JOB ECONOMICS 101 – Supply and Demand

Feb 28, 2018

“The Law of Supply and Demand is one of the most basic principles of Economics. In simplest terms, the law of supply and demand states that when an item is scarce, but many people want it, the price of that item will rise. Conversely, if there is a larger supply of an item than consumer demand warrants, the price will fall.” (Investopedia Definition)

You may wonder, what this fundamental principle has to do with your job and your career right now and why the topic of economics is the opening line of this blog?

Well, let me morph this definition into a more applicable explanation relating to jobs and employment by changing a few words: “The law of supply and demand is one of the most basic principles in job security measures. In simplest terms, the law of supply and demand states that when a candidate skill is scarce, but many companies want it, the salary of a candidate with that skill will rise. Conversely, if there is a larger supply of candidate skills than organisational demand warrants, the remuneration of candidates with that skill will fall.”

“Fair enough, as a candidate the more in demand my skills set, the higher my salary. This is common knowledge.”

Now, taking this definition to the next level: “The law of supply and demand is one of the most basic principles in job sustainability measures. In simplest terms, the law of supply and demand states that when a candidate skill cannot be automated or replaced by Artificial Intelligence, but many organisations still need it, the demand for a candidate with that skill will continue. Conversely, if the supplied candidate skill can be replaced by automation or Artificial Intelligence and organisational demand for the actual human skill declines, the job opportunities for candidates with that skill will disappear.”

Do I have your attention now?

Three Job Outcomes by 2025

We cannot adequately predict the future of job sustainability, but there is a high probability that the job you have now, could fall into one of only three distinct categories by the next decade:

1. Redundant

According to a report published by the World Economic Forum in 2016, the prediction was made that by 2025, over 7.1 million jobs in fifteen major developed and emerging economies will be lost. These economies account for more than 65% of the global workforce which is presented by the following countries: Australia, Brazil, China, France, Germany, India, Italy, Japan, Mexico, South Africa, Turkey, the United Kingdom and the United States, plus the ASEAN and GCC groups.

The most significant losses due to automation and disintermediation are forecasted to originate from the ‘’white collar” office and administrative industries of Healthcare, Financial Services and Energy and Investment sectors. (Oliver Cann, World Economic Forum Report)

2. Transformed

The invasion of the gig economy continuous to disrupt traditional workplace environments, as well as the nature of previously deemed in office positions, where information technology innovation and infrastructure development is increasing remote and virtual employment possibilities exponentially.

The Mckinsey Global Institute Report issued in November 2017, highlighted automation and robotics to be the most significant drivers responsible for changing the nature of work in functionalities such as: machine operation, fast food preparation, mortgage origination, paralegal, accounting and back-office transaction processing. Important to note the demand for these functionalities is not expected to decline, but employees would be expected to perform new and additional tasks in these areas to remain competitive in the marketplace.

Image Source: Emil Akan, Epoch Times Article

3. Important

Big Data analysis was a foreign concept in the industry a mere decade ago. App developers, Social media managers, Uber drivers and Drone operators did not even exist in the first few years following the turn of the 21^st Century. (Vikram Khanna, Straits Times, Article)

In an article by IoT Evangelist, Tom Raferty from SAP, he mentions a grandeur shift from ‘’muscle powered jobs” to “caring profession”, also highlighting the parallel relationship between increased wealth percentages and job increases in the professional services sector.

If your job functionality falls into the first category, there is a need for concern, but don’t jump off a bridge yet. Act now to diversify your skills sets, switch jobs to a more sustainable industry or focus on retraining and learning new skills by utilising the legion of free courses and training programmes available in the public domain.

Is your current position part of the second category? Thankfully, you still have a little bit of breathing space perhaps if only for the next three years, but your focus should already be on upskilling and acquiring additional competencies related to your current job functionality.

Listed under number three? You are not out of the woods either. Striving for excellence on a continuous basis to stay in demand and continually reinventing your expertise to be better than anyone else should be part of your medium-term career strategy, as the competition will get even tougher in years to come.

The Skills Matrix for 2030 – Will you be “on the list” or “in demand”?

While we can probably predict that anyone without a basic understanding of at least one of the STEM areas (Science, Technology, Engineering, Mathematics), will find a real challenge in securing a job in the near future, STEM is no longer a fail-safe mechanism to ensure job sustainability.

If you were expecting a Top 50 most wanted job skills list in this section, think again. ? (Google will render a search result of 73 900 records for just the past 12 months regarding this topic in under half a second.)

There is much more to this “in demand” job economics phenomenon than titles, duties and money.

Work in Future

Understanding the future nature of employment firstly, influenced by work democratisation and technological empowerment and how this will impact companies is essential, before devising your strategy for job sustainability.

The Global Consortium to Reimagine HR, Employment Alternatives, Talent, and the Enterprise (CHREATE), classifies organisations of the future, into four quadrants each with a unique approach to strategy, talent and work as depicted by the image below.

Image Source: John Boudreau, Harvard Business Review

STEAM Ahead

“While the core need for technical skills remains strong, another theme has entered the job market: the need for people with skills in communication, interpretation, design, and synthetic thinking. In a way, we can think of these as the arts, hence the evolution of education from STEM to STEAM. The jobs of the future, driven by the increasing use of technology, taking over rote tasks, will require social skills complementing the more technical abilities.” (Deloitte Insights, Report)

The need for social astuteness in previously deemed technical or back-office positions is becoming increasingly more important in this digital era.

Going Hybrid

The trend towards the blending of traditionally unrelated competencies pertaining to job requirements has been clearly visible in recent years. Engineers must get involved in sales and business development, actuaries are required to engage in marketing activities, and brand specialists are expected to navigate themselves around complex statistical revenue models and customer demographical data sets.

SMAC or get smacked out of a job

SMAC is the combined term used to describe the four main technology concepts currently driving corporate innovation: Social, Mobile, Analytics and Cloud. Regardless of age and your generation group, increasing your knowledge and integrating these technology pillars into your expertise suite, will provide for lucrative future employment prospects.

