a March total of 2,037,000, or about 1.6 percent of total nonfarm payrolls. It is too soon to tell if the recent increase is simply part of typical post-recession staffing strategies, which tend to favor temporary workers, or part of a larger shift toward greater dependence on these workers. Are we moving toward an era where large percentages of payrolls will consist of contingent workers? What are the pros and cons of increased reliance on contingent workers? Should job seekers struggling to find permanent, full-time positions consider contingent opportunities or sign up with a temporary staffing firm?

WORKPLACE PRIVACY RIGHTS ON THE DOCKET

The Supreme Court is considering arguments made Monday that could test the limits of workplace privacy. The case, outlined at Law.com, involved personal text messages a California police officer sent using a pager provided by his employer. The Court’s ruling will either support or overturn the ruling of the 9th U.S. Circuit Court of Appeals, which held that the employer had violated the officer’s right to privacy. Employers and workers across the country are watching intently because the ruling has the potential to profoundly impact how these entities address the issue of privacy in the workplace. While most employers maintain that you leave your privacy rights at the door of the workplace, particularly when the use of company communications equipment is involved, employees counter that portable technology has increasingly blurred the line between our work and personal lives and that it is unreasonable to expect workers to monitor and censor their communications at all times. Is it unreasonable for employers to expect workers to focus 100% on work in the workplace? Is it reasonable employees to expect privacy when using company equipment, such as phones, computers and mobile devices? Will a ruling in favor of the officer compel employers to write more stringent policies regarding the use of company-provided technology outside of work parameters?

Tax Day Scramble: Job-Search Expenses Equal Deductions

2010-04-12T11:18:00.000-05:00

MILLIONS COULD OVERLOOK JOB-SEARCH TAX DEDUCTIONS

As the mad scramble to meet the April 15 tax deadline reaches its peak this week, millions of jobless Americans could be eligible for easily-overlooked deductions. More than 3.8 million people joined the ranks of the unemployed in 2009. About 3.6 million were added to the roles of long-term unemployed (jobless for 27 weeks or longer). For these Americans, important tax deductions to consider are those related to job-search expenses. If these expenses, along with other miscellaneous expenses, including unreimbursed employee expenses and professional association membership dues, add up to 2% of one’s adjusted gross income, the amount above the 2% threshold becomes eligible for deductions. Many people overlook job search expenses, assuming that they won’t add up to much. However, for the long-term unemployed with a significantly reduced adjusted gross income, it is much easier to reach the 2% limit. Add expenses related to professional resume services, job-search related travel, or employment agencies fees and one’s expenses could soar well beyond the 2% level. Most deductions are only applicable if you are looking for a new job in the same occupation.

Some deductions include:

Resume service expenses (includes creating, printing and copying resume)

Career counseling

Job-Search-related travel or transportation expenses
Cost of phone calls to potential employers/contacts

Are You OVERLY Social-Networked?

2010-04-08T12:48:00.003-05:00

As more and more job seekers turn to social and professional networking websites, such as Facebook and LinkedIn, to expand their sphere of potential career-aiding contacts, blogger Tim Bursch suggests that maybe it’s time to start ignoring these networks.

While the Bursch post was written more from a marketing/customer relationship standpoint, the general theme is certainly applicable to job seekers. The point of the piece is that it is easy to get so carried away with the number of networking groups one joins that soon it becomes impossible to maintain meaningful and effective relations with any of them.

Here are the four reasons Bursch gave to start ignoring networks:

1. If you try to be everywhere, you end up really being nowhere. You spend a little time on a lot of networks and end up diluting your brand.
2. Relationships. If you don’t really invest time in one community you will probably only have transactions, instead of long-term relationships.
3. It’s about them. Your fans want to interact and it is about them. So, focus on them well.
4. You can’t please everyone. Some people will be missed. If you have something remarkable, people will find you.

There is a growing risk of spreading oneself too thinly among the expanding number of networking sites for job seekers. While LinkedIn in was once the go-to site, people are dedicating more time to using all of their networks – Facebook, Twitter, MySpace, etc. – for job-search outreach. Additionally, new sites such as KODA.us and the invitation-only Doostang.com appear to be popping up daily.

Bursch’s rules of the marketing-oriented network can be easily adapted for the job seeker. As a job seeker, you are the marketing professional as well as the product. So, the same guidelines can govern your actions as you build your brand among prospective employers.

We would include at least one additional rule: Don’t spend so much time attending to your virtual networks that you neglect your real-world networks.

The Internet has been a boon to job seekers, but it has also become a significant crutch in that it gives a false sense of conducting an “active” job search, even though it is quite “passive.” One feels a great sense of accomplishment after spending five hours a day combing through online job ads and interacting with various networks. Unfortunately, these efforts alone, while necessary, are unlikely to result in much job search success.

Too many job seekers, however, fall into the Internet trap where rejection is easier to accept, whether it’s in the form of an unanswered job application or a networking connection who cannot offer any help.

