2 Career Planning

YOU MUST BE KIDDING, RIGHT?

Freddie Duarte is contemplating going to ­graduate
school at night for a master’s degree so he can
advance his career and earn more than his current
$74,000 salary income. He is a sales account
­manager for a health care organization, and on
the side he has a small business maintaining
aquariums for medical and other small offices.
How much more income can Freddie expect over
an ­anticipated 40-year career if he obtains the
­advanced degree?
A. $100,000 C. $300,000
B. $200,000 D. $400,000

The answer is C. $300,000. Over a 40-year working

career, a person with a postgraduate degree can
expect to earn more than $2.8 million, and this is
about $300,000 more than a person with a bachelor’s
degree will earn ($2.5 million). Getting an advanced
degree is no guarantee of additional income, but the
likelihood of such a reality is high!

Learning Objectives
After reading this chapter, you should be able to:
Decorwithme/Shutterstock.com

1 Identify the key steps in successful career

planning.
2 Analyze the financial and legal aspects of
employment.
3 Practice effective employment search
strategies.

38
WHAT DO YOU
RECOMMEND?
Nicole Linkletter, age 21, expects to graduate next spring
with a bachelor’s degree in business administration.
­Nicole’s grades are mostly As and Bs, and she has worked
part-time throughout her college career. Nicole is vice
president of the Student Marketing Association on her
campus. She would like to work in management or mar-
keting for a medium- to large-size employer. Because she
loves the outdoors, Nicole thinks she would prefer a job in
the northwest, perhaps in northern California, Oregon, or
Washington.

Tyler Olson/Shutterstock.com

What would you recommend to Nicole on the importance of career planning

regarding:
1. Clarifying her values and lifestyle trade-offs?
2. Enhancing her career-related experiences before graduation?
3. Creating career plans and goals?
4. Understanding her work-style personality?
5. Identifying job opportunities?

39
40 PART 1 Financial Planning

career You can control much of your financial future with effective career planning. A career is
The lifework chosen by a person to the lifework chosen by a person using his or her personal talent, education, and training
use personal talent, education, and that will lead to a lifestyle a person wants. Career planning can help you identify an
training. employment pathway that aligns your interests and abilities with the tasks and responsi-
career planning bilities expected by employers. Career planning is a high-priority, do-it-yourself project,
Can help you identify an employment allowing you to take control of where you are going and how you are going to get there.
pathway that aligns your interests and Career planning is absolutely crucial to your happiness and long-term financial success.
abilities with the tasks and responsibil- Your focus should not be simply a job, which is a paid position of regular employment,
ities expected by employers over your but a career. The progression of a career will include a number of related jobs. Indeed, the
lifetime. average tenure at a job for U.S. workers is about three years. One in two employees has been
at work for less than 5 years. A career is an occupation undertaken for a significant period
of a person’s life, especially one requiring specialized training, and provides for consecutive
progressive achievement. A career gives you a base of income, employee benefits, additional
educational experiences, advancement opportunities, and a secure financial future.

Learning Objective 1 2.1 DEVELOPING YOUR CAREER PLAN

Identify the key steps in successful A career plan provides a strategic guide for one’s career through short-, medium-,
career planning. ­longer-, and long-term goals as well as future education and work-related experiences.
You cannot advance very far in planning your financial life without also planning a career
that will earn you an adequate income. The breadwinner in a family is the person who
career plan
earns an income that is primary to a unit of people who are dependent on the person’s
A strategic guide for your career income. A career that suits you well will give you opportunities to display your abilities
through short-, medium-, longer-, and
in jobs you find satisfying while providing balance between work and your personal life.
long-term goals as well as future edu-
cation and work-related experiences.
Sometimes a job opportunity comes your way and the geographic location is not
what you wanted. That’s okay. Take the job anyway. No matter what job you choose,
breadwinner consider it a chance to do the required tasks effectively and learn more about yourself
The person in a family who earns an and your career field. Work hard. You are going to learn a ton in whatever that job is, so
income that is primary to a unit of don’t stress about what it is or where it is. Just take the job, keep your head down, raise
people who are dependent on the
your hand for anything anybody asks you to do. Then you can learn how to deal with
person’s income.
coworkers and bosses on the job, how to process information, and how to be part of a
work team. When it is time the next job will come.
If you are not happy in a job and want to do something else, do not quit. It is easier
to get another job when you already have one. It also eliminates the natural interviewer
tendency to wonder why you are unemployed.
Every time your life circumstances change, you will likely reconsider your career plan
because career planning is a continuous process that lasts forever. Figure 2-1 provides an
illustration of the steps in career planning.

2.1a Clarify Your Values and Interests

Thinking about and discovering what you want out of life gives you guidance for what
to do to lead a satisfying life. Understanding yourself enables you to select a career path
that best suits you. This requires understanding your values and interests.

Figure 2-1 Steps in Career Planning

Finalize your career plan

Align yourself with tomorrow’s employment trends
Take advantage of professional and social networking
Review your abilities, experiences, and education
Identify one or more desired career fields
Clarify your values and interests
 Chapter 2 Career Planning 41

Values are the principles, standards, or qualities considered worthwhile or desirable. values
Values provide a basis for decisions about how to live, serving as guides we can use to The principles, standards, or qualities
direct our actions. For something to be a value, it must be prized, publicly affirmed, that you consider desirable.
chosen from alternatives, and acted upon repeatedly and consistently. Values are not
right or wrong, or true or false; they are personal preferences. Values are what we believe
in. They motivate us and shape our futures.
People may place value on family, friends, helping others, religious commitment,
honesty, pleasure, good health, material possessions, financial security, and a satisfy-
ing career. The kinds of values employers prefer in employees are personal integrity,
adaptability, dedication, dependable, responsible, loyal, passionate, professional, self-­
confident, self-motivated, and willingness to learn.
Examples of conflicting values are family versus satisfying career, privacy versus social
networking, and material possessions versus financial security. When you make impor­
tant decisions, you might be wise to think carefully to clarify your values before taking DO IT IN CLASS
action. Consider making a list of your ten most important values.
Your professional interests are topics and activities related to employment about professional interests
which you have feelings of curiosity or concern. Interests engage or arouse your atten- Long-standing topics and activities
tion. They reflect what you like to do. Interests, including professional interests, are that engage your attention.
likely to vary over time.
You might consider making a list of your top ten interests. On that list will probably
be some things you enjoy but have not done recently. Because of conflicting interests
and alternative claims on your time, you cannot pursue all your interests. It is important
in career planning to evaluate your interests. If you plan your career with your interests
in mind, you will increase the likelihood of career satisfaction.
Interest inventories are measures that assist people in assessing and profiling the interest inventories
interests and activities that give them satisfaction. They compare how your interests are Scaled surveys that assess career inter-
similar or dissimilar to the interests of people successfully employed in various occupa- ests and activities.
tions. The theory behind interest inventories is that individuals with similar interests are
often attracted to the same kind of work. These inventories can help you identify possi-
ble career goals that match your strongest personal interests.
The Strong Interest Inventory assessment is considered by many to be the gold stan-
dard of career exploration tools. The opportunity to take one or more interest inven-
tory assessments, usually for free or at a nominal cost, is available at most colleges and
state-supported career counseling facilities. These assessments can also be completed
online for a fee. (See, for example, www.cpp.com/products/strong/index.aspx.)

2.1b Consider Your Current Interests and Possible

Career Opportunities
Think about the following questions to help evaluate your interests: TO-DO SOON
• What courses in college have you enjoyed the most?
• What projects did you enjoy the most?
• Are you a people person or do you prefer to be in the background? Do the following to begin to achieve
­financial success:
• What are your leisure time activities and hobbies?
• What activities do you that you enjoy the most? 1. Prepare your résumé.
2. Visit one of your professors to request
It is good to evaluate yourself by answering these questions because you
and attain a mentoring relationship.
will gain insights you may not have thought about. Your answers will help
you link your current interests to possible career opportunities. 3. Contact your school’s placement office
to explore careers in your field.
4. Continue your professional education.
2.1c Identify One or More Desired Career Fields 5. Join a professional association relevant
People a generation or two ago used to take a single job and remain at to your career and attend one of their
the same employer until they retired. Now, people may change jobs five meetings.
to ten times during their working years, staying about 4.6 years per job on
42 PART 1 Financial Planning

average. Surveys show that 35 percent of employees change jobs at least every 5 years,
18 percent change between 6 and 10 years, and nearly half stay more than 10 years. In
contrast, young adults average six jobs before age 26.
Thinking about a career goal helps you focus on what you want to do for a living.
career goal A career goal can be a specific job (e.g., cost accountant, computer engineer, teacher,
Identifying what you want to do for a human resources manager) or a particular field of work (e.g., health care, communica-
living, whether a specific job or field tions, green engineering). It helps guide you to do the kind of work you want in life
of employment. rather than drift from job to job.
career ladder You should focus on a series of jobs that form a career ladder. A career ladder
Describes the progression from describes the progression from entry-level positions to higher levels of pay, skill, respon-
­entry-level positions to higher levels of sibility, or authority. Formulating a career goal requires thinking about your interests,
pay, skill, responsibility, or authority. skills, and experiences and learning about different careers and employment trends. The
process of establishing a career goal motivates you to consider career possibilities that
you may not have thought of otherwise.
To create a career goal, explore the jobs, careers, and trends in the employment mar-
ketplace that fit your interests and skills. Begin by searching websites such as those for
the Occupational Outlook Handbook (www.bls.gov/ooh/), the Occupational Outlook
Quarterly (www.bls.gov/opub/ooq/home.htm), and The Career Guide to Industries
(www.bls.gov/oco/cg).
These reference books cover more than 8 of 10 jobs in the United States. There
are several dozen careers listed in these books, so research the occupation groups that
interest you. Take your time to read these pages, study them carefully, and contemplate
your future work life. Research the occupational groups that interest you, looking at
workstyle, median pay, education, and projected growth. And when you get a chance
ask people about their careers.
Benefits and Costs When making career choices, you must weigh the benefits
against the costs. The benefits could include a big salary, likelihood of personal growth
and job advancements, and high job satisfaction. For some, the pluses might include the
psychic benefit of a prestigious job with a high income. The costs might include living
in a less-desirable geographic area and climate, being far from old friends and family,
sitting at a desk all day, working long hours, and/or doing too much traveling.
Is a No-Limits Job for You? Many younger workers are employed in entry-level
positions where they are expected to be on-call via a mobile device at all hours of the
no-limits jobs day and night. These are no-limits jobs. They face stressful demands from their com-
Where people, especially younger panies, such as 300 or 400 daily e-mails and tweets and only a few less on weekends.
workers, are employed in entry-level These communications encourage them to eliminate the boundaries between their life
positions where they are expected to and work. This is affecting the workforce at large. Ask about these things during an in-
be on-call via a mobile device at all terview and factor their answers when deciding about taking the job.
hours of the day and night.
Lifestyle Trade-offs A lifestyle trade-off is weighing the demands of particular
lifestyle trade-offs
jobs with your social and cultural preferences. When you consider a career, think about
Weighing the demands of particular
what lifestyle trade-offs are important to you. For example, if access to big-name live
jobs with your social and cultural
entertainment, museums, and artistic activities is important, then working and living
preferences.
in a rural area may not be appropriate. If you like to visit new places, you may choose a
career that involves frequent travel or the chance to work overseas.
Consider the following lifestyle options in your decision making:

