You don’t want to end up a drunk Santa in a ditch.
I know the ads are tempting. I know the media won’t stop talking about it. I know Black Friday kicks off the beginning of the holiday shopping season.
But we all need to so restraint.
Many of us haven’t been too worried about saving in the last few years. The U.S. savings rate actually fell to zero in 2005. We were all excited about increasing home values, and a booming economy that looked like it would never end. But not having money in the bank was a dumb idea. Unemployment was low so most of us didn’t have to worry too much about losing our jobs, but now it’s becoming that “rainy day” for many of us and we need lots of money in the piggy.
Lately, U.S. consumers have been doing a bit better at saving. The savings rate is actually rising, according to the U.S. Commerce Department:
Americans realize bad times are upon us so they’re going into financial conservative mode. This is good. But I’m worried about all the fat Santas at the mall, and the endless ads that pour out of our newspapers. Don’t get sucked in folks!
This is a good time to go back to money saving basics.
Ask yourself — How big is your layoff fund? You know, the fund you’ll need just in case you get the boot. Unemployment is at record levels. You all have to be prepared just in case.
A colleague of mine from MSNBC.com, Laura Coffey, just did a how-to-prepare-for-layoffs story and she includes some info about an emergency fund:
Make it your top priority to set aside enough money to cover your basic living expenses for three to six months. This should give you the ability to pay your rent or mortgage, buy food and repay debts during a bout of unemployment. Consider socking this money away in an online-only, high-yield money market account or a short-term certificate of deposit. For more details about how to choose such an account and earn more interest on your dough, read this past “10 Tips” column on the subject.
While the three to six month fund is smart, I’ve always felt more comfortable with six to nine months in the bank. But everyone has to do what works best for them. I know many people that have over a year of money saved just in case.
The best way to search for a job is if you’re not desperate. Desperation leads you to accept a job you really don’t want, something that can derail your ultimate career ambitions. It would be great if you had the breathing room to sensibly go about job hunting, no?
Stop what you’re doing right now and calculate what you have and whether you’ll be able to weather a six-to-nine month layoff, which is what many of you are saying is the amount of time it takes lately to find a new gig.
Look, I’m not being stupid here. I know how tempting the holidays can be when it comes to luring bucks out of your wallet. You want to help boost the spirit by getting great gifts for your kids, nieces and nephews, your parents, friends, etc. I don’t blame you. I love giving gifts and receiving gifts.
The only thing I’m suggesting is that we all sit down and figure out how much money we have and how much, realistically, we should be spending this year. Make a budget. Talk to your siblings and friends. Tell them, that it may be a good idea just to give gifts to the kids this year.
One thing that may help is volunteering in your town to help out those who are less fortunate. My column this week on MSNBC.com was on how workers were trying to get their firms to help shelters and a host of nonprofits this year.
When you see how people out there are struggling it makes you realize that lavish gifts are really very meaningless. And you don’t have to be an adult to get this.
We took our kids to a homeless shelter called the Sunday Breakfast Mission in downtown Wilmington yesterday morning. The shelter needed help setting up for the mad rush they expected for the Thanksgiving meal. Last year the shelter had 500 plus people waiting in line for a holiday meal. This year? They were expecting even more.
We set up tables and spent hours sorting through food donations, putting canned veges with canned veges and jars of baby food with other jars of baby food.
My son is six and my daughter is nine. It was a lot of fun for them running from box to box, yelling out “protein”, “cranberries”.
But it wasn’t lost on them that the food was for families that didn’t have money to make ends meet. We didn’t hit them over the head with this message but we discussed it as a family so they would understand how any of us could end up in this situation.
Today, my kids made out their lists to Santa. We typically do this the day after Thanksgiving while we listen to corny Christmas music.
We told them this year was a good idea to just ask for two gifts from Santa because times were tough. My six year old only asked for one thing. He wanted a Lego set of people. Now I’m not naive. I know when Christmas morning rolls around he’ll be sad if he only has one gift under the tree and his sister has more than that. So, I encouraged him to write down one other gift.
What this made me realize is that if a six year old can get it, we should be able to get it too.
Let’s all try to keep our heads together and spend within reason. You can email me, or post a comment if you need help keeping the shopping demons at bay.
I’ll admit it, I may need some support when Rudolph is on TV or when it’s time to go Christmas tree shopping.
Some of us will be giving thanks for our jobs this week.
It’s a natural response to all the news we’re all hearing about how people are loosing their jobs, how the food banks across the country are running out of food, how so many people are losing their homes.
If you have a job and can pay your mortgage or rent, and put food on the table, then you should give thanks, no?
Well, I don’t want to give thanks. I’m actually very unthankful right now.
