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chapter 2
Financial Aspects of
Career Planning
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Learning Objectives
What will this mean for me?
LO2-1 Describe activities associated with
career planning and advancement.
Financial planning involves spending, saving, and
sharing your economic resources. Your ability to
obtain these funds will depend on your career
planning activities. Preparing for and obtaining
work has become an ongoing need as a changing
job market creates new opportunities and
challenges. Development of a portfolio of career
skills and technical competencies will help ensure
continuing employment success.
LO2-2 Evaluate factors that influence
employment opportunities.
LO2-3 Implement employment search strategies.
LO2-4 Assess financial and legal concerns
related to obtaining employment.
LO2-5 Analyze techniques available for career
growth and advancement.
my life
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Few decisions in life will affect you to a greater extent than your choice of employment. Your
R and the people with whom you associate
income, amount of leisure time, travel opportunities,
will be greatly influenced by your work situation.
I
As you start (or expand) your career planningEactivities, consider the following statements.
For each, indicate if you “agree,” are “neutral,” or “disagree” related to your current situation
N
regarding career planning activities.
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1. I understand my personal interests and abilities
Ethat could
WORK TO LIVE, OR LIVE TO WORK?
create a satisfying work life.
2. My actions keep me informed of various factors that
influence employment opportunities in our society.
2
3. I have the ability to ask other people questions that provide
4
me with information about career planning activities
and
employment opportunities.
7
4. Salary would be the important factor for me when
9
accepting an employment position.
5. I sometimes think about what type of employment
T situation
I would like to have three or five years from now.
S
Agree
Neutral
Disagree
Agree
Neutral
Disagree
Agree
Neutral
Disagree
Agree
Neutral
Disagree
Agree
Neutral
Disagree
As you study this chapter, you will encounter “My Life” boxes with additional information and
resources related to these items.
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48
Part 1
PLANNING YOUR PERSONAL FINANCES
Career Choice Factors
LO2-1
Describe activities associated
with career planning and
advancement.
job An employment
position obtained mainly
to earn money, without
regard for interests
or opportunities for
advancement.
career A commitment to
a profession that requires
continued training and
offers a clear path for
occupational growth.
“Only two days until the weekend.” “Just ten more minutes of sleep!” “Oh no!”
“Excellent!” These are some common responses to “It’s time to get up for work.”
Have you ever wondered why some people find great satisfaction in their work
while others only put in their time? As with other personal financial decisions, career
selection and professional growth require planning. The average person changes jobs,
or even careers, five or more times during a lifetime. Most likely, therefore, you will
reevaluate your choice of a job on a regular basis.
The lifework you select is a key to your financial well-being and personal satisfaction.
You may select a job, an employment position obtained mainly to earn money. Many
people work in one or more jobs during their lives without considering their interests or
opportunities for advancement. Or you may select a career, a commitment to a profesR and offers a clear path for occupational growth.
sion that requires continued training
I
TRADE-OFFS OF CAREER
DECISIONS
C
A habits and financial choices, your employment probWhile many factors affect living
ably affects daily decisions the
Rmost. Your income, business associates, and leisure time
are a direct result of the work you do.
D choice and professional development alternatives have
Like other decisions, career
risks and opportunity costs. ,In recent years, many people have placed family and per-
sonal fulfillment above monetary reward and professional recognition. Career choices
require periodic evaluation of trade-offs related to personal, social, and economic factors. For example:
A
• Some people select
D employment that is challenging and offers strong
personal satisfaction rather than employment in which they can make the
R
most money.
I a transfer or a promotion that would require moving
• Some people refuse
their families toEa new area or reducing leisure time.
• Many parents opt
N for part-time employment or flexible hours to allow
more time with children.
N up secure job situations because they prefer to operate
• Many people give
their own businesses.
E
CAREER TRAINING
AND SKILL DEVELOPMENT
2
Time with family members may
be an important influence on
career decisions.
Your level of formal4training affects financial success. Exhibit 2-1 shows the
influence of education
7 on lifetime earnings. The statistics in this exhibit do not
mean you will automatically earn a certain amount because you have a college
9 increases your potential earning power and reduces
degree. More education
your chances of being
T unemployed. Other factors, such as field of study, experiences, and the job market, also influence future income.
S difference between skills needed by employers and the
The skills gap—the
skills possessed by applicants—is an ongoing concern. Also missing in many
job hunters are employability skills, which refer to the basic capabilities necessary for
obtaining, maintaining, and advancing in a work situation. The training you obtain may
be viewed in two main categories:
1. Technical skills. Specialized career training refers to technical skills for a specific
profession. This training includes competencies in fields such as information technology, accounting, law, engineering, health care, education, real estate, insurance,
and law enforcement.
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Chapter 2
Financial Aspects of Career Planning
Exhibit 2-1
Earning a professional or doctorate
degree could be worth over $3.6
million in income over 40 years:
Two-year
degree
Education and income
BR - 549
$1.7 million
2
2
Bachelor’s
degree
2
B
BR - 549
2
BR - 549
2
2
$2.3 million
2
B
BR - 549
2
R
$2.6 million
I
C
A
Professional
or doctorate
B
R
$3.6 million
degree
D
,
Source: Georgetown University, Center on Education and the Workforce
Master’s
degree
49
BR - 549
2
2
2
B
BR - 549
2
BR - 549
2
2
BR - 549
2
2
A employers, and career
2. General skills. In addition to technical training, managers,
counselors stress the importance of traits adaptable to most
D work situations, sometimes called social intelligence. While some of these abilities can be acquired in
R
school, others require experience in work or organizational settings. The general
competencies that successful people commonly possessIinclude:
•
•
•
•
•
•
•
•
•
•
E
An ability to work well with others in a variety of settings.
Taking initiative to overcome obstacles and meet challenges.
N
An interest in reading and continuing learning.
N
A willingness to cope with conflict and adapt to change.
E
An awareness of accounting, finance, and marketing fundamentals.
A knowledge of technology and computer software.
2
An ability to solve problems creatively in team settings.
4
A knowledge of research techniques and resource materials.
Effective written and oral communication skills.
7
An understanding of both personal motivations and the
9 motivations of others.
These competencies give people flexibility, making it easier
T to move from one organization to another and to successfully change career fields. How are you working to
S
develop these traits?
PERSONAL FACTORS
You may identify a satisfying career using guidance
tests that measure abilities, interests, and personal
qualities. Aptitude tests, interest inventories, and other
types of career assessment tests are available at school
career counseling offices and online.
kap61647_ch02_046-074.indd 49
DID YOU KNOW?
Prospective workers who are most successful
possess technical skills (such as computer use
and financial analysis), have the ability to
communicate effectively, and work well
in team settings.