• Urban/rural setting
• Close/far from work
• Own/rent housing
• City/suburban life
• Warm/cold climate
• Constant/variable climate
DO IT IN CLASS • Near/far from relatives
 Chapter 2 Career Planning 43

The Cost of Career Coaching Privately available career coaching experts are avail-
able. For $600 you can buy 5 hours of basic services including identifying career goals,
targeting companies, and practicing interviewing skills. For $3,000 you can get custom-
ized preparation before each job interview. For $8,000 you get 24/7-access to coach-
ing, mock interviews, and one-on-one advice on salary and benefits.

2.1d Review Your Abilities, Experiences, and Education

A review of your abilities, aptitudes, experiences, and education will help you see how
well they match up with your career-related interests. These topics have much to do
with human capital. This is the skill set, knowledge, and other intangible assets of human capital
individuals that can be used to earn income and create economic value for individuals, The skill set, knowledge, and other
employers, or communities. intangible assets of individuals that
can be used to create economic value
Abilities and Aptitudes Your professional abilities are the qualities that allow for the individuals, their employers, or
you to perform job-related tasks physically, mentally, artistically, mechanically, or finan- their community.
cially. Most of us think of ability as a word describing how well we do something, a
proficiency, dexterity, or technique, particularly one requiring use of the mind, hands, professional abilities
or body. Other examples of abilities include being skilled in working with people, being Job-related activities that you can per-
form physically, mentally, artistically,
able to easily meet the public, and being good at persuading people.
mechanically, and financially.
Employer surveys indicate that the single most important ability needed for career
success in the twenty-first century is digitalization. This is using digital technologies digitalization
into everyday life to change a business model. Apple’s watch is an example as technol- This is using digital technologies into
ogy took an everday watch and introduced technology into it with phone capabilities, everyday life to change a business
messaging, and Internet capabilities. They are saying “think digitally.” Consider making model.
a list of your top ten professional abilities.
Aptitudes are the natural abilities and talents that people possess. Aptitudes suggest aptitudes
that you have a tendency or inclination to learn and develop certain skills or abilities. Are The natural abilities and talents that
you good with numbers? Do you find public speaking easy to do? Do you enjoy solving individuals possess.
problems? What are your natural talents? Consider making a list of your top ten aptitudes.
Experiences Most college graduates have much more going for them than a degree and a
string of part-time job experiences. Reviewing your experiences is a step in career planning.
Evaluate what you have been doing in your life, including jobs, participation in student
organizations and community and church groups, leadership on school projects, volunteer
activities, and internships. Hiring managers say college grads need two internships to be
competitive after they graduate. Research shows that students who have completed at least
one internship earn $10,000 more in their first job than those who did not intern
Those still in college can enhance their job opportunities by learning as much as
possible in school, participating in clubs and other student organizations (including
volunteering for committees and campus projects), getting involved in faculty research
projects, and attending off-campus professional meetings related to their major. Aca-
demic advisers can provide additional suggestions. All these abilities, aptitudes, and
experiences can be put on your résumé.
Education and Professional Training The reality is that today’s col-
lege is yesterday’s high school. More than ever before, education deter-
mines a worker’s earnings over a lifetime. common sense
The college you attend may provide you with all the preparation you Curiosity Gets You
need to succeed in the major. But college may not have given you all the Job
the skills and abilities to be successfully employed. You may need to seek
additional education and professional training. Think about taking extra The one skill set that hiring agents want
courses in public speaking, computer software, or business. Perhaps seek an new employees to possess is curiosity. It
advanced college degree. is also called “earning agility.” Can you
grow, learn? Is your mind nimble? Do you
2.1e Know Your Preferred Work-Style Personality read widely and listen to music? Are you
Every job requires the worker to function in relation to data, people, interested in life?
and things in differing work environments and corporate cultures. Your
 44 PART 1 Financial Planning

DID YOU KNOW

Generation Z Will Replace Millennials
Millennials are the demographic cohort born between the Internet, and the children of this group are growing up us-
early 1980s and the late 1990s. Today they are between 21 to ing electronics and mobile devices.
37 years of age. They are also referred to as “Generation Y” or This is the generation that is emerging as the next big
“Gen Y,” the “Echo Boomers,” or “Trophy Kids.” Millennials thing for market researchers, cultural observers, and trend
were born after the cohorts known in chronological order as forecasters. They will soon become the dominant youth in-
Generation X (born 1965–80), Baby Boomers (born 1946–64), fluencers. They are hard-working, digital natives, technology
and the Greatest/Silent Generation (born 1928–45). oriented, conscientious, anxious, pragmatic, multi-taskers,
Generation Z (or Gen Z or the iGeneration) were and attentive to the future. Generation Z has come to age in
born between 1998 and 2012. It includes the children of the aftermath of the beginnings of the 9/11 war on terror.
the youngest baby boomers. This age group is sometimes They are focused on being mature and in control, and they
called the iGeneration because it was born in the age of the seek sensible careers.

work-style personality work-style personality is a unique set of ways of working with and responding to
Your own ways of working with and your job requirements, surroundings, and associates. When making a career selec-
responding to job requirements, sur- tion, you must balance your work-style personality against the demands of the work
roundings, and associates. environment.
professional networking You can begin by rating each work value as shown in the Decision-Making Work-
Making and using contacts with in- sheet “What Is Your Work-Style Personality?” Put a check mark in the appropriate col-
dividuals, groups, and other firms to umn in terms of importance in your career. Armed with this information, you can now
exchange career information. more clearly decide on careers that are most suitable for you.
social networking
A set of connection of friends, col- 2.1f Take Advantage of Professional and Social Networking
leagues, and other personal contacts Professional networking is the process of making and using contacts, such as individuals,
with a common interest who use
groups, or institutions, to obtain and exchange information in career planning. Also use
websites or other technologies to
social networking, which is a set of connection of friends, colleagues, and other personal
communicate with each other and
share information and resources. contacts with a common interest who use websites or other technologies to communicate
with each other and share information and
resources. Popular social networking sites
include Facebook, LinkedIn, Google Plus+,
Pinterest, ­Snapchat, Tumblr, and Twitter.
Spend a few minutes on your favorite
sites each day making new connections,
and keeping your profile up to date.
Always send a personal message with all
connection requests. Every person you
know or meet is a possible useful contact
sometime in the future. And remember
that a single crude quote, picture, or selfie
on a social-networking site could eliminate
you from a job interview. Don’t let oth-
ers tag you at a party as it may come back
to haunt you. All recruiters review candi-
dates’ social media profiles before making
Masterfile

a hiring decision. Therefore, delete any

suspicious ones and be professional in all
Career planning should reflect your lifestyle preferences. future postings.
 Chapter 2 Career Planning 45

DECISION MAKING WORKSHEET

What Is Your Work-Style Personality?
It would be useful for you to consider a number of work values critical to the process of career selection, particularly in the
areas of work conditions, work purposes, and work relationships. Rate how you assess the following work values as either
unimportant, somewhat important, or important.

Your Rating of Importance

Work-Style Factor Unimportant Somewhat Important Important

1. Work Conditions
Independence and autonomy
Work hours
Child care costs
Time flexibility
Vacation time
Many e-mails/texts
Change and variety
Leave work for child illness
Stability and security
Physical challenge
Mental challenge
Pressure and time deadlines
Decision making
2. Work Purposes
Material gain
Truth and knowledge
Expertise and authority
Achievement and recognition
Ethical and moral
3. Work Relationships
Working alone
Public contact
Close friendships
Family responsibilities impact advancement
Influencing others
Supervising others

For additional values clarification, go back to the list and circle the activities that you want to do more often. The goal is to
match your highest work-style values to career choices with similar work-style requirements.

Job referrals are critical in professional networking. A job referral is the act of rec- job referral
ommending someone to another for possible employment. This helps your résumé get a The act recommending someone to
close look from a hiring manager. When you’re referred for a position, and you mention another by sending a reference for
it in your cover letter, you have got a built-in recommendation for the job in the first employment.
46 PART 1 Financial Planning

paragraph of your cover letter. It is even better when the person referring
COMMON SENSE you can take a couple of minutes to personally refer you for the job. A refer-
Ninety Percent of Work ral generally does not include a letter of recommendation.
Is Simply Showing Up Companies find one-third of new hires through referrals. Thus you must
make a conscious effort to use people you know and meet, especially those
Filmmaker and comedian Woody Allen met through networking, to maximize your job search process. Networking
once said “Ninety percent of life is simply involves utilizing your social contacts, taking advantage of casual meetings,
showing up!” This suggests that a suc- and asking for personal referrals. Most of your networking contacts will not
cessful career requires that you be at the be able to hire you, but they could refer you to the people who can, or they
right place, be involved in learning, and may be able to give you useful information about a potential employer.
be noticed. Experts recommend you ar- Maintain a continually growing list of people who are family, neighbors,
rive at work 15 minutes early and depart friends, college associates, coworkers, previous supervisors, teachers, pro-
15 minutes late … every day. The first fessors, alumni, business contacts, and others you know through civic and
benefit is that you will get more accom- community organizations such as churches and business and social groups.
plished. The second is that others, some- Take note of where your contacts work and what types of jobs they have.
times important people, will notice. And Ask these people for 10 to 20 minutes of their time so you can share a copy
third is that you will occasionally meet of your résumé and seek information and suggestions from them. Perhaps
individuals who might help you. You have meet at their workplaces (where you might meet other potential network-
to be “at the table” for good things to ing contacts), and afterward communicate your thanks.
happen because they go to the eager As many as three-quarters of all job openings may never be listed in want
beaver standing there. ads, so the people in your network become a vital source of information
about employment opportunities. For this reason, expanding the number
of people in your network is advantageous; some of the people you know
will also likely share their networking contacts. Don’t forget to keep them informed of
your progress and eventual success in obtaining employment.