The reason I’m angry and not in a thankful mood is because of how we ended up in this mess.
Stupid, greedy people. People with little forethought, with little care about how their actions would impact others.
The economy we find ourselves in was not merely a product of the subprime mess. That was a key factor bringing the whole house down, but the problems are more widespread and go back many years.
It’s something that has been pervasive in Corporate America and throughout the work world for years. Workers getting the shaft while the upper sphere of management get richer and richer.
These disparities in the workplace create a inequitable atmosphere and that translates into little loyalty, and little desire to play by the rules. Everyone is out for themselves.
There’s a great story in the Wall Street Journal today that sums up some of the top job-seeking/job-board sites out there.
For those of you who don’t have time or the inclination to read the Journal, I asked my intern to check out the websites the reporter mentioned and boil down what they offer job seekers, beyond job listings:
By Katherine Guiney
In these harsh times, everyone is feeling the economic strain and losing your job is nothing to be ashamed of. Even Tiger Woods got laid off. With one year left on his 10-year Buick endorsement contract, General Motors pulled the plug on the deal.
But Tiger and all you job seekers out there have more resources than ever to help you land a new gig. With the jobless rate at a 14-year high, many new job search engines have popped up and existing ones have enhanced their features in an effort to help the out of work find employment.
Where can you go?
MarketVendorJobs.com
This new job site has a resource center with overviews on interview techniques, resume writing, salary negotiation, networking and resigning.
CareerBuilder.com
In addition to letting you post your resume and get job alerts, CareerBuilder.com features a pop up on the right of the screen with jobs in your area, categorized by industry. In February, the site launched BrightFuse.com, where professionals can network and, coming next year, highlight skill sets and upload samples of work.
Vault.com
When looking for jobs on Vault.com you can search by industry or company. This site includes most job industries, but seems to focus on finance, law and consulting. In addition to samples of expert resumes and cover letters, message boards and a tab for colleges, the site offers something called “The Vault Recession Survival Package.” The package does cost, but it includes two 45-minutes coaching sessions, resume and cover letter work, and the Vault guide on finance, law or management consulting.
Glassdoor.com
A salary-review and employee-review Web site. It offers salary data for positions at numerous companies, so you can estimate what a certain position should make.
Indeed.com
The simple homepage asks you “what” want and “where” you want it, and then lists responses in a very Google-like fashion. Simple, but effective as it allows you to specify exactly what you are looking for.
Monster.com
In addition to the standard job search, Monster.com has information on money, furthering your education and job fairs.
Dice.com
Dice.com calls itself “The Career Hub for Tech Insiders” and is targeted at technology professionals. Before you even search, a list of jobs that may be of interest given your location is posted in the top right hand corner of the page.
eFinancialCareers.com
This site is geared toward finance-industry workers. It launched an emergency toolkit in September, which contains tips and articles on networking, interviewing and resume writing for finance professionals specifically.
OK, now for the surprise job-seeking source — YOUR LOCAL LIBRARY!
No, I’m not kidding folks.
Once upon a time, before the Internet, people who were out of work would head over to their local libraries to get information on companies around the country, including an address and contact information. I know this seems so Stone Age, but we used to have thumb through thick reference books instead of clicking on a computer key board.
Ever since cyber mania became the norm for job seekers, many of you have just forgotten about that big building in your neighborhood crammed with all those dusty books.
Time to rethink the local library.
The Brooklyn Public Library, in particular, is getting out the word on all the great stuff they have for the jobless.
The BPL offers assistance through its Education and Job Information Center, which provides library members free job training and career guidance.
Here’s a rundown on what’s available at the BPL and many other libraries around the country:
- Assessment software (sigi) library patrons can use to determine which careers would be a good match
- Print collection of books on careers, colleges, entrance exams, etc.
- Series of programs that help assess your skills/career development training
- Proctoring for paper-based exams for students
- Learning express library software: Database allows patrons to take practice tests for college entrance exams (like CUNY) for civil servants and GED
- Skills, Training and Employment Program (STEP) offers one on one assistance with trained staff member who reviews resumes, take them through referral brochures which they can consult for training or job search help, etc.
- Offer access to Career Cruising, a Web site that patrons can utilize for free to explore different occupations. This site is not free if you try to access it outside the library.
- Provide referral guides that list recommended resources for searching out financial aid and scholarships
- Provide free access to Career Cruising, a website which people can access to explore different occupations and search for scholarships.
And the best part of the library as job resource is you get to get off your big butt and head out into the real world where you are forced to interact with human beings. You’ll need that kind of exposure if you want to be on your toes during a job interview, especially if you’ve been out of work for a while and have no one to talk to but your dog or cat.
