With Jobs Scarce, Age Becomes an Issue

by Dana Mattioli
Tuesday, May 19, 2009
provided by The Wall Street Journal

Age discrimination in the workplace has long been a concern for the 55-and-older set. In this downturn, however, younger workers may have as much to fear as their more-mature colleagues.

Employees in their 20s and 30s are finding themselves more at risk of a layoff, according to labor lawyers, as employers look to avoid age-discrimination lawsuits by adopting a "last one in, first one out" policy and turn to tenure as a means of conducting layoffs. In some cases, young, childless professionals say they feel they're being targeted in layoffs, while employees who have families to support are given special consideration.

While no age group is exempt from layoffs, younger workers seem to be shouldering a larger percentage of the burden, according to recent Labor Department figures. The unemployment rate for those between the ages of 25 and 34 was 9.6% in April 2009, up from 4.9% a year earlier. For those ages 55 and older, the unemployment rate was 6.2% in April 2009, compared with 3.3% a year earlier.

Wary of Lawsuits

While younger workers tend to earn the lowest salaries, making them the least-expensive workers to retain, companies are becoming wary of laying off older, better-paid workers. In fact, Gerald Maatman, co-chairman of the class-action litigation practice at Seyfarth Shaw LLP, which represents employers, says he has been fielding more inquiries about laying off younger workers than in years past, especially from companies in states like New Jersey and Michigan that have laws to protect workers as young as 18. Age-discrimination lawsuits brought by older workers can cost more than the salary of the worker who was laid off and can hurt the company's reputation, according to Andria Ryan, partner at Atlanta law firm Fisher & Phillips LLP.

"Younger people, in general are a lot less of a risk [for lawsuits] when you do a reduction in force," says Ms. Ryan. While most states protect employees 40 and older from age discrimination, only a handful of jurisdictions extend this protection to employees as young as 18, she says.

"Companies don't like [layoffs by seniority], but [they're] also the easiest to defend," says Gerald Hathaway, co-chairman of the business-restructuring practice group with employment law firm Littler Mendelson. "If you have a bona fide seniority system it's a defense for any type of discrimination," according to the law, he adds.

Seniority in Education

This is particularly true in the education field, where many colleges and schools are taking measures to protect tenured teachers and professors. David Schauer, superintendent of Kyrene Elementary School District No. 28 in Tempe, Ariz., sent layoff notices to 68 teachers in anticipation of budget cuts. The cuts target only first-year continuing teachers, most of whom are in their 20s, says Mr. Schauer. "My worst fear is that really good people will leave teaching," he says.

Nicole Ryan, a 24-year-old sixth-grade math teacher for Fox Lane Middle School, in Bedford, N.Y., received such a layoff notice. The notice was sent out to teachers and staff based on their seniority. So, despite strong performance reviews, budget cuts mean she may not have a job to return to in the fall. "I knew it was coming because, based on seniority, I was lower on the totem pole," she says. "It didn't make it any easier."

The emotional impact of layoffs can affect a manager's decision when it comes to choosing who gets the ax -- and that can also disproportionately affect younger workers. "It takes a tremendous toll on managers," says Mitchell Marks, a professor of organizational change in the College of Business at San Francisco State University. Mr. Marks says when layoff decisions come to a tie breaker, personal and family situations often come into play.

"I've had plenty of managers sit me down and say 'Joe's spouse just got diagnosed with cancer but Jane's spouse is an M.D.,' " says Mr. Marks of the explanations of how a layoff has been decided. The same decision-making process can occur when choosing who gets laid off between a single 20-something employee or, say, a 50-year-old employee with two kids in college.

Svetlana Gelman, 24, worked in the marketing department of a law firm until December when she was laid off. She feels strongly that her age and the fact that she doesn't have a family to support put her at greater risk before the layoff. Ms. Gelman says she was competing head-to-head with another employee with a child, who was hired a few months after Ms. Gelman and often would use her sacrifices as a parent to tout her dedication to the firm.

"The person was very tactical, she would bring the child in, spoke about him all the time and would say things like 'My child is sick but I'm still here,' " says Ms. Gelman.

