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Background Checks Business Research Economy Miscellany preemployment screening Retaining Employees Staffing Uncategorized

CEO Employment Salaries Need to Be Reduced, Some Say

There is a lot of grousing out there about the excessive CEO salaries.  With the current slogan, or one of them, going from Wall Street to Main Street, you can understand why Main Street is upset with the generous salaries chief executive offices receive.   And then there are the bonuses, another point of contention, as we all witnessed during the AIG debacle.

You can’t blame people for being annoyed, if not completely outraged.   Awarding large salaries often coincides with reducing the overall labor force.   In this economic downturn, the reduction of labor means more people are being laid off.   It means those that survive the downsizing are understaffed and must work longer and harder for the same money.  Or less.   In all, a lot of working folk are out on the street while others are still living on Easy Street.   Small wonder this is a point of contention.

David Lazarus in the Los Angeles Times has written a most interesting column article calling for the limits of the salaries awarded to CEO’s.   He calls for performance bonuses based on actual performance.  What a concept.    He writes about the true value of most CEO’s.

I find it sad that it is no longer unique in this country to be rewarded for failure.  More and more people, bei it in government or the private sector, are promoted and bonsued for messing up.    In the case of senior executives, many have been amply rewarded for running their respective companies, and the nation’s economy, into the ground.   Then they are rescued from their failures.  Everybody gets a trophy.   Except of course for the people who were laid off from their jobs, the small business people who now struggle to obtain the credit necessary to run their businesses, and the students who still must pay back their loans.   Interesting that the banks are rescued but the students are left to fend for themselves.  Makes perfect sense.   If we were in Superman’s Bizzarro World.

We know the argument that the CEO’s require large salaries but so few of them can actually run companies.  I dbout it.  And, again, most have run them into the ground, so in most cases of  logic this would hardly constitute legitimate qualifications.

Smaller salaries at the senior level could translate into more employees who could run the business.    More employees would mean the workload is spread around and that in turn may lead to less pressure and better quality of life.   Meaning working people could actully do things like spend some time with their kids.     To digress, I find it strange that Labor fought for the 40 hour work week.  Now thanks to progress and cutting edge technology employees work 50 hours and more.    Now that’a giant step…somewhere.

Not only would the reduced salaries assist in hiring more people, it may in fact insist in hiring more skilled persons at reasonable but higher salary levels.   Preemployment screening programs could be refined to seek out the most skilled employment candidates from that vast talent pool that now resides in our unemployed society.

In terms of whether such proposals ever become a reality…we shall see.

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Background Checks Business Research Economy Human Resources Miscellany preemployment screening Staffing Uncategorized

Senior Employees Who Can’t Find Work are Taking Early Retirement

First come the company buyouts, and now many senior employees are faced with taking early retirement.    In most cases this is an act of desperation as most employees do not wish to retire early.  For one thing early retirement means you lose around 25% of your social security benefits.   You are living on less in a world that each day seems to be demanding more.

But when the economy is so poor that there is no work to be had, then early retirement is certainly an option.      Reluctantly, there are workers who figure some income, however small, is better than no income.  Perhaps when thee economy begins to turnaround they will be able to work part time.   Working full time would necessitate their paying back whatever income they received from their social security.   That can be tough.

Since the first year someone is eligible for early retirement is 62 years of age, such an action can be inconvenient and even painful.   Given the average life expectancy, most of us would live ten, twenty, thirty years after that decision.  Yet we would be stuck with that decision.   At the same time trying to tough it out and find work, when you have no income, could mean the loss of the house and the inability to pay basic expenses.

The shame is many older workers have the type of experience required to see a company through tougher times.  If nothing else, they have probably been through recessions before.   Most have worked a good many years and can easily clear the background checks required by any preemployment screening program.   Some senior workers have cultivated special skills and have made numerous contacts over the years.   They know the lcients and know the vendors.   This goes a long way in maintaining accounts in a tough economy.

It could be argued that senior workers receive higher salaries.   It could also be argued their benefits are more expensive: healthcare for instance.   But the fact remains that most senior workers not only need to work but want to work.   Most find it boring to sit at home and do nothing.  Even if they have hobbies and passions, gainful employment keeps them healthier longer and offers additional income.   They feel relevant, and there is much they can offer the workplace.