First it was the banking sector begging for tax dollars to shore up the industry. Now we have the auto executives and even home builders looking for some money to keep their firms going. Why can’t newspapers and other media outlets come a knockin’? The taxpayer portfolio needs to be diversified, no?
OK, I don’t have a private jet. I actually have a nine year old Passat that is now making a funny knocking noise and is pulling to the right.
I’m not one of those journalists that believes the Internet killed newspapers. I think the Internet would have made newspapers even better, and actually boosted readership, but the bozos that run many of these newspapers panicked. Content is king on the Web and newspapers had plenty of that. But instead of using the seasoned reporters they had in their midst to provide great content and lure readers to their sites everyday, they started firing the very people they needed to keep them relevant.
Now, given the economic downturn, the layoffs of great journalists are reaching fever pitch.
Just today, a career blogger for the New York Times, Marci Alboher, announced that the paper was giving her the big heave-ho.
Her blog was one of the best career blogs around..thoughtful, insightful, well researched.
It’s hard to know what the Times editors were thinking, if they were thinking at all. Why would you cut a career blog in the midst of a recession when all anyone wants to read about, other than Jolie and Pitt, is the jobs’ market and how they can keep or find a new job?
One thing this situation proves is that there really is no rhyme or reason when it comes to pink slips. Everyone is trying to cut costs and sincere thought is rarely part of the equation.
Chances are the economy probably wouldn’t be in the mess it’s in today if people spent some time thinking about the ramifications for their actions. Subprime loans, gas guzzling cars, McMansions. All these things seem pretty stupid right about now. Surely someone in banking, autos or real estate suspected this.
So I’m putting out a plea to businesses everywhere right now. Don’t just slash and burn your workforces. A LITTLE FORETHOUGHT PEOPLE!
I know everyone and his brother has a website or a blog today talking about their relationship problems or what their cat ate for brunch. But real journalism is about uncovering information that will help people make better decisions in their lives, it’s about exposing corruption, about reporting on life’s injustices.
It seems ludicrous to be cutting reporters at a time when we need good journalism more than ever to help untangle the economic and political mess we find ourselves in.
There’s a great way to use social networking sites like Facebook and LinkedIn that few of us think about — making friends at work.
A colleague of mine recently told me another woman in her office sent her a Facebook friend request and she accepted. She didn’t know this woman very well, other than passing hellos in the hallway, but after the cyber friend connection they started talking in real time — you know, face to face.
“She’s really cool,” my colleague told me recently. “We never would have become friends if it weren’t for Facebook.”
We both marveled at how cool it was, but then she told me about another person who works for her company that also sent her a Facebook friend request. It came from a weird guy that sort of creeped her out. And she was told by other women in the office that the guy liked to friend request lots of women. She figured she should accept or risk alienating the colleague, which could cause some awkward work moments.
But now she had “friending” regret. The guy keeps writing strange things on his Facebook page and she’d rather weed him out.
The conundrum? How do you de-friend a non friend without disturbing the cyber gods and creating hell for herself at work?
It’s hard enough de-friending, or not friending, a non friend who lives in another state, or is a long lost friend you really didn’t want to reconnect with. (Check out this great story on that topic by a colleague of mine at MSNBC.com)
But de-friending a workmate, that’s a whole other story. It can actually impact your job, work, career.
Turns out there’s a way to de-friend someone without them knowing you ever did, he explains:
In Facebook, I go to the person’s profile page and scroll to the bottom of the left column… you’ll see a link that says “Remove from Friends.”
In LinkedIn, click on Contacts, then towards the top right you’ll see a link that says “Remove Connections.” Click that, choose all the connections you want to remove, and then finish by clicking the “Remove Connections” button.
In both cases people won’t get a notification that you have removed them, and I’d argue most people will never notice.
But, he adds, if the friend is a coworker, or worse, a boss, “who asked you to connect, that might be problematic, but even then they might not know you aren’t connected anymore.”
He blogged about this issue on Facebook here. And on LinkedIn here.
I asked him two followup questions that related directly to my colleague.
What if the person you de-friend checks up on you and asks, “did you read my message about the work thing, or party?”
Some people might avoid the issue by saying “I didn’t see that,” or “I missed that,” or “I didn’t notice.” I would say “I was cleaning up my Facebook Friends and unfriended a bunch of people, I might have unfreinded you. Will you send me another invitation?” I would only ask for another one if I think I’d be interested in following them again, and since they asked they show they are actively using it as a communication medium. However, I’d make it clear that if they want to send work stuff, to send it to my email.
What if it’s the creepy guy in your office and you don’t want him bugging you?
I would definitely say “I was cleaning up my Facebook Friend list and deleted a bunch of connections. Sorry.”