2.1g Prospective Employers Can Check Your Credit Report

A lousy credit history can suggest a lot about a person’s inability to manage important
tasks. Federal law requires that individuals (1) be made aware that consumer credit reports
can be used for employment purposes and must agree to such use, and (2) are to be noti-
fied promptly if information in a consumer report may result in a negative employment
decision. About 20 states prohibit employers from using credit reports when hiring.
Trial hire
Temporary workers that could last a 2.1h Align Yourself with Tomorrow’s Employment Trends
week or two to determine if candi-
dates can do the work and fit in with What are the trends in employment? The aging U.S. population will create jobs in the
the corporate culture. service industries of finance, insurance, health care, recreation, and travel. Jobs are grav-
itating to existing population centers, particularly in warmer climates that
have superior transportation systems. Jobs in manufacturing continue to go
COMMON SENSE overseas to Mexico, Asia, Europe, and other countries, with the U.S. job
You May Be a Trial market primarily demanding highly skilled workers in the service industries.
Academic majors leading to jobs with high beginning salaries and
Hire
substantial demand include computer science, management information
systems, software engineering, information technology, economics, civil
Many firms, especially smaller ones, are
engineering, statistics, finance, actuarial mathematics, and nursing. In
turning to trial hires. These are tem-
1950, the Bureau of Labor Statistics tracked 270 careers; now there are
porary workers employed for a week or
over 850.
two to determine if candidates can do
Your academic choices should, at least in part, be based upon employ-
the work and fit in with the corporate
ment trends. If you have the aptitude, you might pursue a degree in a field
culture. Usually the candidate comes to
that pays well. Table 2-1 shows the projected job opportunities in high-
the office to work on a well-defined proj-
growth occupations in the United States.
ect. These jobs are intended to provide
employers time to evaluate employees 2.1i Freelancing in the “Gig Economy”
before making the job permanent.The
companies tell the candidate up front and Entrepreneurship
about the trial nature of the position. Not too many years ago, the only people who looked for “gigs” were musi-
cians. The rest of us found real, long-term jobs that paid us a fixed full-time
 Chapter 2 Career Planning 47

Table 2-1 High-Growth Occupations Projected to 2022

Job Title Employment in 2022 Median Annual Income

Accountants/auditors 1,442,000 $64,000
Advertising promotions 77,000 $95,000
managers
Audiologists 17,000 $70,000
Child and social workers 324,000 $51,000
Compensation benefits 70,000 $100,000
managers
Computer system design 2,100,000 $100,000
Green construction 400,000 $75,000
Home health care services 1,900,000 $70,000
Human resource managers 72,000 $122,000
Industrial engineers 205,000 $98,000
Market research analysts and 547,000 $61,000
marketing specialists
Marketing managers 228,000 $153,000
Media and communications 46,000 $61,000
Meeting, convention, and 125,000 $46,000
event planners
Physical therapists 277,000 $80,000
Public relations specialists 231,000 $66,000
Sales representatives, wholesale 1,600,000 $64,000
and manufacturing
Software developers and 752,000 $90,000
applications
Social networking 400,000 $85,000
Training and development 261,000 $74,000
specialists
Sources: Bureau of Labor Statistics, Table 15, High-growth occupations, by educational attainment cluster and earnings.
www.bls.gov/ooh/fastest-growing.htm and www.bls.gov/news.release/ecopro.t05.htm. Projections by authors.

salary every payday. This allowed us to take paid holidays, and gave us the financial basis
for planning a stable future
Today, more and more of us choose to make our living working informal gigs rather gig economy
than taking full-time jobs. The gig economy allows these independent contractors
A workplace economy that allows
(rather than employees) to move from one temporary job to the next without benefits. independent contractors (rather than
Gigs allow workers flexibility, autonomy, and the opportunity to seek a better economic employees) to move from one tempo-
future. Gigs are being filled by subcontractors, freelancers, temps, part-timers, on-call rary job to the next without benefits.
workers, and new entrepreneurs.
freelancing
To the optimists, gigs offer a future of empowered freelancers and entrepreneurs
One chooses to be employed with
and lots of innovation. To the naysayers, it forsees a dismaying series of part-time jobs
a more flexible work arrangement
hunting for the next piece of self-employment without employee benefits, little social (often part-time) than full-time on
assistance (like workers comp, unemployment, and disability insurance), and nary a cent a contract basis, often working at
put away for the last 20 years of life. home, for a variety of companies, as
Freelancing is where one chooses to be employed with a more flexible work opposed to working as an employee
arrangement than full-time on a contract basis, often working at home, for a variety of for a single company.
48 PART 1 Financial Planning

companies, as opposed to working as an employee for a single company. In

a nation of 150 million workers about 30 million people consider them-
DID YOU KNOW selves freelancers and half of them work at least 15 hours a week. One quar-
ter earn less than $25,000 annually, half make $25,000 to $75,000 and the
remaining quarter make more.
An entrepreneur is someone who organizes, manages, and assumes
Coding May Be Your Career the risks of a business or enterprise. Starting a company out of a perceived
Change opportunity occurs when people are hopeful about their situations. They
Those who can write modern code, the
are making a choice between working for someone and working for them-
language of the digital world, which is
selves. Participating in a new business creation is a common activity among
writing the source code for a computer
U.S. workers over the course of their careers.
program, can immediately earn 6-figure
Freelancers sometimes move from part-time employment into full-time
salaries. Lots of people are going to one
entrepreneurship. Don’t be afraid to take the chance to be part of a start-up
of the 60-plus coding schools, called boot
company, especially while you are young because if you fail you can always
camps, like Galvanize, Flatiron School,
return to the normal working world. If you succeed, well, the world is
and Hack Reactor, which offer accelerated
yours.
training in digital skills as a way to rapidly
train workers for well-paying jobs. 2.1j Finalize Your Career Plan
As you near graduation, you should be ready to develop a formal career
plan. Figure 2-2 provides an illustrative plan. Your career plan should be
entrepreneur realistic and flexible. Your career interests and goals will change over time, especially
One who is starting out a company
and is hopeful about their situation
because they organize, manage, and
assume the risks of a business or
enterprise.
modern code
The language of the digital world,
Figure 2-2 Career Plans for Harry Johnson
which is writing the source code for a
computer program.
Harry Johnson began his working career following graduation from college by
obtaining employment with a small commercial interior design firm. He has an
undergraduate degree from a university accredited by the American Society of Interior
Designers. He is happy that his first professional job is in his major field of interest.
Initial career goal: To become an interior designer. To design, plan, and supervise
commercial/contract design projects.
Long-term career goal (20-plus years): Own or become a partner in a medium- to
large-size commercial/contract interior design firm.
Short-term plans and goals in career establishment stage (3 to 6 years): Gain
work experience in current job; receive employer compliments on quality of work;
obtain continuing education credits for professional growth and development; secure
higher-level design responsibilities, such as lead professional design team; volunteer
for committee responsibilities in local and state professional associations; obtain
substantial increases in income; receive promotions; learn operational aspects and
marketing of the company.
Medium-term plans and goals in professional growth stage (7 to 12 years):
Be promoted to the level of senior designer; consider going to work for another
employer as a senior designer and, if necessary, move to another community;
volunteer for higher-level service in professional associations; obtain a master of fine
arts degree in interior design; become a key assistant to the firm’s general manager.
Longer-term plans and goals in advancement stage (13 to 20 years): Become
general manager of commercial design firm; seek out potential partners and sufficient
financing to either buy out or start up a medium-size design firm.
 Chapter 2 Career Planning 49

as you continue your education, gain work experience, and see how your
friends fare with their jobs and avocations.
Bias Toward—
Mary Johnson, of Huntsville, Alabama, teaches music in middle school, Underestimating
but she is starting to realize that the accompanying small income could
keep her on a tight financial budget forever. This issue might encourage
Incomes
Mary to consider a total career change—perhaps to sales in the music
People tend to underestimate the fair
industry or a related field, where incomes are higher.
value of their labor in the future. This
Assessing yourself and your career plans every few years is important to
suggests that people overvalue the pay of
achieving success in your working life. What do you find satisfying and not
a new job and undervalue the value of fu-
so satisfying? Honest answers will help you, particularly as your interests
ture economic benefits. What to do? Con-
evolve. Your work experiences should hone your abilities and skills. Learn-
sider staying at an employer for a longer
ing new skills on the job is common, and if that is not happening in a job,
time than usual to enjoy the promotions
move on and change employers and perhaps careers.
and higher pay later on in life.

CONCEPT CHECK 2.1

1. What is career planning and why is it important?
2. How do your values and interests impact your life-style trade-offs in career planning?
3. What can be done to enhance your abilities, experiences and education without
working in a job situation?
4. Is the gig economy, freelancing, or entrepreneurship for you? Why or why not?

2.2 FINANCIAL AND LEGAL ASPECTS Learning Objective 2

OF EMPLOYMENT Analyze the financial and legal
aspects of employment.
This section examines financial and legal aspects of employment to consider when ana-
lyzing your career plans.

2.2a Is College Worth the Cost?