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Financial Planning for Life’s Situations
DEVELOPING A CAREER ACTION PLAN
Your career plan might start with a personal S-W-O-T
analysis, in which you identify your:
Strengths, which are the skills and experiences that set
you apart from others.
Next, for one of the following career development
activities, describe your plans and actions using the
steps below.
• Assess your personal and career interests.
Weaknesses involve personal areas in need of
improvement.
• Identify and expand career skills.
Opportunities are social, economic, technological,
global, and organizational trends for employment.
• Apply for a potential employment position.
Threats are factors that limit employment opportunities, such as changing technology and global
competition.
Step 1
Describe your current situation
Step 2
Set a specific goal
• Obtain required education and career training.
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Step 3
Identify the time frame for this goal
Step 4
List actions to be taken to achieve this goal
Aptitudes are natural abilities
2 that people possess. The ability to work well with
numbers, problem-solving skills, and physical dexterity are examples of aptitudes.
4 inventories determine the activities that give you satInterest
isfaction.
7 These instruments measure qualities related to various
types of work. People with strong social tendencies may be best
my liffe 1
9 careers that involve dealing with people, while peosuited for
ple withTinvestigative interests may be best suited for careers in
research areas.
I understand my personal interests and abiliTest S
results will not tell you which career to pursue. Howties that could create a satisfying work life.
ever,
these
assessments will indicate your aptitudes and interYou might ask people who know you well to
ests.
Another
important dimension of career selection is your
point out some of your interests and abilities.
personality. Do you perform best in structured or high-pressure
This information may be used to start your career
situations, or do you prefer unstructured or creative work enviplanning activities using the “Financial Planning
ronments? Sample career assessments may be located through an
for Life’s Situations: Developing a Career Action
Plan” feature.
online search for “career interest inventory” and “career interest
survey.”
50
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Chapter 2
Financial Aspects of Career Planning
51
Exhibit 2-2
B. Change to different career
Stages of career planning
and advancement
A. Career entry
1
Assess and
research personal
goals, abilities,
and career
fields
Research the
employment
market and identify
specific employment
opportunities
C. Change
employment
within same
career field
2
Develop a
6
Plan and
implement
a program
for career
development
5
R
résumé and
Stages
cover letter;
I
apply for
of Career
available
C
positions
Planning and
A
Advancement
R
D
,
Interview for
3
Evaluate financial
and other factors
of positions you
are offered
available positions;
assess your
interview
performance
A
D
R
D. Career
I
advancement
E
N
CAREER DECISION MAKING
N
Changing personal and social factors will require you to continually
assess your work
E
4
situation. Exhibit 2-2 provides an approach to career planning, advancement, and career
change. As you can see, the different entry points depend on your personal situation.
For example, people established in a certain career field may
2 start at point C (Change
employment within same career field) or D (Career advancement).
4
Your career goals will also affect how you use this process. If you desire more
7
responsibility on the job, for example, you may obtain advanced
training or change
career fields. This process is a suggested framework for planning, changing, or advanc9
ing in a career.
T
S
PRACTICE QUIZ 2-1
1 How does a job differ from a career?
2 What opportunity costs are associated with career decisions?
3 What skills would be of value in most employment situations?
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52
Part 1
PLANNING YOUR PERSONAL FINANCES
Career Opportunities: Now and in the Future
LO2-2
Evaluate factors that
influence employment
opportunities.
Your job search should start with an assessment of the career choice factors shown in
Exhibit 2-3.
SOCIAL INFLUENCES
Various demographic and geographic trends influence employment opportunities.
Demographic trends affecting the job market include the following:
• Continuing growth in the number of single and working parents expands the
demand for food service and child care.
• Increases in leisure time among various segments of the population, resulting in
an increased interest in R
personal health, physical fitness, technology, and recreational products and services.
I
• As people live longer, the demand for travel services, health care, and retirement
C
facilities increases.
A
• Expanded demand for employment
training services increases opportunities for
teachers, corporate trainers, and related careers.
R
In considering geographicDareas, be sure to assess salary levels. Average incomes
are high in such metropolitan areas as Boston, New York, and Chicago; however, the
prices of food, housing, and ,other living expenses are also high. What appears to be a
big salary may actually mean a lower standard of living than in a geographic area with
lower salaries and lower living costs. For example, in recent years, the cost of living for
A
a single employee earning $30,000
annually was 60 percent higher in the District of
Columbia than the national city
average.
In contrast, the cost of living in Fayetteville,
D
Arkansas, was only 90 percent of the national city average.
R
I
EXAMPLE: Geographic
E Cost of Living Differences
To compare living costs and salaries in different cities, you may use the followN formula:
ing “Geographic Buying Power”
N
Index number 3 Salary
City 1
______________________
5 $ buying power
E Index number
City 2
For example,
Chicago
2
Omaha
123 3 $30,000
______________
5 $39,550
93.3
4
A person earning $30,000 in7Omaha, Nebraska, would need to earn $39,550 in
Chicago to have comparable buying power. Information to compare geographic
cost-of-living differences is 9
available at www.bls.gov and www.erieri.com.
T
S
ECONOMIC CONDITIONS
DID YOU KNOW?
In recent years, nearly 80 percent of new
jobs in the U.S. economy occurred in
companies with fewer than 100
employees.
kap61647_ch02_046-074.indd 52
High interest rates, price increases, or decreased global demand for goods and services can affect career
opportunities. While you cannot eliminate the effects
of economic factors on employment trends, these
factors affect some businesses more than others. For
example, high interest rates reduce employment in
housing-related industries, since people are less likely
to buy homes when interest rates are high.
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Chapter 2
Financial Aspects of Career Planning
53
Exhibit 2-3
Factors influencing your
career opportunities
INDUSTRY TRENDS
While career opportunities have dwindled in some sectors of our economy, opportunities in other sectors have
grown. Service industries that are expected to continue to
have the greatest employment potential include
• Information technology—systems analysts,
•
•
•
•
•
•
•
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database administrators, web and software
developers, network operations managers, and
repair personnel and service technicians.
Health care—medical assistants, physical
therapists, home health workers, biotech analysts,
laboratory technicians, registered nurses, dental
hygienists, and health care administrators.
Medical technology—microbiologists, food and
drug inspectors, pharmaceutical salespersons,
Technology influences career
2
opportunities and required
public health specialists, medical laboratory managers, clinical pathologists, and
4
employment skills.
toxicologists.
7
Environmental services—environmental auditors, environmental
consultants,
water quality analysts, sustainability analysts, energy analysts, and urban planners.
9
Business services—social media consultants, foreign language translators,
T
employee benefit managers, operations consultants, and
research data analysts.
S
my liffe 2
Social services—child care workers, elder care coordinators,
family counselors, and social service agency administrators.