And as work became more scarce and layoffs loomed, Ms. Gelman says she was let go while her colleague remained, despite the fact that Ms. Gelman earned less and often worked longer hours because of her co-worker's child-care responsibilities.

Staying Safe

Still, there are ways younger workers can go about safeguarding their jobs. High-maintenance attitudes typical of younger workers also make them more prone to the chopping block in a down economy, says Bruce Tulgan, author of "Not Everyone Gets a Trophy." Twentysomething professionals tend to demand flexibility, responsibility and high pay, he says -- all things that aren't going to be well-received in this environment.

"This is a really great time to come in early, stay late, dot your i's and cross your t's," says Mr. Tulgan. He says young employees should volunteer to do grunt work, take advantage of free certifications their companies offer and be compliant, rather than demanding.

Staying Valuable

Ms. Ryan, the attorney, says now is the time to make yourself as invaluable to a company as possible. She recommends cross-training in another department, learning as much as possible about different areas of the company and expressing a willingness to relocate to less desirable locations (something those with families often can't do).

You might also try to align yourself with someone in senior management. This could be in a mentor relationship or as a volunteer on a big project a manager is working on. Although executives are busier these days, they often view being asked to mentor as a compliment, says Mr. Marks. And if it should come to layoff decisions, "It doesn't hurt to have someone in the executive conference room on your side," he says.

Physician, heal thyself

This saying, that dates back to biblical times, means attend to one's own faults, in preference to pointing out the faults of others. The phrase alludes to the readiness and ability of physicians to heal sickness in others while sometimes not being able or willing to heal themselves. This suggests something of 'the cobbler always wears the worst shoes', i.e. cobblers are too poor and busy to attend to their own footwear. It also suggests that physicians, while often being able to help the sick, cannot always do so and, when sick themselves, are no better placed than anyone else.

A pithy saying, a bit dated for these modern times, but spot on with what ills the Staffing Industry.

What the industry sells to business clients is flexibility and access to talent; responsiveness and quality, as well as specialization and depth in any one industry or discipline. With economic times uncertain, the need for flexibility and talent is more acute, a message Staffing Industry companies are quick to point out to customers who have cut back on spending on staffing and talent searches.

Staffing Industry leaders; however, espouse the benefits of industry services staffing firms bring to the economy, while at the same time have cut back or eliminated the use of "in-house" temporary employees and put a freeze on using outside search firms to find them talent specific to their industry segment. Hmm...what is wrong with this picture?

Another proverb says it best...charity begins at home. You should take care of family and people close to you before you worry about helping others. For customers and the industry analysts to have confidence in the industry as a whole, we must set the example to validate what we sell is truly of value to businesses--even in difficult economic times.

As the premier source of top talent to the Staffing and Human Capital Services Industries, I have the pleasure of working with companies who value talent and trust us to be the specialist practice we are to provide talent for sales, recruiting, client services, management and executive positions. We do, however, come across companies that have shut down the use of the very services that they sell.

In my opinion, this is a factor germane to the success or failure of the industry to recover. Be a part of the solution to our fiscal challenges and use Staffing Industry services, benefit from the flexibility and the access to talent that are central to growth and prosperity.

With talent, we can help.

Win Friends and Expand Your Network

by Caroline Levchuck

Do you freeze when someone invites you to a networking event? Do you groan at the mere mention of the word networking?

Networking isn't about artificial settings or immediately asking someone at a professional event for a job. Rather, in the truest sense of the word, networking is about friendship and communication.

Your family, friends, and neighbors, and current and former coworkers are all part of your natural network. So is everyone you stay in contact with and show an interest in.

Reach Out and Touch Everyone

To have a friend, you must be a friend.

And to have a robust natural network filled with friends, you've got to be a thoughtful friend. This means remembering people's birthdays and other important occasions. It means giving kudos for their accomplishments. It means sending thank-you notes for referrals or favors you receive.

It also means staying in regular contact through emails, phone calls, and get-togethers. Each week, set a goal to send one friendly unsolicited email to someone who's in your network (or someone you'd like to be in your network). Also, make at least one personal phone call a week to another individual. Finally, at least once a month, arrange to meet someone in your natural network for lunch, cocktails, or just coffee.