Concerns about the value of a college degree are nonsense. While a college graduate may STEM majors
not reach the top 10 percent of income earners in life, one does not stand a chance of Academic majors in science, technol-
getting ahead financially without a degree. College graduates earn twice as much as those ogy, engineering, and mathematics.
with a high school diploma, and their unemployment rate is half the high schoolers.
Choosing the right school and major is important, as is how much, if any student
debt you take on. If possible, you want to graduate debt free. However, 7 in 10 gradu-
ate with college debt.
At College Scoreboard (www.collegescorecard.ed.gov) anyone can
browse and compare colleges on metrics such as net price after financial aid,
common sense
graduation rates and post-college earnings of students who received federal Incomes and
aid. You are able to see how much each school’s graduates earn, how much Education
debt they graduate with, and what percentage of a school’s students can pay
back their loans. Income varies over the life cycle. Higher
While in school avoid a major with a vague credential, appears low in incomes typically go to those with more
knowledge and skills, and results in a crippling amount of debt. Besides the education and/or more specialized educa-
STEM majors (science, technology, engineering, and mathematics), there tion. The U.S. Census Bureau reports that
are numerous academic majors that teach employable skills and also pay young adults (ages 25–34) with a bache-
good salaries upon graduation. lor’s degree earn an average of $47,000.
Education is more than an investment; it is a treasure. It is priceless. This compares to $17,000 for those who
Besides the commercial purpose of learning skills to start a career and earn are high school graduates or have a cer-
a living, a college education aims to help you acquire information and learn tificate of equivalency, $26,000 for those
how to think as well as build an integrated self to live a morally significant life. with some college, and $80,000 for those
College is a place to think, to contemplate, to find out what is valu- with advanced degrees.
able, and question the value of what is made. You should be a reasonably
50 PART 1 Financial Planning

literate citizen of the world who had some intelligent understanding of the
YOUR ­larger-than-local interests.
Going to college does not require $25,000 or $50,000 in debt. It does
GRANDPARENTS not mean you borrow to pay for your rent and food as well as your tuition.
SAY If necessary, attend a less expensive school, live at home, work part-time, go
to school part-time, and ask parents and other relatives for some financial
“Never Stop Learning” assistance. Borrow as little money for tuition as possible. And no matter
what, do not drop out of school before you graduate.
“If you have everything all figured out, Nearly 9 out of 10 graduates say their college expenses have been a
you the college student are already a good investment. The return on investment for a bachelor’s degree is about
loser. Keep learning by staying in school 15 percent a year.
until you finish that degree! You have to
listen and learn, especially in college and 2.2b Place Dollar Values on Employee Benefits
during your first job.” Employee benefits are tremendously important to employees, especially
when comparing those provided by one employer with another. Employee
benefits (or nonsalary benefits) are forms of remuneration provided by
employee benefits employers to employees that result in the employee not having to pay out-of-pocket
Forms of remuneration provided by money for certain expenses. Examples include paid vacations, health care, paid sick
employers to employees that result in leave, child care, tuition reimbursement, and financial planning services.
the employee not having to pay out- To put monetary values on employee benefits, you may (1) place a market value on
of-pocket money for certain expenses; the benefit or (2) calculate the future value of the benefit.
also known as nonsalary benefits.
Place a Market Value on the Benefit If instead of enjoying a certain employee ben-
efit, you had to pay out-of-pocket dollars for it, you can easily determine its market value.
Private child care might cost $500 a week in your community; thus, when child care is
provided free from your employer, that is a whopping $25,000 ($500 3 50 weeks) saved
annually. Actually, it is more because after paying federal and state income taxes and Social

DID YOU KNOW

Do Not Give Up $160,000 When Changing Employers
When changing jobs, nearly half of workers unwisely cash has $50,000 in a 401(k) account and cashes it
out all the money in their employer-sponsored retirement out, that person gives up $160,000 in future
plan. Instead they could roll it over to a new employer’s dollars over the following 20 years earning
401(k) plan, move it to an IRA rollover account, or leave it 6 percent annually.
DO IT IN CLASS
with the old employer (if that is allowed). If an individual

If you cash out $50,000: If you roll over $50,000:

20% required federal income tax withholding –$10,000
5% additional tax (in 25% tax bracket) –$ 2,500
10% required early-withdrawal penalty –$ 5,000
5% state/local income tax –$ 2,500
Total withdrawn –$20,000 $50,000
Money spent on new vehicle, TV, home repair, vacation, etc. –$30,000 Money invested in another tax-
deferred retirement account that
earns 6 percent annually
Total –$50,000 $50,000
Additional investment actions taken   none Money grows for 20 years
Investment balance after 20 years $   0 $160,000
 Chapter 2 Career Planning 51

DID YOU KNOW

Value of Additional Education

Master’s degree
Annual income

College degree

High school
diploma

0 10 20 30 40 50 60 70 80
Years of age

Security and Medicare taxes you would likely have to earn perhaps $40,000 to have $25,000
left over. Another example is an employer-provided paid-for life insurance policy with a face
value of $100,000. It might cost $150 to $400 if you had to buy it yourself.
Calculate the Future Value of the Benefit An employer that provides a
401(k) retirement plan offers a valuable benefit. Hopefully, your employer will offer
a matching contribution as a nudge to get you to do the right thing in preparing for
retirement. Another nudge is to sign up for payroll deduction so you never see the
money.
If an employer provides a match of $3,000 a year to your $3,000 in contributions, all
the money in the account will grow free of income taxes until the funds are withdrawn.
Over 20 years, the annual employee and employer contributions of $6,000 growing at
6 percent annually will be about $240,000 (using Appendix A.3). At 8 percent interest
it grows to over $302,000.
If working full-time does not earn you enough to pay all the bills, there is no excuse not
to have a side job in the gig economy. The options are virtually unlimited. Remember, too,
that this income is not to pad an entertainment budget; it is to fund your retirement plan.

2.2c Know Your Legal Employment Rights

You have legal rights both during the hiring process and after you are hired. When
selecting employees, employers may not discriminate based on age, gender, race, color,
sex, marital/family status, religion, national origin, birthplace, age, and disability (if the
person can perform the essential job tasks). Laws in many states and cities also prohibit
discrimination against gays and lesbians in the hiring process. Once hired, you have
many rights. Employers must do the following:
• Pay the minimum wage established by federal, state, or local laws
• Provide unemployment insurance
• Provide workers’ compensation benefits for job-related injuries or illness
• Pay Social Security taxes to the government, which are then credited to the employ-
ee’s lifetime earnings account maintained by the Social Security Administration
52 PART 1 Financial Planning

RUN THE NUMBERS

Assessing the Benefits of a Second Income part-time job that pays $30,000 annually. The
A second income might add surprisingly little to your total total net amount of the extra $30,000 in-
earnings because of all the costs associated with earning come is a mere $8805, thus adding only $734
it. In this example, a nonworking spouse is considering a ($8,805/12 = $734) a month to total earnings. DO IT IN CLASS

1. Second Income
Annual earnings $30,000
Value of benefits (life insurance) 300
Total 1 $30,300
2. Expenses
Federal income taxes (25% rate 3 $30,000) $ 7,500
State/local income taxes (6% rate 3 $30,000) 1,800
Social Security taxes (7.65% 3 $30,000) 2,295
Transportation and commuting (50 weeks @ $40) 2,000
Child care (9 months after-school only) 3,600
Lunches out (50 weeks, twice a week at $10) 1,000
Work wardrobe (including dry cleaning) 1,200
Other work-related expenses (magazines, dues, gifts) 300
Take-out food for supper (too tired to cook; $100 per month) 1,200
Guilt complex purchases (to make up for time lost with others) 600
Total 2 $21,495
3. Net Value of Second Income
Total of 1 from above $30,300
Subtract total of 2 from above 21,495
Total accurate net amount of second income $ 8,805 or $734 a month

The law requires that hourly employees be paid overtime for extra work hours put in
beyond the standard 40-hour workweek. Salaried employees are not paid overtime, and
the vast majority of college graduates have salaried jobs. In addition, a woman cannot
be forced to go on maternity leave before she wants to do so if she does choose to take
leave. You have the right not to be unfairly discriminated against or harassed and to be
employed in a safe workplace.
You have the right to take leave for personal or family medical problems, pregnancy,
or adoption. You also have the right to privacy in such personal matters. When you leave
an employer, you have the right to continue your health insurance coverage, perhaps for
as long as 18 months (using the provisions in the Consolidated Omnibus Budget Rec-
onciliation Act [COBRA] as discussed in Chapter 11), by paying the premiums yourself.
If you believe you have been wronged, you may assert your legal rights.

CONCEPT CHECK 2.2

1. Is college worth the cost? Why or why not?
2. How does one put a market value on an employee benefit?
3. Give some examples of legal employment rights.
 Chapter 2 Career Planning 53

2.3 Practice EFFECTIVE EMPLOYMENT Learning Objective 3

SEARCH STRATEGIES Practice effective employment search
strategies.
Once you have undertaken some career planning, you will want to start the process
of getting a job in your preferred career field. This is an effort that takes much effort.
A successful job search might require 25 to 40 hours per week of your time. Effective
search strategies follow.

2.3a Assemble an Attention-Getting Résumé

The Internet is a valuable resource for you in all aspects of career planning, including
preparing a résumé. A résumé is a summary record of your education, training, experi- résumé
ence, and other qualifications. It is often submitted with a job application. Your résumé, Summary record of your education,
usually one or two pages in length, should be carefully written and contain zero errors or training, experience, and other
inconsistencies in message, content, and appearance. A survey of top executives reveals qualifications.
that 75 percent will not even consider an applicant whose résumé has one or more typos.
Résumés should be in PDF format so they can be viewed on a variety of mobile devices.
Its primary function is to provide a basis for screening people out of contention for
jobs. When you supply a résumé, you are providing documentation for some kind of
subjective evaluation against unknown criteria. Large employers, recruiters, and local
and national websites screen résumés using an applicant tracking software system, also
known as APS, to screen online résumés.
We live in a world of income inequality based in part on what is known as skill-based
technological change, and if you do not have the skills you better get some. If you do
have the skills, show them off in your résumé. Use nouns and noun phrases, such as
“Microsoft Office” or “Excel” so the scanning process picks them up. A good place to
find keywords is to review 10 employment ads with similar job titles in your field and
see which words are repeatedly mentioned.
A Harvard professor observed that, “The world no longer cares about what you
know; the world only cares about what you can do with what you know.” Thus, you
should focus your résumé on skills and competencies that are most relevant to the posi-
tion you aspire to hold. When it is necessary to technically fulfill a requirement in the
employment process, tailor a special edition of your résumé to fit that special set of cir-
cumstances. (See jobsearch.about.com/od/list/fl/list-of-skills-resume.htm.)
Résumés are usually presented in a chronological format (information in reverse chronological format
order with the most recent first), skills format (aptitudes and qualities), or functional Résumé that provides your informa-
format (career-related experiences). See Figures 2-3, 2-4, and 2-5 for sample resumes. tion in reverse order, with the most
The most common mistake in a résumé is to fill it up with a long list of functions and recent first.
responsibilities that you had in your previous jobs instead of evidencing the specific skills format
accomplishments that made a difference in the companies for which you worked. Résumé that emphasizes your apti-
Colleges have career centers with sample résumés and professional staff who can tudes and qualities.
offer personal advice. You can also find examples of résumés on the Internet. Monster functional format
.com has more than 1 million online résumés, and it’s easy to find résumé templates by
Résumé that emphasizes career-
searching for them online. However, posting your résumé on an Internet site or sending related experiences.
out résumés is not conducting a significant job search. Know too that if your résumé is
posted on the Internet your current employer can view it.
Some high-tech and marketing companies are skipping résumés altogether and hiring
based solely on tweets, the online text-based messaging service of up to 140 characters.
A tweet or two or five over five days may provide the company with everything they need
to know about you and your online personality. But most jobs will still require résumés.

