Here's an interesting infographic on the crazy way we work.
I'm going to pick out a few of their facts and comment on them.
70% of American workers experience stress-related illnesses.
I can relate to this.
I never knew what a toll stress was taking on my body until I retired. I could literally feel the stress melting away over time. It took about six months for me to fully de-stress after working almost 30 years.
Of course, too much stress is not good for any of us. In this way, our jobs are slowly killing us every day.
33% more heart attacks occur on Monday mornings.
Uh, yeah. Because 1) people hate their jobs and 2) there's a lot of stress there. No surprise here.
In retirement, Monday becomes your favorite day. Why? Because everyone else goes back to work. The stores are quieter, the gym is quieter, the theater is quieter, and so on.
The average commute time is 47 minutes round trip.
That is BRUTAL!
Most people don't factor the physical (more stress!) and monetary (like taking a big pay cut) impact of a long commute.
Think about it this way: 47 minutes per day * 5 days per week * 50 weeks = 11,750 minutes or 196 hours or 8.2 days per year commuting. Ugh.
I never had a commute more than 20 minutes one way and if I had I would have probably hated it completely.
41% of tasks on to-do lists never get completed.
What a shock here...not really.
Most people are so busy getting to the urgent things each day that they don't get to the important things.
There's a reason Covey addressed this in his 7 Habits book.
Interesting stuff all the way around. If you want more, check out the infographic for yourself.
Here's a simple but effective way to earn over $700,000 more during the life of your career:
Start at a higher salary
Money Magazine listed a chart in its May 2016 issue that compared the career earnings of two people. They both got 5% annual raises during their careers. But one started out earning $35k a year while the other started at $40k.
The difference in salary was over $700k throughout their careers.
The person who started at $35k earned $5.0 million during his career while the person starting at $40k earned $5.7 million during hers.
This is why it's a great reason to ask for more money when you're offered a job. A few minutes of negotiation can mean several hundred thousand more dollars to you during your lifetime.
I was looking through an old file of articles the other day and found one from Money Magazine. It was written in September 2014 and asked readers a variety of questions.
The first was "How do you feel about your job?"
Some thoughts:
The next question was about asking for a raise. The results:
My guess is that the people who asked, deserved a raise, thus the high success rate.
The 56% probably knew they really didn't deserve one, so they didn't ask.
Finally, they asked people if they were earning their desired salary. 65% said they weren't.
So...what are these people doing about the situation? Are they trying to grow their careers or simply sitting back and taking poor pay? This would be very interesting to know.
That's my take. What do you think of these findings?
Business Insider lists nine resume killers as follows:
Here's my take on these:
A good list overall. What do you think of it?
Here's a piece from Kiplinger's where they ask a compensation expert what 2017 looks like for pay.
They begin by asking what kind of a raise people can expect in 2017. Her response:
Companies are forecasting 3% increases, similar to years past. But how that budget is spent may vary by person. Employees with the highest possible rating could see increases in the range of 4.5% to 5%, while low performers get an increase between 0.7% and 1%. Bonuses for salaried employees are projected to be 11.6% of pay, on average, with rewards for special projects or onetime achievements set at 5.6%, on average.
I've been saying for years that there's a HUGE difference between earning the average increase and a top-level increase. The difference between 3% raises and 4.5% to 5% raises over the course of a career adds up to an additional several million dollars over the course of a working lifetime. That's why I always stress that people need to grow their careers. It's a key step in becoming wealthy.
Next they ask her what workers can do to improve their standing. In other words, how can they get those top raises? Her response:
A lot of companies are making the process more about feedback than about performance rankings. That means there's a real opportunity to sit down with a manager and make sure there's a mutual understanding: What’s really expected of me, how will I be measured, and how will that impact my pay? The pace of work changes quickly, so ask how your goals are changing. Employees can also ask about more-individual approaches to work: Can I work from home or work alternative hours? A lot of times these programs are not communicated as well as they could be. They might not put dollars into your pocket, but they make life easier.
The key is to develop a systematic way to both over-perform and have your boss know that you over-performed. If you can do this, top raises will be more of a way of life for you and your income will take off, helping you make millions more over your career's lifespan.
Last year Money Magazine ran a feature article called Help! I Want a Career Makeover.
Some of it had a few career tips here and there, but much of the piece was doing a real makeover -- changing hair, make-up, what a person wore, etc. to make them more appealing at their job.
In other words, Money was recognizing that making yourself more attractive is a key part of growing your career. Of course it is.
I've covered this topic several times in the past. Some highlights:
As I said in those posts, you don't have to be the next Brad Pitt or Jennifer Aniston to get ahead. But you do need to take care of the basics that make people more attractive: proper hygiene, dress nicely, groom yourself properly, no crazy hair-dos, piercings, and tattoos, etc.
It's stuff that should come fairly naturally but unfortunately doesn't for many people.
So consider this a public service reminder to check what you do to maximize your attractiveness. Your career (and your wallet) will thank you.
LinkedIn lists the top five signs you should leave your job as follows:
1) You Hate Going to Work
2) You Don't Respect Your Boss or They Don't Respect You
3) You Find Yourself Searching for Jobs Constantly
4) You are Envious When Others Leave
5) You Experience Issues Away from Work
Ha! I've had all of these signs appear throughout my career. Sometimes much worse than others.
My take on these:
1. I have only had a few jobs where I really liked going to work and that was only for periods of time -- not my entire stay at a place. That said, I've only had a few times when I really HATED the job as well.
2. This has happened to me several times, unfortunately. I get a boss who just doesn't get it. It's usually after I've been at a company for some time and a new guy comes in. It hardly ever works out.
3. This was common early on but the second half of my career was pretty stable. I liked what I was doing for the most part and thus never really looked for a job until I had to.
4. I'm not really the envious type. I am happy for those who leave as it means they've found something better.
5. If you can't sleep, can't eat, etc. because of work, then work is out of control. Period. Been there, done that. Glad it's in my past.
So yes, I've experienced most of these. And they sure were signs that I at least needed to reconsider my employment at a given place.
How about you? Have you experienced any of these five?
Here's an interesting post on the benefits of journaling. The part I want to highlight is as follows:
One effective way researchers have found to reinforce learning is through reflective writing. It turns out that regular journaling can be used to train our attention and strengthen neural pathways. As neurologist and teacher Judy Willis explains:
The practice of writing can enhance the brain’s intake, processing, retaining, and retrieving of information… it promotes the brain’s attentive focus…boosts long-term memory, illuminates patterns, gives the brain time for reflection, and when well-guided, is a source of conceptual development and stimulus of the brain’s highest cognition.
Reflective writing has also been shown to improve decision making and critical thinking in a number of medical professions, including physical therapy and nursing. For practitioners, journals proved to be invaluable tools for examining past experiences, evaluating their own actions, and drawing insights for encountering future challenges.
I have a few thoughts on this:
So, those are my thoughts. What's your take on journaling?
Fast Company lists seven steps you need for your next interview. They suggest you practice your interviews in advance and even video tape them. The details:
There’s no better way to practice an interview than actually doing an interview, so get a friend or family member to help you. Provide them with the details you dug up on the company, the job description for your position, your resume, and cover letter. Take the list of tough interview questions from here and provide them to your helper. (Also take a bottle of wine to thank the person—and maybe another if you actually get the job.)
Caroselli recommends you film your mock interview, if possible. (If video isn’t a possibility, record the audio.) "Study your body language to see if it reveals confidence, poise, and enthusiasm," she says.
You should also review your performance with your interviewer. Did they think you had good answers? Did you sound or act nervous? Did you seem arrogant? Get their feedback, and adapt as needed.
While I agree 100% with preparing for an interview in advance, I don't think you need to take it so far as to video tape yourself. You can if you want to, but it seems a bit over the top to me.
I think you'll be fine with:
If you wonder what the most common interview questions are and how to answer them, see these posts:
Fast company lists seven steps you need for your next interview. Here's what they say about preparing your interview answers:
Remember, your goal in the job interview is to show how you can make a positive impact on the company. Your interview answers should reiterate your unique selling points, Bumgarner says.
To practice, review some likely interview questions and make notes about the strengths you can highlight.
"For every answer, you should be able to say, ‘For example,’ and tell a story about a time when you demonstrated the things you are saying you are good at," Bumgarner says. "Never answer in generalities." Specific, real-world examples are what will get you hired.
A few thoughts:
1. Yes, there are steps you can take to ace your interview. If you take those steps, you should do well.
2. You need to develop unique selling points that are important to the employer and the job you'll hold. If your points are worthless for the position, there's no need to highlight them. Find something you can do that the employer needs.
3. Practice, practice, practice. An interview is a test where you know most of the questions in advance. Use that to your advantage.
4. Accomplishments are key as I noted in A Simple Recipe for Job Interview Success. If you don't have any (or don't use them) you probably won't get the job.
US News lists five things college career counselors wish students knew as follows:
1. The career center exists.
2. Counselors know you are new at this.
3. Professional skills take practice to develop.
4. Students must take responsibility for their professional development.
5. Excellent networking can make the greatest difference in jumping ahead professionally after college.
IMO, this is some decent advice, especially #3-5. Here are my thoughts on each:
1. The career process begins with why you pick a particular college. Hopefully it's because that college has proven itself to place graduates in the field you are studying. If not, then you are off to a bad start from the get-go.
2. Not much to say about this. Kind of a throwaway tip to me.
3. Yes! Practice makes perfect! Where it makes the most impact is during interviews, so develop a plan to practice and you will ace your interviews.
4. Of course. Again, this begins at the start. Picking a college is the first step in your 40-50-year career.
5. Networking is a skill that will help out of college and throughout an entire career. It's one of the seven steps anyone needs to take to grow their career.
One extra piece of advice: I'd suggest high school students check out the career centers at colleges they are considering and take into account each center's abilities/successes as part of their college selection decision.
Here's an interesting quote from Forbes:
Data from Wakefield Research for MOO reveals that about 75% of Americans working a traditional 9-5 job are unhappy or unfulfilled in that role — that’s a bit of a blow to our collective happiness, particularly when you realize that a full 90% of people believe a rewarding and fulfilling job is a major factor in overall happiness. Researchers have uncovered deep ties between job satisfaction and feelings of motivation, empowerment and engagement.