The active job seeker, on the other hand, is talking to hiring managers on the phone, meeting with people who can help with the job search, and making the effort to go out and find the hidden, unadvertised job opportunities, which account for the vast majority of potential openings. This person is far more exposed to the constant rejection that is the nature of all job searches.

Just as sending out 50 resumes in response to online job ads can feel like the accomplishments of an active job search, maintaining a constant flow of status updates and emails to contacts can make one feel like he or she is a master of networking. However, these activities cannot replace the face-to-face interactions that are critical to building meaningful relationships that will help you achieve your career goals.

Issue of the Day: TECHNOLOGY LAYOFFS

2010-04-06T13:34:00.000-05:00

Today’s announcement that CA Inc., the second largest software maker for mainframe computers, will be reducing its workforce by 1,000 may cause some to speculate that more tech-sector job cuts are on the horizon. The cuts, however, may not be indicative of a wider trend, as the company relied heavily on the devastated financial sector for its business. Overall, planned job cuts in the technology sector, including telecommunications, computer and electronics firms, are down 73 percent from a year ago. Through the first quarter, tech firms announced 22,338 job cuts, compared to 84,217 in the same quarter of 2009.

Unfortunately, fewer job cuts do not necessarily mean a tech jobs turnaround. Hiring has been slow to recover. Additionally, many of the tech-sector workers who remain employed are working harder for less pay. The 2010 Salary Survey just released by trade publication Computerworld found that bonuses and benefits are down significantly, while workloads and work hours have increased. Meanwhile, the survey discovered salaries are stuck in the mud, having risen by just 0.7 percent on average.

MARCH MADNESS REPORT: Tourney Could Cost Employers $1.8 Billion

2010-03-08T13:12:00.000-06:00

It is March once again, and like the swallows returning to Capistrano, basketball fans across the country will return to their favorite sports websites to research every one of the 64 teams playing in the NCAA men’s basketball championship tournament, fill out tournament brackets and enter one or more betting pools in what has become an annual rite of spring as sacred as green beer on St. Patrick’s Day.

For the nation’s employers, the men’s college basketball tournament, better known as March Madness, marks the arrival of several other annual rituals: employee-organized office pools, a potential dip in productivity and a marked decline in Internet speed, as workers soak up bandwidth watching live streaming broadcasts of the tournament games during office hours.

“March Madness and the subsequent office pools have been going on long enough, that employers can no longer claim to be caught off guard by the annual event. Some have tried to squash these pools, most simply ignore them and others have found ways to embrace the tournament as a team-building and morale-boosting opportunity,” said John Challenger, chief executive officer of Challenger, Gray & Christmas, Inc., the global outplacement consultancy that each year attempts to predict the tournament’s impact on workplace productivity.

This year, armed with an assortment of statistics from various sources, the firm estimates that workers distracted by March Madness could cost employers as much as $1.8 billion in unproductive wages during the first week of the tournament, alone, based on 20 minutes of daily time wasting.

“Keep in mind that it is nearly impossible to gauge the impact of March Madness on productivity in an information-based economy where workers possess portable technology that allows them to work from anywhere and any time. This estimate is probably about as accurate as the point spreads computed by Las Vegas bookmakers,” Challenger acknowledged.

The Challenger estimate is based on the number of people expected to participate in office pools, the amount of money they earn and the amount of work-time wasted on March Madness related activities, whether it is trash talking at the water cooler or watching live videos of the games during business hours.

A 2009 Microsoft/MSN survey found that 45 percent of Americans planned to enter at least one college basketball pool last year. Assuming that at least that many plan to participate in pools this year, Challenger applied that percentage to total payroll employment in February (129,526,000) to approximate that as many as 58.3 million workers could participate in office pools this year (45% of the total non-farm workforce).

According to the latest available data on average weekly earnings from the Bureau of Labor Statistics, these workers earn $748 per week or about $18.70 per hour (based on 40-hour work week). That breaks down further to earnings of about $6.23 every 20 minutes.

So, among the 58.3 million office pool participants, every 20 minutes of unproductive work time costs employers roughly $363.2 million (58.2 million X $6.23). It is conceivable that workers participating in pools could waste an average of at least 20 minutes per day the week between Selection Sunday (March 14) and the end of the first round (March 19), when March Madness-related activity is at its height as people research teams, put together their brackets and watch games online during work hours.

“By the end of that first week, employers across the country may pay unproductive workers a total of $1.8 billion,” said Challenger, multiplying the $363.2 million by five.

“As the tournament moves beyond the first and second round, the impact on the employer decreases, since few games are played during office hours and workers can no longer make adjustments to their brackets, thus eliminating the need to research teams,” Challenger added.

“Those who insist there will be no impact are kidding themselves. It might be a slight drop in output or it could be slow internet connections as bandwidth is sapped by employees watching streaming feeds of the games."

During the first two days of the Tournament (Thursday, March 18 and Friday, March 19), approximately half of the 32 games are played during business hours. Fans on the west coast may be able to begin watching games as early as 9:00 AM.