Do you guys have a social networking friend/connection conundrum story you want to share? Do you need help? What did you learn from it?
So I’m watching “Tropic Thunder” last night and it got me thinking about what’s happening right now in workplaces across the country.
Tropic Thunder is a funny and twisted spoof on fake war with some of my favorite stars, Robert Downey Jr., Jack Black and Ben Stiller. It depicts five prima donna Hollywood actors who are in a Vietnam war movie and throws them into a real life war, in this case a drug war.
Suddenly these bozos have to use their fake guns and grenades to help save each others lives, even though they really didn’t know each other that well and really didn’t like each other either.
Maybe some of you a scratching your heads thinking “Did Eve not get enough sleep last night?”
Well, maybe not — rarely get enough sleep these days. But I do have a point to make.
Lately I’ve been getting lots of emails from readers worried that they could be laid off at any moment. Most of you want to know how you can keep your head off the chopping block, and I’ve written a couple of MSNBC.com columns recently to address this issue. (Check this one and this one.)
But one thing I’ve noticed is that people are feeling more and more isolated. There is a hunker-down mentality out there and instead of turning to your colleagues for help, everyone is keeping to themselves and viewing coworkers almost as competition. Others don’t want to get too chummy right now because you never know who’ll be pink slipped next and then you’ll have to deal with the poor sap.
I’m hearing more and more stories of how workplaces are taking on this war-like atmosphere and everyone is afraid of getting shot down, aka fired.
Well, in war there will be casualties, but if you alienate those around you there’s a higher likelihood you’ll blow up your own career with a Oozie. You need your coworkers to help you in the trenches and you should be helping them as well.
“It’s about having camaraderie to get through the tough times,” says Wendy Kaufman, president of Balancing Life’s Issues Inc., a work-life balance training company.
Fear, she adds, is the greatest demotivater and the way you alleviate it is by talking about it. And what better person to talk to about it than someone who’s going through what you’re going through — your coworker.
And reaching out to those around you during tough times is the right thing to do, Kaufman maintains. “The people that do the right thing have less stress.”
Avoiding office or factory friendships because you look at colleagues as merely competition for your job is paranoid, she stresses. “If you’re proud of who we are, done the best you can do, you’re going to feel secure.”
Studies support the fact that a well-balanced life is one filled with friends, she adds, and what better place to build those friendship but at work.
I know, it’s getting hard now to have socialization opportunities with coworkers. Your company may have already canceled the holiday party and maybe team building sessions have also been dropped. Not to mention our own tight wallets, which probably means fewer lunches or martinis after work.
But Wendy advises workers still find ways to connect. It might be a good time to meet up with coworkers to talk about strategies just in case layoffs do come down. Bring your resume and give each other feed back. Maybe a cup of coffee or a potluck dinner is a more cost-effective get together.
“Misery loves company,” she says, but means that in the best of ways. “Together you can learn to laugh about it and say, ‘we don’t know what’s going to happen.’”
You also can’t diminish the importance of how friendships today can also turn into networking opportunities tomorrow. Your friends will remember you and help out when the ax falls and you should be prepared to reciprocate.
In Tropic Thunder Robert Downey Jr., who plays a convincing old black man, comes back to save Ben Stiller because that’s what friends do. It also made for a perfect “Platoon” spoof moment.
Stiller collapses, arms stretched out like Willem Defoe in Platoon, as shots ring out behind him and Downey Jr., reluctantly at first, comes to his rescue.
The not-fake, fake war movie ends, and life goes on for all the fake soldiers.
Now go out there and invite a buddy to a war strategy meeting and laugh a little. You could also rent Tropic Thunder.
When I go into my doctor’s office with an ailment, for some reason I lose almost all my reporter’s sense. I sit there like a lump on a log, listening to everything she says and rarely asking good probing questions. Typically when I return home I regret not having asked more about a medicine she prescribed or a plan for treatment.
I call this “I-put-my-life-in-your-hands” syndrome, and this very thing often happens to workers when they’re in a boss’ office, offered a job by a hiring manager, or sitting down with a human resource employee.
You guys go into stun mode and sometimes just go along with things these people say. Why? You want to keep your job, land a job, or get the severance you were promised. So you do things like sign forms put in front of you without really reading or thinking about the ramifications.
Stop! Take the mass of papers you’re given and read them. Please.
My column this week is on noncompete agreements. Workers are often asked to sign these and most employees blindly provide their John Hancock because they’re so happy to have been offered a gig. But folks, if you get laid off a non-compete agreement can tie your hands when it comes to working for a competitor in town or starting a similar business. The laws vary depending on where you live. Florida for example is tough on employees who sign these agreements, but California doesn’t enforce them. But, if you are in a state where these accords are upheld you’re going to be in a lot of trouble if you leave your job.