2.3b How to Search for and Target Preferred Employers

A key step in the job search process is to think about both the industries in which you
would prefer employment and which employers might be best for you. If, for example,
you want to work in the health care industry, you must visit the websites of health trade
associations and various health care firms.
54 PART 1 Financial Planning

Figure 2-3 Sample Chronological Résumé

GORDON CATHEY

SCHOOL ADDRESS: HOME ADDRESS:

2824 West Street 3055 Vallejo Street, Apt.12
Ames, IA 50211 Denver, CO 80303
(401) 555-1212 (303) 333-4141
E-mail: [email protected]

CAREER OBJECTIVE Entry-level position as a metallurgical engineer.

EDUCATION Bachelor of Science, Metallurgical Engineering, Iowa State

University, Ames, IA, June 2018.

Associate of Arts, Kishwaukee Community College, Malta,

IL, June 2016.

EXPERIENCE August 2016–May 2018 (academic year, part-time), Iowa

State University, Ames, IA, Research Assistant to Professor
John Binnion on titanium and plastics, conducted research,
DO IT IN CLASS performed statistical analyses, wrote reports, led group
of interns.

Summer 2015 and Summer 2016 (full time), Caterpillar’s

Electro-Motive Diesel, Metallurgical Engineering Department,
Chicago, IL, Internship (paid), tested materials, prepared
reports, participated in team efforts.

September 2014–April 2015, Volunteer, Village Nursing

Home, Denver, CO, updated some resident activities,
organized weekend volunteers.

CAMPUS ACTIVITIES Associate Editor college newspaper, Iowa State Daily;

Vice President, ISU Metallurgical Society; Hispanic Club;
Singer, University Chorale; Tutor for College of Engineering
computer laboratory; Attended two national conferences
of American Society for Metals International.

HONORS Etta Mae Johnson Scholarship; College of Engineering

Academic Scholarship; Most Valuable Member, ISU
Metallurgical Society; Julie Lynn Marshall Scholarship.

SKILLS SAS, Strategic Project Management, Strategic Planning,

SAP Material Management, Systems Troubleshooting.

REFERENCES Available upon request.

DID YOU KNOW

Top Skills Employers Want Most
Most employers want a good cultural fit when hiring. Here 7. Multicultural awareness
is what they are looking for: 8. Cooperative and empathetic
1. Communication skills inside and outside of company 9. High-energy
2. Analytical skills 10. Confidence
3. Computer technological literacy 11. Organize, plan, and prioritize properly
4. Efficiently gather and process information 12. Solve problems and make decisions
5. Flexibility 13. Work well as team player
6. Leadership 14. Can defend opinions
 Chapter 2 Career Planning 55

Figure 2-4 Sample Functional Résumé

Elizabeth Anklin
12144 Southwest 174th Loop
Tupelo, MS 38803
School: (662) 844-5698
Home: (662) 921-1213
[email protected]

CAREER OBJECTIVE
Public relations or communications department with opportunities to contribute and learn.

EDUCATION
Bachelor of Science, University of Georgia, Financial Planning, Housing and Consumer
Economics with a minor in communications, Athens, GA, May 2018; Associate of Arts,
Mississippi Valley Community College, Booneville, MS, August 2016.

CAREER-RELATED EXPERIENCES
Organized breakfast meetings, supervised new members, updated membership records,
led annual auction, created administrative procedures, Chamber of Commerce, Athens,
GA, part-time.
Maintained inventory records, monitored reordering systems, JC Penney Company,
Athens, GA, part-time.
Updated merchandising records, redesigned sales floor layout, Johnson’s Shoes,
Booneville, MS, part-time.
Overseas experience building a school in Botswana, Africa (summer 2014).
Translated Spanish and French to English for Atlanta Translation Services (part-time).

CAMPUS CAREER-RELATED ACTIVITIES

Vice president, Sales and Merchandising Club; Treasurer, Aces Chorale Club; Secretary,
National Honor Society; Secretary, Alpha Kappa Alpha Sorority; Co-coordinator Speaker’s
Committee, Consumer Club; Debate Club; attended Society of Consumer Professionals in
Business (SOCAP) meetings in Atlanta; intramural hockey; campus church choir.

COMPUTER SKILLS
Microsoft Office, Corel WordPerfect Office, Corel Paint Shop Pro X, Adobe Acrobat, Dazzle
Video Creator, QuickBooks Pro, Computer Assisted Design, Macromedia, FrontPage.

HONORS
Hanna Pallagrosi Academic Scholarship; Modu Samega-Janneh Service Award, College of
Family and Consumer Sciences, University of Georgia; Highest Monthly Sales Award,
JC Penney; Employee of the Month (twice), JC Penney.

REFERENCES
Furnished upon request.

Figure 2-5 Sample Skills Résumé

Ji-hoon Hyun
2122 South 141th Street West, Apt. 340
San Antonio, TX 78204
School: (210) 207-5454
Home: (210) 419-1445
[email protected]

CAREER OBJECTIVE:
Professional position in human development with administrative responsibilities.

EDUCATION:
Master of Science, 2018, University of Texas at San Antonio, Human Development, San
Antonio, TX; Bachelor of Science, 2015, University of Texas at San Antonio, Education and
Human Development, San Antonio, TX; Associate of Arts, 2013, San Antonio College, San
Antonio, TX.

CAREER-RELATED LEADERSHIP EXPERIENCES

- Organized and coordinated student session at national Family Relations Conference
- Hosted student session at Texas Family Relations Conference
- Led departmental graduate student study committee
- Treasurer of honor society Kappa Omicron Nu
- Organized speaker series for Kappa Omicron Nu
- Chaired Graduate Student Recruitment committee
- Vice President of Study Body, San Antonio College
- Volunteer coordinator for neighborhood Meals-on-Wheels for adults

CAREER-RELATED WORK EXPERIENCE

- Administered intake procedures at Humanas Family Center
- Updated record-keeping systems for Humanas Family Center
- Planned learning activities for Gonzales Child Center
- Supervised parental security for Gonzales Child Center
- Presented research paper at Texas Family Relations Conference
- Attended two state Texas Family Relations Conferences
- Attended University of Utah summer seminar on human development
- Planned curriculum updates for Alamo Elder Center
- Trained and managed interns at campus family counseling center

CAREER-RELATED COMPUTER SKILLS

Word, Excel, Corel Graphics, Adobe Acrobat, SPSS, SAS, Search Engine Marketing.

HONORS
Henry B. Gonzales Public Service Scholarship, Lane Johnson Memorial Scholarship,
Outstanding Member of Kappa Omicron Nu.
56 PART 1 Financial Planning

Advice from a Seasoned pro

Career Advancement Tips
The essence of career advancement is to build your job-related advice seekers stroke the advisor’s ego as well as gain
knowledge and skills for the future by learning. You do not valuable insights.
want to fall behind your coworkers and those who work for • Awareness. An awareness of accounting, finance, and
other employers, as they may be your future job market com- marketing fundamentals.
petitors. To advance in your career, consider the following:
• Knowledge. A knowledge of technology and computer
• Mentors. Ask someone a level or two higher than your
software, such as customer service metrics.
job rank to serve as your mentor, someone with whom
you can regularly discuss your career progress. A men- • Conferences. Attend meetings and conferences in your
tor is an experienced person, often a senior coworker, field. Become a member of your local professional associ-
who offers friendly career-related advice, guidance, and ation and become active in its leadership.
coaching to a less-experienced person. • College Courses. Take advanced college courses and
• Sponsor. Getting someone to sponsor you is in some complete a graduate degree.
ways even better. A sponsor is a powerfully positioned • Professional Reading. Stay alert to what is happening
champion who “leans in” with you by advocating on in your career field and learning by subscribing to and
their proteges’ behalf and guiding them toward key play- reading professional and other publications.
ers and assignments.
• Current Events. Be up to date on current events and
• Traits. Exhibit passion, self-discipline, confidence, and business and economic news by reviewing websites and
determination in your everyday responsibilities. reading newspapers, news magazines, and business
• Volunteer. Volunteer for new assignments. periodicals.
• Training. Sign up for employer-sponsored seminars and • Nonwork Activities. Be actively involved in something
training and certification opportunities. besides work, such as coaching children’s athletics, play-
• Advice. Those who seek advice are perceived as more ing softball, singing in a choral group, or teaching read-
competent and smarter than those who do not. And ing to illiterate adults.

Dana Wolff
Southeast Technical Institute, Sioux Falls, SD

mentor Learn as much as you can about the health care industry. How broad is the industry?
An experienced person, often a se- What types of companies are at the retail level? At the wholesale level? What kinds of
nior coworker, who offers friendly firms provide services to the industry? Which companies are the largest? Which have the
career-related advice, guidance, fastest growth rates? Which employers have employment facilities in geographic areas
and coaching to a less-experienced that are of interest to you? What are the leading companies? Which are the “employ-
person. ers of choice” that are family friendly or offer especially good benefits? What are the
sponsor employee benefits at different companies?
A powerfully positioned champion Knowing the industry and specific employers of interest to you tells you whom to
who “leans in” with an employee by target for employment in your career path. “Liking” a company can mean receiving
advocating on their proteges’ behalf early notices of job openings and other news.
and guiding them toward key players
and assignments. 2.3c Identify Specific Job Opportunities
The next step is to identify specific job opportunities that fit your skill set and provide
prospects for early advancement in your career. Record your job search progress below
using the Decision-Making Worksheet “Keeping Track of Your Job Search.”
Internet, Career Websites, and Job Boards You can use the Internet to ob-
tain career advice, review job opportunities by industry and company, and conduct
 Chapter 2 Career Planning 57

DECISION MAKING WORKSHEET

Keeping Track of Your Job Search
Below is a list of task areas in worksheet format that you can use to help keep track of your job search progress. Create
more columns to the right so you can input important information, such as dates when you completed each effort.

