Job market supply vs. demand - who has the advantage today?

Remember this graph from an economics class when you were younger?  We all know about how it applies to the basic framework of our economy, but we don't always know how it translates into a job search.  Quite often I hear assumptions from both the candidate and employer side that are based on nothing but pure speculation.  That is a slippery slope for both parties, so I thought I would explore the idea for this week's blog topic.

During the worst stretches of the recession in 2009 and even into 2010 we saw a devastating combination of layoffs/re-organizations and very little interest in growth-oriented or newly created positions.  In other words, there was a lot of subtraction but very little addition.  This created a surplus on the candidate side and gave employers incredible leverage to wait for the "right" candidate.  The supply/demand curve was clearly in favor of the employers for quite some time.  It impacted the way that candidates interviewed and actually led to even more trepidation from employers as candidates were stretching the truth regarding their past experiences and current skill set just to get the job.

Fast forward to today and the curve is bending back in favor of the candidates, but it leads to a few cautions on both sides of the hiring equation.  Here are a few to consider:

Candidates 

Although the market is rebounding, I like to compare it to gas prices recently.  They seem to go up quickly without any explanation, but come back down to a "normal" level more slowly than we all would like to see.  Just because we are seeing more job openings and an increase in salary ranges, don't incorrectly assume that you can begin demanding a 20-25% increase in salary to make a job move.  You have to continue to look at all factors (company culture, employee benefits, career progression) to consider making the move.  This is especially important when in final stages of negotiating an offer.  Yes, you can ask a few questions and possibly seek a higher base salary or a few more days of PTO.  If the answer is "no" that does not mean the employer is not interested in hiring you or that you automatically need to decline.

Employers

Timing is the biggest obstacle we have seen lately on the client or employer side of the equation.  With the market rebounding we are experiencing candidates who have more than one interview going at the same time.  As much as we try to clearly communicate timing of a candidate's search, it remains difficult at times to encourage employers to move more quickly so that they don't lose out on the candidate.  It has happened several times this year already and employers are shocked when it happens to them.  When you meet a candidate that you really like, make a move and make it first.  That will help when it comes to final negotiation, as I outlined above that candidates are not just saying "yes" the minute the offer comes any longer.

The bottom line as the supply/demand curve continues to shift is that the improving economy benefits everyone.  The perfect spot where the two lines on the curve intersect will continue to shift, however, and we all have to be able to adjust to have ultimate success in the hiring process.

Where do you think the curve is at in today's market?  As always, I would be interested in your feedback!

How many career changes will you have by age 50?

I heard recently that the average person will make a job or career change eleven times by the time they reach the age of 50.  If we make the broad assumption that many professionals start their careers after college when they are 22 or 23 years old, that is a job change nearly every 2.5 years.  There are many ways to pick apart this data, but today I simply want to explore one idea - is this a good thing or a bad thing that on average a working professional makes this many job changes by the age of 50?

Let's start with why it may not actually be such a bad thing.  First of all, how many college seniors do you know that are absolutely convinced of the career path they want to take?  I would argue that it is a very low number.  So perhaps this data is skewed because an individual might make 6-7 of those changes very early in their career as they figure out what they want to be when they "grow up".  Then they settle down and after the age of 30 they only have a couple of job changes.

Another reason why it may not be so bad is that an individual might participate in a leadership training program where they spend time in several divisions before finally being pegged to an executive level role.  In the insurance industry for instance you could spend time in underwriting, claims, administration, and much more before finally moving into a higher level management role.  But sitting in each of those chairs early in your career, you will better understand how to manage the overall operation.

Now the downside of frequent job changes is that at first glance your resume may look like you are a job hopper.  That is one of the worst titles you can be labeled with as a job seeker.  You will often be overlooked in the in interview process because it may show a lack of commitment.  If you are a victim of some downsizing or other circumstances that are not performance-related, be sure to list those somehow in the body of a cover letter or even on your resume.  List it as "reason for job change" or something similar.  That gives the reader an opportunity to have an objective glance into why you have made those changes.

Another potential downside/pitfall of frequent job changes is that the individual may have been chasing money, especially earlier in their career.  Some people think that making changes with only money in mind is actually a wise career move.  I believe that it is a terrible idea as it is bound to catch up with you at some point.  I have even spoken with candidates in the past that it backfired so badly that they are now making less money than they were 8-10 years ago.  Be careful what you wish for if you are only chasing dollars.

The bottom line is that regardless of whether you think this is an astounding statistic, you must be prepared for both realities if you find yourself in the middle of the pack on this bell curve.  My professional opinion is that a candidate with fewer job changes and longer average tenure will always trump someone who has had four jobs in the past five years.

Would you agree?

Two unexpected interview tips - napping and procrastination

I bet you are wondering how I am going to tie these two activities into the interview process.  Or perhaps you are wondering if my next blog title will be "How to eat more desserts to lose weight".  But hear me out as this ties into some scientific data that is much more accurate than any hunches I might have that could sound like a late night infomercial.

First, allow me to provide some context.  I was watching a show on National Geographic Channel that provided me the inspiration (and data) to write about this topic.  While they were relating the data to being more productive at work and creating long term wealth, I took some creative freedom to apply it to the interview process instead.  But I think the data would support my ideas as well.

The picture above is actually a popular attraction at larger employers that have employees working long hours.  Usually software or IT related companies.  They have conducted research that the optimal power nap should last about 26 minutes and created exponential amounts of productivity.

I will take even further creative liberty here and not suggest a nap before, during, or after your interview, yet definitely suggest getting plenty of rest during the interview process.  The best example I can give of this is candidates that get back to me one day after taking a personality profile test at 2:00 am on a Saturday morning because they couldn't sleep.  Not surprising at all, they almost always have bad results when that happens.  I could write about dozens of other ways to take care of yourself as you interview, but this is a pretty basic one that often gets overlooked.

The second topic is perhaps more interesting - the idea of procrastination being beneficial.  That word generally has a negative connotation, but if you really think about it procrastinating can have many great side effects if used effectively.  I will also caveat up front that I'm not advocating days and days of procrastination, but rather dividing it up into even hours or down to a few minutes.

One great example can be the idea of sending a thank you note or email.  You may come out of an interview on an emotional high and want to send a message right away to show how interested you are.  I have even had candidates send it directly from their smartphone, thinking that it will be impressive to see something so quickly.  But you're really not being objective, you could have a message filled with grammatical errors, and you may think of something more you want to say later that evening.  Do you really want to have to send another thank you email just to get another point across?

Sometimes taking just a little time to gather your thoughts and maybe even sleep on some ideas can have a great impact.  Plus then you can combine these two ideas into one - procrastinate and send the thank you email the next morning AFTER a good night's rest!