If none of this comes naturally to you, make it a priority by putting each obligation on your to-do list.

You Wanna Be Starting Something

A great way to connect with people and, yes, network, is at an event. But rather than attending yet another formal-but-worthless gathering, get people together informally, and for fun.

Start a weekly poker game. Start a book club with coworkers. Start a cooking club. Start a band.

Have a dinner party or a backyard BBQ. Invite your guests to each bring another friend who's not part of your immediate circle.

Arrange a potluck lunch at the office. Initiate a walking group with coworkers during the day. Spearhead a company outing or fundraiser.

Initiating group activities allows you to network organically while having fun.

Oh the Places You'll Go

Joining is as important as initiating. What are your natural interests? Follow them to expand your natural network.

Do you like to golf? Rather than playing with your usual partner, walk on to a course as a single and play with a threesome. You could make three new friends -- and add three new members to your network.

Have you always been interested in pottery? Or learning sign language? Take a course after work. You'll be with a group of like-minded folks from all walks of life. Odds are at least one or two will wind up members of your network.

Joining a gym, a special interest group, or getting involved with local politics are all great ways to meet new people and make new friends.

Become the Ultimate Connector

One of the best ways to be a good friend and great natural networker is to become a connector.

Rather than focusing on how people in your network and new friends can help you, focus on how you can help them. Keep your ears open when someone says they're looking to break into a certain industry or they're seeking someone with specialized knowledge. Who in your network can help? Who in your network would benefit from such an opportunity?

Becoming the ultimate connector may not bear immediate fruit for you and your professional ambitions. But when you need it, you will have a flourishing network to lend you a hand.

9 Recession-Proof Careers

Despite the economic downturn, these careers are still growing.
By Cathie Gandel and Hilary SterneAdditional reporting by Neena Samuel and Kathryn M. Tyranski

These industries project promise—and jobs—for the future, according to the Bureau of Labor Statistics and the Occupational Information Network database.

1. Education
Math and science teachers will be in demand as the U.S. struggles to compete with other countries in engineering, technology, and medicine. A growing immigrant population means more English-as-a-second-language classes will be needed.

Postsecondary teachers - Median salary: $56,120 Education: bachelor's degree and often a master's or doctorate

Teacher assistants - Median salary: $21,580 Education: some post-secondary education or vocational training

Educational, vocational, and school counselors - Median salary: $49,450 Education: secondary education, associate's, bachelor's, or master's

2. Energy
Some of the jobs in this field are the result of projects started a year or more ago. But the real boost will come from the new administration's commitment to a more efficient national energy system. "Growth of energy consumption around the world will keep this sector strong," says Laurence Shatkin, coauthor of 150 Best Recession-Proof Jobs.

Power plant operators - Median salary: $56,640 Education: vocational training and several years of on-the-job training

Insulation workers - Median salary: $31,280 Education: secondary education and vocational training

Electrical power-line installers and repairers - Median salary: $52,570 Education: vocational training and several years of on-the-job training

3. Environment
Green is getting the green light in a nationwide push to make homes and office buildings more energy-efficient and to develop alternative energy sources (solar, wind, nuclear) as well as fuel cell technology. "Anything involved with wind power, either the design or related products, will be big," says Laurence Stybel.

Environmental scientists - Median salary: $58,380 Education: master's

Environmental engineers - Median salary: $72,350 Education: bachelor's

Hydrologists - Median salary: $68,140 Education: master's

4. Financial Services
Rising from the ashes of a very bad year, financial services have a bright future. Corporate America's wretched excesses mean more government regulation. Workers who are retiring will need advice on how to make their money last. Small businesses may outsource accounting services. As we get to the middle of the recession, there will be a wave of mergers and acquisitions, Stybel predicts. "People with experience in managing the process-corporate attorneys, investment bankers, and accountants-will be in demand."

