Bob Marshall’s February 2020 BLS Analysis for Recruiters; 3/6/20
The 5 February Articles…
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How to Successfully Negotiate Your Salary
Forbes, Samantha Todd, February 26, 2020
With unemployment at a low 3.6%, American workers have been enjoying a candidate-friendly market, and many have used it to their advantage. According to a recent survey by recruiting firm Robert Half, 54% of job seekers negotiated for a higher payout before accepting their most recent position. Of those who didn’t ask for more, nearly one fifth said it was because they felt uncomfortable doing so.
“Anyone who has the experience is in demand,” says Paul McDonald, senior executive director at Robert Half. “Everybody should feel comfortable negotiating compensation today.”
Negotiating can be intimidating, but with a little preparation, job seekers can be better equipped to walk away with what they’re worth. Here are three keys to a successful salary negotiation, plus what to do if the hiring manager doesn’t budge.
- Do Your Research
While hiring managers often discuss pay with candidates early on in the hiring process, with 35% of respondents reporting that the subject of salary came up in their first in-person interviews, McDonald advises against negotiating before an offer has been made. If salary range does come up, use that as the starting point to research industry averages for the role at hand, using online resources like Glassdoor’s salary tools and Payscale’s salary calculator as your guide. Another form of compensation that’s worth considering is benefits. A flexible work arrangement or student loan reimbursement, for example, may not pad your paycheck, but they are perks that could boost your bank account. Whatever you do, don’t overshoot—that could be a turnoff. Flexibility and knowing your market worth is key, he says.
- Establish Your Must-Haves and Your Nice-To-Haves
Before you go into a salary negotiation, determine what you need and what you can do without. “If you’re interviewing for a new role, or if you’re going to your current employer for the annual salary review, know what your priorities are,” McDonald says. “Take the emotion out of it and be really in tune with what’s important to you.” Not being able to articulate what matters most can cost you a few extra thousand dollars, or even the position itself.
- Practice Makes Perfect
There’s no better way to calm pre-negotiation nerves than to practice. McDonald recommends role-playing with trusted colleagues, mentors or recruiters so that you can get feedback from those who have been on different sides of the table. As you craft your pitch, remember to make liberal use of the words “we” and “us.” “It’s always good to try and join the parties when you’re negotiating,” McDonald says. Something as simple as “There are a few things that I’d like us to discuss” can demonstrate to the hiring manager that you’re a team player. For instance:
“I’m so thrilled that you’ve extended an offer and I’m really enthusiastic about the role! I know I’d be the right fit for the [co. name] team and based on what we’ve discussed during the interview process, my background and experience align really well with the expectations of the job. I’m hoping we can discuss the offer you presented because based on my research, the salaries in our area for [job title] are typically around [number]. I’m confident you’ll be pleased with what I’ll bring to the role and organization and I’m looking forward to contributing.”
Next Steps
It is unlikely that your negotiation will end with you receiving an immediate “yes,” so leave by offering to continue the conversation. If the hiring manager doesn’t follow up regarding your request or just won’t budge, ask yourself if you can still afford to take the opportunity. If the answer is no, tell the company right away. “Don’t ghost the opportunity,” McDonald says. “Regardless of how it all turns out, always be professional, always be courteous, always be objective.”
More Than Half Say They Asked for A Higher Salary in Last Employment Offer; Miami Tops List
Daily News, February 21, 2020
More than half of professionals in the US, 54%, said they tried to negotiate a higher salary when they received their last employment offer, according to a survey by Robert Half International.
Miami had the most workers who tried to negotiate compensation. It was followed by Los Angeles, Phoenix, New York, and Dallas and San Diego (tie). Meanwhile Pittsburgh; Sacramento, California; and Minneapolis had the fewest.
Men were more likely to negotiate than women, with 66% of men saying they did compared with 46% of women.
Professionals making more than $100,000 per year were also more likely to negotiate an offer, with 64% of this group saying they had tried negotiation.
Among those who didn’t negotiate, 55% said it was because they were happy with the amount proposed.
In a separate survey of managers, 35% said they typically discuss pay with job candidates during the first in-person interview; 20% wait for the second meeting, and 15% bring it up when making the job offer. Also, 13% talk about compensation during the initial phone or video screening.