Future Job Survival

No one knows what the future holds. Yes, expert predictions can be made, and forecasts published about the next five, ten or fifty years regarding the global employment outlook and job security or sustainability prospects, but nothing is carved in stone apart from changes being the only constant variable.

Trying to outsmart artificial Intelligence, outplay the robots and outlast the machines, will not necessarily be a possibility for securing job sustainability the Fourth Industrial Revolution.

Understanding the future employment landscape, shifting traditional job expectations, adapting proactively to changes and embracing innovation and learning, will be the critical drivers required to remain part of the job economics demand equation.

OFFICE POLITICS – Fight or Flight

Feb 6, 2018

NEW KID ON THE BLOCK – Your First Day on the Job and Beyond

Jan 30, 2018

If you thought that finding a new position is a daunting task, you were probably right. It takes work to find work, but luckily all your efforts and dedication has resulted in an offer of employment. You have survived your resignation month and now the weekend is here with the first day of the new job looming……a light at the end of the tunnel or an oncoming train? Whether you are a rookie, just starting out your career or a seasoned professional with a few ‘’first days” under your belt, feeling anxious or nervous is quite normal.

Time Minus 2 to 3 Days: Admin & Logistics

Contact your Recruitment Agent or the HR Consultant who facilitated your application process and make 100% sure of your required arrival time on the first day. You may find that you would be asked to come in a little later than usual business hours to give everyone involved your hiring process a chance to settle in (and have caffeine), before your arrival.

Request the contact name of the person who will be meeting you at reception and perhaps clarify the dress code one more time; you do not want to pitch up on the company’s casual day of the week dressed Armani style when everyone else is wearing jeans and t-shirts.

Clarify the onboarding process activities with the Recruiter or HR Consultant to ascertain if there is preparation from your side to be done, prior to your first day.

Your induction or onboarding period may involve certain meetings with an in-house Financial Consultant or Remuneration Specialist for the final structuring of your package and the selection of option plans regarding medical aid and pension or provident fund contribution offerings. Make copies of all the necessary documentation beforehand like ID, Tax Certificates, Academic Qualification, Marriage Certificates and Bank Details.

If you need a haircut, get one but please ladies no makeover regimes which include self-tans, facials and drastic hair changes with any probability to go pear-shaped at the last minute.

Go to bed early, as you will probably toss and turn a bit the night before Day 1.

Time Minus 1 Day: Moving into Third Gear

Pick out your outfit with the aim to blend in professionally and rather not dress to impress. You will be the focus of attention in any case, no need to stand out more than you have to on day one with a cerise pink top, screaming: “I am new.”

Set your alarm (more than one preferably) and even though you have been to the premises a few times for interviews and assessments, get a few alternate routes to follow on Google Maps in case of taxi strikes, highway protests or gridlocked traffic (remember Murphy, he is not your friend)

Charge your smart devices and clean them properly. You will possibly be part of a few induction meetings during your first week, and no-one wants to look at a laptop or tablet where dust and dirt formed permanent screenshots.

If you cannot fall asleep, do not fret too much. Read, watch a movie, listen to music or any other activity that will distract your mind from Day 1.

Time: Houston we have lift off!

The most important activity for today is to arrive on time, no matter what. If that means leaving 40 minutes before the Google Maps estimation, then so be it. Rather hang around in your car doing breathing exercises to make up the time, than arrive late on your first day.

With most organisations, your first few days may involve a mandatory, formal induction period, where you will receive information and orientation regarding company policies and procedures, general employee conduct, parking arrangements, building access and possibly have an introductory meeting with your manager and the rest of the team members.

If no formal induction is on the cards and you are uncertain of the acceptable office conduct, it is advisable to proverbially “ask for permission rather than forgiveness”, regarding any issues that you are unsure of or actions to be taken on your part. Make a friend or two that can give you simple advice relating to the informal office dynamics, directions to the canteen and the “who’s who in the zoo”. The receptionist, manager’s PA or tea lady are good contacts to have by your side.

Time plus 7 Days: The Law of the Land

The formal induction period should be drawing to a close at this stage, and if you have been actively participating, you will feel more at ease walking through those doors now.

Ascertaining company culture or office dynamics is a process that may take a few weeks, so be an avid observer of those around you. Flying under the radar in terms of social interactions is more sensible than trying to be the office clown at this stage.

Become acquainted with the office dynamics by engaging in conversation (not interrogation), with your team members and other employees you meet in the lift or on the way to the parking lot.  Memorising people’s names is the quickest way to become part of the new tribe so pay attention when you get introduced to others.

If you are invited to join the team for lunch or drinks after hours, accept gracefully even if this means changing your personal schedule around a bit to attend. (You can miss that gym session and maybe a friend can pick up the kids from school this one time.) The purpose of KYC (Know Your Colleagues) activities is to engage, converse and discover, not to entertain, irritate and annoy.

Now is an excellent time to schedule a meeting with your manager to clarify expectations for the next 60 days, projects you need to become involved in, meetings to attend, timelines regarding work assigned to you and preferred channels of communication you should be following regarding progress reports.

Time plus 15 to 30 Days: Adapt or Die

About two weeks to a month into a new position your comfort level should be on the rise, and you should not be feeling like a “fish out of water” anymore. By now you have probably made a few friends, got the hang of systems and have a decent grasp of the office dynamics and reporting structures.

During this period, your actual job function usually commences with all the added responsibilities or new functionalities you signed up for when deciding to join the organisation. Adaptation is critical, you are in a new environment, and specific expectations have been formed already, relating to your competencies and ability to deliver results.

Focus on establishing trust with your peers, subordinates and management and do everything in your power to meet expectations, deadlines and deliver within project time frames even if that entails a few late nights or weekend hours initially until your efforts reach economies of scale.

If you are sensing increased pressure, you are in a good place. No position is just moonshine and roses; even a dream opportunity has a few monsters under the bed. Alleviate this pressure by asking questions, opening feedback channels with your superiors and be prepared to receive criticism in a positive manner and to take immediate corrective action.

