Chapter 2
Financial Aspects of
Career Planning
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 2
Learning Objectives
1. Describe activities associated with career
planning and advancement
2. Evaluate factors that influence employment
opportunities
3. Implement employment search strategies
4. Assess financial and legal concerns related to
obtaining employment
5. Analyze techniques available for career growth
and advancement
2
Career Choice Factors
Objective 1: Describe the activities associated
with career planning and advancement
• Career selection requires planning
• The average person changes jobs more than seven
times over a lifetime
• Job is an employment position obtained mainly to
earn money
• Career is a commitment to a profession that
requires continued training
3
Career Choice Factors (continued)
TRADE-OFFS OF CAREER DECISIONS
• Career choices alternatives have risks and
opportunity costs
• In recent years many people have placed personal
fulfillment over monetary reward and professional
recognition
• Career choices require periodic evaluation of trade-
offs related to personal, social, and economic factors
4
Career Choice Factors (continued)
CAREER TRAINING AND SKILL DEVELOPMENT
• Level of formal training affects financial success
• Training may be viewed in two main categories
– Technical Skills refers to specialized career
training for a specific profession.
– General Skills are traits adaptable to most work
situations. Some can be acquired at school, while
others require experience.
5
Career Choice Factors (continued)
PERSONAL FACTORS
• Aptitudes - What natural abilities, such as working well in team
settings, do you possess?
• Interests inventories - Help you determine what gives you
satisfaction.
• Your personality - How much structure do you like?
• Do you perform best in low-pressure or high-pressure working
environments?
6
Career Choice Factors (continued)
CAREER DECISION MAKING
• Changing personal and social factors will require
you to continually assess your work situation
• Your career goals will also affect how you use
the process of career decision making
• See the Exhibit on Developing a Career Action
Plan
7
Career Opportunities: Now and
in the Future
Objective 2: Evaluate factors that influence
employment opportunities
ECONOMIC CONDITIONS
• Career opportunities are affected by
– High interest rates
– Price increases
– Decreased demand for goods and services
8
Career Opportunities: Now and in
the Future (continued)
SOCIAL INFLUENCES
• Demographic trends
– More working parents means more food service and
child care
– More leisure time means more interest in health and
recreation
– Longer life spans increase demand for travel, health
care, and retirement facilities
– Expanded demand for employment training services
increases opportunities for teachers, trainers and
related careers
– careers
• Geographic trends
9
– Where jobs are, salaries, and living costs
Career Opportunities: Now and in
the Future (continued)
TRENDS IN INDUSTRY AND TECHNOLOGY
• Increased competition from Asia, Europe, and other
regions has reduced; demand for American-made
products increase
• Automated production methods have decreased the
need for many entry-level employees in factories
• Some service industries are expected to have
continued growth in the employment potential in the
21st century
10
Service Industries Expected to Have
the Greatest Employment Potential
• Information technology
• Health care
• Business services
• Social services
• Sales and Retailing
• Hospitality and food services
• Management and human resources
• Education
• Financial services
11
Employment Search Strategies
Objective 3: Implement employment search
strategies
OBTAINING EMPLOYMENT EXPERIENCE
– Part-time employment - do you like the work
– Volunteer work - develop organizational skills
– Internships - experience helps obtain employment
– Campus projects - helps obtain career skills
USING CAREER INFORMATION SOURCES
– Library materials
– Media career information
– Online Sources
– Career development office 12
Employment Search Strategies (cont’d)
MEDIA CAREER INFORMATION
• Newspapers offer articles and columns about job
searches and career trends
• The internet also provides a variety of
information sources
CAREER DEVELOPMENT OFFICE
• Career placement and Counseling offices on
campuses can provide assistance on resumes
and preparing for job interviews
13
Employment Search Strategies (cont’d)
NETWORKING
• Networking is the process of making and using
contacts to obtain and update career information
• The main sources of networking include:
– Community Organizations
– Professional Organizations
– Business Contacts
• Effective networking means
– Preparing a 30-second summary of abilities
– Volunteer for committees and events of professional
organizations
– Ask questions to get others to talk about themselves
and their experiences
14
Employment Search Strategies (con’t)
IDENTIFYING JOB OPPORTUNITIES
• Job advertisements
• Career fairs
• Employment agencies
• Job creation