Ok, so 3 out of 4 are unhappy or unfulfilled. That's a rough way to spend 40 years of your life.
Is the issue that we just hate working? Is it really that bad that so many dislike work? Or maybe our expectations are much higher than reality and that's why we're unhappy?
I saw a post on Facebook recently that said:
The key to happiness is low expectations.
Lower.
Nope, even lower.
There you go.
:)
Seriously, what's the issue?
My career was 28 years long if you don't count school (I consider school part of my career, but that's another post). Out of all those years I may have had five (at most) where I was unhappy or unfulfilled. I don't know what I would have done if 3/4 of those years were bad! How could I have stood it?
And if people are so unhappy, why don't they do something about it? Move companies. Take a new job. Change careers.
I really don't have any answers but perhaps some of you do. This seems out of control.
Thoughts?
Fox Business shares some data that highlights the value of education. The highlights:
Based on the assumption of a 40-year work history (from age 25 to 64) and using 2011 dollars for its example, the Census Bureau finds that full-time workers' lifetime earnings capacity soars as their education level rises. Non-high school graduates with a ninth through 12th grade education level and high school graduates in its example bring home $936,000 and $1.1 million in earnings over their lifetimes. Individuals with at least some college experience netted an average of $1.6 million, while those with an associate's degree brought home $1.8 million over their lifetime.
The data showed that people graduating with a four-year bachelor's degree earned an average of $2.4 million over their lifetime in 2011 dollars, with people attaining a master's degree bringing home $2.8 million. More specialized degrees, such as a doctoral or professional degree (for example, law or engineering), led to lifetime earnings of $3.5 million and $4.2 million, respectively.
To summarize, average lifetime earnings are:
Several thoughts on this info:
Overall, this data seems to clearly show the value of an education, especially one done right (the lowest costs possible and the highest earnings possible). Anyone think differently or like to support what's above?
Two stories, same result.
Before I retired, we were hiring for a senior management position in our marketing department. After several months looking for the person with the right skills and fit, we had a candidate we liked. He was at the final phases of the interview process. All he had to do was pass a background check and we would have extended him an offer.
Well the background check came back with something. He had been convicted of a minor felony. He had said he had no convictions in his past. To make a long story short, we ended up not hiring him. We didn't pass on him because of the conviction (it was long ago and not that big of a deal), but because he lied to us.
When we told him we weren't hiring him and why, he admitted that he had lied, apologized, and said he understood completely.
More recently my son took a job at our local grocery store. A week after he started, another new hire was let go. The reason: his background check had come back and revealed something he lied about. I don't know if it was the incident itself or the fact that he lied about it (or both!) that got him fired, but I'm sure that lying did not help. (BTW I'm not sure why they hired him and did the background check afterwards.)
Moral of the story: do not lie on your job application.
In fact, do not lie in any part of the job application process. Not on your resume, not in an interview, not ever. It's just not worth it. If you're ever found out (and odds are good you will be), you will likely be toast.
I would go farther and say not to lie at all in anything you do, but I'll leave that advice for your mom to give. :)
It doesn't happen very often, but once in a while a mainstream media article gets personal finance right.
Here's a case in point: this piece from US News that lists the three most important things to include on your resume:
In particular they hit a home run IMO with #2. Here it is:
Numbers. Anyone can add a goal that they accomplished to their resume. But to really reveal impact and show the value you could potentially bring to an organization, you need to quantify your achievements. This simply means including data and metrics whenever possible on your resume. For example, if you spearheaded a project, don't just list the project – describe the impact of the project using numbers. Did you oversee a team of eight people? Did it result in 100 additional sales? Did it increase your department's profits by 50 percent? If you have impressive numbers that can help hiring managers better understand how your successes impacted organizations where you've worked, add them to your resume. If possible, try not to use general terms like "tripled" or "decreased spending" unless you can back them up with solid figures. If there are confidentiality issues with including numbers in your resume, consider adding an overall range to avoid specifics yet still show employers the rough numerical impact you made.
Great, great advice.
I've posted on this same thing in the past. If you're interested in reading more, check out my thoughts on How to Write a Winning Resume.
A resume without accomplishments is useless in many cases.
A resume without quantified accomplishments is not nearly as good as one with them.
And the accomplishments need to be substantial/impressive.
For instance:
Now what if you don't have any accomplishments? You need to get some. Develop a plan for how you can put some points on the board over the next six months and then re-write your resume with those accomplishments added.
Of course a great resume does just one thing (mainly): it gets you an interview.
From there, you need to ace the interview if you want a job offer.
I'll talk more about both of these in future posts. Stay tuned.
Ok, so you probably doubt that I can deliver on my headline. Well doubt no longer. Consider the two steps needed to earn $1.4 million more over your career than those who don't do these things:
1. Get a college degree.
2. Negotiate a higher starting salary.
Let's take these one at a time. Here are some recent findings on the value of a college degree:
A new report from the San Francisco Fed crunched some numbers. The takeaways?
College graduates—those with a four-year degree—earned about 61% more ($20,050) annually than those without a four-year degree in 2011. The premium has averaged around $20,000 for decades.
If we conservatively assume that the annual premium stays around $28,650, which is the premium 20 years after high school graduation for graduates in the 1990s–2000s, and accrues until the Social Security normal retirement age of 67, the college graduate would have made about $830,800 more than the high school graduate.
I'll add some comments on this in a minute. For now, let's skip to the value of negotiating a higher starting salary:
According to the study, which will soon be published in the Journal of Organizational Behavior, the compounding effect of successful salary negotiation can be significant. Assuming an average annual pay increase of five percent, an employee whose starting annual salary was $55,000 rather than $50,000 would earn an additional $600,000+ over the course of a 40-year career.
This latter study even tells how to negotiate:
Five negotiation strategies were examined in the study: Accommodating, Avoiding, Collaborating, Competing and Compromising. Individuals who negotiated by using the Collaborating and Competing strategies—utilizing open discussion of issues and perspectives—showed the best results. In contrast, those who used the Avoiding, Accommodating and Compromising approaches were less successful in negotiating larger salaries.
Now let's do some math. $830,800 for going to college plus $600,000 for negotiating a higher starting salary equals $1,430,800! See, and you doubted me!!!! :)
Ok, so I'm writing this a bit tongue-in-cheek. There are a gazillion "yeah but what about this" issues. The college you go to, how much you pay, what you major in, and on and on.
And these are valid issues that can impact the value of each of the suggestions.
But it's also true that if you do certain things, you will earn more money over the course of your working career. And two of those things (on average) are getting a college degree and negotiating a starting salary.
Maybe not $1.4 million worth, but certainly a substantial amount, right?
What's your take on the issue?
On a recent post, one reader left the following comment:
As an aside, in reference to your comment on the link you posted, I want to thank you for the emphasis on working to raise your salary level. It was largely your writings on the subject that have led me to ask for raises, negotiate my salary upfront, and just generally actively work to grow my career. I'm currently in the process of negotiating a promotion that should result in both a significant salary increase and a significant title change.
These are all things I probably would not have been as aggressive at if I had not read and believed your posts (and I was skeptical at first if the high percentages that you put in there, like 6 or 8% average annual raises, were really possible for any sustained amount of time). I like to think I probably would have figured this out on my own at some point, but at the time I first found your site a few years ago, I hadn't been at my first job overly long, and was just figuring that 3% or 4% raises were going to be the norm for my life.
You helped give me a different perspective, and because of that, I am richer both monetarily and in how fulfilling my career is (and I believe the path I'm on should keep me feeling fulfilled for a long time). Thanks again. I hope you and the site stay online for a long time.
I LOVE hearing testimonies from people who apply my thoughts and benefit from doing so!
I contacted this reader and asked him to tell his story to the FMF audience. He just started his career and has a long way to go, but for someone so young, he has some great advice. Given the headstart he's already built and his great attitude, I think he's destined to grow his career (and his income) significantly in the years and decades to come. Here's his story.
I was somewhat hesitant in writing this, simply because I am still very much at the beginning of my career, and I thought people might look at me and say, “What does this young punk know about anything?” For all I know, they still might, but hopefully there's something useful to somebody that will read this.
I had the somewhat distinct privilege of graduating at the height of the recession back in 2009. I've read several times that this is bound to have a negative impact on my salary now and for years in the future, if previous generations' experiences in graduating during a recession are any indicator of the future.
Perhaps an even more distinct privilege that I've had is that the recession has never affected my ability to earn income. Due to my high performance in one of my classes, one of my professors recommended that I consider applying to a certain company. I sent my professor my resume, didn't hear anything back for a long time, and then found out later that I wasn't far enough along in my studies for them to seriously consider me. But I checked back several months later in 2008, was told to submit my resume again, and this time I easily got selected for a paid internship with an engineering company. At the same time, I was tutoring at the university I attended. The internship paid pretty well, close to the median individual salary if I'd been working full-time, which was pretty exciting for me. The tutoring didn't pay as well, but I mostly did it because I enjoy trying to help others learn new skills, and it was a good way for me to brush up on my own skills.
In 2009, when I graduated, I got a full-time offer which I felt was extremely good considering the economy at the time – it was around 25% higher than the median household salary, so I considered myself very well off. I thought about trying to negotiate on it, but I figured that it was already a generous offer and I might be making a mistake if I didn't just accept it. In retrospect, I probably could have gotten at least a slightly higher offer if I'd tried.
FMF note: I did the exact same thing out of grad school -- took the offer because I thought it was good. I too should have asked for more.
It was shortly after I got my full-time offer, as I got more involved with more projects, that I started to realize that I was a cut above many of my coworkers that had far more years’ experience, and who I'm certain were making far more than I did. This is also the time that I started getting annoyed that I wasn't making more. My first annual raise was 4%, which everyone assured me was a good number, and I was satisfied. My second raise was 5.2%; however, it was higher only because I got a promotion. Despite the fact that my annual review was considerably more positive than the previous year, and I felt much more useful and much more valuable to the company, my merit increase portion of that raise actually dropped 20%, which was frustrating. My next raise was again around 4%, despite much better reviews again.