Time plus 60 to 120 Days: Final Words of Advice

Do not be tempted to jump ship when doubts start creeping into your mind. Questioning your decision to move is entirely reasonable, but try and divert yourself from these thoughts by any means possible, whether it is starting a new hobby or getting more involved in informal activities at the office.

Celebrate at least one positive outcome whether minor or significant, on a daily basis.

Realistically a “settling in” period could take up to six months, before one may finally experience a sense of familiarity, content and enjoyment in a new position.

Now your next journey is about to start: “The road to achieving that sweet spot destination of job satisfaction.”

RESIGNATION: “It’s Not You; It’s Me”

Jan 23, 2018

A ping sound notifies you of the email you have been waiting for all week: The offer letter for your dream position is finally here! If you have been a ‘’good candidate’’, following the advice from my previous blogs by disclosing your current package and clarifying your expectations correctly, the number on that dummy payslip should be a reason to pop the champagne tonight. For now, a little internal victory dance (or a contained screech in a private boardroom), would do just fine. Well done to you, your job seeking journey is almost finished.

“Almost…what do you mean by almost?”

Well, before signing on the dotted line, make sure that you understand all the aspects of the Employment Contract and Dummy Payslip presented to you by the new company. (If no dummy payslip is included, please request one to review and use the guidelines provided in my previous blog to ascertain precisely what the numbers entail.) If you have any questions or need clarification regarding certain parts, have a discussion with your Recruitment Agent, or if you applied directly, the Human Resources Consultant at the new organisation would be able to assist you accordingly.

Do not sign until you resign, or should you? 

Think very carefully prior to putting your “paw print” on a contract of employment and hitting the send button. You are officially committing yourself to another organisation, and this is a binding contractual agreement you are signing.

Are you ready to do this? Signing an employment contract, only to negate or retract later (usually fear of change or counteroffer issues are the main culprits), may lead to certain legal ramifications as a company would be well within their rights to sue you for breach of contract. Luckily this rarely happens, but the reputational risk to your level of integrity is massive, and you would probably not have another chance at that specific organisation again. Also, chances are you would be back in the market, (and desperate) within 3-6 months’ time.

My advice would be to sign that employment contract and emotionally finalise the process in your mind, before you schedule the resignation meeting with your current manager.

R-Day: What can you expect? 

The resignation event is a stressful occurrence, and whether this is your first time or your fourth time, it is never easy to tell someone that you are leaving. You are actually breaking up with your current organisation to pursue greener pastures at another employment company. Like with most things in life, planning for Resignation Day is crucial. The following pointers may steer you in the right direction:

1. Craft a well-structured, concise resignation letter (you are not writing an essay, but neither a telegram.) Your resignation letter should contain the official date of your resignation period effective from x date up until your last day. Thank your manager for the time you have spent under his/her supervision and mention one or two points of value gained during the duration of your employment. Enquire about the handover process and commit to giving your full cooperation to the parties involved. Ending off the letter could include wishing the company (or manager) all the best in their future endeavours. That’s it, no soppy stories or elaborate explanations regarding your reasons for leaving. Remember to date your letter and sign

2. Once the letter is written, you should start contemplating the different ways in which the resignation meeting may transpire on the day. A “bon voyage”, thank you for your contributions and good luck with your future career, is the best option to hope for, but unfortunately, things don’t always pan out this way. Expect adverse reactions that can range from awkwardness, sour grapes, disappointment or even anger. Your departure is creating an annoyance after all. Someone needs to pick up the slack of your responsibilities if a replacement employee cannot be found in time and as we all know, sourcing new candidates involve an array of its own challenges and tribulations. An unexpected counteroffer, may also be presented during this meeting…..STEP AWAY FROM THAT VEHICLE! Research has shown that the majority of candidates who accept counteroffers are back in the market again after just six

3. Resign as soon as possible. Schedule a meeting with your boss, within 48 hours after you have sent your signed offer letter your new employer.

4. During this discussion, politely state your decision to resign (primarily using your written resignation as a summary of what to say). Badmouthing colleagues or getting into the gory details of what you hated most about your job should be avoided at all costs. This is not World War II, keep the bridge intact and don’t blow up a crossing that you may need to use again during the years to come. Enquire whether you are going to be responsible for informing your colleagues, or if your manager will be taking up this task via an official meeting or email notific

Behind Enemy Lines

The resignation month is coming up. Thirty days until arrival at your new company destination. This can be quite a lonely period, where you could feel ostracised to a certain extent as you may be excluded from discussions regarding future projects or meetings where strategic issues are being addressed. (This is normal, you are the one leaving remember).

Stay in touch with your new employer; they will probably do the same. Request an informal meeting to be introduced to the rest of the team you will be working with or ask whether there is any preliminary information you can read through, before commencing employment. Stick to your guns and do not entertain any further attempts to entice you to reverse your decision to move. Now is not the time to arrive late, leave early or take extended lunch breaks. You want to leave with your integrity and professionalism intact.

Final Logistics 

If you were using any company equipment like tablets, laptops or smartphones, make sure you give those back in good working order and adequately cleaned: physically and digitally. That can of Coke split across your keyboard or the drunken pics you took at last year’s office party, should not be part of the legacy you leave behind.

Also, inquire with both your current and new employer (usually HR) regarding the transfer of your pension fund and your transition to the new medical aid if applicable.

Be mindful of the fact that you may not have an email address for the first few days in your new position, thus set up a forwarding function for any personal correspondence that is not directed to your private email already. You should add an automated response function to your email (get permission first), indicating that you are no longer employed at the company and providing details of a relevant contact person still employed to handle any correspondence or enquiries going forward.

Contact your new employer during the last week your resignation period to ascertain the time of arrival on your first day and who the relevant person is that is going to meet you at reception.

Last, but not least: Enjoy your first day and may this next chapter of your career be jam-packed with abundant growth opportunities and advancement going forward.

SALARY EARNINGS: Dissecting What You Are Expecting

Jan 9, 2018

The least glamorous part of a job-seeking journey is perhaps for most candidates, the number crunching of their current earnings. If the variations found in salary structures and employment contract components offered by companies are not adding “spice” to your job hunting life, then this write-up may provide a foundation to navigate your numbers from and manage your expectations realistically.