Here are some things to think about before you sign a noncompete:
It’s a good idea to contact your local labor department to find out if noncompete clauses are applicable in your state. If they are, Daniel Levine, an employment attorney with Shapiro, Blasi, Wasserman & Gora in Boca Raton, Fla., advises employees to spend some time reading the document and maybe even have a lawyer take a look so you fully understand what you’re agreeing to.
If you decide not to sign a noncompete agreement, an employer can decide not to hire you. That is within their legal rights, he says.
If you’re laid off, he adds, you could try and negotiate a severance package so that you’re not in financial dire straits during the period you’re not allowed to compete.
You also have to take into consideration the scope of the agreement is. In many cases if a noncompete clause is too broad it won’t hold up in court, legal experts say.
And nothing precludes you from altering the noncompete agreement before you sign it. An employer may not accept it, but what do you have to lose?
Another form that workers are often asked to sign, and I’ve been getting emails about this more lately, is a “I-won’t-sue-you” document.
Here’s a letter I just got from Diane who lives in California:
I am being laid off at the end of this year. I was notified in June that I had 60 days (in compliance with the WARN Act) to work and that if I continued my employment for the next 60 days in good standing my company would reward me with an extra 30 days pay. I was later notified that my termination date had been extended until December 31, 2008, but the same conditions would apply. The extra 30 days pay is in addition to what I will have earned by working and my earned, but unused Paid Time Off (PTO). The extra 30 days pay comes with a string attached: the string is, that I must sign a ‘waiver’ that states I give up my right to sue my company and if I do not sign, they do not release the 30 days pay to me.
I am very suspicious of ‘waiving’ or giving up any of my rights. This feels like a couple of things: first, a bribe and second, that the company may be doing something illegal for which they could be sued if the waiver is not signed. However, without a job and the current economic climate, I do need the extra pay, so I do not feel that not signing is an option.
Is this legal in the state of California? Can I sign, noting ‘signed under duress’, and if so, are they then obligated to release my extra 30 days pay to me, since they do actually have my signature?
Again, do not rush to sign anything. I’m not big on giving up my rights to anything. But just asking workers to sign such a waiver doesn’t mean they are hiding skeletons in their business closet.
First off, the WARN Act has nothing to do with whether you sign a lawsuit waiver. The Act only applies to employers giving workers 60 day notice before they implement mass layoffs. You don’t have to sign a waiver in order to get the notice.
Before you sign anything it’s a good idea to get some legal help, says Barbara Poole, CEO of Employaid, an online resource for employees and HR executives.
She suggests you “contact an employee rights attorney who offers free consultation. Another resource are online legal services such as Law Guru to research and/or ask her question. Still another resource are the wonderful folks at Nolo, the peoples’ law resource for many years. As a California company, their concentration is heavily in CA employee rights.”
Having another person in the room as a witness such as another employee or an HR representative, she adds, when holding pay or layoff provision talks may also be an option.
But bottomline, many of these lawsuit-waiver forms are standards, she notes.
She is being asked to sign a General Release and Waiver Agreement which is standard practice when awarding any kind of extension of pay benefits (severance) subsequent to a layoff. It is a legal document put together by the company’s internal or external legal team. In essence it says, ‘in exchange for this additional payment…..we want you to waive and release any known or unknown causes of action, claims or liabilities of any kind……arising out of or related to your employment’. So, it’s purpose is to give her something (in this case, 30 days pay) in exchange for her promise not to file a law suit related to…discrimination, wrongful termination charges, mental anguish charges, violation of personnel policies/handbooks by the company (you name it).
If she doesn’t feel she has anything to take them to court on, then no point in not signing it. If she does feel she has any kind of a case, then she shouldn’t sign it. The important point here is company isn’t making her do anything–they are just extending additional pay for a waiver and it is legal as it is her choice. Signing ‘under duress won’t be acceptable and defeats whole purpose of company presenting the doc. Under law, she has a certain amount of time to sign and can have her attorney look at the doc which would help eliminate her suspicions.
So, it’s all about being cautious and thinking before you sign any employment form. You don’t want it coming back to haunt you, especially in this economy.
And by the way, I’m getting better at asking my doctor questions. Now I bring a list with me.
Maybe if Treasury Secretary Henry Paulson had been a former CEO of General Motors instead of a former CEO of financial powerhouse Goldman Sachs, this tale of two bailouts would be playing out differently.
There seems to be little sympathy in this country for the U.S. auto industry right now.
“Let the sick patient die already,” seems to be the refrain among politicians, pundits and economists. The big three automakers want bailout money just like their banking counterparts but the bar seems to have been set way higher for the Motor City than it was for Wall Street.