Around this time was when I started reading several personal finance blogs, most notably FMF and I Will Teach You To Be Rich. Both blogs placed a high emphasis on growing your income. Both seemed to think that it was possible to quickly and consistently get high salary increases. I remember reading one of FMF's articles about the different salary levels you'd attain after 20 or so years of working, assuming certain starting salaries and certain annual raise percentages. I think he had a few different levels of average raises, something like 2%, 4%, 6%, and 8%. When I thought about my raises, and the articles that I'd been reading showing that you were lucky if you were getting any raises at all, I wasn't really sure that it was reasonable trying for anything over 4% or so. After all, I was working for a good company, I was a very high performer, and my raises were going down or staying flat even while I was becoming an ever bigger asset for my company.
FMF note: I moved this article noted above to Wealth Lion, but hope to re-work it and bring it back to FMF soon.
I started sharing concerns about my salary with my management. They agreed that they'd like to pay me more, but they didn't appear to be able to really be able to do a whole lot about it. I assumed that it would get taken care of by getting larger annual raises, but I started realizing eventually that annual raises were ALWAYS going to be capped at a certain amount, because we were a large corporation and there was a lot of effort put into smoothing things out so that no one was getting too big or too small of a raise. If I got more, then someone else was getting less, and there wasn't any way that I was going to get the type of raises I felt I deserved.
After reading a number of different articles on salary negotiation, showing that you're deserving of a raise, how to ask for a raise, etc., I realized I had made a mistake by simply telling my management that I felt like I should be earning more. I had good managers that I trusted, and that liked me, but they didn't have the power to just go and give me a big raise simply because I was starting to feel undervalued. I figured that sometime over the couple years that I raised my concerns with them on occasion, that there would be some change, but there never was. Eventually, at a time when I figured that my stock in the company was a high as it had ever been, when everything was going right for me, I told my manager that I would be formally requesting a salary increase. I put together a presentation detailing how I was delivering value far above my pay level, and made a formal request for a significant salary increase.
This was relatively nerve-wracking for me. I KNEW that I had a good case, that I was providing a lot of value to the company, that I was a top performer, but it was still intimidating going to my management and trying to put a dollar amount to how much more I felt that I was worth. I had to really psych myself up in order to finally make the plunge, but I'm glad that I did.
My department's management quickly approved the increase, but it was eventually denied by HR, which decided that I was actually making about as much as I could make anywhere else in the region. That was obviously not the outcome I was expecting or hoping for, and that was the beginning of the end for me with that company. I updated my resume, being careful to frame my working experience in the context of how I delivered value above and beyond the norm expected for my position. Where possible, I put how much time/money I'd saved, how I'd improved the company's culture, how I'd taken initiative to improve our processes. I assume that I did a good job with the resume, considering that I applied to five companies, none of which knew me from Adam, and four of them responded with interest. I interviewed with two, and eventually got two very good offers, both of which were higher than the amount I would have earned had my company given me the raise that I originally requested. I gave my company the opportunity to counteroffer, which they eventually did, though it was not as high as either of the two other companies. It was very gratifying knowing that whatever choice I decided on, within a couple weeks I would be making a lot more than I was before.
When trying to decide on a company, I decided that this time I was going to negotiate upfront. While on the phone with their hiring director, I noted that I was expecting an offer from another company any hour, that I had already told the other company the offer amount that I already had so I was expecting them to at least match it, and I wanted to see if they could make me a better offer. She responded immediately that they could go as high as $2000/year higher than the original offer. The offer that I got from the second company roughly matched the offer that I had from the first company, but I had already pretty much decided on the first company. I tried one more time with the first company to try and get a better deal, which I wasn't able to, and I eventually agreed with them on their best offer. I'm still somewhat amazed that I got an extra $2000/year for simply asking for a better offer.
FMF note: $2,000 extra for a 2-minute ask. That's a pretty good hourly wage!
I came out of that process believing that I negotiated as well as I could in that circumstance. I might have been able to get a better offer from the second company, and it was actually probably a better deal monetarily due to the better benefits they offered, but I felt that the first company would be a better fit for me. Money isn't everything, after all.
FMF note: I too have accepted less money (though more than I was currently making) to work for one company over another. He's right that money isn't everything.
A little under a year after taking that job (my current job), after a few members of my team had departed for better offers, I felt that I could probably get a better offer somewhere else. Since I enjoy my job, I went to my manager and told him that I figured I could go elsewhere and get a better offer, that I would prefer to stay with our company, but there's only so long that I can pass up potentially better opportunities, particularly when I had already passed up one concrete offer that would have been financially better for me. He assured me that they were going to do what they could to keep me there. I mentioned my experiences with my previous company and that I wasn't going to wait a couple years for things to get better this time, which he agreed was reasonable.
After a few meetings with him, we came up with a plan to get me into a different position that would come with the type of pay raise and other financial incentives that I've been seeking, and a new role/title, potentially with more responsibility (perhaps some type of managerial position). We're still in the process of figuring out what exactly the new position will be, and it will naturally depend on the company's needs and how we're doing, so I don't know exactly what's in store, but we have agreed on a deadline a few months away where we'll either have things all worked out and I'll have a new position with new salary, or I'll be looking for a new job. At this time, I have no reason to believe that things won't work out, and the potential payoff is great enough that I'm willing to chance it.
It's really a powerful change to go from feeling underpaid and undervalued, to feeling like you're in control of your career and it's going how you want it to go. Good luck to everyone else in growing your careers and maximizing your job satisfaction and earning power!
Some final thoughts:
If you want to accomplish something or get noticed at your current job, I would suggest the following:
We've talked about the fact that your career is your most important financial asset. If you really want to grow it (and your income), and you should, networking is a key skill you'll need to develop. But mixing it up with others can be awkward, especially for those of us who aren't great at small talk.
Luckily, I stumbled upon some help. Fox Business lists eight opening lines to network like a pro. Here they are with my comments on each:
“I just tried a slider from the buffet table, and I think I’m going to grab another. Care to join me?”
I hate that this one is first because it sounds cheesy to me. I don't like/use it personally.
“I was just on LinkedIn and saw that we went to the same college.” Or … “I saw on LinkedIn that you also worked with so-and-so!”
Love, love, love this one! Finding something in common (church, running, books, schools, etc.) with someone else goes a looooong way to establishing a good (and easy) connection.
“How long have you been a member of this organization?”
Not bad. I also use "how long have you worked there?" and so forth once I find out a bit more about them.
“I read your book!” Or … “I was really impressed by the speech you gave at an event last year.”
As you might imagine, people love this one. I've used it a time or two and have had it used on me too. It works.
“What do you love about your job?”
This sounds like an interview question to me. Skip.
“I’ve worked here for several months, but I’ve never been to the penthouse floor before. Great views!”
This is the sort of small talk that kills me.
“Are you from [insert locale]?”
Any sort of question about the person, where they work, where they live, etc. is good in my book. People love to talk about themselves.
“Did you see all the wacky stuff they’re giving away at the sponsor tables?”
And he responds, "I'm a sponsor and resent you calling my stuff wacky." Skip.
Personally, I think if you just like people and are curious about them, you'll do fine. Ask all sorts of questions about them (not too personal) and once you hit on a common connection, and then go with it. This generally works with all but the least cooperative partners.
How about you? What do you think of these suggestions? Do you have any of your own?
Here's a piece from the Wall Street Journal about likability being key to career success. Their thoughts:
"Likability" is becoming a bigger factor for success at work as social networks and videoconferencing grow. The impact goes beyond a high-school popularity contest. The ability to come across as likable is shaping how people are sized up and treated by bosses and co-workers.
Likable people are more apt to be hired, get help at work, get useful information from others and have mistakes forgiven. A study of 133 managers last year by researchers at the University of Massachusetts found that if an auditor is likable and gives a well-organized argument, managers tend to comply with his suggestions, even if they disagree and the auditor lacks supporting evidence.
Much of the rest of the article focuses on being likable on video (in the age of growing videoconferencing), which is not the focus of this post, but it's still pretty interesting stuff.
I've written about this issue previously as follows:
Being likable is a HUGE factor in whether or not your career will thrive. And anything that can make your career thrive can potentially earn you a boatload of money over your working career.
So, the question is, how can a person become (more) likable? Google that question and you'll find a gazillion articles with all sorts of tips, but my simple advice is as follows:
Treat people like you want to be treated.
If you do this, you'll be likable and your career will benefit as a result. Trust me. ;)
There's a newsletter that gets passed around our office that recently quoted the following:
According to a CareerBuilder survey, 58% of employers said it's important to send a "thank you" after an interview; 24% said it's very important.
We've discussed this issue a lot in the past. Here are some highlights:
Here are a few thoughts from me in case you've missed them throughout the years:
Those are my thoughts. What's your take on the issue?
A reader wrote the following comment to Money magazine in its April issue:
One of the facts and figures packed into your March issue stood out: the Money Poll item that 14% of people are in their dream career. So 43 out of 50 commuters are going somewhere other than where they would like. Wow. If these people only knew that when you like your job, it isn't really work at all.
I have a few thoughts on this one:
So I'm going to do my own (unofficial) survey. Let me know in the comments if you love, like, or hate your job and what you think about the quote above.
It should be an interesting discussion. :)
Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself.
My wife and I are both 33 and we have two kids (6 and 2). We live in northern New Jersey and have been in the New York metro area our entire lives.
What do you do for a living?
I'm a software engineer, and have been for all of my professional life. My wife has been staying at home to raise our kids but will likely go back to work in advertising once the younger one is in school.
How much do you earn annually?
It fluctuates widely year to year. Over 2009-2012 my W2 has read $153k, $221k, $325k, and $514k in successive years. 2012 was a large year due to selling stock options, however 2013 is on track for about $476k. The successive annual growth is from early RSU grants vesting and continuing to earn new stock.
How does this amount break down (salary, bonuses, etc.)?
The breakdown for 2013 is $200k in base pay, $60k in bonus, and the rest is the vesting of RSUs.
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?
My company matches 50% of whatever I put into my pre-tax 401(k), so I always get an extra $8,750 from them. We don't have stock options, just RSUs which are given out as sign-on incentive and are often given out to high performers with a five year vesting period, as a set of golden handcuffs.
How long have you been working?
I started working right out of college in 2002.
How long have you earned at least six figures?
In 2005 I had my first $100k+ year doing some independent consulting and my wife was making $40k. Since then our family income has always been over $100k (despite me personally dropping to $80k in 2006 for one year).
What have been the key steps you have taken that have allowed you to earn this level of income?