Date Done Deadline to Do More

1. Identify your values.

2. Decide on economic, psychic, and lifestyle trade-offs.
3. Clarify career-related interests.
4. Assess abilities, experiences, and education.
5. Identify employment trends.
6. Create career goals and plans.
7. Target preferred employers.
8. Analyze your work-style personality.
9. Compare salary and living costs in different cities.
10. Calculate values on employee benefits.
11. Create an expanding list of networking contacts.
12. Obtain excellent letters of reference.
13. Compile revealing personal stories.
14. Assemble a résumé.
15. Prepare a cover letter.
16. Identify job opportunities:
a. Career websites
b. Job boards
c. Career fairs
d. Classified advertisements
e. Employment agencies
17. Interviewing:
a. Research the company.
b. Create responses for anticipated interview questions.
c. Create positive responses to list of negative questions.
d. Evaluate your interview performance.
18. Send thank-you notes.
19. Negotiate for salary.
20. Accept the job.

specialized job searches. You also can review résumés, create your résumé, create a
cover letter, and post your résumé. The Internet allows you to review salary infor- job boards
mation, calculate living costs in different communities, and research career fairs. Just A website devoted to helping em-
about all your search information on the Web can be saved for your future use. ployers find suitable new employees
Use job boards in your search, too. These are websites devoted to helping employ- by providing job listings, job sites, job
ers find suitable new employees by providing job listings, job sites, job search tips, job search tips, job search engines, and
related articles; some allow posting of
search engines, and related articles; some allow posting of résumés. Check out targeted
résumés.
industry sites, such as SalesJobs.com, Indeed.com, or Bridgespan.org. Also search
­Google for “niche job websites” in specific industries. career fairs
University-, community-, and
Career Fairs Career fairs are university-, community-, and employer-sponsored op- employer-sponsored events for job
portunities for job seekers to meet with perhaps dozens or even hundreds of potential seekers to meet with many employers
employers over one or more days. Here you can schedule brief screening interviews with quickly to screen potential employers.
58 PART 1 Financial Planning

a half-dozen or more employers in a single day. Career fairs are advertised

in local newspapers, on television, and on the Internet. Search “career fairs”
Money on the Internet as well as at CareerBuilder.com and National­CareerFairs.
Websites com. There usually are not many jobs at career fairs but participating defi-
nitely will help you practice your interviewing skills.
Classified Advertisements Advertisements in newspapers and
Informative websites are: ­p rofessional publications usually are not ver y important in the job
• CareerBuilder search process. However, big newspapers, such as the Atlanta Journal-­
• DirectEmployers Constitution and Chicago Tribune, adver tise many jobs in large
• FlipDog ­g eographic areas. Others such as The New York Times and The Wall
• JobWeb Street Journal have jobs for the whole country. And the Financial Times
• LinkUp ­describe overseas opportunities.
• Monster
• NationJob Employment Agencies An employment agency is a firm specializ-
• ResumeMachine ing in locating employment positions for certain types of employees, such
• RileyGuide as secretaries, salespeople, engineers, managers, and computer personnel.
• SimplyHired Most employment agencies are paid fees by organizations that hire them
to find new employees. Others charge the job hunter fees, sometimes very
high amounts. Only talk with those firms whose companies pay the fees.
Governments also have state or city employment offices that offer free services. Of-
employment agency ten these are not the best ways to find a good job, although sometimes they are very
Firm that locates employment for cer- successful.
tain types of employees.

2.3d Write an Effective Cover Letter

cover letter A cover letter is a letter of introduction sent to a prospective employer designed to
A letter of introduction sent to a pro- express your interest in obtaining an interview. An effective cover letter helps introduce
spective employer to get an interview. and sell you to the prospective employer. The cover letter should be specifically written
for each position for which you are applying. See Figure 2-6 for an example. Expand
upon a couple of details from your résumé, explaining how your talents and experience

Numbers on
Careers
Data from a variety of sources suggest: • Seventy percent of companies con-
duct face-to-face interviews.
• Four out of 5 jobs created in the USA
are in companies with fewer than 100 • The length of the interview process
employees. typically is 6 days for low-level posi-
tions and a month or longer for senior
• Three-quarters of employers review
positions.
job applicants’ facebook postings
and credit reports during background • Thirty percent of men and women
checks to gain insights. have been at their present jobs for 10
or more years.
• If your salary does not keep up with
inflation (which is what happens with • The median job tenure is 15 months
minimum-wage employment), your for workers aged 20 to 24; it is 3
level of living will decline. years for those aged 25 to 34, far
short of the 4.6-year average for all
• Sixty percent of firms do telephone
workers.
interviews.
 Chapter 2 Career Planning 59

Figure 2-6 Sample Cover Letter

June 23, 2018

Ms. Juanita M. Pena, President

Pena Public Relations Agency, Inc.
4235 International Blvd NW
Philadelphia, PA 15101

Dear Ms. Pena:

We met briefly in Atlanta at last January’s luncheon meeting of the Society of Consumer
Affairs Professionals in Business. My professor at that time, Julia Marlowe, introduced us
and stated that your company was “undoubtedly one of the most successful creative
agencies” in the Philadelphia community.

My work experience in public relations and sales, academic background in consumer

economics and communications, and research about your firm has led me to the
conclusion that I am very interested in seeking employment in your organization. Also, a
former employee of yours, Brittany Allyson, now with Hewitt Advertising, told me that you
were a fine boss and encouraged me to join your fast-growing company.

My abilities to research, organize, communicate, and lead can provide Pena Public
Relations with a person with multiple skills who can adapt to fast-changing needs. My
strengths include fluency in three languages, serious computer and data analysis skills,
technical writing, persuasion, and ease in meeting new people. Attending two colleges
and living in three states has broadened my perspectives as has studying public relations
from the consumer perspective. See my enclosed résumé for more details.

I look forward to the opportunity to meet with you to better communicate my qualifications
and evaluate how they might fit the Pena Public Relations Agency. You may contact me at
(662) 921-1213 or [email protected]. Also, I will telephone you in two weeks.

Sincerely,

Elizabeth Anklin
12144 Southwest 174th Loop
Tupelo, MS 38803

Enclosure

can benefit the employer. Communicate your enthusiasm for the job. When appropri-
ate, mention a networking contact.
Address your cover letter, written on high-quality paper, to a specific person and
request a brief meeting. If the hiring manager’s name is not in the job announcement,
telephone the employer and speak with a receptionist in the correct department. Be
candid about your reason for needing a specific person’s name.
Your letter should try to secure a face-to-face meeting to obtain more informa-
tion and gather impressions. End the letter with a sentence stating that you will be
telephoning or e-mailing in about two weeks to reassert your interest in the posi-
tion. Then, do so! Be sure to use a professional and nondescript e-mail address (like
[email protected] or [email protected]) instead of something like cutelady@cutelady.
com. Your cover letter should include a signature block that provides a link to your
online résumé. DO IT IN CLASS

2.3e Obtain Strong Reference Letters

College students too often simply ask a couple of professors they like to write them a
letter of recommendation. Professors typically give their best judgments in these letters.
This may include identifying some student weaknesses as well as strengths. Students
who ask for a letter from an instructor who does not know them well also risk receiving
a bland, boilerplate, or average kind of reference.
Ask only those professors who know you and your schoolwork well and give them a
copy of your résumé. Approach them with a request similar to “Are you willing to give
me a strong, positive letter of recommendation? I need one that points out my better
qualities and performance here at college.” If the instructor hesitates too long or gives
you some negative feedback, consider asking a different professor for a recommenda-
tion. If your recommenders are willing to give you a separate copy of their letters, you
will have them in your personal files to photocopy for future use.
60 PART 1 Financial Planning

Advice from a Seasoned pro

Common Job Interview Mistakes
1. Not arriving on time or on the right date 7. Inability to discuss your future plans and career goals
2. Failing to dress appropriately 8. Answering a telephone call or text message during the
3. Discourteous interactions with the administrative interview
assistant/office staff of interviewer 9. Having no questions to ask about the company or
4. Poor eye contact, initial greeting and/or handshake the job
4. Not answering the interview questions asked 10. Body language that suggests taking the interview too
casually
5. Little knowledge of the business or the industry
11. Asking for the salary amount in the first interview,
6. Demonstrating little passion or enthusiasm for the job
before a job offer has been made
and/or company

Morgan Bridge and Brian Fraser

Colorado Mesa University, Grand Junction, Colorado

2.3f Formally Apply for the Job

You cannot get a job without applying for it. Personalize your cover letter and résumé to
fit the specific job of interest. Send it to the prospective employer. Many large employ-
ers prefer to receive job inquiries via the Internet, often through their website. If so,
follow the application instructions perfectly. Other employers prefer a written letter and
résumé. It may be smart to do both.
If you have not received a response to a job inquiry within two or three weeks, send
a follow-up inquiry by adding a brief new opening sentence to your cover letter and
send the revised letter with your résumé. When employers express interest in you as a
prospective employee, they may request that you complete their official job application
form. Be totally accurate in your responses.