“They’re a dinosaur,” Richard Shelby, senator from Alabama, told Tom Brokaw on “Meet the Press” on Sunday, about why the auto industry should be allowed to fail. And an analysis in the Wall Street Journal on Saturday titled “Just Say No to Detroit” by renowned economist David Yermack suggests: “We would do better to set this money on fire rather than using it to keep these dying firms on life support.”
Strong words for an industry that has in many ways created the middle class in this country.
Clearly, the auto industry has made some bad mistakes in the past 20 years, most notably, not moving fast enough to compete with foreign auto makers who made better cars.
But the banking sector — that almost everyone acknowledges created its own disaster because of greed that led to the subprime mess the whole country is now suffering from — got better treatment when it put its hand out for billions of dollars in taxpayer money.
When the $700 billion bailout was proposed, few went after the fat paychecks or retirement plans of the mortgage brokers or financial traders who helped navigate the mess. And CEOs — well they had to keep the millions they already pocketed and get the money they were promised because they had contracts with the companies they ran.
On the flip side, it seems to be open season on the compensation of middle class auto workers, with many suggesting union contracts should be renogotiated and payments slashed for existing workers if a bailout were to happen.
To that, United Auto Workers President Ron Gettelfinger, told a Detroit TV station over the weekend:
“Let’s go to AIG, Bear Stearns, active and retired workers: Did anybody go in and ask them to give back wages and benefit levels? What about the bond traders? Did anybody ask them? What about the cleaners in the building? Why would the UAW be any different?”
“We made an agreement, and we made major concessions,” he said. “So how can you blame the autoworkers?”
It’s an interesting question.
What do you all think? No matter where you stand on whether we should be bailing out corporations at all, do you think there is a double standard here?
Adding insult to injury, in his Wall Street Journal piece, Yermack — a finance professor at New York University’s Stern School of Business — actually suggests the government should just cut a $10,000 check to the workers instead of trying to bailout GM, Ford and Chrysler.
I’m not sure if Yermack has checked lately but veteran assembly line workers make about $1,200 a week and many own their own homes and are able to send their kids to college. While newer workers entering the industry will make less than that, there are few places in our economy where these people will be able to find equivalent paychecks.
Someone should inform Yermack that his generous $10,000 offer would mean little if these men and women lose their well-paying manufacturing jobs, jobs that are already few and far between in this country.
It blows my mind that no one thought it would be difficult for large financial institutions to quickly merge with other large financial institutions.
There’s been hardly any government oversight of the merger mania going on in banking. And the head honchos at these financial firms have pretty much thrown due diligence out the window in their scramble to gobble up as many ailing banks as possible.
Merger sense is in the toilet. What once took months, even years to figure out, now happens hastily, sometimes over a weekend. And few questions are asked about whether a merger is really a good idea.
Well, in most cases, mergers are not good ideas, and the people that get hurt are not just shareholders but employees as well.
The statistics on success rates for mergers are dismal.
Sales growth post merger actually declines for both entities, according to a Federal Trade Commission report, “The Effects of Mergers and Post-Merger Integration.” And one of the major reasons mergers sputter is a failure to successfully combine the two work groups.
Most top executives underestimate how difficult it will be to integrate two different workforce cultures. And that’s when they have time to think about a merger and its after effects.
Not surprisingly, an article in the Wall Street Journal today talks about the employee “Culture Clash” following the merger of “the Wal-Mart of banking” Bank of America and financial fancy pants Merrill Lynch.
The culture clash may be most pronounced with Merrill’s “thundering herd” of nearly 17,000 stockbrokers, a group with a fierce independent streak that isn’t afraid to gripe to extract better terms from an employer.
For the denizens of the 94-year-old Merrill Lynch, which long prided itself on its fleet of top-producing brokers, it has been hard stomaching the new edicts from the Charlotte, North Carolina, bank. BofA prides itself on a Main Street approach, having expanded via $US110 billion ($167 billion) worth of acquisitions over the past five years, making it the nation’s largest bank by assets.
Merrill staffers joke nervously that Bank of America employees are recognisable in the elevators by their less expensive attire and American-flag lapel pins.
Ouch!
Merrill employees may be looking down on their new owners, but the reality is most of these joksters have little choice right now but to stay with Bank of America. Jobs are few and far between on Wall Street. Some of the Merrill crew were offered bonuses and to date, according to the WSJ, about 90 percent of the brokers have signed up with Bank of America.
Now comes the hard part. How the heck will all these employees be able to play nice in the banking sandbox? And how will workers there ensure their careers will not sputter at the new combined entity, or keep from being pink-slipped?