Well, working as a software engineer doesn't hurt. After getting my B.S. in Computer Science I continued on for my M.S. while working my first job, which was paid 100% by my employer at the time. I've only worked at three companies over twelve years. The first transition was a major upgrade in salary but a downgrade in benefits (they didn't even have a 401(k) plan, never mind matching), while the second transition was a salary/bonus bump with significantly better benefits.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
My primary focus has been honing my expertise in my field. At my first two companies I focused on learning as much as I could about software engineering until I felt I couldn't learn anymore from those I worked with so I decided to move on. Where I am now I'm constantly being challenged but also finding opportunities to teach and lead.
What are you doing now to keep your income growing?
I've always felt that performing well at work would get me where I wanted to go. I've reached a reasonably senior position in my company and staying on the top of my game at work should continue to pay dividends.
What are your future career plans?
Short term: continue doing what I'm doing.
Medium term: continue doing what I'm doing, but possibly start managing a team of engineers.
Long term: I've set a net worth number in my head for when "enough is enough" in this industry. It's not that I particularly dislike what I do, but I'm expecting (or maybe hoping) that I'll be able to reach this goal before I'm 40. After I have that socked away in retirement and taxable accounts I plan on using the 4% withdrawal rule (likely less) to use as supplemental income for the family while my wife and I explore other work and life experiences.
Have you been able to turn your income into a decent net worth?
Over the last four years our net cash flow has been increasing, the trailing 12-month average has been up between $200-250k over the last year or so. When I checked last month we just crossed over to $1,028,113.
Why or why not?
Primarily having a very high income along with not spending a lot of it. We don't take lavish vacations or drive fancy cars (we have a somewhat beat-up 2005 car and a newer minivan, both purchased < $30k). In September of last year we'd paid off our mortgage which took a lot of our cash flow for a few years.
What advice do you have for people wanting to grow their incomes?
First, find something you enjoy doing otherwise it's going to burn you out. I probably could have taken a job earlier in my career in finance, but I don't think I would have done well, and the hours would have drained me. Make sure you're always being challenged at your job, either a W2 job or independent gigs. Each challenge brings experiences and learnings that you can add to your tool belt to make you more valuable to your current or future employer.
Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself (age, marital status, kids, where you live, etc.)
I am 43 years old, happily married and have 5 children (elementary to college). My wife has been a stay at home mom since our first child was 18 months old. We live in the Intermountain West.
What do you do for a living?
I’m a financial controller for a $100 million dollar division at a software company.
How much do you earn annually?
$170,000
How does this amount break down (salary, bonuses, etc.)?
My current Salary & Bonus is approximately $150,000. I have also developed a side income of $20,000 per year. The side business is quite flexible with minimal time requirements.
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc.)?
I receive a small amount of 401K match (2% of my salary/bonus)
How long have you been working?
I have been working for 18 years.
How long have you earned at least six figures?
Nine years
What have been the key steps you have taken that have allowed you to earn this level of income?
My income level is a result of three key steps. The first is receiving my Master’s Degree in Accounting. I was completely focused in college and graduated with my Master’s Degree in 3 ½ years without any debt. I chose a degree which would provide a solid income potential without exorbitant tuition expenses. I paid my way through school and had three major incentives to earn a high GPA.
1) The better grades I earned, the more likely I was to continue receiving scholarships. Being married and earning $7 an hour part time required to receive as much tuition assistance as possible.
2) The Master’s program was very competitive and I knew I had to do well in my undergraduate program to get in. Over 95% of MAcc graduates received a job offer from the “Big Four” Public Accounting firms before they graduated.
3) The city I wanted to work in was very competitive.
The second step was landing a job at a “Big Four” accounting firm and working hard for five years. My salary wasn’t extremely high ($30K to start) and I had a few offers after a couple of years that were for much more money but I decided I wanted to have at least five year’s experience at a public accounting firm. Be careful early in your career to make short term decisions. I might have given up $10K in salary for three years, but the extra experience I gained has given me close to $50K per year in salary for the last 10 years.
The experience at the public accounting firm paid off and I received 10-20% annual raises. I waited for not only a higher paying opportunity to come along (50% raise), but also for a job position I would enjoy.
The third step in growing my income was constantly improving processes and recommending changes bringing value to my current company. Although I may get teased at times for being a “bean counter”, I know company leaders value real dollar savings over hypothetical suggestions. Being a trusted financial advisor brought many opportunities to be promoted from within my company.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc.).
Definitely option A – Doing well within my current company and being promoted.
What are you doing now to keep your income growing?
My income from my current position has minimal growth. I’m now at a point where I would need to move and/or travel extensively to be promoted further. I’m very comfortable with my current earnings and the work life balance it affords me and my family.
Over the last several years I have developed a side income which generates approximately $20,000 per year. I’m able to spend a minimal amount of time in this business and the time I need to spend is very flexible (i.e. when I have spare time). I also view this business as a hobby.
The business required having cash up front and knowledge of an inefficient market. I think there are many opportunities to earn a descent side income in hobbies where have expertise. Someone may make $100 on a transaction with you and instead of complaining and whining, figure out how you can earn even more money than they do!
What are your future career plans?
I enjoy coming to work each day and plan to continue working into my 60s. Once my kids are through high school in the next 10 years I will probably be more willing to take a position that would require more traveling. Currently I’m pretty content in my current role. I’m able to work out 3-4 times per week during lunch at our company on-site gym. I’m also able to coach several of my children’s sports teams in the evenings which I really enjoy.
If the stock market does extremely well over the next 10-15 years, I could see myself becoming a high school teacher to wind down my career.
Have you been able to turn your income into a decent net worth?
I believe we have a decent net worth. Our current net worth is $750,000 with $330,000 in 401K and Roth accounts, $80,000 in cash, and $340,000 value of our home less mortgage.
Why or why not?
Up until we were 40, we saved approximately 10% of our income into retirement accounts per year. During that same time we allocated a larger share of our income towards our home (down payment, finishing basement, yard, etc.).
Over the last three years we have saved around 20% per year in retirement. We have allocated a majority of the income from the side business towards retirement savings. With increased savings coupled with a strong market, we have seen substantial increases to our retirement accounts.
We also pay an additional $7K per year in principal payments. We have a low 3% rate on our home but still plan to pay our mortgage off early.
Our original goal was to be Millionaire’s before we turned 50, have $3 million in net worth before 60, and $4 million before retirement. We now feel those goals are reachable sooner and plan to have at least $5 million before we retire.
Obviously our net worth would be higher if we had fewer children and my wife worked outside the home. Our children provide us with so much joy and fulfillment that the alternative is something we never would have considered in the first place. Also, having my wife be a stay at home mom with a larger family makes sense in many areas
What advice do you have for people wanting to grow their incomes?
Study and work hard in school. Remember first impressions at your job are critical. First impressions may take a year to make. Every time you get a new boss, you need to once again focus on making a great impression.
Last but not Least – BALANCE your life! Don’t fly through your career that you neglect your Spouse, Family, and Health. One of my bosses making close to $400K per year had to retire at 60 due to controllable health issues. He passed away two years later. Another boss making close to $500K per year has dealt with stress and depression challenges. I know of too many people focusing primarily on their careers and are now divorced. Obviously money isn’t the driver behind marriage decisions, but divorces can derail financial goals in a hurry.
Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself (age, marital status, kids, where you live, etc.)
Age 39, married over 16 years, 3 kids (age 9, 6, and 3). Live in suburban Seattle.
What do you do for a living?
The official title is "Group Finance Manager", essentially I am mid-level finance manager at a very large software company. I am in a small but rapidly growing and highly strategic group, so I do report directly to the CFO of my organization.
How much do you earn annually?
Around $180,000 per year, can be a bit higher or lower depending on variable compensation components (bonus and stock award) which are based annually on performance.
How does this amount break down (salary, bonuses, etc.)?
$138,000 base salary, bonus can pay up to another 30%, and I have a stock unit "target" of $21,000 per year. Bonus and stock are based on performance. Stock grants vest over five years. So, after five or more years with the company, you do have five stock grants vesting at a time.
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?
Very rich medical benefits. The company used to have zero deductible, zero co-pay for almost all services, with also no employee contribution. The company recently moved to a HSA plan with a very low out-of-pocket max and really small co-pays (to avoid paying the ObamaCare "Cadillac tax"). Still a really good medical plan, just not as good as it was.
The company also provides plenty of other extras, for example, they pay for my gym membership at a world class gym near our corporate campus. 401k match is 50% up to a 6% contribution. There is also an extensive set of other benefits too lengthy to describe.
How long have you been working?
Depends on how you define "working". My first job at the age of 12 was delivering newspapers (that was 1986, 27 years ago). I made about $100 per month. Through college, I worked various jobs on campus and also had a job delivering pizzas to help pay the bills (that was 1992 through 1996). My first job out of college was at the local Boys & Girls Club in my hometown (1996). Eventually, I did take a couple of years out of the work force to get my MBA full-time. But since college, I've been working 15 years.
How long have you earned at least six figures?
Since 2006. So each of the past 7 years.
My job delivering newspapers netted me about $100 per month, which was a lot of money for a 12-year-old. By the time I was 16, I had about $4,000 in the bank, of course, I was not savvy with money and I blew that pretty quickly leading up to and into my college years.
My first job out of college as a youth coordinator at the Boys & Girls Club paid me $5 per hour, above minimum wage of $4.25 at the time. I took a job shortly thereafter as a bank teller making $7 per hour, which I thought was a lot of money at the time. Of course, as a teller I saw others' paychecks all the time, and soon realized in the real world paying my own bills for the first time that it wasn't much money. I moved up in the bank to become a new account rep and a loan processor, and was making about $8.50 after two years, but realized I had topped out in that business unless I had more education, so I went back to school for my MBA.
My first job post-MBA paid $70,000 with an $8,000 signing bonus. That was the first time in my life that I felt like I made a "man's paycheck". Two job hops later, I signed on with my current employer for $105,000 to start (plus a $20,000 signing bonus).
What have been the key steps you have taken that have allowed you to earn this level of income?
