How to Keep Your Salary Up in a Down Economy
by Kristina Cowan
Wow, you still have a job! Your are probably in a minority now. And more jobs are being lost every single day. Let's see if we can help just a little even if your are one of the fortunate few who is still working.
As you watch America's fiscal health deteriorate, grimacing through news of layoffs and rising unemployment, you're probably concerned about your own financial survival. You're not wrong to worry.
Recent surveys suggest employers may scale back pay raises next year, and economists say incomes won't likely rebound until 2010 or 2011. But you're not defenseless. You can take steps to protect your income and job security.
Tough Going
News about the workforce has been grim. The unemployment rate hit 6.1 percent in September, according to the Bureau of Labor Statistics. Meanwhile, surveys by Hewitt Associates found that 42 percent of employers plan to decrease pay raises in 2009.
"Wages are not only flat right now, but actually declining. All the signs point to the labor market getting a lot worse before it gets better, which will continue to put downward pressure on wages and family incomes," says Heidi Shierholz, an economist at the Economic Policy Institute in Washington, D.C.
Ken Goldstein, an economist at The Conference Board in New York, doesn't see the situation improving before 2010. "For your average Joe the Plumber, it's going to take a while before we put this behind us," Goldstein says.
Tips for Weathering the Storm
Make your self indispensable. If you have a job, or when you get one, always be the very best worker in the business. Keep yourself busy at all times. No talking or getting one the phone when you are getting paid to work. If you run out of things to do, go find something else to do even if it is cleaning or neatening up, filing, straightening your desk, straightening someone elses desk, or whatever. Never miss work. Be there early, and stay late. NEVER complain about anything! Act like you are glad to have the job. If you have to go ask for more work to do, because you really do run out, be really nice about it, and make suggestion, even if it is only picking up the bosses dry cleaning, or getting him some coffee. Anticipate a need before it arrives and take care of it? If you are a department manager, get your hands dirty and get in there and work with your crew. If you want to be a good boss, don't ask anyone to do what you wouldn't do yourself. Get in there and show them how it is done and how you want them to work by doing it yourself, and doing it with them.
Despite the cloudy forecast, career experts say you can create your own silver lining, one that protects your income and your career.
1. Invest in your education. Pursuing a bachelor's or master's degree, or perhaps week-long classes or certifications, will boost your skills and make you a more precious commodity in the workplace, says Jennifer Loftus, national director of Astron Solutions, a compensation consulting firm in New York. According to a report by the U.S. Department of Education, in 2006 young adults with a bachelor's degree earned 28 percent more than those with an associate's degree, 50 percent more than those who finished high school, and 98 percent more than those who didn't earn a high-school diploma.
2. Shift to an industry that needs workers. Health care is one such industry, notes Loftus. Nursing, one of the fastest-growing careers, is expected to see a shortage of more than 1 million workers by 2020, according to the Health Resources and Services Administration. The median salary for a registered nurse with one to four years of experience is $48,895, PayScale data shows.
3. Document your accomplishments. Whenever you finish an assignment, note how your work helped the company make money, save money, save time, grow the business, or retain customers, and illustrate your accomplishments with dollars, percentages, and other metrics, says Barbara Safani, president of New York-based Career Solvers. "By showing and quantifying your specific value add, you build a better business case to support the requested salary increase," Safani says.
4. Tackle tasks no one else wants. This isn't about grunt work, Safani says; it could mean mastering a new technology others aren't comfortable with, or accepting an assignment outside the traditional scope of your job. "Employees who demonstrate this level of flexibility tend to get more flexibility from their bosses on other issues, including compensation," she explains.
5. Accept high-profile assignments close to review time. This sort of project will likely be a focal point of your performance review, and because it's recent, your boss can quickly recall and document achievements relevant to the project, Safani says.
How to Recession-Proof Your Job
by Tara Weiss
Of course, the best way is to make yourself indispensable as described above.
Whether we're actually in a recession or not is the subject of debate.