Sales and retailing—social media promotion developers,
My actions keep me informed of various
marketing representatives, and sales managers with technifactors that influence employment opportucal knowledge in the areas of electronics, medical products,
nities in our society.
and financial services.
What are some personal, social, economic, and
Hospitality and food services—resort and hotel adminitechnological factors you might consider when
strators, food service managers, online customer service
planning the direction for your career?
representatives, and meeting planners.
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Financial Planning for Life’s Situations
ENTREPRENEURIAL CAREER OPTIONS
People start their own businesses for two main reasons:
(1) reduced career opportunities in their field and (2) a
desire for greater control of their work environment.
Over 20 million people in the United States operate
their own businesses. These range from home-based
sales and consulting services to small manufacturing
enterprises and technology support. In recent years, a
strong interest in social entrepreneurship has surfaced.
Social entrepreneurs mix traditional business practices
with innovation to address social concerns such as hunger, disease, poverty, and education.
GETTING STARTED
If you are planning to start a business, consider three
main issues. First, become knowledgeable about your
product or service. Next, identify potential customers,
select an appropriate location, and study competitors.
Finally, consider your financial resources. Most entrepreneurs use a combination of personal funds and loans.
QUALITIES OF SUCCESSFUL ENTREPRENEURS
Would running your own business be an appropriate
career for you? That depends on your personality and
abilities. Are you a highly motivated, confident individual? Do you have the ability to manage different phases
of a business? Are you someone who enjoys challenges
and is willing to take risks?
•
•
In addition, skills commonly viewed as vital for
entrepreneurial success include: sales and marketing
knowledge; effective written and oral communication
ability; an understanding of accounting and financial
management of cash flows; an ability to motivate and
coordinate the work of others; effective and efficient
management of your time; and a creative vision for
success.
BUSINESS PLAN ELEMENTS
R
The foundation for success is a business plan, which
is
used to communicate the vision and purpose of an
Ienterprise.
This document, containing detailed financial
C
projections,
product information, and a marketing plan,
is a vital tool for business planning and operations.
A
Websites with information on business plans include
www.bplans.com
, www.businessplans.org, and entreR
preneurs.about.com.
D To obtain assistance about starting a business, contact
, a lawyer, local banker, accountant, or insurance
agent. Additional information about running your
own business may be obtained from the Small Business
Administration (www.sba.gov), the Association for the
A
Self-Employed (www.nase.org), Startup Journal (www.
startupjournal.com), and SCORE (www.score.org).
D
R
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Nresources—clerical supervisors, recruiters, interviewers,
Management and human
employee benefit administrators,
and employment service workers.
N
Education—corporate trainers, special education teachers, adult education
E
instructors, educational administrators, and teachers for elementary, secondary,
and postsecondary schools.
• Financial services—risk2assessment managers, actuaries, accountants, investment
brokers, and others with a knowledge of accounting, finance, economics, and taxes.
4
Future business demands will include expanded reading and communication skills.
7
More and more employees are being required to read scientific and technical journals
and financial reports and to 9
write speeches and journal articles. Your career success is
likely to depend on communication skills, computer skills, and the ability to communiT
cate in more than one language.
S
PFP Sheet 6
Career area research
sheet
PRACTICE QUIZ 2-2
1 What are some demographic and economic factors that affect career
opportunities?
2 How does technology affect available employment positions?
54
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Chapter 2
Financial Aspects of Career Planning
55
Employment Search Strategies
Most people have heard about job applicants who sent hundreds of résumés with very
little success, while others get several offers. What are the differences between these
two groups? The answer usually involves an ability to expand one’s experiences and use
job search techniques effectively.
LO2-3
Implement employment
search strategies.
OBTAINING EMPLOYMENT EXPERIENCE
A common concern among people seeking employment is a lack of work experience.
Many opportunities are available to obtain work-related training.
PART-TIME EMPLOYMENT Summer and part-time
R work can provide experience along with the chance to see if you enjoy a particular career field. The increased
use of temporary employees has opened up opportunities toI obtain experience in different career areas. More and more workers are taking advantage
C of temporary job assignments as a channel to a full-time position. Working as a “temp” can give you valuable
A
experience as well as contacts in various employment fields.
R
VOLUNTEER WORK Involvement in communityDorganizations can provide
excellent opportunities to acquire skills, establish good work habits, and make contacts.
,
Volunteering to work at the gift shop of a museum, for example,
gives you experience
in retailing. You may participate in a recycling project, assist at a senior center, or help
supervise youth activities at a park district. These activities will help you obtain orgaA
nizational skills.
D
R available jobs. Applying
experience. During an internship, you can make contacts about
for an internship is similar to applying for a job. Most colleges
and universities offer
I
internships as part of their academic programs.
E
CAMPUS PROJECTS Class assignments and campus
N activities are frequently
overlooked as work-related experience. You can obtain valuable career skills on campus
N
from experience in
E
• Managing, organizing, and coordinating people and activities
as an officer or a
INTERNSHIPS In very competitive fields, an internship can give you needed
•
•
•
•
committee chairperson of a campus organization.
Public speaking in class, campus, and community presentations.
2
Goal setting, planning, supervising, and delegating responsibility in community
4
service and class team projects.
7 fund-raising
Financial planning and budgeting gained from organizing
projects, managing personal finances, and handling funds
9 for campus
organizations.
T
Conducting research for class projects, community organizations, and campus
S
activities.
USING CAREER INFORMATION SOURCES
Career planning, like other financial decisions, is enhanced by relevant information.
Exhibit 2-4 provides an overview of the main career information sources.
Most libraries offer many career information sources. The Occupational Outlook
Handbook covers all aspects of career planning and provides detailed information on
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56
Exhibit 2-4
Career information
sources
Part 1
PLANNING YOUR PERSONAL FINANCES
CAREER INFORMATION SOURCES
Library
• Career publications
• Government materials
• Industry brochures
Media
• Newspaper and magazine
articles and columns
• Television and radio
news reports
Online Sources
• Websites
• E-mail contacts
• Phone apps
• Online videos
• Networking sites
Campus Career Development Office
• Career planning publications
• Listings of available jobs
Community Organizations
• Business and civic groups
• Job training and
employment services
Professional Associations
• Career preparation
information
• Meetings and publications
Business Contacts
R
• Friends, relatives,
and colleagues
I
• Teachers, employers,
and business contacts
C
A
R
D
various career clusters. This, and other government publications are available online.
Most newspapers offer articles and columns about job searches and career trends. News
sources also report on economic and social influences on careers. Extensive information related to job opportunities,
A preparing a résumé, interviewing, and other career
planning topics may be found online. Your school probably has a career development
D on career planning topics, creating a résumé, and
office with resources and services
preparing for an interview. R
I
CAREER DEVELOPMENT
OFFICE This office will have services for career
planning and can assist you in
Ecreating a résumé and preparing for an interview.
networking The process
of making and using
contacts for obtaining
and updating career
information.