CBS Sports and the NCAA teamed up a few years ago to begin offering March Madness on Demand web streaming service, which provides streaming webcasts of every game in every round of the tournament. Last year, it attracted 7.52 million unique visitors, up 75 percent from 4.92 million in 2008. According to Nielson web ratings data, 92 percent of fans who watched games online during the 2008 March Madness tournament did so from work computers.

Despite the potential impact, most companies see no reason to establish special March Madness policies. Two-thirds of employers do not have policies regarding office pools, fantasy sports leagues, or gambling in the workplace, according to a 2010 survey by the Society for Human Resource Management (SHRM). And, the majority of employers still do not block access to all video streaming sites.

“In the end, employers may or may not see a significant impact. Even if they do, few are compelled to go out of their way to ban March Madness related activities. Especially in this economy, when many employees are already anxious about their jobs, there is no reason for employers to make a big deal about what amounts to a blip on the productivity radar,” said Challenger.

“In fact, with worker stress and anxiety heightened, a little distraction could be just what the doctor ordered. The key for companies is finding a way to maximize the positive aspects of March Madness so that they outweigh any potential negatives,” Challenger noted.

“Companies can use this event as a way to build morale and camaraderie. This could mean putting televisions in the break room, so employees have somewhere to watch the games other than the Internet. Employers might consider organizing a company-wide pool, which should have no entry fee in order to avoid ethical and/or legal questions,” Challenger suggested.

GUEST POST: The Recruiting Backlash By David Kagan

2010-02-26T09:20:00.000-06:00

The Recruiter Backlash By David Kagan

A few years into my recruiting career, the big topic of conversation was around the great hope of the internet. We talked about how it would be a great tool to improve how we recruit and engage candidates. It seems like a lifetime ago that our primary source of resumes was running classified ads in the Sunday employment section. Though we had to open hundreds of envelopes at least we were guaranteed to see each resume. Yes, more work for us but candidates knew their credentials were being reviewed and at the very least it gave them a shot to get a call back. The process was cumbersome but we were very engaged.

Fast forward almost 15 years and the idea of receiving snail mail resumes seems like something out of the dark ages. Undoubtedly technology has made recruiters more effective in many ways, except it has all but killed the candidate dialogue. How many times have we heard from candidates about the dreaded “black hole.” You know, that not so mythical place where resumes go to die while applicants wait for a response they likely won’t get. This mythical place turns out to be our own ATS databases. It seems obvious that we would make the best of those resumes, when in reality recruiters often overlook their ATS, and often in favor of some unproven new sourcing methodology.

It’s not only about resumes; the larger issue at play is how we communicate with candidates on an on-going basis. It’s also about how we keep talent engaged in a dialogue about our business, our industry, our new products and services, big wins and acquisitions so when we’re ready to work together the relationship exists. Keeping candidates informed keeps candidates interested. Recruiting is about the relationship with candidates, the candidates we need today and the candidates we’ll need tomorrow. I’m not writing this from some ivory tower, I’ve been in the trenches dealing with hundreds of resumes for each vacancy. I know how daunting it can be but it’s high time that we figure out how to use technology to communicate in a two way dialogue and without feeding the “black hole.”

A candidate backlash is well underway. They are fed up with organizations that are unresponsive. If you’re thinking it’s a buyer’s market and you can dictate the terms of the game, think again. Hiring is increasing and candidates are savvier than ever. Your organization can not afford a bad reputation about how you recruit. It’s not just word of mouth you have to worry about, it’s word of internet. Web sites dedicated to candidates dishing about everything from unresponsive recruiters, to broken recruiting processes to bad interviewers are popping up everywhere. Take back control, communicate with your candidates and set expectations. There’s no doubt recruiters are swamped, we’ve become a catchall for everything in staffing. However, with the use of smart technology and engaging talent in a two-way dialogue we’ll be on our way to creating a sustainable, winning recruiting culture.

Kagan has been a recruiter for nearly 15 years in a variety of industries, including several years consulting for major corporations. He has filled hundred of positions, managed campus recruiting, lead diversity initiatives, reorganized recruiting processes and organized an internal outplacement program for displaced employees. David has functioned mainly as an IT Recruiter with additional experience in Retirement Services and Investments. He’s had the unique opportunity to experience the various waves of recruiting from the days of sourcing resumes through newspaper ads to the internet revolution. He lives in NY and loves watching his beloved Yankees.

Bulletin: Auto Quality Issues, Health Care Costs

2010-02-25T11:21:00.001-06:00

Automotive Quality Issues Could Lead To Layoffs
As U.S., Japanese and European officials continue to probe recent quality issues with Toyota’s line of products, the nation’s parts manufacturers may find themselves under increased pressure amid falling profits. In addition to Toyota’s troubles, auto manufacturers in Michigan, including Yazaki Corp. of Canton and Denso International America of Southfield were included in a separate inquiry as part of an anticompetitive investigation, according to a report by the Wall Street Journal, as was Tokai Rika Co. of Plymouth. Last year, employers in the automotive sector announced 52,271 layoffs in 2009 and over 4,000 layoffs were announced in the auto industry in January, according to Challenger, Gray & Christmas, Inc.

