Monday, August 16, 2010

August 2010 Newsletter

Get a Job
I was recently conducting a mid level search for a client and after screening and interviewing several candidates we were prepared to extend a job offer. I conveyed the good news to the applicant that he was the successful candidate and advised him that we were able to meet and even slightly exceed his salary requirements. The candidate responded by saying "Thank you for the offer but I'll need to weigh the loss of my unemployment benefits against your job offer and will let you know. It may be more financially prudent for me to remain unemployed."

I suppose I didn't hide my reaction to his response very effectively because he immediately started to backpedal with comments like "It really is a great offer" and "I really like all of the people I met" but in the end he declined the offer. This isn't the first time I have heard this response from a candidate but it's the first time I heard it from someone at this level. I know of countless folks still looking for work after almost two years and others who have just given up. Yet here was an experienced professional with an offer in hand choosing to stay unemployed. It reaffirmed to me that something is broken.

Let me preface my rant by saying that I believe the spirit behind our state unemployment insurance program is sound. Employers and employees pay into a fund that ultimately provides benefits to unemployed workers. Seems simple, right? Well, the recent economic woes have made it not so simple and in my opinion, the system requires attention. Federal funding has allowed benefits for the unemployed to be extended for almost two years. In addition, the claims administration process is so overwhelmed that it can take as long as six months to receive a determination. A case in point is a recent claim involving an employee who essentially abandoned his job.

After failing to report for work on numerous occasions over a 3 month period the employee elects to stop showing up for duty on three consecutive days. The employer notifies the employee that he no longer has a job and the employee files for unemployment benefits. More than a month goes by and my client never receives a determination on the claim. Several days later we place a call to the state unemployment office only to be told that due to "administrative backlog" it is likely that a determination will not be made until December. Here's the kicker. We were advised that while we're waiting for the backlog to subside, our former employee will receive benefits! In the event he is denied (which in this case was quite likely) the state will require him to return the money. During the conversation I asked the agency worker "If he isn't working and living on unemployment benefits how do you expect to get the money back?" Surprisingly she didn't like my question and abruptly ended the call. However, justice prevailed in the end when my client made a call to the local state representative and the claim was immediately handled and ultimately denied.

I have a real problem with a system that rewards those who choose to have no self -motivation. We hear some economists predict that unemployment is expected to remain at present levels for the next year and the recovery will last through 2011. What incentive is there for the unmotivated to look for work when you can collect three to four hundred dollars a week for two years? How will our economy ever recover if the system allows those collecting unemployment to decline job offers without penalty?

The two events I outlined above make it is clear to me that those in the position of developing and implementing public policy need to view our economic programs with some common sense. Otherwise, only the few highly motivated will be looking for work. So, for those of you who are out there every day networking, interviewing and doing all you can to find a position and make a difference, I applaud you. For those of you content to feed off a system that encourages apathy and lack of initiative, get a job!

While we are waiting for saner heads to prevail in government let us help you navigate through the obstacles in the today's unemployment maze. Please give us a call at 610-287-1162 for a free consultation. We'd be happy to assist.

Thanks for listening and enjoy the rest of the summer.


Phil

Why Married Men Are Less Satisfied (With Their Jobs

According to a 2010 SHRM survey, married men are less satisfied with their jobs than married women primarily as a result of the difficult economic conditions. 45% of married women were more likely to be very satisfied with their current job vs. 39% of married men. The five top aspects of job satisfaction for each group are as follows:

Men

1) Opportunity to use skills and abilities

2) Job security

3) Benefits

4) Compensation

5) Communication between employees

and management

Women

1) Job security

2) The work itself

3) Feeling safe

4) Benefits

5) Relationship with their boss

The good news is the level of satisfaction for both groups is higher than last year indicating a growing confidence among survey participants that things are improving. On a related note, after exhaustive research conducted over many years, my personal survey results indicate that most married men, (including this one) find life to be much more enjoyable when their wife is happy. For those of you who claim to have data that disagrees with that fact, I'd rather not know!

1 comment:

Karen Jett said...

Phil,

Great observations on the unemployment compensation front. It's a great program that helps many people who really need it.

Unfortunately, there are some who are abusing the system. I also know people who would rather stay on unemployment than take a job.

On one blog I advocated decreasing benefits over time. But maybe there should be a clearing house for employers to report people to whom they offer a job that gets turned down. But then this, too, will create more red tape & paperwork...

Karen