So this is but one more story in a long line of disquieting stories that affect the American workforce, during this economic downturn.   But one that is no small matter.   Think of the loss in taxes as they people leave the working world.  Think how the limited income forces them to cut back on basic staples as well as more luxury items, like new cars, clothing,  appliances,whatever.  Think how this impacts the wholesale and retail markets.

So in tne end, one act has multiple consequences.   One group out of work is not just its problem.   It becomes our problem.   If they have no money then our businesses will suffer.   And there is the bottom line.

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Background Checks Business Research Economy Human Resources Miscellany preemployment screening Staffing Uncategorized

Sniffing Out Your Unemployment Pink Slip

There is an article on Yahoo, published originally by SmartMoney.com, advising worried workers on how to tell if you are facing employment layoffs.  I would say that iwth the economy in the downturn nearly everybody at least gives it some consideration.   Many worry and not without reason.

While the article gives some decent tips on determining if your company is about to start a round of layoffs, I think it is fair to say most employees know that its coming.  Most know the signs, the lousy revenue figures, the whispers around the office.   The tension.     Of course, there are the more esoteric signs; the corporate bond ratings, stock value, annual income.   Since the economy has caused many corporate stock values, etc., to go into a tailspin,  the fact that stock and bond prices has dropped is not in and of itself the key indicators.   To put it simply, in this economy most businesses are in pretty sad shape.

It can be a major drag, waiting for the axe to fall.   There is that unsettling feeling.  given the recession,  m,ost worry about finding another job.   Real worries, for sure.

Well, as most advise, keep your nose to the grindstone and your ears to the ground.  Hard to do, unless you are a contortionist, but extraordinary times call for extraordinary actions.   And above all keep out of trouble and watch what you post on your FaceBook and other social networking sites.   The wrong missives can deliver the wrong message to prospective employers, and you can ending being passed over for a job.  Many companies as part of their preemployment screening are asking for background checking companies to monitor the social networks.   We don’t, but some do.

Good luck out there.   It’s a cold world, even in the summer.

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Background Checks Business Research Economy preemployment screening Staffing Uncategorized

Mixed Reports About Employment Opportunities for Older Workers

Undoubtedly, this rotten economy has made it a time for myriad contradictions.   No matter what subject, it seems, and there are multiple opinions about the current state of things and what the future has in store.   It’s enough to say we don’t even want to get into the plethora of blame game opinions as to who is responsible for what part of this economic diaster.

But here the subject is older workers and the challenges they face it obtaining and maintaining employment.   Recently, I read   in the Wall Street Journal where some employers are holding on to their senior employees because they have experience, and experience is what is needed to survive in this economy.   Rather than layoff the more expensive senior workers, employers are handing pink slips to the younger guys.   There’s a switch.

The other major reason employers want to keep senior workers on the job is fear or discrimination suits.    No employer wants a bevy of lawsuits on even a good day, yet alone at this particular moment.   So there senior workers have an advantage.   But when it comes to finding new employment, senior workers are finding age can be an issue.  In fact, it is very much an issue.     Or as one comedy writer associate of mine proclaimed the other night, “If you have gray hair, you are no longer funny.”

As for the younger workers, the article advises that they make themselves as valuable as possible.   This is nothing new, frankly.   It’s the usual stuff.   Find influential friends on the job, come in early, stay late, keep your head down, etc.     the article does advice, wisely, that it is smart to learn interdepartmental disciplines, hone your skills.

I would add for younger employees that they should watch what they write on their social networking pages.  More than a few employers take umbrage with what they believe is not fitting for their corporate culture.  So be careful.   Also, be sure that you behave yourself so the background checks the Human Resources Department decides to run on you will not turn up the kind of records that could cost you a job.

As for the older workers, advisers say you should try to look younger.   I would advise you not to overdue it.   If you look too young for your years, you look stupid.   And that bad hair dye job, forget about it altogether.   If you have your haired dyed professionally, it may be one thing.  But when you do it yourself and instead of turning the gray a nice brown, it has that rusty red look, well you not only aren’t fooling anybody, but you are calling more attention to your age.    The main thing is to maintain your energy, your appearance, keep yourself trim, and don’t ramble on about the good old days.   They were probably not so good for the person you may be working for, they were non-existent.

Check them out before you hire.