• Visit companies
• Telephone and business directories
• Web search
• Talk with alumni in your field
15
Employment Search Strategies (con’t)
APPLYING FOR EMPLOYMENT
• Resume
• Cover letter
• Interview
– See Chapter 2 Appendix for
detailed help in these areas
16
Financial and Legal
Aspects of Employment
Objective 4: Assess the financial and legal concerns
related to obtaining employment
***Research the job and the company before
accepting an employment position
• THE WORK ENVIRONMENT
– Corporate culture
– Company policies and
procedures
• FACTORS AFFECTING SALARY
– Education, training, company size, and salaries for
comparable positions
17
Financial and Legal
Aspects of Employment (continued)
• EVALUATING EMPLOYEE BENEFITS
– Nonsalary benefits include: child care, leaves of
absence, and elder care
– Cafeteria-style benefits allow workers benefit
credits that they can choose to meet their needs
– Flexible spending and medical savings accounts
– Compare job offer benefits based on market value
or future value
– Know your employment rights 18
Financial and Legal
Aspects of Employment (continued)
Objective 5: Analyze the techniques for career
growth and advancement
• A career can be for a lifetime
• Certain skills and attitudes can lead to fulfilling work life
– Communicating well with others
– Flexibility and openness to new ideas
– Develop efficient work habits
– Use lists, goal setting, and time management
techniques
– Anticipate problems and areas for actions
– Creativity and a willingness to assist others 19
Long-Term Career Development (cont’d)
TRAINING OPPORTUNITIES
• Continue to learn about new technology and the
global economy
• Formal methods for expanding knowledge are
company programs, seminars, and college courses
• Informal methods include reading and discussions
with colleagues
• Informal meetings with employees from other
companies can be a valuable source of information
20
Long-Term Career Development (cont’d)
CAREER PATHS AND ADVANCEMENT
• Career choices must be evaluated in light of
changing values, goals, and economic conditions
• A mentor is an experienced employee who serves
as a teacher and counselor for a less experienced
person
– Mentors are attracted to those who show initiative
– Mentors should be receptive to assisting others,
and help them in both technical and social areas
of their careers
21
Long-Term Career Development (cont’d)
CHANGING CAREERS
• About 10 million career moves occur each year
• Changing jobs can be more difficult than selecting
the first job
• Some indications that it is time to move on include
– Low motivation toward your current work
– Physical or emotional distress
– Consistently poor performance evaluations
– A lack of social interactions with coworkers
– Limited opportunity for salary or position advancement
– A poor relationship with your supervisor
22
Long-Term Career Development (cont’d)
Guidelines for making a career change
– Carefully assess the financial and personal costs
and benefits of changing careers
– Determine whether a career change will serve
your needs and goals
23
Long-Term Career Development (cont’d)
– To cope with job termination while seeking new
employment you must
• Maintain appropriate eating, sleep, and exercise
habits
• Involve yourself in family and community activities
• Improve your skills through classes and volunteer
work
• Target your search towards high growth industries
• Consider opportunities with non-profit
organizations
• Target your skills to the needs of an organization
24
Developing a Resume
• Personal data section
• Career objective section
• Education section
• Experience section
• Related information section
• References section
25
Three Types of Resumes
• Chronological
- Most common; focuses on experience and
education in reverse-time sequence
• Functional
- Focuses on your skills
• Targeted
- Prepared for a specific job
• E-resumes for applying for a job online
- Use a simple format and no attachments
26
Resume Preparation
• Resume must be presented in a professional
manner
• Limit your resume to one page
• Highlight your experiences and how they will
contribute to the company’s needs
• Seek guidance in preparing and evaluating your
resume
• Show how your technology skills help in
researching information and preparing projects
27
Creating a Cover Letter
• Introductory paragraph
– Get reader’s attention
– Overview your qualifications
• Development paragraph
– Specific qualifications
– Refer to details on resume
– Experiences and training
• Concluding paragraph
– Ask for interview
– Include how to contact you
– Summarize how you can help the company
28
The Job Interview
• Prepare for the interview by getting information
about your prospective employer
Library resources such as annual
reports or recent articles
Internet searches of company
and industry information
Observations during company visits
• Prepare questions to ask about your interests, the
organization, policies, and benefits
• Practice interview skills
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