The MBA education I received and connections I made there were certainly important. But more than that, it's really about always wanting to end the day a little bit better, a little bit wiser, a little bit more effective than you started the day. If you want to advance in your career and grow your income, you need to always be asking yourself if you are doing this. And if you are not, you need to have a conversation with your manager, business partner, HR rep, or whoever has the power to change that. And if that doesn't yield results, then you need to move on to something else.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
I've actually done a, b, and c at one time or another. Going back for my MBA was an example of c. Since my MBA, I have switched companies twice, so I have also employed b. And I was promoted once with my second company, and twice with my current company, so I've also done a. You never know what life is going to throw at you, and you never know what situation your employer or your organization within your employer will be in. You always have to be willing to do a, b, or c, depending on the circumstance.
What are you doing now to keep your income growing?
Mainly growing in place. My career is my primary source of income, and I am the only earner in my family. So growing my career is a key focus of my life.
What are your future career plans?
I am on the successor list for my boss's current role as division CFO. That is plan A. I have only been in my current role for a little over a year, so I am really trying to grow in this role before I work too much on what plan B is, but I definitely do want to have one.
Have you been able to turn your income into a decent net worth?
My net worth is approximately $650,000. Not as high as I would like it to be.
Why or why not?
The things that have held me back a bit are the debt that I incurred to get my MBA (although it was well worth it), plus the fact that I bought my current house in a high-cost of living area in 2006, very near the peak of the housing bubble. The house cost $489,000. You wouldn't know it if you looked at the house - it's a utilitarian 1800 sq ft, 3 bed, 2 bath split level built in 1975, although the location is fantastic. At the bottom, it probably was worth $350,000. It's probably back to about $450,000 now.
I bought it with an 80/10/10, with the second mortgage being at 8.50% interest. A year ago, I paid that one off, and not long after that I refinanced my first (which was 5.875%) at 3.75% for 30 years. Net/net, my housing cost decreased from roughly $3,000 per month to $2,000 per month - or about $2,200 per month if I want to pay the house off at the same end date as the original mortgage.
I would also say that I stayed at my first post-MBA job too long with a stagnant company and stagnant income. I was being paid below market for my education and skill level but didn't realize it.
What advice do you have for people wanting to grow their incomes?
Find work that you have a passion for. You don't have to "love" what you do, but I feel it is important to have some passion in your work. In the long-term, there is a correlation between being passionate about your work and performing well at it, and there is also a correlation between performing well and being recognized (and paid more) for it. If you're just going through the motions, your employer or your customers or anyone else around you will know it.
In the short-term, get a little better every day. If you're not a little better at the end of the day than at the start of the day most days, go somewhere else.
Avoid lifestyle inflation as much as possible, invest money automatically over time (pay yourself first).
Don't be afraid to take risks, but know the difference between a risk and a gamble.
Here's a piece from the WSJ that gives the secrets of the happiest commuters. I found the following to be the most interesting paragraph:
How to create the perfect commute? Track down a few happy travelers, and they'll tell you it's not just about length. People can enjoy commutes as long as 45 minutes, studies show—and men are less frustrated by long commutes than women. But a happy commute is predictable. It is productive—often enlivened by mobile devices and satellite radio. And it offers clear rewards for the hassle. A person who commutes an hour each way has to make 40% more money to be as satisfied with life as a person who lives near the office, according to research co-authored by Alois Stutzer, an economics professor at the University of Basel in Switzerland.
I'll comment on this in a minute, but for now here are a few more tidbits from the piece that I wanted to share:
Lots of thoughts/comments on this one, so here goes:
Those are my commuting thoughts. What do you have to add?
I do include our house equity and car equity in the net worth calculations.
2012 was a big year for the net worth jump due to a few factors -- my wife and I got married, so we combined financial accounts and started including that in the net worth. We also purchased a house, which appraised for higher than our purchase price so that invisible equity was included in the net worth as well -- since the purchase I have not adjusted the book value of our house, even though sites like Zillow and others have shown it increasing.
Why or why not?
I think a major factor in the growth of my net worth is the fact that I was able to go to college [undergrad and grad] without having to take on student loans. I would highly advise anyone in college, or going to college soon to do everything in their power to avoid student loans -- go after every scholarship, work as much as you can to supplement the needed income and minimize the amount of loans you take out any way possible. I have numerous friends [lawyers, doctors, etc] that earn an extremely high income, but their monthly student loan payments are more than my mortgage.
I think it has been important to invest money in the market each and every month, regardless of the ups and downs. This has been habit forming for me, and I still contribute monthly to this day, regardless of what the overall market is doing. This has helped my net worth accelerate in the past couple of years when the market has rebounded.
Another important contributing factor is our level of spending. We are able to keep our spending in control and have a pretty decent "gap" between net income and expenses. We average around $9,500 net income per month (after taxes, medical insurance, 401k, etc) and we spend on average around $5,500 per month. This gives us around $4,000 per month to save/invest, which greatly enhances the growth of our net worth.
What advice do you have for people wanting to grow their incomes?
I think it may be as simple (or difficult) as you want to make these steps;
1) Find a field of work (or industry) that makes you excited to be a part of
2) Work to become a top performer in your current company - this could likely mean putting in more hours than the standard 40hrs/week
3) If you "top out" at your current company (see comments earlier), look to switch to another company to gain more exposure to the industry. This will give you a trail of experience that you can bring along and hopefully jumpstart your "top performer" status at the new company
4) Get comfortable interacting with upper level management -- these are the people that ultimately decide your pay/bonuses/promotions/career paths
I check FMF frequently, so feel free to post questions and I'll do my best to answer them!
Here's the latest in my series of six figure interviews, discussions with everyday people who are making at least $100,000 a year. If you'd like to contribute to this series, drop me an email.
Today's interview is with one of my millionaire interviewees, a man who earned $320k last year from his career, and was actually done a few months ago (even before I announced the series). As such, this won't be as complete of an "interview" as what I hope the rest of the series will be, but it should get us off to a decent start.
For this one, I asked the interviewee to send me his thoughts/tips on how he's grown his career, and here's what he said:
It started very early, back in my college days. I did more than try to be a student getting a degree, I tried to take on meaningful jobs that could expand my skill base and make me more attractive to employers, while of course making money to pay for my schooling and life.
I went to a large public university. As soon as I was eligible, the summer after my first year, I became a Resident Assistant (RA). Strongly recommend this job. You have to deal with all sorts of diversity of folks. It helped me with my housing and some food. During one semester I did an internship at company to get real world experience, this really put me in high gear in school since I learned how easy we had it in school since it was just a few hours of class/studying a week. I started to get more focused on my career. I was an RA every semester I was in school until I was able to become a Hall Director (over an entire dormitory, not just a floor as with the RA role), this was a year before becoming a grad student which is the typical requirement. Again, the skills learned were very marketable. Having a staff and responsibility over 500+ students, etc... In parallel I got an assistantship at my university as part of my Master's degree. This helped give approx 14K annually and paid for 9 credits of grad school, a big deal for me back them. Lastly I took with a company that managed all the campus telephone company. This was hourly and I was the manager, so I was able to set flexible hours and my experience in the school helped make this possible.
Oh, I got two master's in parallel while doing all the above. This is not to brag, it is to make a point, by the time I got into the interview process with companies, I was a very serious candidate and had a lot to talk about, not just the "clubs", "Fraternity activities", etc. that I was a member of.
Once I finally got into my company, still same company over 12 years. I just committed myself. First in and last out. Not just to show my face though or be in the water cooler, I took every training opportunity they offered, I looked for exposure to new skills and learning. I really learned the basics from the ground up. It was a meaningful commitment to build a strong foundation in this company. The field and the company culture were my coursework for the next 18 months. This translated into multiple promotional opportunities.
I was given a few opportunities that made all the difference in the world. First they asked me to go to one country for a few years and live, which I did, then years later I got another opportunity to be an expat in another country. For the first opportunity, I was not the best qualified for it, but I was hungry and willing to do it. So many folks refused the opportunity, they stayed behind and many of them were demoted since times in the US were tough, especially in our field, while I was promoted many times, since I was able to get more exposure and opportunity in growing environment.
I always focus on (1) having the right boss. I would not take a job just for promotion or title, I focus on Boss. I have seen good guys get derailed by bad leadership and support. (2) Driving results, especially results in the eyes of the right boss. I believe my success has come from being able to understand the results required and being passionate about consistently delivering them regardless of the obstacles. Don't overcommit and under deliver. Properly commit and make it happen, beating when able...
Years later, I am still working very hard, but I believe the foundation I build during my early years set the basis for much of the core of knowledge I am using years later and the perception folks have of me... It was a great investment of time and energy.
By the way, I am not naive or big headed, I FULLY believe that LUCK played a big toll. Since my company happens to have done well over my career, had I ended up in another company I may have not had the opportunity to grow my career as well.
One final thing that jumps out that I should add, I was never shy. I would give results, but I would also share, when appropriate what results I was looking for when needed. I built good relationships with my bosses, since I invested time to be associated with the "right bosses", so over my career I have made it clear why I should be getting an incentive or promotion, even if they did not ask first, just to ensure they were not forgetting... I always did this linked to high performance/ result times. Good to link the two, here are great results, just got you bonus boss and helped company really kick butt here, don't forget me on bonus time or that next step we talked about before... something like that...
Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.
My questions are in bold italics and their responses follow in black.
Let's get started...
Tell us a bit about yourself.
I am 35 (spouse 41), with no children, and we live in a high COL state in New England.
What do you do for a living?
I work in the insurance industry as a statistician/business analyst/predictive modeler. This is a slight shift from my previous position as more of a reporting analyst/SQL programmer/database developer, which also paid well. The data management skills are very compatible with the stats skillset. It helps to be able to pull your own data without having to rely on others. I am an individual contributor with no direct reports.
How much do you earn annually?
I earn about $125k annually, not including stock bonuses.
How does this amount break down (salary, bonuses, etc.)?
About $105k is base salary, with another $20k average as cash bonus (this is only because I have consistently been ranked as a high performer - employees with a lower performance ranking get lower bonuses or no bonus at all), and sometimes extra stock on top of that as a long-term incentive bonus. The stock vests on a 5 year schedule (50% in year 3, 25% in year 4, 25% in year 5). My stock will start vesting in 2014, and the first chunk will be worth about $15k (assuming the market doesn't crash).
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?
I get a 401k match of 4.5% on my first 6% of contributions. I also get tuition reimbursement from my employer (up to 8k/year for grad school), which I took advantage of to get a master's degree in statistics. This was not fun, but since I finished school I have received a raise from my company since statisticians are hard to recruit and retain (low supply/high demand field), and analytics is a trendy area to be in right now.