Level 1 – READ your Payslip and Employment Contract

Grasping the main elements of a Payslip or Salary Advice is the first step towards calculating your total earnings figure. (If you are one of the lucky few where 1 + 1 = 2 and actually reflects as such on your salary advice, do not scroll past, because your potential new remuneration structure from your next offer of employment may not be as elementary.)

TCTC – Total Cost to Company

This number reflects the total company offering inclusive of all quantifiable benefits listed in the Employment Contract as well as the Payslip. Please note that both documents should be under review when calculating the TCTC as often company perks like Free Housing, Staff Rates, Petrol Cards or Subsidised Meals do not reflect on the Payslip itself, but may appear only in the Contract of Employment.

CTC – Cost to Company

The figure listed on your payslip which reflects the sum of all the remuneration amounts that form part of your total salary package for payroll purposes. Total Earnings or Total Remuneration are alternative descriptions for this number and could be named as such listed at the top or bottom of your salary advice document.

CC – Company Contributions

Also referred to as Employer Contributions (EC) or Employer contribution to Remuneration, (ER) on the Payslip, the company contributions may include benefits like Medical Aid, Pension Fund, Provident Fund, Group Life Insurance, Risk Benefits and Death Benefits. These offerings are often split into contributions made by the employer and contributions made by the employee, although in some companies the full contribution to benefits is provided for by the organisation with no contribution amounts from the employee.

Gross Package

A gross salary refers to the number, usually on the left-hand side of the payslip, calculated, after all Company Contributions are deducted, but before tax and employee contributions are subtracted. An alternative term for a gross package is Pensionable Earnings, and the percentage of Pension and Provident Fund contributions are calculated using this figure.

Allowances

Allocation of funds towards housing, cell phone expenses, internet costs or subsidies provided for electricity and fuel, are reflected as allowances on the left-hand side of the salary advice in the same column as the Basic Salary.

Basic Salary

Cash Earnings or Cash Salary are alternative terms to Basic Salary which is the figure in the salary structure, before any employee deductions have been taken off.

Deductions

This term refers to the sum of all subtractions from the Basic Salary for instance Employee Contributions, Tax, Garnishee Orders and Company Loans.

EC – Employee Contributions

Candidate payments towards benefits like Medical Aid, Pension Fund, Provident Fund, Life Insurance or Death Benefits form part of this contribution amount. As per Company Contributions explained earlier, Employee Contributions towards benefits may be shared by Company and Candidate or be fully paid by the Employee or entirely contributed to by the organisation.

PAYE – Tax

I guess you can figure out what this means: A compulsory payment to the Tax Man! The value thereof is determined by specific tax brackets related to your level of earnings.

Nett Salary

Finally, the amount landing up in your bank account at the end of the day, for you to spend (hopefully wisely) to your heart’s content.

Although not all of the categories listed above may be evident on your payslip now, or the dummy payslip included in your new offer letter, the aim is to provide you with a comprehensive view rather than a limited salary framework as to compare “apples with apples” and make the best possible decision for your immediate career future.

Level 2 – Hidden Quantifiable Earnings

Now in this section, things get interesting. It is essential to determine whether you are receiving benefits from your organisation, not reflecting on your monthly payslip. The following items serve as examples of hidden earnings, not presented on your monthly payslip:

Staff Rates

These rates are most common in the banking industry where employees receive interest rate savings on loans held at the bank. These could be Personal Loans, Vehicle Finance or Home Loans. To provide more perspective: For a home loan of R 1 500 000 million and Vehicle Finance of R 200 000, the interest rate saving could be as much as R 5000 per month, which constitutes a significant saving towards an employee’s Nett Gain figures.

Employee Discounts

Discounts for permanent staff members may include reduced payments towards short-term or car insurance if employed by an insurance company, groceries at cost price if they work at a major retailer or even fuel benefits if employed at a petroleum company.

Company Housing

In the mining and manufacturing industries employees often receive a company house at no cost to them as part of their remuneration package. Rent is one of the biggest expenses for most salaried employees and not having to contribute towards lease expenditures accounts for significant monthly savings, which gets added to an individual’s monthly spent figure should they move to an organisation not offering free housing.

Digital Equipment

These may range from laptops to tablets and mobile devices, which must be returned to the organisation at the end of the employment period. Free wireless connection devices and perks like uncapped internet, are some of the extras given by organisations adding to an employee’s total Nett Gain figure.

In-House Perks

Free meals, gym memberships, creche facilities and onsite medical services are benefits that companies offer as part of employee retention strategies. Although the monetary value of such benefits may be insignificant in relation to the monthly salary number, the convenience factor value of these should not be disregarded when evaluating a remuneration package.

Do you realise that your Nett Salary and your Nett Gain figure could be different? The Nett Gain figure refers to all the quantifiable monetary benefits you are receiving which constitute a saving of expenses you would have otherwise paid from your Nett Salary.

Level 3 – Once Off, Per Annum and Irregular Earnings

Candidates are usually requested to provide a copy of their payslips during the selection, shortlisting or interview process. Some remuneration related payments occur only once in a year or even every 3-5 years and may then not reflect on the Payslip sent to the prospective employment company.

Guaranteed 13^th Cheque

This payment forms part of the annual Total Cost to Company and adds an extra month’s salary to the total CTC figure. The 13^th cheque is usually paid out during December or in the month of the company’s financial year-end.

Retention Bonuses

Payments towards employee retention schemes can be made bi-annually, annually or every 3-5 years. The focus is on retaining the employee’s services as a tactic to deter them from seeking opportunities elsewhere.

Performance Bonuses

This type of bonus is not guaranteed and based on individual and company performance. Performance bonuses are generally paid out once or twice per year and may coincide with the organisation’s financial year-end dates.

Share Schemes and Profit Sharing

Allocation of shares or profits to employees on senior level is a common retention strategy pursued by organisations. These share scheme programmes could pay out annually or every 3-5 years.

Sign-on Bonuses

The practice where an employee receives a lump sum payment when joining an organisation is called a sign-on bonus. This bonus is often given as a settlement amount to compensate against the value of a future share payment or pending bonus that the candidate will forfeit, due to the timing of his or her resignation.