As Health Care Summit Begins, New Survey Reveals Employers’ Pain
With President Obama and lawmakers from both sides of the aisle meeting today in a summit on health care, a new survey of employers further demonstrates the need for reform, as a growing number of companies losing confidence in their ability to provide health care benefits in the future. In the survey, conducted by the National Business Group on Health and Towers Watson & Co. and reported on by Workforce.com, only 57 percent of employers said they are very confident they will continue to offer health care benefits 10 years from now, down from 62 percent in 2009 and 73 percent in 2007. The survey also found that 83 percent of employers either have made significant changes or expect to revamp their health care strategies in the next two years, up from 59 percent in 2009. As more companies are compelled to lower or drop coverage, more and more Americans will join the ranks of the uninsured and underinsured. Should the U.S. move away from the tradition of employer-paid health insurance or should lawmakers be finding ways to make it easier for employers to provide coverage? What steps are some employers taking in attempts to keep health care costs under control?

With Weak Job Market, Comes Opportunities For Resume Fraud

2010-02-23T09:20:00.000-06:00

As millions of Americans struggle with long-term unemployment, the temptation to stretch the truth on one’s resume to gain a competitive advantage is becoming harder to resist. Some desperate job seekers are going so far as to establish fake references. However, the payoff may not be worth the risk, according to one employment authority.

“There is very little proof that any form of resume boosting directly results in a job interview, much less a job offer. In contrast, there are scores of examples of individuals who have been eliminated from candidacy or fired after a fraudulent resume was uncovered,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc., the global outplacement consultancy which provides job-search training and counseling to individuals who have been laid off.

The significantly weakened job market, which is expected to continue to struggle even as other segments of the economy begin to recover, creates an environment that is ripe for resume boosting. As of January there were 14.8 million unemployed Americans. Of those, 6.3 million or 41.2 percent have been out of work for 27 weeks or longer. Another six million have opted out of the labor force but still want a job.

Statistics on resume fraud are difficult to obtain because only a fraction of resumes are ever checked for discrepancies. The best evidence of resume fraud’s pervasiveness may come from the companies that provide employment screening services.
In its 2009 Hiring Index, business services provider ADP reported that 46 percent of employment, education and/or credential reference checks conducted in 2008 revealed discrepancies between what the applicant provided and what the source reported. That was up from 41 percent in 2006.
More than 22 percent of the tech-sector resumes verified in 2007 by New York-based risk consultancy Kroll contained misrepresentations of academic credentials, according to a company spokesperson interviewed by tech-industry publication IEEE Spectrum. The firm estimated that more than half of the tech-industry resumes it reviewed had discrepancies related to employment history.
IEEE Spectrum also cited a study of erroneous resumes by executive search firm CTPartners, which found that 64 percent of candidates overstate accomplishments, while 71 percent misrepresent the number of years they held a position.

“These somewhat alarming statistics are just from companies that make the effort to check the veracity of claims made on resumes or in interviews. The overwhelming majority of employers do not go to such lengths. Many companies limit their efforts to criminal background checks and reference checks. They do not spend the extra time and money to verify the accuracy of every job title, accomplishment and educational achievement listed on one’s resume,” said Challenger.

“This lack of oversight, however, should not be considered an open invitation to defraud the system. If discrepancies are discovered, many companies maintain a no-tolerance policy on such matters and will move quickly to investigate and possibly terminate. In high-profile positions, where the discovery of resume fraud often becomes public, the breach can taint all future attempts to find employment,” he warned.
Unfortunately, too many job seekers are willing to take the risk. Some have even taken resume fraud to the next level by providing prospective employers with bogus job references.

After spotting dozens of requests for fake references on social networking sites like Facebook and Twitter, one entrepreneur founded CareerExcuse.com. As reported in the human resources trade publication HR Magazine, CareerExcuse.com offers fake work histories and references to job seekers.

Desperation in this job market may force other job seekers to turn to outfits selling fake diplomas. Because of the underground nature of these so-called diploma mills, there are no reliable statistics on the number of bogus degrees sold each year. George Gollin, a physics professor at the University of Illinois in Urbana Champaign and a board member of the Council for Higher Education Accreditation, the federal government’s recognized authority on accrediting agencies, estimates that 100,000 to 200,000 phony degrees are sold every year. Furthermore, he estimates that the federal government spends roughly $300 million a year on pay increases for employees who got jobs or promotions using fraudulent degrees or certificates.

The problem of diploma mills has become so widespread that Congress is considering legislation that aims to reduce and prevent the sale and use of fraudulent degrees. The legislation introduced in January by Reps. Timothy Bishop (D-N.Y.) and Michael Castle (R-Del.) would cement in federal law definitions of "diploma mills" and "accreditation mills”, bar federal agencies from using degrees from diploma mills to provide jobs or promotions that depend on candidates' educational credentials, and give the Federal Trade Commission more authority to define and crack down on deceptive practices by dubious institutions.