job interview 2.3g Interview for Success

Formal meeting between employer The interview is the single most important part of your search for employment. A
and potential employee to discuss job job interview is a formal meeting to discuss an individual’s job qualifications and suit-
qualifications and suitability. ability for an employment position. When you are invited for an interview, that begins
an average length of an 6- to 30-day interviewing process from start to fin-
ish. Before starting, get totally prepared.
The interview is a sales event in a traditional environment, so be professional.
NEVER EVER To succeed you should have an up-to-date haircut and wear clothes that are in
fashion. Look the interviewer in the eye and lean forward as this suggests you
are interested. When talking, focus on the company’s needs not yours. Be sure
Go to a Job Interview to mention how you have been keeping up with technology and recent changes
in your field of work. If you are nervous, do not show it because the interview
Unprepared! will doubt your ability. Role play the interview with a friend, mentor, or coach.
If you are not fully prepared for a sched- When you meet someone for the first time, argues Malcolm Gladwell,
uled job interview, you should cancel it author of Blink, “your mind takes about two seconds to jump to a series
because you never will get the job. You of conclusions.” It is not intuition or a snap judgment; it is rapid rational
will waste the interviewer’s time and you thinking. A human resources manager can read you the moment you walk
will be embarrassed about your lack of into the door from your smile, first few sentences, tone of voice, the way
knowledge. Even if you are a lucky per- you walk, the clothes you wear, how you stand, the grip of your handshake,
son, success will not happen. and how you sit. You must present yourself—immediately—as a confident
and energetic professional. Practice your “blink” before every interview, so
 Chapter 2 Career Planning 61

you will be ready for a possible meeting on Skype instead of a traditional face-to-face sit-
uation. If this happens to you, get ready. If interviewing at home, make the background
neat, make sure your face is well lit, eliminate the chance of interruptions, sit still, and
practice beforehand with a friend. And give succinct answers to questions by not going
on too long with your responses. Professional recruiters estimate that perhaps only 20
percent of college seniors adequately prepare for their interviews.
During an interview be sure to exhibit your “display rules” that are embedded in our
culture, employment, and other organizations. These consist of appearing well man-
nered, kind, friendly, helpful, and generally cheerful. It helps if you are simply positive
during the interview.
Rehearse a brief elevator speech, too. This is a short (20 to 40 seconds), persuasive elevator speech
summary of your experiences and skills when networking. Make it sound casual, and This is a short, persuasive summary
run through it until you can say it perfectly. Make it memorable and sincere. of your experiences and skills when
networking.
Five Points to Raise in an Interview Make five key points during your interview:
(1) “Let me tell you about the time that I solved a similar problem” (and then tell a
story),
(2) “I would like to understand that better, please clarify” (demonstrates that you
are thorough and want to be accurate),
(3) “I saw that announcement about your company on a website” (shows off your
genuine interest in the firm),
(4) “Why did you come to work here?” (shows that you are curious about the
company),
(5) “I would love the opportunity to join this company” (implies that you will ac-
cept an offer, if made).
Do Lots of Research Before the Interview Before the interview, research the
company. Try to know more about it than the interviewer. Learn how the company
makes money, its operations and history, profitability, expansion plans, and other recent

DID YOU KNOW

How to Interview Over a Meal
More people lose a job interview over lunch than during the • Don’t salt and pepper your meal before tasting it.
official interview because they fail to realize that going to
• Cut your meat one bite at a time.
lunch is a continuation of the interview rather than a social
situation. Employers want to hire people with some degree • Don’t talk with food in your mouth.
of refinement, people who will mix well with clients and
• Don’t order beer, wine, or liquor.
executives. It is smart to engage in conversation over a meal,
of course, but let the host do most of the talking. Good eti- • Avoid ordering soup or pastas because both can be too
quette tips include the following: messy.
• Order something that is less expensive than what the • Be extremely polite and respectful of the servers.
host has ordered.
• Never complain about a meal.
• Keep your elbows off the table.
• Leave it to your host to signal the server.
• Break (don’t cut) your bread or roll before buttering.
• If confused, be patient and follow the lead of the host.
• Use the bread knife (the small knife to the right of your
• Leave your napkin on your chair when excusing yourself.
plate) to bring the butter to your bread plate.
• When the meal is over, thank the host and state that you
• Use the small fork outermost from the plate for the first
remain interested in the job.
course.
62 PART 1 Financial Planning

developments. Also research the company’s competitors and the industry.

You cannot spend enough hours on this effort!
NEVER EVER Know the major industry trends and news and be able to talk about how
they could affect the company. Know what the company is good at and how
this relates to your skills. Be familiar with the job description.
Find out what it is like to work at the specific company. When you do
1. Neglect to fully research a company
a background check on companies, you might seek out candid posts from
before going for an interview.
current or former employees about salaries, company culture, and lousy
2. Fail to match your interests and pre- bosses. However, be wary about unsubstantiated information. See Career-
ferred work style with the require- Builder (www.careerbuilder.com), Glassdoor (www.glassdoor.com), Jobster
ments of the career. (www. jobster.com), PayScale (www.payscale.com), LinkedIn (www.linkedin
3. Disregard networking by not getting in- .com), and Vault (www.vault.com).
volved in local, state, and national
Prepare Responses for Anticipated Interview Questions Your
career-related professional associations.
responsibilities during the interview are to remain calm, reveal your per-
sonality, be honest, convey your best characteristics, handle questions well,
and communicate your enthusiasm about the job. Always answer in a controlled, polite
manner. During the interview, be confident that you are the best person for the job so
project yourself accordingly.
Job interviewers seem to ask similar questions. You know they are coming so prepare
good, personal responses for the following inquiries:
1. Tell me about yourself.
2. How would your instructors, colleagues, and previous employers describe you?
3. What did you like the most about college, and the least?
4. Tell me what you know about our company.
5. Why are you interested in working for this company?
6. What unique abilities and experiences separate you from others?
7. Describe some of your strengths and weaknesses.
8. What motivates you and how do your motivate others?
9. What experiences have you had working with teams and coordinating such efforts?
10. Give an example of an ethical challenge you faced and tell how you handled it.
11. Relate a time when you were faced with a very difficult problem and how you
handled it.
12. What are your salary requirements?
13. Are you willing to relocate?
14. Describe the supervisors who motivated you to do your best work.
15. What were some of the best and worst aspects of your last job?
16. What do you do in your leisure time?
DO IT IN CLASS 17. Describe your career plans for two and five years from now.
Create Positive Responses to Negative Questions Be prepared to “turn any
negative into a positive” when asked such questions. One popular negative question is,
“What are your weaknesses?” Interviewers who ask this type of question want to deter-
mine whether the applicant possesses certain qualities such as honesty, self-­awareness,
humility, sincerity, zest, and skill in managing shortcomings and mistakes. Denying
weakness or being evasive means you do not get the job.
Practice your interview skills beforehand. Practice your responses, especially to nega-
tive questions. Perhaps make a videotape of a mock interview, and after evaluating your
performance, do it again.
Compile Revealing Personal Stories Assemble some personal stories about
yourself that reveal some of your better characteristics. For a job at a company you
could have five or more interviews in one day, and during the interview process, you are
expected to talk about yourself. Therefore, prepare by writing down some concise sto-
ries or statements, perhaps about the time you took over caregiver duties for your sib-
lings while your mother was hospitalized, or facilitated resolving some internal conflicts
among the officers in your student club, or assisted a high school teacher to coordinate
 Chapter 2 Career Planning 63

and supervise 20 students on a field trip, or worked 14 straight hours at Walmart during
a weather emergency. Show your “grit” in stories, including how you pushed against X
until you won. Tell how you struggled and improved.
Preparing as many as a dozen stories will give you many ways to talk about your pos-
itive qualities without just saying, “I’m good.” Everyone else says that! Communicate
that message about yourself in part by telling stories to illustrate your better qualities.
You need not volunteer information in an interview that might hurt you, but respond
to questions accurately. Misrepresenting facts, making even small distortions, will cast
doubt on everything you said in the interview.
Be certain to ignore phone calls and tweets and do no texting at any time during an
interview visit. Even better, turn off your cellphone. Your entire focus should be on the
interview experience.
Prepare Questions to Ask the Interviewer A key to success in any interview is
to show your enthusiasm and interest in the position and organization. Compliment the
interviewer’s company based on some facts learned in your pre-interview research. Also,
prepare some questions to ask, perhaps about future company plans, company policies,
employee benefits, specific duties, and job expectations. You will want to inquire about
the corporate culture, too. Write down your questions so you will have your thoughts
clear in your mind. Consider the following questions:
• “What qualifications make for an ideal candidate?”
• “What attracted you to this company?”
• “How will the work I’ll be doing contribute to the organization’s mission?”
• “If you hire me, what can I accomplish in the next six months that will make you
glad you did?”
• Toward the end of the interview and after restating your interest in the position,
ask, “What is the next step?”
Personality Tests One-third of employers give job candidates personality tests as-
sessing team orientation, strengths important to a job, emotional intelligence, motiva-
tion, and true work-style inclinations. This is driven by employers growing belief in big
data, which is an evolving term preaching the value of collecting as much information
as possible about practically everything so it can be mined for lessons and used to make
predictions about the future. Personality tests for prospective employees are important
in matching people to jobs, fighting turnover, increasing productivity, and raising cus-
tomer satisfaction.
Popular tests include Gallup’s Strengths Finder, Hogan Personality Inventory,
MyPlan, Pymetrics, MAPP Assessment, and Cattell’s 16 personality factors. When tak-
ing such tests do not try to game the employer by telling them what they want to
hear—the “right” answer. Being honest confirms what the prospective employer already
knows about you.
Be Ready for Telephone Interviews When returning a telephone call or engag-
ing in an interview present yourself in a professional manner. Always have a pen or pen-
cil and paper handy. Be aware of distractions in your surroundings, such as traffic noise.
If necessary, arrange to call the interviewer back when you find a quieter place. Speak
clearly, and eliminate the “uhs” and “umms.” The interviewer will notice if you take a
sip of coffee or a bite out of a bagel.
After the Interview, Evaluate It and Send Thank-You Notes After a job in-
terview, take a few minutes to objectively evaluate your performance. Write down any ques-
tions you were asked that were different from what you expected and make some notes
about ways to improve in your next interview. The more interviews you have, the better
you will be able to present yourself. Also, immediately send thank-you notes expressing your
appreciation for the opportunity to interview and restate your interest in the position. Four
out of five successful job seekers send thank-you notes to everyone they meet.
64 PART 1 Financial Planning