As can be seen from the explanations above, these infrequent payments can add up to a substantial amount of the Total Cost to Company, and the timing and potential loss of these funds should be taken into consideration upfront when considering other job opportunities.

Level 4 – Calculating Expectations

Everyone has a price, right? Before cementing your salary expectations and committing your mind to a specific number, please refer again to your motivations for moving for just a second. Where does the priority of Remuneration rank when compared to Stimulation, Assurance, Crowd, Elevation, and Domain? Be honest with yourself upfront regarding your salary expectations and remain realistic when calculating your “moving” numbers.

Find out about market-related packages for your industry, qualifications, and level of experience from reputable sources (not just friends and colleagues) and refrain from setting your expectations at unrealistic levels. Increases of 30%-50% do not happen anymore: Nada, Nein, Negative, Aikona!!! The current average Total Cost to Company increases are in the region of 10% – 15%. (Say what now?) Yes….deal with it. Your career progression is far more important than a short-term monetary gain and choosing Remuneration as your first motivation for moving is never a wise idea.

There is an age-old African Proverb that states: “Make money, but don’t let money make you!”

SALARY: The Importance of Full Disclosure

Dec 14, 2017

My granny often cautioned me: “Child, the devil sits in the details. Whenever you are faced with a decision in life, make sure you did your homework, gathered all the relevant facts and compared apples to apples.”

As a talent professional these words haunted me many a time, when I had to deal with candidates in despair after receiving offers lower than their current earnings or significantly below their expectations, sometimes without consideration for pending bonus pay-outs and potential losses of shares and incentives. Unfortunately, the blame cannot be passed to the company extending the offer, but is rather a cause of the candidate’s failure to present proper details regarding their salary structure and all quantifiable benefits forming part of their employment contract at their current organisation. Furthermore, applicants have unrealistic perceptions of standard increases provided by their specific industry, resulting in impractical expectations of 20%-40% package increases when changing jobs.

A critical aspect of your job seeking journey revolves around numbers: current package details and candidate expectations versus actual offer values received in the end.

ONCE UPON A TIME, NOT ENDING IN HAPPY EVER AFTER

Have a look at the following candidate stories taken from real incidents that transpired during previous offer processes:

1. Sally earned R34 000 per month. In her interview, she stated this figure as her total monthly salary and Company X offered her R37 000 per month. In the end, Sally decided not to take the offer, as the nett salary in her bank account with Company X was going to be far less than the R34 000 she is receiving now.

What happened here? Sally provided her current nett salary of R34 000 in the interview without clarifying that this was the amount she receives in her bank account at the end of the month and Company X assumed she was referring to her Total Cost to Company being R34 000.

2. Nico was on a Total Cost to Company of R 700 000 per annum, which he stated as his current remuneration figure during the interview. Company Z offered him a package of R 800 000, but when Nico inspected the dummy payslip, he realised that his indicated take-home pay, should he accept the offer, would be less than what he is currently receiving in his bank account.

What happened here? Nico was on a “Benefit Light” package where he did not receive any company benefits apart from a Medical Aid. Company Z has a well-structured “Benefit Heavy” offering, which includes Medical Aid, Pension Fund, Provident Fund and Group Life Benefits, which forms part of the Total Cost to Company Figure. Due to these added benefits in the new package, the proposed Basic Salary turned out to be considerably less than Nico’s current Basic Salary.

3. Mohamed worked for a Bank and earned R 800 000 per annum as his Total Cost to Company He received an offer from Company Y in the manufacturing industry for R 1 000 000 per annum, which on the surface, seemed like an excellent package increase of 20%. However, Mohamed turned the package down after discovering that he will lose his Staff Rate perks if he left the Bank.

What happened here? Mohamed had a home loan, as well as vehicle finance at the Bank he was employed by, which entailed considerable interest savings on his two loans to the value of R 200 000 per annum. If Mohamed decided to leave the Bank, his Staff Rates would have been forfeited resulting in the R 200 000 per annum interest saving being added as an additional expense to be paid from his Nett Salary, effecting decreased Nett Gain of R 200 000 per annum.

4. Charlene earned R 20 000 per month Total Cost to Company. In her interview, she was asked about her Total Cost to Company Package per annum, and she calculated the annual value as R 120 000. Company A offered her a package of R 140 000 per annum, but when she crunched the numbers from the Dummy Payslip, she realised that there was, in fact, no increase and she declined the offer.

What happened here? Charlene forgot to inform Company A that she received a guaranteed 13^th Cheque which then increased her package to R 140 000 per annum, the same amount as the offer extended to her.

5. Sipho worked for Company B, a large mining conglomerate and earns R 50 000 per month Total Cost to Company as indicated on his payslip. He sent the payslip to Company B after his interview process and assessments concluded, and Company B extended an offer of R 60 000 per month, Total Cost to Company. Sipho worked in a remote area at that stage and for the new role he needed relocate his family to the city. On the surface, it appeared as a great offer with an increase of 17% in total earnings, but Sipho made the decision not to accept the opportunity.

What happened here? On closer inspection of the Letter of Employment and corresponding Dummy Payslip, Sipho realised that Company B did not offer any housing. The organisation he worked for provided free accommodation for him and his family. If Sipho accepted the offer and moved to the city, he would be required to rent a house at the cost of R 12 000. That extra expense of R 12 000 would have decreased his Nett Gain, as he would have to pay rent from his Nett Salary going forward.

Many a job offer has gone pear-shaped due to a lack of clarification when discussing salary numbers with a hiring manager or the fact that applicants are unaware of all the components forming part of their salary packages.

SPANNERS IN THE WORKS

Understanding the full scope of your remuneration package is of utmost importance when engaging with a prospective organization in an interview process. Furthermore, you should be aware of the timing issues around resignation periods, which could impact on certain payments or benefits being forfeited. As an example, very few companies will pay out bonuses due during a resignation period, and shares and retention payments are voided automatically, when you leave the organization.