“These are indeed desperate times, and desperate measures are definitely required to find a job. However, these desperate measures should not include lying on resumes, falsifying work histories, or buying fake references and diplomas. Instead, job seekers should be considering seeking positions in different cities, states, or even countries. They should reach out to people they have not spoken to in 15 years and identify all potential employers, not just the ones posting online and newspaper help-wanted ads. These are the types of desperate measures job seekers should be employing,” said Challenger.

TOP RESUME, INTERVIEW FABRICATIONS
(in no particular order)

Education: Listing degree from a school never attended; inflating grade point average and graduate honors; citing degree from online, non-accredited "education" institution.

Job title: Making up a title or boosting actual title by one or more levels in hopes of obtaining better salary offers.

Compensation: Inflating current or previous salary and benefits to secure more money from prospective employer.

Reason for leaving: Saying it was a mass downsizing when the discharge was based on performance; asked to leave, but saying you quit; underplaying or completely hiding poor relationships with superiors.

Accomplishments: Overstating one’s contributions to a team project or company performance; claiming to have received special recognition; exaggerating level of participation in an important aspect of the business.

TELECOM SECTOR MAY CONTINUE TO SHED JOBS

2010-02-16T12:37:00.002-06:00

An improving economy may not necessarily lead to a slowdown in job cuts for the telecommunications sector, which has announced nearly 110,000 layoffs since the beginning of 2007. While the last two years of telecom job cuts remain significantly below the levels reached in the early 2000s, they are nearly double the 28,206 job cuts announced in 2007.

The cuts are due in large part to a major shift in the way consumers use communications devices; specifically, they are increasingly shifting away from traditional landlines to cell phones and internet-based services, such as Vonage and Skype.

Tuesday morning, Qwest Communications announced that fourth-quarter earnings fell 39%, as more than 900,000 business and residential customers disconnected their landlines during the last three months of the year. The losses would have been much steeper were it not for increases in its high-speed Internet and cell phone business, which grew 4.5% and 18.5% respectively, according to news reports.

“Verizon and AT&T also have seen significant losses in the landline customers over the past two years. Job cuts in these traditional services areas could continue to mount until each company has just enough staff to service existing lines,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas, Inc.

AT&T, in fact, appears that they would just assume abandon landlines entirely. Late last year, the telecom giant filed a 32-page appeal to the Federal Communications Commission, asking that regulations requiring it to support an analog landline phone network be phased out, allowing it to go entirely with VOIP-provided phone service. The phone company pointed to the fact that between 2000 and 2008, usage of its landline services dropped 42%, while revenue generated by this service dropped 27%.

It will probably be a while before the FCC considers such drastic measures, particularly since 20% of Americans still rely solely on landlines. That percentage is unlikely to change in the near future, partly due to the lack of cell coverage and Internet access in rural areas.

“Regardless of the FCCs position, the telecommunications companies will dedicate more money and manpower to improving and expanding their broadband and wireless networks. These areas of their business will most assuredly see strong hiring over the next five to 10 years, particularly if telecoms finally commit to expanding their reach to underserved rural communities,” said Challenger.

ANNUAL TELECOM JOB CUTS, 2001 – 2010

2001: 317,777

2002: 268,857

2003: 111,342

2004: 98,734

2005: 70,127

2006: 45,947

2007: 28,206

2008: 48,648

2009: 44,068

2010: 14,010*

*Through January

Source: Challenger, Gray & Christmas, Inc.

Bulletin: Jobs Bill, Office Romance

2010-02-10T10:28:00.002-06:00

Will a Jobs Bill Provide the Answer to High Unemployment?

The White House and Congressional Democrats would love to shore up a jobs bill before Presidents Day, a deadline that may be impossible to meet due to the weekend’s snowstorm that, for all intents and purposes, shut down Washington D.C. The other obstacle, of course, will be achieving bi-partisan cooperation. While, it is not yet clear exactly what the jobs bill will contain, it is likely to contain a combination of tax credits for businesses that create jobs, infrastructure improvement projects to create construction jobs, and money earmarked for small business loans, which have been difficult for business owners to obtain through traditional lending markets. The biggest question that remains is that even if a bill is passed, will the initiatives be effective at creating jobs? Which government initiatives are most likely to result in immediate job creation? Which sectors of the economy are most likely to benefit from some of the jobs bill components on the table? Why will it take a long time to reabsorb all of the unemployed, even with ideal economic conditions?

Workplace Romance: HR Cannot Stop It, But Can They Contain It?

With Valentine’s Day approaching, some employers may be on the lookout for any signs of budding office romance. While no one wants to be in the role of love blocker, these relationships have the potential to damage workplace productivity and harmony. Ones that end badly could lead to the loss of a valued employee or, in a worst-case scenario, could result in litigation against the company. Despite the risks, a 2006 survey by the Society for Human Resource Management found that nearly three-fourths of companies had no formal policies regarding workplace fraternization. Part of the reason for the lack of policies on office romance may be the futility of trying to monitor and stamp out these relationships. A 2009 survey by Careerbuilder.com found that 40 percent of respondents have dated a co-worker at some point in their careers and nearly 20 percent had done it more than once. Another reason human resources departments may be reluctant to impose workplace romance policies is that HR professionals are human too and may have been bitten by the workplace love bug on at least one occasion. In the United Kingdom, one survey found that about 27 percent of HR workers confessed to office romance, ranking third behind call center workers (30 percent) and finance employees (28 percent). Should workplaces make policies against all romantic relationships or only those between supervisors and subordinates? At what point should dating co-workers reveal their relationship to colleagues and/or management or should they keep it private? What can office couples do to keep their relationship professional at work?