2.3h How to Compare Salary Offers

Comparing salary offers from employers located in different cities can be tricky without
sufficient information on the approximate cost of living in each community. Sometimes
those costs vary drastically. Information from the Internet reveals, for example, that life
in a high-cost city such as Seattle is more expensive than life in a lower-cost city such as
Portland, Oregon. The data are reported in index form, with the “average cost” com-
munity being given a rating of 100. For details on costs in cities around the world see
DO IT IN CLASS www.numbeo.com/cost-of-living/.
The following example demonstrates how to compare salary offers in two cities.
Assume the Seattle (city 1) index is 138, and Portland’s (city 2) is 114. You want to
compare the buying power of a salary offer of $52,000 in Portland with a $65,000 offer
in Seattle. The costs can be compared using Equations (2.1) and (2.2).
index city 2
Salary in city 1 3 5 equivalent salary in city 2
index city 1
(2.1)
114
Seattle salary of $65,000 3 5 $53,695 in buying power in Portland
138
Thus, the $65,000 Seattle salary offer would buy $53,695 of goods and services
in Portland, an amount more than the Portland offer of $52,000. All things being equal
(and they are both nice cities), the Seattle offer is slightly better ($53,695 2 $52,000 5
$1,695), or 3.3 percent more buying power) ($1,695/$52,000).
To compare the buying power of salaries in the other direction, reverse the formula:
index city 1
Salary in city 2 3 5 equivalent salary in city 1
index city 2
(2.2)
138
Portland salary of $52,000 3 5 $62,947 in buying power in Seattle
114
Thus, the $52,000 Portland offer can buy only $62,947 of goods and services in
Seattle—an amount less than the $65,000 Seattle salary offer. All things being equal,
the Seattle offer is still better. For fairer comparisons, add the value of employee benefits
and redo the calculations. Note that nonsalary benefits for college graduates are typi-
cally valued at 25 to 30 percent of the salary.
Compare Salary and Cost of Living You may compare salary figures and the cost
of living in different communities at the following websites:

Turn Bad HabIts Into Good Ones

Do You Do This? Do This Instead!
Avoid getting to know your professors Visit one professor in his/her office on a regular basis
Ignore student professional associations Join and take a leadership role in at least one association
Use an old résumé Update your résumé frequently
Change nothing when writing a cover letter Write a new cover letter for each job application
Plan to move back to your hometown after graduation Explore employment opportunities in some new cities
Focus primarily on gross pay when deciding on a job Factor take-home pay, employee benefits, and cost of
opportunity living into your job decisions
 Chapter 2 Career Planning 65

• CityRating.com (www.cityrating.com/costofliving.asp).
• Cost of Living (www.coli/org/)
• CNNMoney.com (money.cnn.com/calculator/pf/cost-of-living/)
• Moving.com (www.moving.com/real-estate/compare-cities/index.asp)
• Realtor.com (www.homefair.com/real-estate/cost-of-living.asp)
More Money Does Not Buy Happiness Researchers at Harvard and Princeton
found that happiness in the United States peaks at an income of about $75,000. Once
you reach $75,000 the beneficial aspects of more money taper off. More stuff does not
make you happier either. To be happier, shift your spending from buying stuff, like cars,
phones, and other electronics, to experiences, like trips and special evenings out. Focus
on what inspires joy. Buying for others increases happiness, too.
Compare Other Community Resources Here are some resources for other im-
portant aspects of the decision of whether to relocate:
The cost of housing: www.zillow.com
Moving costs: www.citytocitymoving.us DO IT IN CLASS

2.3i Ask for the Job

Most interviews conclude when you are told you can expect to hear from the employer
within X days or weeks. This is the time to ask for the job! Show your enthusiasm for
the job by saying something like, “Based upon my experiences and strong abilities, am I
the appropriate fit for this position?” The interviewer’s response will be revealing.

2.3j Wait and Be Patient

Be comfortable with silence, and wait for a response. If the offer is less than what you
were expecting, explain that point. Be firm but amicable. This will enhance the employ-
er’s respect for you. Tell the employer that you are not willing to start at the bottom
or middle of the salary ladder. Reiterate your two or three strongest selling points. Be
certain to make a short list of these points beforehand. If the employer states that the
offer is final, reply that you need a day or two to think it over. Never turn down an offer
until you are absolutely positive you must do so. Sixty percent accept the salary they are
first offered.

2.3k Negotiate and

Accept the Job
Wait until after the job has been firmly
offered to discuss salary. Do not be
the first to give a definitive dollar
amount. Ask for the salary range for
the position. Your objective in nego-
tiating is to obtain a salary 20 percent
above the highest figure because you
are an exceptional candidate and you
will perform at the highest level antici-
pated. Don’t sell yourself short.
If the terms are right, accept
the job. Give your new employer
your acceptance orally as well as in
Rigucci/Shutterstock.com

writing. Obtain a letter confirming

your acceptance of the job at the
agreed-upon salar y and benefits.
These might include such items as
a sign-on bonus, reimbursement for Seattle has a lot to offer, but it comes at a price.
66 PART 1 Financial Planning

moving expenses, permission to telecommute one day a week, a staggered

There is work schedule that allows you to start and leave earlier in the day, extra
vacation days, assistance in paying for parking, and perhaps a four-day work-
an App week instead of five. It is important to communiate your excitement about
for That! the opportunity to begin working for this company.
Four out of five employers expect job candidates to negotiate. Even if
Some of the best apps are: the job posting states “salary is not negotiable,” do so. Your competitors
will. The worst that can happen is that they will say no. Research shows
• CareerBuilder that earning a lower salary in early years is predictive of low salaries during
• LinkUp the rest of one’s career. So say no to a low salary if you have to. Salary
• LunchMeet ranges for careers can be found at www.careerjournal.com, www.Indeed.
com, www.PayScale.com, www.Salary.com, and www.Glassdoor.com.
• iPQ Career Planner
Focus on both gross and net pay. A gross income of $60,000 shrinks to
• Monster about $40,000 after subtracting federal income, Social Security, and Medi-
• Pocket Resume care taxes. Additional deductions for contributions for medical care, retire-
ment, and flexible benefits may drop the take-home pay to $37,000, or
$3,083 a month. You can then add back the value of employer-paid benefits
such as life insurance, child care and the match in their retirement plan.
How to Say “No” When You Have Multiple Job Offers When interviewing
at multiple companies, it is important to not accept the first offer too quickly. Assume
you are interviewing at companies A, B, and C, and you get an offer from company A.
Say “thank you” and add that you are in discussions with companies B and C (but don’t
say who they really are), and ask company A for time to consider their offers. A week or
two should be sufficient, and company A will likely approve of your suggestion. Then
contact companies B and C and ask about the timing of their decision.
What to Do if You Have Accepted a Job and a Better One is Offered Ask
yourself is the second offer really a great job? Does it meet your financial needs and
offer stability? Can you advance in your career? Also seek advice from a mentor (not a
friend). Then take the job that is better. Realize, too, that the bulk of earnings growth
happens between ages 25 and 35. Thus, do what is best for you!

2.3l How to Move Up at Work

DID YOU KNOW All industries are moving to monthly or even weekly “check-ins” instead of
formal once-a-year reviews. Here employees are encouraged to take more
initiative to talk with managers about how things are going. Push your boss
How to Deal with Rejection toward finding out how you are doing and how you can improve.
To move on in your career “ask” others for what you want. Letting
The job search process is filled with rejec-
someone help you makes you a friend and you gain a strong supporter.
tions. Before you land a job, you might
Your career and life are not things to be wasted away. Believe in yourself,
have 5 or even 100 potential employers
your ideals and your ideas. Ask your supervisor for suggestions for your
say “No!” Don’t let employment rejec-
professional development. Employers often pay for online education
tions strip you of your self-esteem, or you
courses. Always be professional by being loyal to and supportive of your
will begin to falsely think that there is
boss.
something wrong with you. A rejection is
simply an indicator that there is an inade-
quate match between your qualities and 2.3m Getting Paid “Right” in Your Job
the employer’s needs as perceived in the Find out what people in your field earn by talking with others, reviewing
interview. trade publications, and checking online at sites such as glassdoor.com, vault.
After a turndown, when possible, ask com, payscale.com, salary.com, and HotJobs.com. Then get paid what you
the company for a review of the strengths are worth.
and weaknesses of your interview. Make Arrange a meeting with your boss. Beforehand, write down well-defined,
an effort to improve for the next inter- achievable, and measurable goals that you can work toward. Document
view. Then, forget the disappointment your accomplishments in writing and keep records. Throughout the year,
and move on with your job search. perhaps on a quarterly basis, discuss these with your boss. Do so in sit-down
meetings rather than in brief hallway conversations.
 Chapter 2 Career Planning 67

Advice from a Seasoned pro

What to Do When You Lose Your Job
Be kind to yourself. Decide to be emotionally, mentally, Think of yourself as being employed. Your job is to find
and physically healthy. a new job, so set a daily work schedule for yourself and do
it full-time.
Reduce your financial stress. Determine how much
money you have and the level of unemployment benefits Tap into your social network. Let people know that you
you might be able to receive, plus calculate how long you are looking for work, and professionalize your LinkedIn,
can continue to pay your bills in the usual fashion. Facebook, Twitter, Snapchat, and others.
Create a job search plan. For help with unemployment Consider temping. Many firms hire temporary work-
benefits, resumes, handling stress, and creating a job search ers, and as their business increases they often hire temps
plan, see www.CareerOneStop.org/reemployment. full-time.

Holly Hunts
Montana State University, Bozeman, Montana

If money for a raise does come up in a conversation, suggest a range like $4,000 to
$6,000 a year. The range means that you will seem more flexible and cooperative, and
this makes it more difficult for a boss to give you a lousy counteroffer. “Seventy-five
percent” of people who ask for a raise get one, and 40 percent receive the amount they
asked for.
If your company, division, or department is profitable, either get more money today
or get a guarantee that you will have another review/salary discussion in six months,
not a year. If the boss cannot give you all the money you deserve, ask for a bigger
bonus, enhanced health or retirement benefits, a more flexible work schedule, a change
in work hours, permission to occasionally telecommute, or more vacation time.
Believe in yourself and get the money you deserve. If necessary, change employers
but don’t leave a job until you have another one already lined up.

2.3n Periodically Update Your Career Plan

Getting that desired job does not mean that your career planning efforts are over.
Indeed, they have only just started. You know that employers formally evaluate their
employees on a regular basis and you should do the same for your career plan. Keep a
written file at home of tasks you have accomplished quite well because you will need this
kind of information for your next job interview.

CONCEPT CHECK 2.3

1. Offer suggestions on correctly assembling a résumé and what style formats are available.
2. Give examples of how to identify specific job opportunities.
3. Give three suggestions on how to succeed in an interview.
4. Explain how to compare salary and living costs in different cities.
5. Give two career advancement tips.