Another hurdle to consider is payback amounts for exams or professional subscriptions covered by your organization on your behalf. Review your contract carefully regarding these issues, as you will be held liable to reimburse the organization for these funds upon leaving their employment.

Be mindful of the type of remuneration package you are currently on and the variance in benefit offerings between your current package and the new offer. A “Benefit Light” structure where only one benefit exists like for instance a medical aid is very different to a “Benefit Heavy” format, consisting of multiple benefits like medical aid, pension fund, and group life insurance. The most significant impact between these two is the Nett Value paid into your bank account. With a similar or even higher Total Cost to Company, a “Benefit Heavy” package may result in a lesser Nett Salary than a “Benefit Light” structure.

GETTING TO KNOW YOUR NUMBERS

Total Cost to Company, Gross Salary, Nett Package, Nett Gain, Company Benefits! Are you confused right now? What are you really earning? The degree of variance in Payslips from one company to the next is substantial and often difficult to understand.

Look out for our next blog where we will be discussing the various remuneration components reflecting on payslips, hidden quantifiable earnings as part of an employment contract, as well as once off and infrequent payments not reflecting on your payslip every month. We will also then tackle the issue around salary expectations and provide guidelines on the realistic calculation thereof.

Once you know the intricate details of your Payslip and Employment Contract, deriving expectations becomes a lot simpler and the ride on the Remuneration Rollercoaster much easier to stomach.

SHOULD I STAY, OR SHOULD I GO?

Dec 7, 2017

JOB HUNTING IN ERA THE FOURTH INDUSTRIAL REVOLUTION

We find ourselves in the era commonly referred to as the Fourth Industrial Revolution. The way we conduct our lives has become faster, increasingly automated and digitized.  The world we live in has evolved into an instantly smart environment, and in this generation, there is an “app” or a “bot” for anything and everything. Technology innovation is soaring, and communication is instant and permanent. Within this digitized environment, looking for a new job can be one of the most challenging projects to take on, whether you are a bright-eyed, bushy-tailed graduate looking for your first rodeo in the corporate sector or a tenured professional with many years of experience on your career belt.

Research has shown that changing employment or pursuing your first job, is the third most life-changing/stressful event one can experience, after losing a life partner or relocating. This can be a difficult and emotional time for you, where you may have doubts creeping in about your competencies, skills, and value-adding benefits.

• Do you stare longingly at the buildings with shiny corporate names, while stuck in traffic every morning?
• Is the monthly braai with friends a torture session where your happy peers discuss their exciting, challenging careers?
• Do you have a little voice in your head reiterating the high level of employment in South Africa?
• Does your parents’ advice on “the grass is not always greener on the other side,” resonate through your mind as soon as you start contemplating changing jobs?

When one is pushed beyond a comfort zone, it is always easier to stay with what is known, as opposed to what is best. On the flip side of this coin, are you a 100% convinced that the position you are in now, is not in fact where you should remain?

WHY AM I LOOKING?

Prior to uttering the statement: “I am in the market” to yourself and others, dusting off that resume or frantically scrutinizing the job boards and social media platforms, perhaps first take a step back. Ensure that you clear about your motivations for moving to a different company, or as a graduate, firstly assess your internal requirements, pertaining to the most suitable first job of your career.

There are six main types of motivations to consider, and the trick is to evaluate your own personal reasons for moving in comparison to these categories before commencing search for new career opportunities. We refer to this as the SACRED Model of Job Moving Motivations which include the following categories: Stimulation, Assurance, Crowd, Remuneration, Elevation, and Domain.

1) Stimulation refers to the level of challenge pertinent in your current role, or learning curve required for your first position.

Employees leave their jobs out of boredom and mundane activities or because of overwhelming expectations they are unable to attain, due to increasing workload demands. Certain lifestyle events may contribute to a need for more stimulation like with someone who just completed an MBA, whereas a newly divorced mom who acts as the primary caregiver may want to opt for a less challenging role, to be available for her children during certain hours of the day.

• How important is the level of job stimulation to you?

2) Assurance describes the perceived stability that a company may offer to employees.

A young graduate may feel comfortable to take a risk with a start-up organization, whereas the breadwinner of a family would rather work for a large company, which is well known for longevity in terms of brand and product offering. People are inherently fearful of change, and issues like publicised retrenchments or broadcasts of pending takeovers may influence them in a decision to seek alternative opportunities. How secure someone feels at their company and in their position day in and day out, can be a contributing factor when considering a change.

• How important is company stability for you at this stage?

3) Crowd motivating factors refers to the people dynamics of the organization, company culture, and employee satisfaction levels.

A toxic working environment is one of the leading contributing catalysts of resignations in companies. This can manifest in a constrained relationship with the direct manager, the overall direction of the organization which does not reflect sustainability or even conflict with a peer level co-worker.

• How do you feel about the current working environment you find yourself in presently?

People also differ regarding the type of working environment they prefer. Not everyone is comfortable in a cut-throat corporate realm, and for others, the family orientated approach may seem quite appalling instead of appealing.

• Are you from the champagne and caviar league or the beer and biltong brigade?

4) Remuneration issues. Often salary seems like a legitimate reason for moving, but be reminded that an increase in salary will not guarantee job satisfaction or career progress. One needs to cautiously tread around the perception of what a market-related salary entails. Furthermore, unless you are earning a salary below market average, you should not make a significant increase your only priority during the job hunting process. The average increase is usually between 10% – 12%, and if you are expecting more than this, you have probably been misinformed or being unrealistic with your assumptions.

• Are you satisfied with your current salary package?
• Is a salary immediately salary increase more important to you than long-term career growth?

5) Elevation required for self-actualization. During this process of thought, your aspirations for promotion, career growth, and increased responsibility should be articulated. Candidates usually pursue alternative opportunities when they are unable to reach a higher job level within their current organization, due to opportunities not becoming vacant or where the timeframe to reach the next step in a company seems to be too lengthy. Most employees highlight this issue as the instigating factor to start looking for other positions. However, their expectations regarding timelines for advancement are often completely unrealistic. Thus, they tend to apply to positions way beyond their level of expertise and experience without any success.