GUEST POST: Living With Your Home Office by Jennifer Paulish

2010-02-03T07:00:00.003-06:00

Living with your Home Office
by Jennifer A. Paulish

Jennifer A. Paulish is an Independent Interior Designer/Project Manager with a passion of creating functional and inspiring Interiors in the Corporate, Retail, and Healthcare Industry. On Linked-In http://www.linkedin.com/pub/jennifer-paulish/17/838/a05

I have always been keenly aware of how the physical environment can psychologically affect a person. So really it was no surprise that my chosen career path was Interior Design. Specializing in Corporate Design, I have spent much of my time educating companies and individuals on the importance of bringing an Interior Designer onboard in the beginning stages of the design process. This affords an opportunity for the designer’s ideas to be incorporated into a comprehensive business plan that is synchronized with the company’s brand and image. The result is a more productive workplace, distinguished by open communication, corporate loyalty and job satisfaction.
In today’s rapidly changing market, many companies find themselves in survival mode. Therefore, we are finding a rise in small businesses, telecommuters and contract employees working from home. There is a great deal of discipline in order to draw the line between home and work and while you may no longer be physically going to a corporate office, there are important issues to consider so your home office will work for you. This being said, I have a few suggestions to make your home office both functional and inspiring.

1. Designate Space- It is important to designate space for your home office. If you are fortunate enough to have a basement, lofted area, or extra room perfect! If not do not despair; you do not need a large footprint all it takes is a little rearranging in order to create a nook that is specifically for your work. Think outside the box with this; can a closet become your home office?

2. Keep it Professional-Remember this is your place of work. Stay organized; keep it clean/ clutter free, and comfortable. Take pride in this space.

3. Ergonomics- More often than not ergonomics come into play only when there is a problem (back/carpal tunnel syndrome). Think of ergonomics as preventative medicine. So here are a few things to keep in mind when creating your space.
• Your desk or work surface should be deep enough to place your monitor approximately 20”away from your eyes (30” deep will accommodate this)
• Desk height should be elbow height when seated (29” above finished floor is typical)
• Keyboard and mouse at elbow height
• Top of screen should be at or just below eye level
• Chair should be easily adjustable, provide support, front edge of seat pan should be rounded in waterfall fashion, forward and backward tilt, and adjustable/removable arms. Think of your chair as an investment and purchase the best quality product you can afford. Call a furniture dealer and you can often find refurbished chairs (and desks) at some decent prices and there is always craigslist.

4. Have some fun- Aesthetically your space should be inspiring and energizing and do not be afraid to add some personal touches in order to achieve this. This can be achieved in many different ways; choose a paint color that you are drawn to, inspiration/pin-up board, artwork, mix up finishes, etc.
Remember you are your own brand- What is it you want to say?

(Photo courtesy Apartment Therapy)

Who Has Edge In Economic Recovery?

2010-02-02T09:39:00.001-06:00

A slew of economic data indicate a recovery is looming, as consumer spending and manufacturing output and compensation increase. Major companies have announced hiring plans, including 12,000 from Starwood Hotels, 1,200 from Ford Motor Company and 600 from CarMax. However, with hundreds of thousands of workers in competition for jobs, job seekers will need every advantage to impress potential employers.

Hiring managers receive thousands of resumes for open positions. With the talent pool so large, employers use any method possible to weed out potential candidates. These range from credit checks to drug and health screenings. Some use these as character references; other methods indicate whether the candidate will be a potential liability.

It may seem controversial, as one’s credit score and health generally have little to do with most job functions. However, with the sheer number of job seekers applying, employers can afford to be picky.

According to a 2006 Society for Human Resource Management poll, 43 percent of employers conducted credit checks on potential employees, up from 25 percent in 1998. While employers may legally conduct credit checks on potential hires, under the Fair Credit Reporting Act, companies must secure the candidates consent to do so. Further, if an employer decides not to hire an applicant because of information gleaned from the report, that employer must divulge this to the candidate.

Job seekers certainly do not need to discuss their credit during the interview process; however, they should take care to know everything listed on these reports. If the decision comes down to two equally qualified candidates, the employer may take the person with the better credit. Knowing where you stand will help you combat that decision, whether through logical explanations or examples of how you are the better choice despite what the credit check says.

In addition to credit checks, due to proposed health care legislation and rising costs to employers, some organizations are immediately eliminating candidates with unhealthy habits. Memorial Hospital in Chattanooga, TN will no longer hire new employees who use any kind of tobacco products, on or off duty. In addition to their usual drug screenings, hires will also be tested for nicotine. The company cited employee well-being and the health of patients as the primary reason.