For Merrill brokers, they are in a good position because the company obviously values them enough to offer bonuses in a crummy market. But that doesn’t mean any of you should be sitting on your hands. Most of the banking experts I’ve spoken with say Bank of America is just starting to look closely at all its new operations and will do what it can to create a lean, mean, streamlined banking machine. Right now you may be on the star list, but tomorrow you could end up on that other “S” list.
And for you Bank of America veterans, just being employed by the last company standing doesn’t guarantee your job, according to most post-merger statistics. While you have a better chance than your counterparts at the other firm, today’s economic environment means managers will be more ruthless when it comes to keeping those workers who have the most customers, are most productive, and bring in the most business.
So, here are some things to keep in mind that I’ve boiled down from a recent MSNBC column I wrote on surviving and thriving a merger:
* The management at the acquiring firm often relies on the leaders of major divisions at the company they’ve bought to tell them who should stay and who should go. If you’re the top banana at a profitable division within a company, often the new managers will want to keep things intact at that unit, even if they do impose their own manager to oversee the operation. For everyone else, it’s time to do more than just your job.
* Paula Kosin, career consultant for Career Vision, advises employees to “put your CEO hat on” and figure out what the top leaders would want from a business standpoint. “They want to make the merger a success and they are not looking to rape and pillage and destroy things. They want to make sure what is going well in the acquired company continues, but they are also looking at what they can do as far as creating efficiencies.”
* Go to every meeting you’re invited to. You need to start connecting with the new management and get your name out there so you can snag a seat at the integration table.
* You can even make calls or send e-mails to key officials when you have an appropriate opening so you can get to know them — and they can get to know you. Talk about what your unit is doing and outline your responsibilities. And offer suggestions on how to make things better, or how to compliment an existing project, or how to grow a division, experts say. But do this all with real information about the new company and its business strategies and goals.
It may also be a good time to start building your personal brand as well. While I don’t think everyone should have their own blog or be endlessly updating their Facebook page, there are some positions that can benefit from doing more to build your brand in your industry. Some customers will definitely feel more confident if their money gal or guy writes an authoritative blog, or has a well-done LinkedIn page with hundreds of contacts and recommendations.
I’m always a big fan of mentoring folks. Almost every CEO I’ve interviewed had a mentor at some point in their careers; and following a merger, the insights of someone with a bigger title than you will only help.
And keep the doom and gloom, and snide remarks at home. Everyone probably bitched about the merger right after it happened and each side probably thinks they’re better than the other, but now is the time to start concentrating on work and not how much things blow. One high level executive I talked to recently told me when she was deciding who to keep and who to fire, a positive attitude was always one of the top traits she looked for in an employee.
I know, it sucks that things are moving so quickly today that you might get lost in the shuffle even though you’re one of the best at your job. But this is the reality we all have to live in. Let’s stop licking our wounds.
In closing, I want to offer all you corner-office dudes some merger words of wisdom about why you should all think long and hard about culture integration.
A while ago I did a story for Workforce Management magazine about the US Airways and America West merger, and a merger expert I talked to then summed it up well.
Mitchell Marks, president of Joining Force.org and author “Joining Forces: Making One Plus One Equal Three in Mergers and Acquisitions” said under managing the melding of cultures can lead to discontent among the employees, a loss of productivity and retention issues as employees wonder what the future holds. “In mergers,” he added, “culture is a lot like breathing. You don’t have to think about breathing until something threatens your ability to breath. That’s the same thing with cultures in a merger.”
“At least I can get a job at McDonald’s.” That’s something I’ve often said when I’ve gotten mad at editors I’ve worked for and pondered quitting, or I had a feeling my job was going to be downsized.
It’s not that I wanted to work at Mickey D’s — not that there’s anything wrong with that — but having this fast-food backup plan helped quell my anxiety that I’d end up in financial ruin if I lost my job.
Well, the McDonald’s backup plan isn’t so secure anymore.
Retail jobs, everything from fast food joints to departments stores, are not as plentiful as they once were thanks to the economy.
Every day we hear about yet another retailer cutting back or filing for bankruptcy. Circuit City and Linen N Things are two recent examples. Total employment in retail has actually dropped about 2 percent this year, according to the Department of Labor. And that’s bad news for so many of you who see retail as a great temporary, or long-term alternative to an office gig that doesn’t work out, or you just can land.
And with the expected-to-be dismal holiday shopping season, don’t expect a flood of merchants begging workers to do some ho, ho, hoing at stores this season. Seriously folks, even Santa’s hours at the mall are being cut back.
I had a feeling there would be a retail crunch when I recently noticed tons of people filling out applications at my local Target. I blogged about that recently. And it’s not just kids looking for part time work. Many displaced corporate workers are looking for ways to make ends meet until the economy turns around.