• Do you know what your growth prospects are within your current company?
• How realistic are your expectations regarding elevation and promotion?

6) Domain and physical environment is the final factor to ponder on and refers to location or area of the workplace. Individuals may consider changing positions, because of extensive commuting to and from work, without the means or willingness to relocate closer to their office. Other influencing matters may include the physical location of their place of work, perhaps in a dangerous area or even just the nature of their job requiring too much travel. If Domain is one of your primary motivators for moving, you should investigate whether similar opportunities are in fact available in the locations of your preference. Agreed that 2 hours of the day in traffic is surely not the ideal, but depending on your area of specialisation, is there an investment bank, mining head office or manufacturing plant 10 minutes from your house?

• Is location more important than career opportunities at this stage?

GET YOUR PRIORITIES STRAIGHT

Remember there is no right or wrong answer. The reason for this exercise is to identify the motivating factors most vital to you, before commencing with any job hunting activities. Once your specific reasons for changing jobs has been determined, the next step is to prioritize them in order of importance from 1 to 6, where one is most vital, and six is least crucial. Your top three motivating factors should form the hard boundaries of your search criteria and also impact your decisions on whether to apply for an opportunity or not.

YOUR JOB SEEKING JOURNEY IS ABOUT TO START…HAPPY HUNTING!!!

CURRICULUM VITAE TIME

Nov 28, 2017

Is your resume making a favourable impression or is it perhaps a cause for severe depression?

Research has shown that the daunting task of compiling a CV is listed as one of the main challenges job seekers encounter during the career hunting process. Curriculum Vitae, CV, Resume, Profile. Call it what you like, but one thing remains certain: finding a job without submitting a document containing information about your qualifications, skills and work history is nearly impossible. Your CV is, in fact, the first opportunity you get to attract the interest of potential hiring managers and recruiters to your ‘’brand’’ as a prospective employee for their organizations or clients. A stellar resume,also serves as the foundation document to use when designing your professional social media profiles with the aim to promote your ‘’brand” further via your digital networks, to secure that dream opportunity in future.

Basics before Graphics

Writing a 10-page document focused on title, duties, and money with an appendix containing copies of all the courses, workshops and conferences you have attended since 1992, is not an option anymore. Innovative CV templates, quirky diagrams, holographic profile summaries, video resumes, personalised candidate meme’s and professional Facebook employment albums, are some of the graphic tools available to transition a resume from boring to scoring. However, before hitting the record button or subscribing to the hippest website for CV templates, be mindful of the basic rules and standards of CV crafting.A CV conforming to generally accepted basic standards will not necessarily secure your application a place in the shortlisting pile yet, but “oh boy!”,getting the basics wrong is a guarantee to regret, decline, unsuccessful or complete radio silence in terms of application feedback.

The CV Cheat Sheet below provides guidance on navigating through the basics:

Examples of WOW Factors: Adding the Bells & Whistles

Now that the foundation is set, it is time to move into second gear and add the bells and whistles to make your resume stand out from the crowd. Using resume tools like Visualize.me, Resumeup.com or Slashcv.com will enable you to create a visually appealing profile in a few minutes. These tools are free to use, but only works when you have created sufficient content in your basic CV draft. Adding WOW Factors (Works of Wonder/World outside of Work), should be approached with caution, including too many and you may seem overconfident, including too little creates questions regarding your self-esteem.

• Extra – Curricular Activities: These provide insight into your personality traits, level of commitment, drive, and determination. What do you like to do in your leisure time and what kind of activities did you engage in previously? Types of activities to include here would be sports, cultural, hobbies, event participation and volunteering or community projects you were or are currently involved in.
• Leadership: If you were, for example, part of the Student Council at University, Captain of the U/21 Rugby Squad or Head Scholar in High School, feel free to include these in your resume. Please use your discretion though: Class Captain in Grade One, does not hit the mark in proving your leadership attributes.
• Creativity:Use Pie Charts, Graphs, and Venn Diagrams to creatively display your personality type, communication style, and soft skills strengths. Add striking colours, but remember this is a CV, not a Christmas Tree.
• Photo: Add a nice picture, however, not that one of you dancing on the table at the local pub or sunbathing on the beach.
• Achievements & Awards: Common sense is essential in this case. Receiving National Colours for Athletics is in, but being employee of the week back in 2005 is out.
• Proving Value Added: What are you most proud of in accomplishing during your career thus far? Include examples of projects you have been involved with, articles you have written and even research papers done during your time at university for example.

Return on Effort

Whether you are applying for your first job, a new position at another organisation or a promotion at your current company, the importance of presenting a well-structured resume is undeniable. That PDF, Word or Excel document is your showcase to potential employers and can either make or break your chances of landing your dream job. Expect not to produce a ready to submit version of your CV on the first attempt. Creating a proper resume will require time, effort and quite a few “do-overs” initially, but the rewards may be well worth it when the interview invites start hitting your Inbox.

AVOIDING THE INTERVIEW GREMLINS – “If anything can go wrong, it will.” Tips to bypass Murphy’s Law during the interview day.

Nov 21, 2017

Preparing yourself for an interview is no small feat. This process requires substantial effort on your part in the form of logistical planning for the appointment, research activities about the organization, practicing your responses to potential questions that may be asked and formulating a list of items you would like to address during the meeting. These preparatory activities could be utterly worthless, if you fail to plan for the seemingly insignificant issues that may have a detrimental impact on the day of your interview.

Anticipating Gremlins by planning for the Nitty-Gritties.

• Interview Time and Date:

Be sure to confirm these details again on the day before your interview. Typos can happen, and electronic calendars have gone rogue before. If you have a Skype interview with a client in another country, take note of Time Zones affected by Daylight Saving modes.

• Location:

Do not just rely on Google Maps, TomTom and GPS devices to get you to your destination. If possible, drive past the venue during the weekend before your interview to verify the exact location, building number and parking options. Note the distance between the parking area and the actual building where your meeting will be taking place. Believe it or not,for some of the organizations in for instance JHB CBD, the allocated parking areas are not adjacent to the actual office buildings. Thus, you may need to make provision for an added 5-to-10-minute walk, before arriving at reception.