N
N
obtain and update career information.
Every person you talk to is a potential contact
who may provide career assistance.
These
activities can be especially valuable, because
E
NETWORKING Networking is the process of making and using contacts to
about 70 percent of professionals find positions through personal contacts and networking, while responding to job ads accounts for only about 15 percent of jobs. The main
sources of networking include:
2
1. Community organizations.
4 Every community has business and civic groups
you can use in your career search. Public meetings featuring industry leaders
7 opportunities to become acquainted with local
and business owners provide
businesspeople.
9
2. Professional associations.
TAll professions have organizations to promote their
career areas. These organizations include the American Marketing Association, the
Council of Supply Chain S
Management Professionals, the Association of Women
in International Trade, and the National Restaurant Association. The Encyclopedia
of Associations, as well as an online search, can help you identify organizations
related to careers in which you are interested. Many of these organizations have a
reduced membership fee for students.
3. Business contacts. Professional contacts can advise you about career preparation
and job opportunities. Friends, relatives, people you meet through community and
professional organizations, and people you meet through school, work, religious
services, or other activities are all potential business contacts.
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HOW TO. . .
Update Your Career Activities
While many career planning actions from the past are still valid, you should consider others to compete in a
changing employment market.
When you
want to. . .
Previously, people
would. . .
Today, you can
also. . .
Obtain career planning
assistance.
Talk with others in career fields in
I
which you are interested.
Acquire guidance from online
contacts, videos, and webinars.
Develop potential career
contacts.
Go to professional meetings,
A events.
seminars, and community
Follow up with
networking contacts
Gain entry-level career
experience.
R
C
R
Talk by phone or sendD
an e-mail.
,
Use social media, such as
LinkedIn, to connect with
professional contacts.
Stay in contact on LinkedIn and
through other social media
networks.
Part-time employment, volunteer
work, and communityA
service
activities.
D
Participate in virtual volunteering,
online communities, and online
tutorials.
R
Obtain leads from contacts,
media, and positions in
I your
current organization.
Connect through your online
network to enhance other
sources of employment.
Create a cover letter.
Highlight experiences related to
N
the specific job or organizational
needs.
N
Create a Q letter with bulleted
items to communicate your
specific experiences for a position.
Communicate your key
skills on a résumé.
Include a career objective on their
résumé.
Use a career profile or summary
of skills and abilities.
2
Mail or drop off at a company’s
office to make a personal
4 contact.
Send by e-mail or posting on a
website.
Identify employment
opportunities.
E
Submit a résumé.
E
Prepare for an
interview.
7 tips;
Talk to others for interview
participate in mock interviews.
9
Conduct company
research.
Talk to people who have worked
S
at the organization or who have
done business with them.
Use LinkedIn, Twitter, Facebook,
blogs to study the company and
people who will interview you.
Participate in an
interview.
Meet face to face.
Take part in a Skype interview or
a video conference.
T
Create a video to have others
critique your poise and
professionalism.
(continued)
57
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HOW TO. . . Continued
When you
want to. . .
Previously, people
would. . .
Today, you can
also. . .
Follow up after an
interview.
Send a handwritten note or e-mail
to express appreciation and to
reinforce your interest in the
available position.
Send a work sample, evidence of
your experience, such as a news
article or report, or link to your
e-portfolio.
Achieve career
advancement training.
Participate in on-the-job training,
I
professional seminars, graduate
study.
Develop and promote a
personal brand.
R
C
Use business cards to A
communicate your organization
R
and title.
D
,
Participate in webinars and
online courses.
Develop an online presence with
a summary of unique experiences
and competencies; use a personal
website to convey your potential
work contribution.
Your online presence can be a valuable asset for your career planning activities. Be sure to avoid actions
that might present you in less than a professional manner. To communicate an appropriate online image,
consider these actions:
A
Dprofessional networking sites.
• DO get connected to various LinkedIn.com and other
Rimage; search your name to assess online
• DON’T put items online that create an inappropriate
presence.
I
E
DON’T post your résumé online arbitrarily; select websites appropriate for your specific job search.
N
DO regular follow-ups with online contacts; share current news and ideas on industry trends.
N
DON’T join online groups in which you will not be an active participant.
E
• DO use keywords for capabilities and experiences expected in the industry in which you work.
•
•
•
• DO create a blog to enhance your online image and to communicate areas of expertise.
Additional career planning information is available at: www.jobhuntersbible.com www.rileyguide.com
2www.careerbuilder.com www.careerpath.com
jobsearch.about.com
college.monster.com
www.monster.com
www.find-your-dream-career.com
www.career-success-for-newbies.com
4
“Smart Career Planning” and “Career Planning Forum” on LinkedIn.com
7
9
(Note: about.me allows you to connect a personal website, blog, and social media sites in one location.)
T
S
For effective networking: (1) prepare and practice a 30-second summary of your
abilities and experience; (2) volunteer for committees and events of professional
organizations; and (3) ask questions to get others to talk about themselves and their
experiences.
58
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Chapter 2
Financial Aspects of Career Planning
Although contacts may not be able to hire you, if jobs are available they might refer
you to the right person. They can also help you get an informational interview, a meeting at which you gather information about a career or an organization. When planning
and using informational interviews, consider the following:
• Prepare a list of industries and organizations for which you would like to work.
•
•
•
•
59
informational interview
A company visit or
meeting at which one
gathers information
about a career or an
organization.
Talk to family, friends, co-workers, and others for names of people you might
contact.
Prepare a list of open-ended questions that will help you
obtain information about current trends in the industry and
potential employment opportunities.
my liffe 3
Make an appointment for a 20-minute meeting; emphasize
to the person that the meeting is for information only.
I have the ability to ask other people
Try to interact with the person at his or her place of work
R to
questions that provide me with informagain better awareness of the work environment.
tion about career planning activities and
I
Follow up with a thank-you note and, if possible, send some
employment opportunities.
C to
information (such as an article) that might be of interest
Develop some questions that you might ask in an
your contact.
informational interview. These questions should
A
An e-mail informational “interview” may be used inRsome
settings. Be sure your questions are open-ended and focused on
D to a
various career and industry topics. Send your e-mail request
specific person. As a follow-up to the e-mail response, you
, may
also want to meet in person or talk by telephone.
reflect your current knowledge of a career field
and should lead the person you interview to
provide additional information. The best questions usually start with “How,” “What,” “Why,”
“Describe,” or “Explain.”
