The future of the job market
Maximizing money now means looking carefully at the job market. Experts are saying that the job market should be turning around soon and employers should be hiring. Millions of Americans, who have been seeking employment for months now, are hoping predictions are true.
According to the consensus estimate from Blue Chip Economic Indicators, the jobless rate should taper off and steady itself by mid-2010. That doesn’t mean it will experience an immediate turnaround, however. In the past when the unemployment rate slumped, it took two to three years for it to return to the norm. Economists are warning that this time things may be different. Sophia Koropeckyj of Moody’s Economy.com said, “It could take even longer for unemployment to drop below 5%, which is where it was back in 2007. Structural changes in industries from manufacturing to media, coupled with strong gains in productivity, are enabling companies to do more with fewer people – perhaps permanently.”
The bright side
Despite the difficult future, there is a bright side. Studies are showing that slowly companies are taking steps to return to normal. Although about half of large companies froze salaries in 2009, only 13% are expecting to do so in 2010. Also, research is showing that businesses are planning on creating new jobs. For example, service businesses estimate an increase of 31% in its job force and insurance businesses are projected to increase by 29%. Jobs in health care, education and technology are also slated to experience considerable growth.
Finding ways to manage
For people who are employed, there are some rules to follow when it comes to maximizing money. The primary one is to not go unnoticed on the job. Stephen Viscusi, author of “Bulletproof Your Job”, said, “To secure your position and have a shot at a decent raise, you not only need to excel at what you do, you have to make sure your boss and other higher-ups notice.” The days of flying under the radar are long gone in today’s new job market and not only can it eliminate workers from new opportunities, but it can threaten their current positions. Consumers looking to preserve their money now need to focus on being seen as valuable to the company.
Another way to maximize a paycheck is to become a top performer. According to a survey by Mercer, a benefits consulting firm, raises will average about a 2.7% increase in 2010. For workers who manage to earn higher ratings, though, the average pay increase is set to be about 4.8%. The best thing employees can do is negotiate a bonus tied to quantifiable company objectives. Viscusi added, “About 86% of employers are reporting that they have some type of short-term incentive pay program linked to financial goals, operational performance, or customer satisfaction. Employees should use that to negotiate their raises.”
Finally, another way to maximize money is to read the writing on the wall. Employees should read their company’s performance. If profits are increasing now that the recession is over, it may be a good time for employees to focus on performance and then ask for a raise. Another good sign is if a company is back to hiring. Kimberly Bishop, job recruiter, said, “Workers should watch what changes are slowly happening with their company and then plan their raise request. It should include extra duties an employee has taken on during the recession and any hours they added on their own to their work schedules. Things like this are what employers are going to reward workers for.”
Watching money post-recession
Maximizing money now means careful job planning. In today’s recession, employees need to watch out for themselves and that means carefully planning their own raises. Watching a company’s performance can be key to knowing when to start the request for a raise. Combining that with top-notch performance can bring the financially desires results.