This practice is nothing new. Medical benefits administration company Weyco and Scotts Miracle Grow companies stopped hiring smokers in 2006. Weyco fired four workers who opted out of their mandatory nicotine screening. In 2005, Wal-Mart’s executive vice president of benefits distributed an internal memo discussing ways to hire and retain healthier workers, according to the New York Times. Through education benefits, the company hoped to draw younger, presumably healthier employees.

There has been a trend for years to cultivate a healthier workforce. Only recently does candidate health seem to be a consideration in hiring practices.

Colleen Madden
Research Associate

2009 Relocation Report

2010-02-01T12:31:00.003-06:00

Job Seekers Relocated Less in Second Half of 2009

2009 RELOCATION UP FROM 2008, BUT STILL NEAR HISTORIC LOWS

After rising to the highest level since 2006, relocation among job seekers slowed in the second half of 2009, with only 7.3 percent of fourth-quarter job seekers taking positions in new towns. That is the lowest relocation rate on record, according to a report released Monday by global outplacement consultancy, Challenger, Gray & Christmas, Inc.

Relocation by job seekers peaked in the second quarter of the year, when 18.2 percent moved for new positions. That was the highest relocation rate since the second quarter of 2006, when an identical 18.2 percent of those finding positions relocated.

The new findings come from the latest Challenger Job Market Index, a quarterly survey of approximately 3,000 job seekers from a variety of industries nationwide.

According to the Index, the percentage of relocating job seekers dropped to 13.4 percent in the third quarter and dropped further to the record low to end the year. An average relocation rate of 10.4 percent in the last half of 2009 was down from 16.3 percent from the first six months of the year.

Despite the second-half slowdown, relocation for the year increased to an annual average of 13.3 percent, up from 11.6 percent in 2008, when the housing market collapse was at its worst. The 2008 average was the lowest annual figure since the Challenger Index began in 1986. The 2009 annual average is the second lowest.

“Relocation is still a last resort for the overwhelming majority of job seekers. We did see a surge in the second quarter of the year, amid early signs of an economic recovery. Perhaps, when it became obvious that the job market was recovering more slowly than the general economy, relocation dipped again. When job seekers perceive their chances of finding work are poor regardless of the geographic area in which they look, they are likely to stay where they have an established support network,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

Indeed, the job market has shown few signs of improvement over the last six months. While job losses slowed significantly in the second half of the year, there is no indication that employers are ready to increase hiring. As a result, the national unemployment rate remains stubbornly high, at 10 percent, and the number of people experiencing long-term joblessness lasting 27 weeks or more is at record highs.

“There are pockets of low unemployment, but according the latest data from the Bureau of Labor Statistics, only 12 metropolitan areas were still enjoying unemployment rates lower than five percent in November. In May, when the relocation rate was at its highest level of the year, there were still about 20 cities with unemployment under five percent,” Challenger noted.

“This is not to say that job seekers would not benefit from expanding their searches to different geographic areas. Any time job seekers expand their job search parameters in any way – whether it is looking in different cities, looking in different industries or looking in different occupations related to their fundamental skill set – they will greatly increase their chances of success,” said Challenger.

In 2009, job seekers were far more likely to change industries than relocate. Over the year, an average of 36 percent of those finding new positions switched industries. That was down slightly from a 2008 annual average of 39 percent.

“Relocation is much more difficult to achieve. Moving is consistently ranked as one of the most stressful events one can endure. It often ranks right behind job loss. So, when you throw these two situations at an individual, it is easy to see why very few people are willing to consider it, even if it does improve the chances of job-search success,” said Challenger.

“In addition to stress, those who find themselves out of work are certainly concerned with the considerable expense of relocation. For homeowners, finding a new home is often dependent on selling the old one, which is a much more difficult prospect in this market. While job opportunities may exist across the country, unless the monetary compensation makes up for moving expenses or the company offers some sort of relocation package, a job seeker is likely to stay put.”

Relocation rates tracked by Challenger have fallen steadily since the survey began in 1986. In 1986, for example, the quarterly relocation rate averaged 42 percent. In 1993, relocation averaged 35 percent over the year, but reached a record high of 49.2 percent in the second quarter. After 1993, however, job seekers appear to be more averse to relocation, with the quarterly average sinking to 22 percent from 1994 through 2000.

“Around 2001, the annual average for relocation fell below 20 percent for the first time, and has not returned above that rate since. What made the decline in relocation even more surprising is that it came at a time when the Internet made it easier than ever to search for out-of-town jobs,” said Challenger.

“However, the same Internet technology that makes out-of-town job seeking so easy also makes it easier for people to work from anywhere. Faster and cheaper Internet connections, coupled with relatively low air-travels costs, made it possible for job seekers to gain out-of-town employment without actually moving out of town,” he added.

According to Challenger, relocation rates are likely to increase as the job market improves over the next year or two, but they almost certainly will not return to the levels reached in the late 80s and early 90s.