Robert Half’s research included 2,800 workers employed in office environments and more than 2,800 senior managers at companies with 20 or more employees in 28 major US cities.
US Labor Shortage – Especially for Blue-Collar Workers – Will Continue Through 2030
Daily News, February 19, 2020
The US labor shortage — especially for blue collar workers — will continue through at least 2030, according to a new study released today by The Conference Board.
It released a study is based on a survey of more than 200 human resource executives. Findings included 85% of companies in “mostly blue-collar industries” reported recruiting difficulty compared to 64% of companies in “mostly white-collar industries.”
The Conference Board also noted that in just 10 years, the US went from the recession to one of the tightest labor markets in history.
“The result is a labor market with critical shortages, especially for blue-collar and manual services employers who are experiencing much tighter labor markets than employers of highly educated white-collar workers — the exact opposite of prevailing trends in recent decades,” according to the study.
Causes of the blue-collar labor shortage include a shrinking supply of workers and soaring demand.
Factors driving the shrinking supply include:
*The baby boomer exodus. Baby boomers perform much of the nation’s blue-collar work, but they are leaving the workforce in droves.
*Dismal growth in the working-age population. The working-age population has largely stopped growing.
*Disappointing recovery in overall labor force participation. The tight labor market has brought more individuals into the workforce, but participation hasn’t grown fast enough to prevent it from further tightening.
*Men without a college degree are less likely to work. Their declining workforce participation results, in part, from more of them being single, living with their parents and having less of a need to earn an income.
*Large increase in disability rates. The share of people not in the labor force due to disability has soared and is now at a record high, with a strong concentration in the South and the Midwest.
*More young adults are avoiding trades, pursuing college instead. Meanwhile, the number without a bachelor’s degree — those who typically choose blue-collar jobs — continues to shrink.
*Young adults are much less likely to be in the labor force. The decline in labor force participation of 16- to 24-year-olds significantly reduces the supply of workers in jobs that hire young, less-educated workers.
Meanwhile, The Conference Board noted that other factors are driving demand for blue collar workers even as their supply shrinks. These include slowing labor productivity, which creates demand for more works; near-zero growth in manufacturing labor productivity; and fast growth in e-commerce.
The shortage is bringing bigger paychecks to workers and higher job satisfaction, according to the study. However, for employers, rising wages and labor turnover are squeezing profits.
84% Say Age a Consideration in Their Hiring Process
Daily News, February 12, 2020
A survey by Express Employment Professionals found that 84% believe age was a consideration in their hiring process while only 16% said no. And among those who thought ageism was an issue, nearly half were in the 55-to-64 age category.
Respondents offered several examples of perceived ageism:
*“I was told by the hiring supervisor, ‘I believe you are just too old to give us much time here. You’ll probably want to stay home and sit by the pool with the grandkids within a year.’”
*“I’ve been interviewed by several job offering companies, and when they realized how experienced I was and the number of years that I have been working, the inevitable statement was, ‘You are too experienced for the position.’”
*“In my 20s, I was the top candidate for a position, but it was never offered. I later asked the employer why, and they stated that while I had all the education and experience, I did not have enough whiskers.”
*“I’m still young and inexperienced, and employers do not like that. They don’t want to have to waste time training the new guy how to do something.”
However, age discrimination can have a negative impact on a company’s brand.
“A successful economy is made up of workers from every generation because people of all ages bring different skills and life experiences to the table,” said Express CEO Bill Stoller. “Regardless of age or any other factor, at the end of the day, it’s important to hire the best person for the job.”
Express Employment Professionals’ survey included 704 business leaders and job seekers.
US on Track for Solid Job Growth in early part of this year: The Conference Board
Daily News, February 10, 2020
Job growth has picked up after several weaker quarters, and the US is on track for solid job growth in the early part of this year, The Conference Board reported today.
Its Employment Trends Index rose in January to a reading of 110.24, up from December’s reading of 108.84.
“The improvement in the [Employment Trends Index], along with Friday’s job report and other indicators, suggest that employment growth has been accelerating after several weak quarters in 2019,” Gad Levanon, head of The Conference Board Labor Market Institute, said.
Improved labor force participation — especially for women — and improved labor force productivity is giving the US economy more room to grow despite historically tight labor markets, Levanon said.