A
D
EXAMPLE: Business Cards in an Age of Social
Media
R
While several apps are available as an alternative to business cards, these
networking tools are still expected in many settings. Some
I things to
remember:
E
• Keep the format simple with necessary contact information.
N
• Create a brief, yet descriptive, tagline to communicate your unique skills.
N
• Use the back of your card to list competencies and accomplishments, or to
E
have a translation of your card for international business
activities.
• Several apps are available to scan and store business cards.
2
4
IDENTIFYING JOB OPPORTUNITIES 7
9 openings that match your
Before you apply for employment, you need to identify job
interests and abilities.
T
JOB ADVERTISEMENTS Advertisements for S D I D Y O U K N O W ?
employment opportunities were previously found in
newspapers and other print media. While some still
exist, nearly all job listings are now online. In addition
to newspaper websites, also check for available positions offered through professional organizations, trade
associations, and other online sources. For opportunities
in a specific career field, refer to the website of specialized publications such as Advertising Age, Marketing
kap61647_ch02_046-074.indd 59
An elevator speech, also called an elevator pitch,
is a short, persuasive, focused summary of your
unique experiences and skills used when networking.
This talk should be conversational (not forced),
memorable, and sincere. The use of an
engaging idea or question can help keep
the conversation going.
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60
Part 1
PLANNING YOUR PERSONAL FINANCES
News, the Journal of Accountancy, and American
Banker. Since a large portion of available jobs may
not be advertised to the general public, other job
search techniques are critical.
DID YOU KNOW?
When encountering unemployment and other
difficult career situations, take these actions:
(1) acknowledge stress, anxiety, frustration, and fear;
(2) eat properly and exercise; (3) determine sources
of emergency funds; cut unnecessary spending;
(4) maintain a positive outlook to communicate
confidence; (5) connect with others in professional
and social settings; (6) consider part-time
work, consulting, and volunteering to
expand your contacts and career potential.
CAREER FAIRS Career fairs, commonly held
on campuses and at convention centers, offer an
opportunity to contact several firms in a short time
span. Be prepared to quickly communicate your
potential contributions to an organization. By making
yourself memorable to the recruiter, you are likely to
be called for a follow-up interview. Be ready to ask
specific questions about the organizations in which
you are interested. Additional information on career
fairs may be obtained at www.nationalcareerfairs.com.
R
I
C
EMPLOYMENT AGENCIES Another possible source of job leads is employA organizations match job hunters with prospective
ment agencies. These for-profit
employers. Often the hiring company
pays the fee charged by the employment agency;
R
however, be careful when you are asked to pay a fee and have no guarantee of a job. Be
D before signing them.
sure you understand any contracts
Government-supported employment
services are also available. Contact your state
,
employment service or your state department of labor for further information.
JOB CREATION AfterAresearching a particular organization or industry, prejob creation The development of an employment
position that matches
your skills with the needs
of an organization.
sent how your abilities would
D contribute to that organization. Job creation involves
developing an employment position that matches your skills with the needs of an
R
organization.
As you develop skills in Iareas you enjoy, you may be able to create a demand for
your services. For example, a person who enjoyed researching business and economic trends was hired by E
a major corporation to make presentations for its managers at various company offices.
Or people with an ability to design promotions
N
and advertising might be hired by a nonprofit organization that needs to enhance its
N
public visibility.
E
OTHER JOB SEARCH METHODS Your ability
locate existing and potential employment positions is
2to
limited only by your imagination and initiative. Com4monly overlooked sources of jobs include the following:
7 • Visit organizations where you would like to work,
9 and make face-to-face contacts. Create an impression
that you are someone who can contribute. Calling or
T visiting before 8 a.m. or after 4 p.m. increases your
S chance of talking to someone who is not busy.
• Successful organizations continually look for quality
A career fair provides an
opportunity to contact many
prospective employers.
kap61647_ch02_046-074.indd 60
employees. An online search can provide names
of organizations that employ people with your
qualifications.
• Be in contact with alumni who work in your field.
Graduates who are familiar with your school and
major can help you focus your career search.
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Chapter 2
Financial Aspects of Career Planning
61
To improve your job search efforts, work as many hours a week getting a job as you
expect to work each week on the job. Maintaining an ongoing relationship with contacts
can be a valuable source of information about future career opportunities.
APPLYING FOR EMPLOYMENT
Many qualified people never get the job they deserve without a presentation of skills
and experiences. This process usually involves three main elements.
1. The résumé, a summary of education, training, experience, and qualifications, provides prospective employers with an overview of your potential contributions to an
organization.
2. A cover letter is the correspondence you send with a résumé to communicate your
interest in a job and to obtain an interview.
R
3. The interview is the formal meeting used to discuss yourI qualifications in detail.
When connecting your background and potential contributions
C to the needs of an organization in a résumé, cover letter, or interview, consider how these examples achieve
A
that purpose:
résumé A summary of
a person’s education,
training, experience, and
other job qualifications.
cover letter A letter that
accompanies a résumé
and is designed to express
interest in a job and
obtain an interview.
R
A prospective
employer requires
that you have:
Experiences,
competencies,
you have:
AD
connection you might
make on a résumé or in
, interview:
an
• Research
experience
• Class research
project for case
study in Eastern
Europe.
• Researched potential
markets in Eastern
A
Europe for company
D
expansion.
• Leadership skills
• Summer camp
coordinator for
youth sports.
•R
Coordinated camp
Ivolunteers for youth
sports program.
• Marketing
background
• Prepared
marketing
proposal during
internship.
• Developed marketing
N
proposal for
community service
N
organization.
E
E
Most important is to communicate how your experiences will contribute to the future
needs and success of the organization.
2
For expanded coverage of résumés, cover letters, and interview strategies, see the
4
appendix at the end of this chapter.
7
9
P R A C T I C E Q U I Z 2 - 3T
S
1 How can a person obtain employment-related experiences without working
PFP Sheet 7
Making career
contacts
in a job situation?
2 What types of career information sources can be helpful in identifying job
opportunities?
3 How does the information in a cover letter differ from the information in a
résumé?
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62
Part 1
PLANNING YOUR PERSONAL FINANCES
Financial and Legal Aspects of Employment
LO2-4
Assess financial and
legal concerns related to
obtaining employment.
“We would like you to work for us.” When offered an employment position, you should
examine a range of factors. Carefully assess the organization, the specific job, and the
salary and other benefits.
ACCEPTING AN EMPLOYMENT POSITION
Before accepting a position, do additional research about the job and the company. Request
information about your specific duties and job expectations. If someone currently has a
similar position, ask to talk to that person. If you are replacing a person who is no longer
with the company, obtain information about the circumstances of that person’s departure.