Financial advisers - Median salary: $67,660 Education: bachelor's

Accountants and auditors - Median salary: $57,060 Education: bachelor's

Sales agents (securities and commodities) - Median salary: $68,430Education: bachelor's

5. Government
More than half a million federal employees will retire by 2016, leaving open positions at agencies from the CIA to AmeriCorps to NASA. There will also be opportunities at the state and local levels. "In addition to police work and homeland security, government inspects and regulates many industries," says Shatkin. "Workers can sometimes capitalize on their experience in an industry by moving into a regulatory job."

Government property inspectors - Median salary: $48,400 Education: vocational training, associate's or bachelor's

Immigration and customs inspectors - Median salary: $59,930 Education: bachelor's

Urban and regional planners - Median salary: $57,970Education: master's

6. Health Care
Health care pops up at the top of just about every list of hot careers. All of us are getting older and living longer, sometimes with chronic health conditions. What's more, health insurance practices may undergo a radical revision during the Obama administration, which has announced plans to address three central issues: coverage, cost, and quality of care. "Health care is a growing industry," says Bettina Seidman, "and not just for health care professionals. There will also be jobs for secretaries, accountants, and administrators."

Registered nurses - Median salary: $60,010Education: associate's or bachelor's

Dental assistants - Median salary: $31,550Education: secondary education, plus a few months to one year of on-the-job training

Medical records and health information technicians - Median salary: $29,290 Education: associate's

7. International Business
Corporations, consulting firms, nonprofits, and even governments are going after global markets. People with international expertise, foreign-language skills, or a willingness to move abroad will be in demand. "The global economy is only going to grow," says John Challenger. "U.S. involvement will expand, short and long term."

Interpreters and translators - Median salary: $37,490 Education: bachelor's

International management analysts - Median salary: $71,150 Education: bachelor's or master's

Market research analysts - Median salary: $60,300 Education: bachelor's or master's

8. Law Enforcment
International terrorism makes daily headlines, and fear of financial insecurity is matched only by concern for our physical safety. "Crime doesn't go down in a recession," says Shatkin. "It may even increase."

Probation officers - Median salary: $44,510 Education: bachelor's

Court reporters - Median salary: $45,330 Education: postsecondary vocational training

Paralegals - Median salary: $44,990Education: associate's degree in paralegal studies

9. Technology
New uses of technology in services and products like electronic health records mean that this sector will continue to be strong. "We have just begun to use the Internet as an entertainment medium in publishing, music, and film," says Peter Weddle.

Computer systems analysts - Median salary: $73,090 Education: bachelor's

Network systems and data communications analysts - Median salary: $64,600 Education: bachelor's

Computer, ATM, and office machine repairers - Median salary: $37,100 Education: high school or vocational training

And We'll Always Be Looking For..."Think of basic human needs, the things we can't do without," says Shatkin. They provide what he calls "little islands" of employment in this economy. For example, he says, we will always need sewage and water treatment. Challenger says the food industry is a core area: "People have to eat, and the global population is increasing."
In a down economy, people don't buy new cars—they repair their old ones. People turn to their clergy for comfort. Funeral directors will always have jobs. And since pets are very much a part of the family, veterinarians and veterinary technicians will continue to be in demand.

Despite Layoffs and Hiring Freezes, The War for Talent is Not Over

According to a renowned study conducted by McKinsey Co., the most important corporate resource will be talent. It's also the resource in shortest supply, most of all in tough economic times. Are you ready to fight for your fair share?

An underlying fact in the American workplace is the shortage of qualified workers available to fill jobs. The principal business challenge of recruiting, retraining and inspiring talent continues, even in a slumping economy - just like in good times - as employees retire, quit, are terminated, find a new job, enroll in school or move away.

With layoffs the remedy for economic ills, it is often mistakenly thought that hiring is linked to economic growth. Statistically; however, economic growth makes up only about 5% of overall hiring actions in the U.S. Turnover is the overwhelming and primary reason for the majority of a company’s need to hire.

When headcount is monitored closely and managers must “made do” with less people, poorer performers are less tolerated and are “performance managed” out. As such, managers look for top performers from outside the company to ensure their teams are able to perform at high levels in challenging times.

At the same time, in a weak economy, top performers seek out opportunities they perceive as recession-proof causing employers to compete against rival employers.

Under a hiring freeze, overall headcount is targeted to remain at an established number. In these circumstances, when an employee leaves, managers still must make “backfill” hires to cover key positions.