What is certain is the rising unemployment rate. U.S. unemployment rose to 5% for the first time in two and a half years in December. That's likely a result of the fallout from the subprime mortgage crisis -- and there's probably more to come.
Don't wait for the alarm bells to sound. Recession or just a temporary slowdown, there are things you can do to keep your job as safe as possible. "You have to be proactive," says Dale Winston, CEO of the executive recruiting firm Battalia Winston International.
Tips to Boost Your Value
The first step: Make yourself indispensable. Show up early and stay late. Now isn't the time to slack. If your boss needs someone to volunteer for a project, raise your hand to do it, then do it well. "Prove you're a contributor no matter what level you're operating at," she says.
If possible, take on projects for other divisions. It's hard to fire someone when they're valuable to several areas of the business. But be prepared to be stretched. Open jobs might go unfilled for long time periods and you will have to take on extra work. Don't start sleeping at the office, but don't complain about working extra hours for several managers.
"Also, look for ways to save the company money," says Bill DeMario, chief operating officer of Ajilon Consulting, a staffing firm that specializes in accounting, finance, consulting and human resources management. That includes everything from telecommuting to a faraway meeting to gently encouraging colleagues not to print all 100 pages of a document unless they absolutely need them. (You can even make the reduced printing targets a competition between different departments so it seems less like a company mandate and more like a silly office game.)
Take a broader view, too. Be aware of your profession's and your company's financial well-being and act accordingly. In other words, people who work in industries that are clearly suffering, like print media, should ramp up their job search and consider ways they can use their skills in similar fields. Look for signs to determine how healthy your company is. Are they tightening the purse strings by limiting travel? Are they asking employees to bring their own lunches to previously catered staff meetings? These may seem like small things, but they can be indications of tight financial times.
If you notice those signs, do more than just work hard. Talk to people in your industry to find out which companies are thriving and make contact with employees there. Use your professional network to accomplish this.
Know the Broader Perspective
On the bright side, if there is a recession, it likely won't be as severe as the last one. Back then there was a confluence of factors, including the dot-com bust and Sept. 11, 2001, that took a severe toll. Also, the demographics of the workforce are evolving. Large numbers of baby boomers are about to reach retirement age, and while they won't necessarily leave the workforce entirely, they will look to slow down or switch careers. That means there is opportunity for younger employees to fill those gaps.
In the immediate future, if there are widespread layoffs, younger generations will likely handle it differently than their older peers, says Mary Crane, a career consultant who specializes in bridging the generation gap. "They've come into the workplace never suspecting they'll take one job and have it for life," says Crane.
"Lots of them will look at it as an opportunity to explore career opportunities. They might take six months off-- that's how long recessions last -- and work on a political campaign because they can build their resume and make great contacts. Or they'll teach. They look at this as opportunity."
We can all learn a lesson from that attitude.
Make your own job
It sometimes shocks me how many people just "give up", and get onto the Government Handout Wagon. They say there's no work.
There is. They can make their own work, or work for themselves.
Hubby and I moved out to the country about 5 years ago. Property out here is cheap, so we had our house fully paid for within 3 years.
The problem? There's no work out here, unless you're a farmer, or want to settle for minimum wage.
Resolution? I started working from home over the internet, and hubby started his own transmission repair business.
My point? Pick one (or more) of your many talents, and get paid to use it.
Ideally, getting something to sell online is best by far. You will not have to go anywhere. Your do not have to have a new wardrobe. You can make arrangements at the post office to pick up out going packages. If gas prices go up, it will not be a big deal for you. If you are a mom, your kids will profit also, by having their mom at home, and making all of the other kids in the neighborhood jealous.
Try to keep out of all MLM's and work at home traps that just want to get your money.
Be extra cautious about seeking any jobs online. The best thing to do is to find a need yourself and think of a way to fill it. What do you wish you could get but can't find? Find a good market place online and go for it!
Articles to read to get you underway
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Job Search Resolution #5 - Make Your Own Breaks
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