R
THE WORK ENVIRONMENT
Investigate the work environment. The term
corporate culture refers to management
styles, work intensity, dress codes, and social
I
interactions within an organization. For example, some companies have rigid lines of
communication, while othersC
have an open-door atmosphere. Are the values, goals, and
lifestyles of current employees
A similar to yours? If not, you may find yourself in an
uncomfortable situation.
Consider company policiesRand procedures for salary increases, evaluations of employees, and promotions. Talking D
with current workers can help you obtain this information.
, SALARY Your initial salary will be influenced by
FACTORS AFFECTING
your education and training, company size, and salaries for comparable positions. To
ensure a fair starting salary, talk to people in similar positions and research salary levels.
To improve your value onA
the job and to enhance your salary potential:
•
•
•
•
Ask your supervisor forD
professional development suggestions.
R request additional duties.
Obtain additional training;
Take initiative to exceedI performance expectations.
Talk with co-workers toEobtain ideas for contributing to team and organizational
success.
DID YOU KNOW?
The main factors college graduates consider when
choosing an employer are: enjoyment of the
work, integrity of the organization, potential for advancement, benefits, and job
location.
N
N EVALUATING EMPLOYEE
E BENEFITS
Escalating health care costs, changing family situations,
and concerns about retirement have increased the attention given to supplementary compensation benefits.
2
4
MEETING EMPLOYEE NEEDS In recent
7 years,
nonsalary employee benefits have expanded to
9 meet the needs of different life situations. The increasT ing number of two-income and single-parent households has resulted in a greater need for child care benefits and leaves of absence. The
S employees with dependent parents or grandparents has
need for elder care benefits for
also increased. Other common employee benefits designed to meet varied life situation
needs include:
•
•
•
•
•
kap61647_ch02_046-074.indd 62
Flexible work schedules.
Work-at-home arrangements (telecommuting).
Legal assistance.
Counseling for health, emotional, and financial needs.
Exercise and fitness programs.
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Financial Planning for Life’s Situations
SELECTING EMPLOYEE BENEFITS
Commonly recommended employee benefits for various life situations are shown here:
Single, No Children
Young Family
Single Parent
Married,
No Children
Mixed-Generation
Household
• Disability income
insurance
• Comprehensive
health insurance
• Health insurance
• Health insurance
• Life insurance
• Health insurance
• Life insurance
• Retirement
program
• Retirement
program
• Child care services
• Disability income
insurance
• Health and
disability
insurance
• Maternity
• Child care services
R
coverage and
• Elder care benefits
• Dependent care
parental
leave
I
• Educational
benefits
(young couple)
assistance,
C
such as tuition
• Long-term health
reimbursement
care (older couple)
A
R
Based on your current life situation or expectations for the future, list the employee benefits that would be most
D
important to you.
,
Life Situation
Desired Employee Benefits
A
D
R
I
E
N
N
E
Such benefits not only enhance the quality of an employee’s life but are also profitable
for organizations because happier, healthier workers have fewer absences and a higher
level of productivity.
2
Cafeteria-style employee benefits are programs that allow workers to base their
job benefits on a credit system and personal needs. Flexible4selection of employee benefits has become common. A married employee with children
7 may opt for increased
life and health insurance, while a single parent may use benefit credits for child care
9
services. The Financial Planning for Life’s Situations box on this page can help you
plan benefits. As with any financial decision, employee benefits
T involve a trade-off, or
opportunity cost.
S
Many organizations offer flexible spending plans, also called expense reimbursement accounts. This arrangement allows you to set aside part of your salary for paying medical or dependent care expenses. These funds are not subject to income or
Social Security taxes. However, money not used for the specified purpose is forfeited. Therefore, you must carefully plan the amount to be designated for a flexible
spending plan.
Similarly, a medical-spending account (Archer MSA) or a health savings account
(HSA) allows paying health care costs with pretax dollars. These have two components: (1) health insurance coverage with a high deductible, and (2) a tax-deferred
cafeteria-style employee
benefits Programs that
allow workers to base
their job benefits on a
credit system and personal
needs.
63
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64
Part 1
PLANNING YOUR PERSONAL FINANCES
my liffe 4
Salary would be the important factor for me
when accepting an employment position.
While salary is important, research findings consistently rate several other factors higher for a
person deciding to accept a position. Talk to
people in various stages of their careers to obtain
information about factors they have considered
when selecting an employment position.
savings account for medical expenses. Money in this account
may be used for other purposes; however, the amount is taxed,
along with a tax penalty based on age and health condition.
While MSAs and HSAs have tax-saving implications, the high
deductible may not be affordable for many households.
When matching dependent health care needs and medical insurance plans, consider the following:
• Types of services available and location of health care
providers.
• Direct costs (insurance premiums) to you.
• Anticipated out-of-pocket costs (deductibles and coinsurance amounts).
R retirement programs are increasing in importance. In
As people live longer, various
addition to Social Security benefits,
some employers contribute to a pension plan. VestI
ing is the point at which retirement payments made by the organization on your behalf
belong to you even if you noClonger work for the organization. Vesting schedules vary,
but all qualified plans (those for
A which an employer may deduct contributions to the plan
for tax purposes) must (1) be 100 percent vested on completion of five years of service or
R three years and full vesting, in stages, after seven years.
(2) have 20 percent vesting after
Vesting refers only to the employer’s
pension contributions; employee contributions
D
belong to the employees regardless of the length of their service with the organization.
Workers are commonly ,allowed to make personal contributions to companysponsored retirement programs. These plans usually involve a variety of investments,
making it easy for employees to create a diversified portfolio for their retirement funds.
A
D Two methods used to assess the monetary value of
COMPARING BENEFITS
employee benefits are market value calculations and future value calculations.
R
Market value calculations determine the specific monetary value of employee
I
benefits—the cost of the benefits
if you had to pay for them. For example, you may
view the value of one week’sEvacation as 1/52 of your annual salary, or you may view
the value of a life insurance benefit as what it would cost you to obtain the same coverage. You can use this methodNto determine the difference between two job offers with
different salaries and employee
N benefits.
Future value calculations, as discussed in Chapter 1, enable you to assess the longE such as pension programs and retirement plans. For
term worth of employee benefits
example, you can compare the future value of payments contributed to a company
retirement fund to that of other saving and investment options.
2 You should also take tax considerations into account
4when you assess employment benefits. A tax-exempt benDID YOU KNOW?
is one on which you won’t have to pay income tax, but
7efit
a tax-deferred benefit requires the payment of income tax
Many employers use credit reports as hiring tools.
9at some future time, such as at retirement. When assessing
Federal law requires that job applicants be told if
compensation and benefits, consider their
credit histories are being used in the hiring
Temployment
taxability, since an untaxed benefit of lower value may be
process. You can check your credit report
Sworth more than a benefit of higher value that is subject
at www.annualcreditreport.com.
to taxation (see the Financial Planning Calculations box).