After a period of reactionary cutting and freezing, hiring activity will return to a level of normalcy, business as usual. Then, employers will find that that they are lacking talent in a competitive job market—the market for “employed” top performers.

During times like this, employers will be flooded with candidates from which to choose. A nice change…or not? Hiring managers are well advised to proceed with caution as you contemplate hiring from the pool of available “active” candidates—recently available due to layoffs. Likely, these candidates are “first wavers” who in a robust economy “flew under the radar” and now find themselves “redundant” in an economy that requires top talent to produce results. This doesn’t mean all unemployed or job-seeking candidates are bad or mediocre, but for many, it is indeed the fact.

As the numbers of candidates on the market increases it becomes increasingly difficult to “separate the wheat from the chaffe” and choose the people that are of high quality from a group of mixed quality.

Does it make sense then to continue to employ the services of a search firm to find talent for your organization? Consider that a professional executive search firm is in constant contact with candidates and hiring managers across the segments in which they specialize. This “constant contact” is with “passive” candidates who, when facing economic instability, are more likely to entertain a new opportunity if presented by a known, trusted advisor.

The bottom line…great people are hard to find in even the best “employer's market” circumstances, and only great people are a good investment when resources are dear. An investment in a search fee pays dividends when a new employee not only joins your organization, but contributes with the high level of skill, talent and character commonly found with employed, “passive” candidates who “fly under your radar.”

Direct Search Alliance is exclusively a direct recruiting firm, targeting passive candidates (we do not use ads or postings of any kind; we source top talent directly by researching the market and reaching out to working processionals to develop relationships and share connections). We are the Staffing Industry’s best resource, with multidisciplinary depth and breadth across Commercial and Professional segments, to source a top performer for your organization in 2009.

Season's Greetings

To our Client and Candidate Business Partners and Friends, all of us at Direct Search Alliance extend our sincerest best wishes for a happy Holiday Season.

May the New Year bring optimism, innovation, the coming together of talented people, support from colleagues and leadership, aspiration to overcome difficulties, and the power to make the best of trade and industry in the marketplaces we serve.

Teamwork brings everything together.

2009, a time to hope for peace and think green. A time to step it up in the face of adversity. A time to renew the spirit of service and go to work.

Employment Situation

It's official: the U.S. economy is in a recession. The Business Cycle Dating Committee of the National Bureau of Economic Research announced last week that, after six consecutive years of healthy growth, the U.S. economy peaked in December 2007. "The peak marks the end of the expansion that began in November 2001 and the beginning of a recession," the committee stated.

Employment is one of the primary measures NBER uses in tracking the economy, and it noted that U.S. payrolls peaked last December and have declined every month since.

Historically, temporary and contract employment drops precipitously during recessions. In the last recession, for example, staffing employment began to fall several months before the recession actually began. Over the course of a year and a half, the industry lost 29% of its jobs, according to the quarterly ASA staffing employment and sales survey. In year-to-year comparisons of employment data during that period, there were four consecutive quarters of double-digit rates of decline.

So far in this recession, the pattern has been different. Unlike with previous recessions, staffing employment remained relatively unchanged for 10 months. For example, staffing employment declined only 2.5% from the first quarter through the third quarter of this year, according to the ASA employment and sales survey. And the ASA Staffing Index, which measures changes in temporary and contact employment, had been flat for most of the year, until it started showing sustained weekly declines in late September.

The November employment situation report from the U.S. Bureau of Labor Statistics suggests that precipitous declines in employment may now be upon the staffing industry. How long those sharp declines persist will depend in part on how long the recession lasts.

This recession is already longer than the last one. The 2001 recession lasted eight months. The U.S. economy, according to NBER, is currently in the 12th month of contraction. Until now, there had been 10 recessions since World War II, and they lasted an average of 10 months each. The longest recession in that period, in 1981–82, lasted 16 months. Even if this recession becomes the longest since World War II, it is probably more than half over. Many economists predict that the economy will begin to pull out of this downturn by the middle of next year.

Steve Berchem
Staffing Week December 8, 2008
American Staffing Association