How long have you been working?
I finished undergrad and started working at the age of 22, but then I took a break from a dead-end job in my mid-twenties to go to grad school full time (for my first master's degree, in a non-lucrative field). I accidentally got into my current career while working as a graduate assistant when I volunteered to learn database development (MS Access). So I would say I've been working about 11 years now, but all of the years in my twenties were low-earning years.
How long have you earned at least six figures?
Just for the past 2-3 years.
I didn't start earning six figures until my early thirties. Until my thirties, my income stagnated as I worked for non-profits, universities, and smaller companies. I experienced one pay freeze after another in a generally bad economy post 9-11. In my current field, it took me about 5 years to get up to this level, but that doesn't count the years prior to that when I was floundering career-wise with no focus.
What have been the key steps you have taken that have allowed you to earn this level of income?
When I graduated with my first master's degree, I was at a fork in the road where I had two very different career paths ahead of me, and I chose the more lucrative field. I was getting better job offers and more consistent employment related to database development, so I took advantage of those offers. If I had any down time on my job, I used it to read tech manuals, get certifications, take classes, and generally develop skills that would make me more marketable. I also left a job at a smaller company during the middle of the recession in exchange for a job with a $20k salary increase at a Fortune 500 company (I negotiated them up $5k from their original offer).
Around this time I also decided to start paying attention to my finances and began reading personal finance blogs like FMF which emphasized growing your career. I applied some of this advice and focused on consistently being rated as a high-performing employee, and was rewarded with healthy salary increases and bonuses each year. I began being recruited by other companies and would network with recruiters so I could keep track of what I was worth on the market. When I found I was still being paid below market, I looked around for other offers and nearly accepted a position with another company, but because I was a high performer and my company wanted to keep me around, they agreed that I was being underpaid and gave me a mid-year salary adjustment.
I decided I had found the career that I wanted to stick with and that I wanted my education to align more closely with that career, so I went to grad school again (this time part time and paid for by my employer). I picked a complementary field in a slightly different area (statistics) because I could see that the company was starting to make a big investment in its analytics department and sensed that there was opportunity for me there. This decision to go through graduate school again was difficult, but it has already paid off.
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
I would say I have done a combination of each at one time or another. I did entirely change my career path first, and then I did some job hopping before I settled on my current company. I've been at this company for almost 5 years now (in two different roles), but although I have received substantial salary increases, awards, and recognition for performance, I have not yet been promoted. I have had some offers to interview for management positions on various teams, but I don't think I've found the right opportunity yet. I may need to look at external opportunities soon if I want to move to the next level. Staying with the same company has its advantages, though -- if I stay, I will have stock vesting over the next 6 years, for example.
What are you doing now to keep your income growing?
I am continuing to set professional development goals each year. These include attending and presenting at one or two conferences each year in my field. I find that this helps me keep learning, impresses my employer, allows me to grow my network, and it doesn't hurt to practice my public speaking skills. I just finished grad school, so I will have to figure out what to do next to upgrade my skills. I usually brainstorm every year and come up with a list - some ideas on my current list are to learn Python or to study for some of the actuarial exams. I also recently started a blog related to my career field which serves as an online resume; this had been one of the items on my list for some time.
What are your future career plans?
The next logical step would be to try to get a promotion. I'm not sure if I want a position with direct reports, but it is still possible to move up another level as an individual contributor.
Have you been able to turn your income into a decent net worth (what is your net worth)?
I feel like I am about 6 years behind on this, but as with anything else, once you actually have a plan and are paying attention, you can start making good progress in a relatively short amount of time. We have no debt other than the mortgage and a combined net worth of about $620k, to which I have contributed about $220k (starting from a negative net worth when I first started tracking it back in 2010). We started out with student loans and car loans, which we have paid off. Now that we are finally moving in the right direction, we are trying to save at least 50% of our income to catch up to where we should be. We have a target of $1MM in net worth within the next 2-3 years, which I feel is attainable if we can stay on our current path.
What advice do you have for people wanting to grow their incomes?
Follow the advice on this blog.
Negotiate your salary. Know what you are worth on the market and apply that knowledge.
Change jobs if necessary, and career paths. Try to get into a field where you are in demand -- this makes such a huge difference. It is amazing to me that most of my income growth took place starting in 2008 and continued throughout the recession. In fact, my income tripled during the recession; this would never have happened if I hadn't changed career paths and jobs.
Invest in yourself. Have clear professional development goals (and income targets). You don't have to do everything on your list, but try to make some progress toward these goals every year and continually re-evaluate them.
For the vast majority of Americans, their careers are their most valuable financial asset. Don't believe me? Consider the following:
Unless you have very low earnings, your career is a multi-million dollar asset.
Also consider that your career:
In the light of these thoughts, do you have any financial asset that's worth more than your career? Not unless you inherited a fortune or business or have saved over decades (which was enabled by your career). For the vast majority of us, our careers are our largest financial assets.
That's the good news. The even better news is that you can take steps to significantly increase the value of your career. And believe me, even small increases on big numbers like these can add up!
If you don't believe me, just look at how real-life millionaires have used their careers to become wealthy.
Stay tuned...
Update: After I posted this, I wanted to add one more comment since I was just working on something this weekend. If you're wondering how to grow your income, you'll LOVE my six figure interviews series. It provides stories from real people who have taken steps to dramatically grow their incomes. The first post in the series will be up in a couple weeks.
After announcing the retiree interviews, I'm going to keep the ball rolling and launch yet another real-life finance interview series.
This one will be caller "Six Figure Interviews". It will feature readers who have grown their careers (and we all know what I think about this subject) to the point where they are earning at least $100,000 a year. We'll discover how they got to where they did, what they learned, what advice they have for us, and so forth. I think it will be really interesting. (BTW, if you have specific questions you'd like me to ask them, leave your thoughts in the comments below.)
If you make at least six figures, I'd love to hear from you. As with the other series I run, I will keep you completely anonymous, so there's no worries there. This is a great opportunity for you to impart your wisdom to the rest of us, and we'd certainly appreciate hearing your story. Please drop me a note.
The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. It's the last one I will be running in this series.
Many people forget the post-interview work that needs to be done during a job search. They assume the interview happens, they either get the job or don't get it, and it's over. But in many cases, the interview is not the end and specific and strategic follow-up can make the difference in getting hired. This excerpt covers the post-interview actions we need to consider to maximize our chances of getting a job offer.
The weakest part of the job search process is the deplorable state of follow-up. It’s so much more than thank you notes, but those aren’t even being sent. Job seekers, thank you and follow-up communications are not optional; they are required.
Here are the benefits of great follow-up, all of which can put you ahead of another candidate:
1. Shows persistence.
2. Allows you to expand, reinforce, or clarify something discussed in the interview.
3. Good manners are always valued.
4. Prevents them from forgetting about you.
5. Reinforces that you want the job.
Here are the downsides of NOT following up:
If you mastered Chapter 17, then your follow-up began in the interview when you asked, “What is the next step?” or, “When do you plan to make a decision?” With that knowledge, you can time your follow-up post-interview.
Solution
World-class follow-up looks like:
Sample flow of a thank you note:
Sample ideas of follow-up after the thank you note:
Tricks
1 Always appear gracious, positive, patient, and interested. Speak in a very respectful manner if you’re leaving a voicemail message, acknowledging that “I know you are very busy, but I wanted to follow up on the email I sent you and that I’m still very interested in the position.”
2 When following up with an email, always attach the prior email you are referring to. If there was an attachment to the prior email, reattach it, as appropriate.
3 Match the communication medium the interviewer has been using, i.e. returning emails with emails, phone calls with phone calls.
Mistakes
Mistake #1: Scathing follow up emails from job seekers who think they’re out of the running.
Mistake #2: Rudeness or impatience. If the hiring manager gave you a specific date or timeframe, give them some room. Hiring processes take time and you don’t want to seem overly anxious.
Mistake #3: One-line emails: “Can you call me back?”
Mistake #4: Group thank you notes—implies a little laziness and is not personal.
Mistake #5: In a personal thank you note, your copy and paste didn’t work so it was addressed “Dear Sally” and at the end it said “Thank you, again, Bob.”
Mistake #6: Misspellings, grammar, punctuation errors. This is another writing sample for the employer!
Mistake #7: Gimmicks. Do not send flowers, a gift, nothing.
Mistake #8: Do not have a friend “swing by” the hiring manager’s office and ask, “How is Bob doing for your position hiring. Isn’t he great?”
Excuses
Excuse #1: “I knocked the interview out of the park, so no need to send anything since I’ll get the job.” Well, aside from being too confident (cocky), which could have hurt you in the interview, there is no excuse for not being polite. And what if you were good in the interview, but not great, and the next candidate did send a compelling note?
Excuse #2: “I don’t have their email address.” Lesson learned. Ask for all email addresses while you are interviewing. However, if you forgot, contact the recruiter, HR manager, or anybody who might be able to give it to you. Simply say, “I would like to send them a thank you note,” so your intention is clear.
Excuse #3: “Thank you notes seem so phony. I’m not the thank you note type.” First, they should be sincere. Sheer appreciation for their time and for considering you as a candidate should be reason enough to take 5 minutes to review your notes from that meeting and craft a thank you note. Second, if you are not the “thank you note type,” then learn to be one now!
Excuse #4: “They told me I will not be the final choice for the position, so no need to thank them.” Wrong. You want to add your interviewers to your network and you may want to contact them again. In addition, what if that company has another position that opens up? Take the high road and always, always send a thank you note and stay in touch after that. In your thank you note, you may say, “If another position opens up within your organization, I am interested in being considered.”
Homework Assignment
#1: Write a template thank you note and follow-up note based on the above guidance and by collecting many samples available online. Save them in your well-organized file for this job search effort (see Chapter 5).
#2: Review your samples with at least one person and get their feedback.
#3: In your Cut the Crap (CTC) Job Tracker from Chapter 5, be sure you note every time you need to send a thank you note and place that reminder in your Outlook Calendar or other calendar technology.
2. The interview is all about THEM, the company, the hiring manager, the interviewer. News flash: It’s not about YOU sharing all you can about YOU. Everything you say and do must be relevant and meaningful to THEM. Be very careful.