YOUR EMPLOYMENT RIGHTS
Employees have legal rights both during the hiring process and on the job. For example,
an employer cannot refuse to hire a woman or terminate her employment because of
pregnancy, nor can it force her to go on leave at an arbitrary point during her pregnancy. In addition, a woman who stops working due to pregnancy must get full credit
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Financial Planning Calculations
TAX-EQUIVALENT EMPLOYEE BENEFITS
Employee benefits that are nontaxable have a higher
financial value than you may realize. A $100 employee
benefit on which you are taxed is not worth as much as
a nontaxable $100 benefit. This formula is used to calculate the tax-equivalent value of a nontaxable benefit:
Value of the benefit
___________________
( 1 2 Tax rate )
A variation of this formula, which would give the aftertax value of an employee benefit, is
Taxable value of the benefit (1 2 Tax rate)
For the above example, the calculation would be
$486 (1 2 0.28) 5 $486(0.72) 5 $350
In other words, a taxable benefit with a value of $486
For example, receiving a life insurance policy with a
would have an after-tax value of $350 since you would
nontaxable annual premium of $350 is comparable to
have to pay $136 ($486 3 0.28) in tax on the benefit.
R
receiving a taxable employee benefit worth $486 if you
These calculations can help you assess and compare
are in the 28 percent tax bracket. This tax-equivalentI
different employee benefits within a company or in
amount is calculated as follows:
different jobs. Remember to also consider
C considering
$350
$350
the value of employee benefits in terms of your per________
5 _____ 5 $486
0.72
1 2 0.28
A sonal and family needs and goals.
R
D
,
for previous service, accrued retirement benefits, and accumulated seniority. Other
employment rights include the following:
A
D national origin,
on the basis of age, race, color, religion, sex, marital status,
mental or physical disabilities, or sexual orientation. R
Minimum-wage and overtime pay legislation apply toI individuals in certain work
settings.
E
Worker’s compensation (for work-related injury or illness), Social Security, and
N
unemployment insurance are required benefits.
N
E
PRACTICE QUIZ 2-4
1 How does a person’s life situation determine the2importance of certain
employee benefits?
4
2 What methods can be used to measure the monetary value of employee
7
benefits?
9
T
S
• A person may not be discriminated against in the employment selection process
•
•
PFP Sheet 12
Employee benefits
comparison
Long-Term Career Development
A job is for today, but a career can be for a lifetime. Will you always enjoy the work you
do today? Will you be successful in the career you select? These questions cannot be
answered right away; however, certain skills and attitudes can lead to a fulfilling work life.
Every day you can perform duties that contribute to your career success. Communicating and working well with others will enhance your chances for financial advancement and promotion. Flexibility and openness to new ideas will expand your abilities,
knowledge, and career potential.
LO2-5
Analyze techniques available for career growth and
advancement.
65
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66
Part 1
PLANNING YOUR PERSONAL FINANCES
Develop efficient work habits. Use lists, goal setting, and time management techniques. Combine increased productivity with quality. All of your work activities should
reflect your best performance. This extra effort will be recognized and rewarded.
Finally, learn to anticipate problems and areas for action. Creativity and a willingness to assist others can help the entire organization and contribute to your work enjoyment and career growth.
TRAINING OPPORTUNITIES
Many technology-work situations did not exist a few years ago. Many of the job skills
you will need in the future have yet to be created. Your desire for increased education is
a primary determinant of your career success and financial advancement. Continue to
learn about new technology, diverse cultures, and the global economy.
R and expanding your knowledge are available. ForVarious methods for updating
mal methods may include company programs, seminars and webinars offered by proI
fessional organizations, and graduate and advanced college courses. Some companies
C education.
encourage and pay for continuing
Informal methods for updating
A and expanding your knowledge include reading and
discussion with colleagues. Online sources offer a wealth of information on business,
economic, and social trends.RInformal meetings with co-workers and associates from
other companies can also be D
a valuable source of career information.
,
CAREER PATHS AND ADVANCEMENT
mentor An experienced
employee who serves as a
teacher and counselor for
a less experienced person
in a career field.
As with other financial decisions,
A career choices must be reviewed in light of changing values, goals, economic conditions, and social trends. As Exhibit 2-5 on page 67
D a series of career stages, each with specific tasks and
shows, you will move through
challenges. A successful technique
R for coping with the anxieties associated with career
development is to gain the support of an established person in your field. A mentor is
I serves as a teacher and counselor for a less experienced
an experienced employee who
person in a career field. A relationship
with a mentor can provide such benefits as perE
sonalized training, access to influential people, and emotional support during difficult
N
times.
Your efforts to attract a mentor
N start with excellent performance. Show initiative, be
creative, and be alert to meeting the needs of others. Maintain visibility and display a
E
desire to learn and grow by asking questions and volunteering for new assignments.
A prospective mentor should be receptive to assisting others and to helping them
grow in both the technical and social areas of a career. Many organizations have formal
2
mentor programs with an experienced employee assigned to oversee the career develop4 mentor relationships involve retired individuals who
ment of a newer employee. Some
desire to share their knowledge
7 and experience.
9
T
At some time in their lives, most
S workers change jobs. Millions of career moves occur
CHANGING CAREERS
each year. People change jobs to obtain a better or different position within the same
career field or to move into a new career field. Changing jobs may be more difficult than
selecting the first job. Unless their present situation is causing mental stress or physical
illness, most people are unwilling to exchange the security of an existing position for
the uncertainty of an unfamiliar one.
The following may be indications that it is time to move on:
• Low motivation toward your current work.
• Physical or emotional distress caused by your job.
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Chapter 2
Stage
Financial Aspects of Career Planning
Characteristics
Concerns
Preentry and
career exploration
stage
• Assess personal interests
and set career goals.
• Obtain necessary training.
• Gain initial employment.
• Matching interests and
abilities to employment.
• Dealing with shock of
unfulfilled expectations.
Establishment and
professional
growth
stage
• Gain in experience,
effectiveness, and respect
of colleagues.
• Concentrate on an area
of specialization.
• Developing career
contacts.
• Avoiding overinvolvement
and career burnout.
Advancement and
midcareer adjustment
stage
• Continue to obtain
experience and knowledge
to win promotions.
• Seek new challenges and
expanded responsibility.
Late-career and
preretirement
stage
• Make financial and personal
plans for retirement.
• Assist in training successor.
67
Exhibit 2-5
Stages of career development: characteristics and
concerns
R
I
• Finding continued
Csatisfaction.
• Maintaining sensitivity
Atoward colleagues and
subordinates.
R
D
,• Determining the extent of
professional involvement
after retirement.