• Dress Code:

Rather smart than casual. Looking overdressed amongst everybody else wearing jeans and T-Shirts, is more appropriate than you trying to hide your casual attire amida pool of Armani and Jenni Button. Ladies, if you are not used to walking in 10-inch heels, do not wear them for the first time on interview day. (Falling down a set of stairs in front of your potential new boss won’t be fun). Make sure your interview outfit is ‘’ready to wear” at least two days before your appointment. The time to discover missing buttons or wine stains, is not in the hour before you need to leave for your meeting.

• Appearance:

Personal hygiene should be a given, but Guys listen up: you should not be a walking advertisement for Jean Paul Gaultier. Ladies, regarding make-up and hairstyle, be reminded of the golden rule: Less is more! You are there for an interview, not the Oscar’s. As a final point pertaining to appearance, repeat after me: “No new hairstyle cuts or colour make-overs, in the week before your interview.”

• Interview Equipment & Documentation:

Tablets are fine to capture notes on during the interview, but take a pen and writing pad with just in case one of your updates causes a shutdown when you least expect it. Print a copy of your cv, not for the interviewer, but as a guiding document to yourself in case the nerves set in and you cannot remember your dates of employment or companies worked at previously. (Yes, it has happened before!) You may be asked for proof of identification when entering the building or parking area, thus remember to take your ID or Drivers Licence with you. Ensure to have copies of your academic qualifications like degrees, certifications and matric certificate on hand.

• Getting ready to leave:

Check the traffic updates early enough to plan for alternative routes if needed. Rather skip the travel mug of coffee or take an extra shirt, just in case. Do a final check to verify that you have everything you may need like cell phone, directions, parking reference code, proof of identification, tablet, notepads, enough stationary and your car charger for your cell phone. Add the number of your Agent or the person who scheduled the interview to your phone, prior to your departure.

• Before you get out of your car:

USE THE MIRROR! Mute your mobile and please spit out that Stimerol you have been chewing. Make sure that you are parked like a human being (between the lines) and furthermore not standingon a reserved spot. (It could be the CEO’s!)

• Timing:

Fashionably late for an interview is not an option, nor is arriving an hour early. Report to reception 10 to 15 minutes before the meeting is scheduled to start. Receptionists are busy people, they may forget about you, thus remind them of your existence again 5 minutes prior to your appointment time. Always remain courteous and professional, even if something goes wrong and your interviewer is nowhere to be found. The best option in this scenario, is to call your agent or the person who scheduled the interview in the first place.

• During the interview:

Avoid taking a seat at the head of the boardroom table, unless prompted to do so. A firm handshake goes a long way to create a good impression, but this is not a testosterone contest. No use crying over spilled milk or cappuccino after the fact. If your hands are jittery, perhaps decline the coffee and stick to water instead. Eye contact with everyone in the room is important, but you are not watching a match at Wimbledon. Keep the conversation natural by remembering to BREATHE.

• Upon leaving the interview room:

Thank your interviewers for their time. Remember to gather all your belongings;it is very embarrassing to reach your car only to discover that you have left your keys or handbag in the interview room!

Overkill? Think again.

The tips and examples mentioned above, are based on “real life” examples of instances that transpired in and around interview days. Take note and have a plan B and even a plan C ready to execute when needed. “Murphy” is an unpredictable guest, who visits when least expected. BE PREPARED. Wishing you all the best with your next interview day.

TO ASK OR NOT TO ASK: Acing or Flaking the FIRST Interview

Nov 14, 2017

The interview event is a two-way street of mutual interaction between client and candidate. Candidates often fail miserably during the interview process because of two main reasons:

• Number 1: talking too much and asking the wrong questions or interrogating the interviewer with volumes of questions.
• Number 2: minimal engagement with the interviewer whereby yes or no answers are given without substance or limited questions are being asked by the candidate during the interview.

Examples of (A)CE style questions

When preparing for an interview, you should preferably devise a standard set of well- structured questions to ask during the interview, which display intellectual curiosity about the role and shows your interest in the company you are applying to.

• What would you highlight as the most challenging areas of this role?
  
• Which milestones would you expect the successful candidate to achieve during the first three months, six months and twelve months?
• Please tell me more about the structure and dynamics of the team?
• Why did you decide to join this company?
• Does your organization encourage employees to continue with further education?
• What is the next step in this interview process?

Examples of (F)LAKE style questions

Be very cautious when deriving your interview questions as not to sound entitled, demanding or superficial with no intention of investigating the essence of the role at hand.

• What can you tell me about the company? A sure FLAKE! You should have researched the company yourself, before attending the interview.
• What is the salary on offer? A kamikaze topic to crash and burn your chances immediately. If you are working via a recruitment agent, the salary details should be discussed upfront, before you even sent in your application for the position. If you applied directly to the company, salary discussions are to be done during the second interview.
• Do you offer any benefits? Right question at the wrong time. Benefits like medical aid, pension, and provident funds are important factors when deciding to accept an offer; these should also be clarified during the second interview or with your recruitment agent beforehand.
• Tell me about the growth opportunities in your company? Circumstances leading to career advancement and promotion are mostly dependent on candidate performance, thus enquiring about growth prospects without explicitly referring to WHAT your career aspirations are will be deemed as shallow and artificial.
• How many leave days will I get? A big no-no. Are you applying for the role or for the time off? Discuss this question with your recruitment agent or with HR during the application process.
• Do you have flexible hours? An epic fail straight away. Does your interest in the position depend on traffic or career progression? Should flexi hours be a deal-breaker, rather discuss with your recruitment agent before applying for the role or enquire from HR

Finding a balance

Interview questions and subsequent answers should originate from both parties involved.The aim is to strike the right balance between question overflow and question anaemia. If you generally come across as a runaway train, pipe it down a bit. Are you like a deer caught in headlights during an interview, get more comfortable by practicing the interview questions in front of a mirror.

Turning from “interview zero” to “interview hero” takes continuous effort on your part. Gary Player once said: “The more I practice, the luckier I get”!