3. The interview is your performance of a lifetime. You are being watched with every step you take, every move you make, including how you look. Think about it. From a company perspective, this is your BEST day. You have your best outfit on, you have been able to prepare with research, you can say amazing things about yourself and even brag a little. Once the company hires you, it’s potentially downhill from your best day. The point is that if you can’t be a great listener or communicator on this day, OR if you make huge errors such as bad-mouthing a prior boss, then you probably won’t win this job.
Don’t be fooled by venue, either. In this new era of job search, you may be meeting in a Starbucks café or on a web conference. Or the meeting might be called an “informational” or information-gathering meeting, which is an interview in disguise. Alternatively, the meeting might be with a friend of a friend who might have the job you are looking for. Safest bet: If there is a job in the midst, put that interview guard UP (avoiding mistakes) and keep it UP.
4. You can’t over-prepare for an interview. In my 30+ years of hiring, interviewing, and recruiting for other teams and coaching, I have NEVER heard a hiring manager say, “Wow, that candidate was too prepared for my interview,” or, “No way, she was too organized and had answers to every question I asked.” So I’m going to assume you have read Chapter 9 prior to reading on with this chapter. I won’t be repeating that guidance here.
Solution
Bring the Right Stuff: Save this as a checklist before every interview. I guarantee that the day you don’t check your checklist, you will forget something important.
What not to bring to an interview:
Look and Sound the Part:
Interview Attire. Dressing formally and appropriately sends a signal to the interviewer that you cared enough to want to make a good first impression. Inversely, not being dressed appropriately will hurt you.
Job search is all about first impressions. You want your appearance to convey a confident, respectful, professional, and prepared job seeker. Remember, you are “on stage”... and this interview day is your BEST day. Obviously, you want the interviewer to concentrate on your skills, qualifications, and fit with their job description specifications.
However, if you look disheveled or too casual, you may be remembered for the wrong reasons. Interviewers know that what you wear is not your normal day-to-day attire, and it may not even be the everyday style of their office.
Be sure you understand the product or service of the company. Applying for a position with a law firm requires a different “attitude” in dressing than for an internet company or manufacturing facility. However, during my 30 years as a hiring manager and candidate, I have never heard an interviewer complain that “they came in dressed too nicely.”
The following are 13 mistakes that may derail your ability to make a professional first impression and may undermine your ability to WIN that job.
For Men:
Men’s Suits
Men’s Socks and Footwear:
Men’s Ties:
Men’s Jewelry:
For Women: While many of the mistakes and appropriate recommendations above apply to women as well, there are a couple of additional points for women:
All Genders: Briefcase/Portfolio/Pen:
All Genders: Cellphone:
All Genders: Hats or Sunglasses:
These recommendations are for the traditional, conservative industries. If you are pursuing a position in the creative or artistic field, you may need to adjust these recommendations. However, always err on the conservative side of the industry unless you feel you simply could not be happy working in a somewhat conservative environment.
Remember, this is your BEST day and you want to be remembered for your “total package,” including the presentation of your skills and capabilities. Yes, dressing for success is important. As Shakespeare said, “All the world is a stage and we are merely players.” The interview is your “stage.”
Non-Verbal Success: The evaluation of your non-verbal communication will start as soon as you walk into the company’s lobby and continue until the interview is finished. If your non-verbal communication skills aren’t up to par, it won’t matter how well you answer the questions.
Know the Job:
Know Yourself:
Ask for the Job at the End: Managers want to hire people who really want the position. Most candidates don’t say that. Say it in writing and at the interview. “Joanne, I want to share how passionate I am for this position and there are three main reasons: It’s fast-paced, I have experience with these partners in the past, and I can learn so much from you and others.”
Another good close is, “What is the next step?” or, “When do you plan to make a decision?”
Finally, ask them for their email address so you can follow up with a thank you note.
Tricks
1 See the tricks in Chapter 9. (The previous FMF post on Interview Preparation -- In Advance)
2 Day before the interview: Prepare for the interview logistics. Lay out your clothing, set your alarm clock, be sure you know where you are going, check your car for gas, make copies of documents, organize your portfolio and briefcase or purse, etc.
3 Day before the interview: Prepare for the interview questions. Even if you have been to interviews in the past month, re-read your 3 bullet points per interview question. Review the questions you will be asking them as well.
4 Night before the interview: Go back to the company’s website and read their latest announcements, press releases, speeches, and people changes.
5 “The Law of 3s:” For every question, both during your preparation AND during your interview, state no more than 3 things then stop talking. A full stop, not just a pause for breath. If the interviewer wants more, she will ask. If the silence becomes too awkward, you can ask, “Would you like more information?”
6 You will have a pen and paper open on the table during a face-to-face interview. In the far right or left margin, you can have some short clues to some key interview questions and answers that you are nervous about remembering.
7 When a question is asked, feel free to write some words about the question down so you can peek at it and stay on track.
8 Pause after the question is asked and think. Feel free to scribble 3 words down that will be your 3 points.
9 Smile and breathe. Feel free to take a sip of water.
10 Humility is treasured. Find an opportunity to say, “I have not developed that skill, but I’m very eager to learn,” or, “It’s a new skill for me, so I consider myself a novice and I’m excited to get to the advanced level.” Another great way to show humility is to ask them a question back, either instead of answering or right after you answer. Let’s say they ask you if know the NMFP Organization. “No, I have not learned that industry term or I don’t know that organization. Can you tell me about it?”
11 Phone interviews: Wear a nice top in case the interviewer wants to do a video interview using Skype or some other technology.
1. Search-ability: Key word search is optimized so you are found
2. Easy to read: Well-formatted for both online and print
3. Quantitative: Numeric proof of your brilliance1 Résumé Excellence #1—Search-ability: You, the applicant, could be the best person for the job, but if your résumé is not found in a search, the probability that you will even considered is quite low. A searchable résumé is key so you can be found in various technology engines such as:
a. Job board résumé databases
b. Employer applicant tracking systems
c. Employer email systems
d. Social media (LinkedIn, Facebook, Twitter, etc.)
e. Web search enginesWhat are “keywords?” They are the words used for searching and finding appropriate candidates. In today’s new job search era, recruiters, screeners, employers, and others are fluent in the symbols and tricks for searching for candidates using keyword searches.
3 Résumé Excellence #3—Quantitative
Hiring managers, recruiters, and HR managers are so tired of “world-class marketing person” or “exceeded targets in…” or “best in class performance.” You need to prove your results right in your résumé. Job candidates tell me they will wait until the interview to share them or say, “My successes cannot be quantified.” Cut the Crap, Get a Job!
Not many job types, such as sales, can claim “exceeded budget by 12% or $3 million dollars” or “ran a team with a quota of $800,000.” However, there are a number of other qualitative results that you can display proudly on your résumé.
You could have been 1 selected out of 500 to represent your team at a meeting. You delivered a major project on time and under budget by X%. You won some awards or have been promoted in a certain amount of months, X, well above the company average of Y. Do this: Think about your soft skills (the ability to meet deadlines, work in a team or independently, communicate complex ideas, placate customers). Relate an occasion where those skills made a difference to your company. Many of you have been assigned to a critical project, included in client or executive meetings, recommended for special training, or asked to make a presentation.
Here is a final example to help you out:
Before: Maintained accounts receivables and accounts payables.
After: Managed over 2,500 accounts receivables and accounts payables, working directly with the Chief Financial Officer.
In summary, when you rewrite your résumé to compete in today’s era of job search, look for opportunities to quantify, without sharing confidential information, of course. Think of power verbs, (like reduced, saved, made, grew, etc.) and combine them with metrics, such as time (number of months, days, or years, dollars, growth percentages, comparison to market averages, comparisons to company or peer averages.)
Tricks
1 If you are a Jimmy, don’t put James on your résumé or cover letter. When recruiters, screeners, or hiring managers want to call you, they want to address you and get to know you by the name you want to be called. This saves embarrassment later, too. Same goes for your business card, email signature, and everything. The old days of “James” being used when, in fact, you want to be called “Jimmy” are over.
2 You can have a few versions of résumés, based on 1) more than one job goal (e.g. marketing versus sales) or 2) multiple cities you are targeting. However, do not alter your résumé per job. A hiring manager can spot when you are simply plugging in their company name or their job title in your objective at the top.
3 In the date column, put the month and the year so the reader can tell how long you have been with a company. Example: 2011-2012 can be as little as 2 months (December to January) or as long as 24 months.
Mistakes
Mistake #1: The Acronym Abyss. Follow the main rule of acronyms: For the first use, always write it out, then put the acronym in parenthesis following. If you are communicating that you were an SE for five years, then you need to write out “Systems Engineer (SE)” for the reader. Best is to avoid industry-specific or company-specific acronyms.
Mistake #2: Use of the present tense in all jobs on the résumé.
Mistake #3: Writing the résumé or cover letter in the third person.
Mistake #4: Grammar and spelling mistakes—red and green squiggles throughout.
Mistake #5: Use of tiny, tiny fonts (10 pt. or less) so as to cram as much information into the résumé as possible.
Mistake #6: Photos on résumés.
Mistake #7: Using a résumé that is password protected (without sending the password).
Mistake #8: Using a table format and keeping all of the lines for rows and columns.
Mistake #9: Having no contact information on the résumé or including a phone number that is no longer valid.
Mistake #10: Education written so vaguely that it is unclear if you secured a degree.
Mistake #11: Going back too far in your experience. I recommend 15 years maximum, then a high level summary of the prior work.
Mistake #12: Submitting the wrong format. If the employer or recruiter has stipulated that your résumé or form has to be submitted in a certain format, make sure that you adhere to that. Don’t send it as a PDF if they have specifically requested a Microsoft Word document.
Mistake #13: File name of your résumé is “Résumé”. Or “432987.pdf.” Correct that to “JohnSmith_Position 14254_Boeing” or “JohnSmithRésumé.”
1. You have shared your high interest in this role. Remember, hiring managers want to hire candidates who really want their position.
2. You have “gone for the close,” a sales term that means you asked for their business. In this case, you asked if you could continue this hiring process.5 Block Prep and Travel Time: Block 30 minutes before the phone interview and 30 minutes after the phone interview in your calendar. A common excuse I hear for being 5 minutes late for a phone interview is, “Sorry, I was on another call.” Well, then you should not have accepted one of the times since they were back to back.