“In the 1980s and early 1990s, the workplace was dominated by the baby boomers, who seemed more open to changing their zip codes to find positions and move up the corporate ladder. Now, this population appears to have hit an age where they are settled in and less likely to move. The younger generations coming up behind the boomers seem less willing to pull up their roots for a job. They are more likely to relocate based on lifestyle choices versus occupational choices,” said Challenger.

“This could present some challenges for recruiters as the economy improves. Companies will have to depend more on their local talent pool. In order to attract highly-coveted candidates from out of town, they will have to offer something beyond a good salary and benefits package. The companies that will have the most success at long-distance recruiting are likely to provide desirable relocation packages.

“Additionally, those based in regions that offer shorter commuting times, plenty of recreational activities, a good culture and arts scene will attract quality candidates. More importantly, the successful recruiters will be those with companies that actually give employees the time and balance to enjoy these regional benefits,” Challenger concluded.

Percentage of Job Seekers Relocating

1986 – 2009

	Q1	Q2	Q3	Q4	ANN AVG
1986	45.0%	43.0%	40.0%	39.0%	41.8%
1987	37.0%	32.0%	34.0%	35.0%	34.5%
1998	37.0%	36.0%	34.0%	36.0%	35.8%
1989	35.0%	36.0%	31.0%	32.0%	33.5%
1990	30.0%	34.0%	31.0%	27.0%	30.5%
1991	30.0%	28.0%	26.3%	21.0%	26.3%
1992	30.2%	28.3%	28.2%	20.5%	26.8%
1993	36.4%	49.2%	30.5%	25.0%	35.3%
1994	20.5%	21.3%	15.5%	24.7%	20.5%
1995	17.1%	17.2%	20.4%	24.1%	19.7%
1996	19.4%	20.5%	29.1%	24.1%	23.3%
1997	19.8%	21.5%	18.7%	20.1%	20.0%
1998	18.3%	27.1%	23.3%	23.7%	23.1%
1999	25.5%	25.3%	22.4%	25.9%	24.8%
2000	20.4%	21.6%	23.5%	26.2%	22.9%
2001	17.1%	16.6%	17.3%	17.0%	17.0%
2002	14.0%	12.1%	15.8%	15.2%	14.3%
2003	15.1%	14.9%	12.9%	12.7%	13.9%
2004	13.2%	16.5%	14.9%	14.2%	14.7%
2005	16.0%	16.4%	16.2%	15.2%	16.0%
2006	16.4%	18.2%	16.1%	15.4%	16.5%
2007	16.6%	15.4%	15.6%	11.0%	14.7%
2008	8.9%	11.4%	13.4%	12.6%	11.6%
2009	14.4%	18.2%	13.4%	7.3%	13.3%
QTR AVG	23.0%	24.2%	22.6%	21.9%

Source: Challenger, Gray & Christmas, Inc.

CHALLENGER JOB MARKET INDEX

	2008 Q1	Q2	Q3	Q4	2009 Q1	Q2	Q3	Q4
Percentage Relocating	8.9%	11.4%	13.4%	12.6%	14.4%	18.2%	13.4%	7.3%
Percentage Relocating with Employed Spouse	29.0%	20.0%	22.6%	21.7%	31.0%	14.7%	22.0%	28.6%
Percentage Changing Industries in New Job	42.1%	37.3%	35.9%	42.1%	41.8%	36.6%	41.8%	22.3%

Source: Challenger, Gray & Christmas, Inc.

Bulletin: SOTU, Jobs Data

2010-01-28T10:36:00.002-06:00

President Turns Focus Toward Jobs

The economy and job creation was a central theme in Wednesday night’s State of the Union address. While early actions by this administration, including bank and automotive bailouts and stimulus measures, helped to dramatically stem the tide of job losses, President Obama acknowledged that more must be done to ignite job creation. Unfortunately, there is no magic bullet that will quickly lower the nation’s unemployment rate from 10 percent. The job market will definitely be helped by Obama’s proposed tax cuts for business, additional money for small-business loans and infrastructure projects. The question is will Congress step up and get these initiatives passed. Even if they do, increased job creation still comes down to whether employers feel confident enough to begin hiring anew. Did President Obama effectively address Americans’ concerns about the job market? What other steps could the White House and/or Congress take to spur job growth? In which industries are early job gains likely to occur?

More Positive Economic News

Two reports out today could signal further strengthening of the economy. The Commerce Department reported this morning that orders for durable goods were up nearly 1% in December, as companies restocked inventories and demand for equipment continues to grow overseas. Meanwhile, the Labor Department reported that weekly claims for unemployment benefits fell to 470,000 from 478,000 the prior week. The decline was not as big as expected, however, which some see as a sign that improvements in the job market may be slowing. There have also been some large job-cut announcements in recent days, but John Challenger says that the recent activity may be seasonal in nature. It is not unusual to see a surge in job cuts and jobless claims increase in the beginning of the year, even in the best economy. Many retailers and other employers are letting go of their seasonal workers and others companies are making adjustments to their payrolls to reflect budgetary objectives. Is it too soon to worry about a possible slowdown or reversal in this recovery? When might job creation become more steady and sustainable?