While most career writers spend their time writing about strategies for getting ahead in Corporate America, I think it’s a good time to offer some words of wisdom on landing, what is becoming, a coveted retail job.
Here’s some advice from retail guru, SnagAJob.com’s Shawn Boyer:
* Bring a positive attitude – both to the interview and the job itself. SnagAJob.com has done several studies of hourly hiring managers, and they have said the No. 1 thing they look for in an applicant is a positive attitude.
* Apply online and in person. Get in contact with hiring managers every way possible, applying online and by walking into a store or location.
* Have a flexible schedule. Emphasize exactly when you can work, including nights, weekends or early mornings. You want to demonstrate exactly when you are available to work, being more flexible than the applicant walking in the door behind you.
* Be prepared to talk about why you want the job and why you’re a good candidate. You may enter a store or location thinking that you’re only going to fill out an application, but it is possible that you may have an on-the-spot interview with a manager.
* If you’ve had a part-time job in the last couple of years and you left in good standing, go back to that location and employer and see if they’re hiring. You will likely have a leg up on other applicants because you can get up to speed quickly and you have proven yourself.
* Apply where you are a consumer. If you are knowledgeable about a product and have a genuine enthusiasm for it, hiring managers will see that that energy will be shared with shoppers.
“This is one of those years when there are many more applicants than there are seasonal openings.,” says Randall Dr. Randall S. Hansen is founder of career development website Quintessential Careers.
Here’s some of his advice:
Because the competition will be so much tougher, it’s even more important for job-seekers to customize their resumes and applications to show fit with the retailers — they can do this by going to the company’s Website and using some of the same lingo that company uses to describe itself. For example, if the company talk about making every shopping experience a thrill for consumers, the job-seeker can talk about his/her philosophy (or past experience) making customers thrilled with their purchases.
Job-seekers are also going to need to spend more time and effort to land one of these jobs. So, besides sharpening their resumes, they should also prepare for interviews in which they can demonstrate their fit.
Finally, job-seekers should use their network to see if they have any connections to retailers — because a recommendation from inside the company is going to give a job-seeker an edge over someone unknown.
It’s a good idea to call the retail store before you head in. Try to get the store manager on the phone and tell him or her you’re interested in a job. They will probably tell you to come in and fill out an application but the advance call may have them looking for you if you say you’ll be there at a specific time.
So do you really need a resume to land a job at McDonald’s? Probably not if you’re just out of school but for mid-level career folks it can only help.
I figured I’d talk to a former McDonald’s executive to find out what it really takes to start selling Big Macs. (My favorite junk food, by the way.)
Facella started out at McDonald’s at age 16 as a “crew member,” aka counter guy, and ended up a regional vice president.
Here’s his take on what it takes to get a job at the burger mecca:
Every retailer wants the very best person in customer service. They want people who have a passion for the job and a passion for the consumer.
And first impressions are the most important so you have to be dressed well and neatly. If someone comes in sloppy they are going to go to the bottom of the pack.
I always looked form someone who could look me straight in the eye and had a nice manner about them. Someone you’d want to sit across form and have a casual conversation.
If you come in with an attitude you’re not going to get the job.
At end of day, employers wants an employee to be engaged in work, passionate about what they do, come in on time, do their work, and ask for more things to do. They want someone who stands out. That’s who they want on their team.
He also suggests that workers who are interested in advancement bring up the topic of upward mobility. But don’t let that be the first thing out of your mouth if you’re applying for an entry level job, he stresses. “In the course of a half an hour interview you can casually mention that you’re interested in finding out about chances for promotions from within. That signals to me that a person may aspire to do more. That’s a good thing,” he maintains.
Yes, there are opportunities to climb the ladder of success in retail.
Facella pointed out that 40 percent of the mid management and above, and 30 percent of the owner operators at McDonald’s started as crew members.
“So many people enter retail, like myself, not thinking it can be a career,” he says, “then suddenly you think, ‘I like this place.’”
You don’t want to end up a drunk Santa in a ditch.
Some of us will be giving thanks for our jobs this week.
There’s a great story in the Wall Street Journal today that sums up some of the top job-seeking/job-board sites out there. 
It’s hard not to get nervous when the industry you work in is cutting long-time, kick-ass journalists all around you for no good reason.
There’s a great way to use social networking sites like 
So I’m watching “Tropic Thunder” last night and it got me thinking about what’s happening right now in workplaces across the country.
Do white coats make you stupid?
VS 
It blows my mind that no one thought it would be difficult for large financial institutions to quickly merge with other large financial institutions. 
“At least I can get a job at McDonald’s.” That’s something I’ve often said when I’ve gotten mad at editors I’ve worked for and pondered quitting, or I had a feeling my job was going to be downsized.