- Doug, I will send you a follow-up email today with this request and my credentials attached. It will be in a format ready for you to forward to the hiring manager.
- Doug, if you would like to reach me by phone, my number is <slowly> XXX-XXX-XXXX. Again, it’s Jane Miller at XXX-XXX-XXXX.
- Thank you very much, in advance, Doug.
If an Administrative Assistant answers, ask them to put you into their boss’s voicemail instead of having them take a message.
8 Have Professional Phone Behavior: Change your voicemail message to say “Hello, this is James Smith and I’m sorry I missed your call. Please leave a message and phone number and I will respond as soon as possible.” Check your voicemails often and play them in their entirety prior to calling the person back.
When answering your phone “live,” unless you are sure you know the call is not a job search-related call, always answer, “Hello, this is James.” They will appreciate your professionalism.
9 Be Ready for Video: Have interview-appropriate attire on above the waist. See Chapter 17 on interview attire. Even though the phone call arranger says “phone meeting,” more and more of them are becoming video phone calls. If they use Skype, that is an indicator that it will be video. However, even if you are sent a link to a conference call, that, too, may end up on video. Better to be over-prepared and ready to be seen.
Mistakes
Mistake #1: Being late. Yes, it happens all the time, even for a phone interview. “Sorry, there was traffic, my last call went long,” or some other excuse.
Mistake #2: Missing the call entirely because of time-zone confusion. It is your job to clarify the time zone in advance. Figure that out.
Mistake #3: Your phone goes dead, headset dies, PC battery dies on a web conference, etc.
Mistake #4: Dogs barking, babies crying, airport announcements, TV on in the background, etc.
Hey, Elizabeth, how are ya? I was just let go from my company and would like to pick your brain about job opportunities out there. Let’s do coffee. What time works for you? Regards, BradPamela and Sharon, both job seekers, went to an evening networking event hosted by the local Chamber of Commerce. The event started at 6:00 p.m., but they got there at about 7:00 p.m. Together, they got a drink, found an empty table to stand at, and talked about “life.” Sharon met one interesting person in the drink line and Pamela bumped into an ex-peer from a prior company as she was getting her coat to leave. On the way home, they both agreed it was a terrible waste of their time and they would have much more luck applying to jobs online at home.
- Special Interest Groups, or SIGs—committees to accomplish the association’s objectives on a variety of levels
- Annual or quarterly industry awards
- Live monthly or quarterly events
- Dinner meetings and presentations
- Online Community Forums—virtual communities focused on specific topics where members can post and respond to questions, share insights, and communicate and collaborate with other members beyond face-to-face events.
i What was the key to success?
ii How would you change your search process next time? Why do you think you won the position over multiple candidates?
iii One key piece of advice you have for me is…?B. “How are you maintaining your network?”
i Do you keep them all organized? How?
ii Are you good at following up and staying in touch with people?
iii What will you change as a result of this conference/ meeting?C. “Why did you attend this <subject> conference or meeting?”
i Do you have a personal goal you can share with me?
ii Can I share mine with you?
iii How can we help each other reach our goals?D. “Do you love what you are doing?”
i What do you do?
ii What is the best part about it?
iii How did (or will) you match your passion with your day-to-day job? Any advice for me?Tricks
The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era I will be running a series of excerpts from this book over the next several weeks.
I am a BIG, BIG, BIG proponent of preparing for an interview in advance. I've written about it several times including An Interview is a Test You Can Study For and How to Stay Relaxed During (And Make the Most of) a Job Interview. If you don't prepare for an interview in advance and instead "wing it" like most people do, you are doing yourself a great disservice.
Sam Anderson was interviewing for the job of his dreams. He researched the company, had a brother-in-law in another division of the company who could be a reference, and was confident in his sales skills. When Jane, the interviewer, asked, “If I interviewed other people you have worked with, what would they say are your strengths?” he froze. He began thinking about specific people he worked with and what they might say. Then he thought about a prior manager and what he would say. Pretty soon, he was all over the place with his answer, sharing random strengths that had no connection or story. What happened? Well, the question was just another version of “tell me about your strengths.” The interviewer simply worded it differently. And Sam wasn’t prepared.
How about this interview request: “Tell me about yourself.” Have you rehearsed a short three-sentence version that is compelling to an interviewer?
The state of most candidates’ interview performance is pathetic. It IS a performance and there is no excuse for poor interview answers for 80% of the questions you will be asked. It is remarkable that the most frequently asked questions are available on the web, yet candidates fumble their way through them. Even more remarkable is that candidates who do prepare do so right before the interview. You can do this now, without having any
interviews pending!
This chapter focuses on the interview preparation you do WELL BEFORE applying for jobs. Do this work very well ONCE, then you can review, refine, and rehearse it before an interview later.
You need to shatter all that you believe about interviews and restart. There are no secrets.
Success requires good old-fashioned preparation and practice. And the more nervous you are, the more you need to prepare.
First, let’s bust some myths:
1. The Myth: The interviewer really cares about what I say…the content.
The Truth: Sometimes. With certain questions, such as your strengths and weaknesses, yes, they want to learn. But they are also looking for your ability to articulate ideas, start a thought then stop a thought, and simply observing if your speaking style is clear and articulate.
2. The Myth: I don’t want to sound scripted.
The Truth: You won’t. You will still use tone and inflection to say the words. You will be more
relaxed since you know the content. You will sound self-aware, confident, and thoughtful.
3. The Myth: I should wait to see what they ask then think about it during the interview so I
can tailor my answer to the hiring manager.
The Truth: Complicated and unnecessary. Your skills, experiences, strengths, weaknesses, and more are already fixed. You will still be able to tailor messages to the specific interviewer, but that will be accomplished by adding to the answers you prepare during the interview.
4. The Myth: Interviews are all about the interviewer’s questions, not the questions I ask
them.
The Truth: Often the hiring decision is made based on the questions YOU ask and the discussion that follows those questions. So you need to prepare your questions, as well as the answers, well prior to the interview. Not the night before!
Solution: Create two separate documents well in advance of any interviews
1 Document #1: Your interview answers using the Cut the Crap (CTC) Interview Prep Guide: The Most Commonly Asked Interview Questions
2 Document #2: The questions YOU ask during an interview
Interview Questions and Your Answers
Following “listening,” a huge part of answering interview questions well is to understand why the interviewer is asking this question. Once you put yourself in their shoes and understand their intent, you will be able to provide answers that are truthful yet formulated in such a way that you perform well throughout the hour.
Use the Cut the Crap (CTC) Interview Prep Guide: The Most Commonly Asked Interview Questions
The Questions YOU Ask During an Interview
The questions you ask in an interview can help you OR knock you out of the running.
Joseph had an hour-long interview at 8:00 a.m. with the hiring manager, Susan, for a position he really wanted. He did some research on the company, reread the job description, and brushed up on his top strengths and weaknesses. He was on time and did
well during the interview. Until the last 15 minutes. Susan asked, “Well, Joseph, what questions do you have for me?”
Joseph displayed “crap” in the form of mistakes that sabotaged his odds of winning this job.
Mistake #1: He didn’t have any questions prepared.
Solution #1: Prepare your questions, write them down, and bring the piece of paper in with you to the interview.
Mistake #2: Joseph asked, “What is the starting salary?”
Solution #2: Never ever, ever, ever talk salary, even in ranges. Your mission is to get an offer in hand. Once you do, you can ask questions and possibly negotiate. Not before. Not to the human resources (HR) person, a recruiter, or to any interviewer.
Mistake #3: “Is there a training program or structured on-boarding process?”
Solution #3: Think about the story or perception the interviewer is creating with your questions. Put yourself in their shoes. In this case, they may be thinking, “Wow, he needs handholding and may be too high-maintenance for me. I need someone who knows how to do this.” If a training program is mentioned in the job description or on the company website, then it is appropriate to ask for more insights about the structure, length, etc.
Mistake #4: “What does your division or company do?”
Solution #4: It is still shocking how many job seekers ask this question. With the web, calling people you know, social media, and many other resources, there is no excuse like, “I didn’t have time.” By the way, in the U.S., one of my favorite resources (that I have referred hundreds of job seekers to) is your local city’s Business Journal, both their online resources and receiving their publication. Look up American City Business Journals at acbj.com.
The keys to a great question from you to the interviewer are:
What are the best questions to ask in an interview?
There are many, but I’ll share my favorites.
Tricks
1 LISTEN!!! When nervous, LISTEN harder. Well over 50% of the poor interview answers are because the candidate didn’t listen to the very basic question. This sabotages your entire interview because the hiring manager is going to have concerns that you won’t listen to their instructions on the job.
a. Check yourself to be sure you don’t have your own set of messages you want to blurt out. This will cause you to answer in a way that pushes your information versus what the interviewer asked for.
b. Sometimes the interviewer will repeat the question since you answered a different one. Only let that happen once, as they are giving you a break. LISTEN harder from now on.
c. If you don’t understand the question, ask, “Can you repeat the question and clarify please?”
2 “The Law of 3s”—For every question, both during your preparation AND during your interview, state no more than 3 things then stop. A full stop, not just a pause for breath. If the interviewer wants more, she will ask. If the silence becomes too awkward, you can ask, “Would you like more information?” Smile at the end of every question. Not a huge, silly smile, but grin as if you just hit the right note, crossed a finish line, or got an A on a quiz.
3 You will have a pen and paper open on the table during a face-to-face interview. In the far right or left margin, you can have short clues to some key interview questions and answers that you are nervous about remembering.
4 Scribble some words about the question down so you can peek at it and stay on track.
5 Pause after the question is asked and think. Feel free to scribble 3 words down that will be your 3 points. Then begin.
Fox Business lists the top 10 reasons you (or anyone else) aren't getting a raise as follows:
What can you do to combat these issues? A few thoughts:
Anyone else have other suggestions to add?
One of my New Year's financial resolutions was to get set up on LinkedIn. I have been recommending it for quite some time and tell you all how important it was in developing your network -- and yet I wasn't using it myself (which I freely admitted.) So the guilt finally got to me, I took the plunge, and signed up for the service in early January. Let's start with what I did and the results:
After this process, here are some of my thoughts on the site/service:
So that's it for my initial interaction with LinkedIn. For those of you out there who are already "masters" of the site, what am I missing? What do I need to do to make the most of this service?