• Planning involvement in
community activities.
A
D
R
• Consistently poor performance evaluations.
I
• A lack of social interactions with co-workers.
E
• Limited opportunity for salary or position advancement.
N
• A poor relationship with your superior.
N in your life (such as
A decision to change careers may require minor alterations
going from retail sales to industrial sales), or it may mean
E extensive retraining and
starting at an entry level in a new field. As with every other financial decision, no exact
formula exists for deciding whether you should make a career change. However, follow
these guidelines. First, carefully assess the financial and personal
costs and benefits of
2
changing careers in relation to your needs and goals and those of
4
your household. Giving up benefits such as health insurance may
my liffe 5
be costly to a family, but the expanded career opportunities
7 in a
new field may be worth the trade-off. Then determine whether a
9
career change will serve your needs and goals and those of other
I sometimes think about what type of
T
household members.
employment situation I would like to have
In most industries, long-term job security is a thing of the
three or five years from now.
S past.
Company mergers, downsizing, technology, and economic condiConduct an online search to locate suggestions
tions may result in forced career changes. Layoffs cause emotional
for career development and advanced career
and financial stress for individuals and families. To cope with job
training.
termination while seeking new employment, counselors recommend that you
• Maintain appropriate eating, sleep, and exercise habits.
• Get involved in family and community activities; new career contacts are possible anywhere.
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68
Part 1
PLANNING YOUR PERSONAL FINANCES
• Improve your career skills through personal study, online classes, or
volunteer work.
• Target your job search to high-growth industries or small businesses.
• Consider opportunities with nonprofit organizations, government agencies,
temporary employment, or consulting work.
• Target your skills and experience to the needs of an organization.
PFP Sheet 13
Career development
and advancement
PRACTICE QUIZ 2-5
1 What types of activities would
R you recommend for people who desire career
advancement and professional growth?
I consider before changing jobs or career fields?
2 What factors should a person
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myy life sttage
es forr career planning
A
YOUR PERSONAL FINANCE DASHBOARD
D
RSuccess for obtaining employment and career advanceIment is enhanced by interaction with others. Networking
(in-person and online) has many benefits. Face-to-face
Emeetings, phone conversations, informational interand e-mail exchanges allow you to obtain advice
6
Nviews,
5
7
about industry trends, company activities, and career
4
8
Nopportunities.
3
9
10
2
EYour personal finance dashboard to monitor career interac1
11
GOOD CAREER
POTENTIAL
MINIM
AL
POT CAR
EN
TIA EER
L
EER
CAR
NT
LLE NTIAL
E
CE
EX POT
0
12
MONTHLY CAREER INTERACTIONS
tions can increase your career potential. An ability to connect and engage people in varied professional and social
settings improves your interpersonal skills while also gaining
employment insights.
2
4
7
9 events to meet potential career contacts? Do you
YOUR SITUATION Have you attended business and community
research and prepare questions to engage your contacts? Do you
T follow up with career contacts to learn about their current
activities? Other career planning actions you might consider during various stages of your life include . . .
S
(continued)
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Chapter 2
Financial Aspects of Career Planning
69
my life stag
ges for carreer planning (concluded)
...in college
...in my 20s
...in my 30s
and 40s
...in my 50s and
beyond
• Obtain career
competencies
in class, work,
and volunteer
situations
• Revise résumé
and career
portfolio
• Reassess career
situation and
employee
benefits based
on life situation
• Serve as a
mentor for
younger
workers
• Explore various
career fields
• Make contacts
with people in
various career
fields
• Create résumé
and career
portfolio
• Apply for
employment
positions
• Expand and
update career
network
contacts
• Consider
advanced degree
study programs
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SUMMARY OF LEARNING OBJECTIVES
N
LO2-1
E
Describe activities associated with career planning and
advancement.
An understanding of your personal interests and abilities is the
basis of a satisfying work life. Career planning and advancement involve the following stages and activities: (1) assess and
research personal goals, abilities, and career fields; (2) evaluate the employment market and identify specific employment
opportunities; (3) develop a résumé and cover letter for use
in applying for available positions; (4) interview for available
positions; (5) evaluate financial and other elements of the positions you are offered; and (6) plan and implement a program for
career development.
LO2-2
Evaluate factors that influence employment opportunities.
Take actions to keep informed of various factors that influence employment opportunities in our society. Consider
kap61647_ch02_046-074.indd 69
• Obtain
additional
training
and career
advancement
skills
• Update résumé
• Evaluate needed
changes in
employee
benefits
• Increase
contributions to
retirement plans,
as appropriate
the selection of a career in relation to personal abilities,
interests, experience, training, and goals; social influences
affecting employment, such as demographic trends; changing economic conditions; and industrial and technological
trends.
2
4
LO2-3
7 Implement employment search strategies.
9 Your ability to ask questions of others that provide information about career planning activities and employment
T opportunities is the basis of successful career planning and
Also consider the following: Obtain employS development.
ment or related experiences by working part-time or by par-
ticipating in campus and community activities. Use career
information sources to learn about employment fields and
identify job opportunities. Prepare a résumé and cover letter that effectively present your qualifications for a specific
employment position. Practice interview skills that project
enthusiasm and competence.
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LO2-4
LO2-5
Assess financial and legal concerns related to obtaining
employment.
Analyze techniques available for career growth and
advancement.
While salary may be viewed by some as the important factor
when accepting an employment position, also evaluate the work
environment and compensation package. Assess employee
benefits on the basis of their market value, future value, and
taxability and your personal needs and goals. Prospective and
current employees have legal rights with regard to fair hiring
practices and equal opportunity on the job.
When considering your employment situation three to five
years from now, identify informal and formal education and
training opportunities that are available to further your professional development and facilitate career changes.
KEY TERMS
cafeteria-style employee
benefits
career
63
job
48
job creation
48
cover letter
informational interview
61
mentor
60
66
KEY FORMULAS
Page
Topic
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65
Geographic buying power
Tax-equivalent employee benefits
networking
résumé
56
61
Formula
A
52
59
City 1
Geographic buying 5 ______
City 2
D
Example:
Index number 3 Salary
____________________
Index number
R
123 3 50,000
5 ____________
I
98.8
5
$62,247
E
Value of the benefit
N of a nontaxable 5 ________________
Tax-equivalent
( 1 2 Tax rate )
Example:N
$1,250
5 _________
( 1 2 0.28 )
E
5 $1,736
2
4
7
SELF-TEST PROBLEMS
9
1. Time value of money calculations are used to determine the valueTof potential retirement benefits. If a person deposits $1,800 a
year in a retirement account earning 6 percent for 20 years, what would be the future value of that account?
S
2. A non-taxable employee benefit has a greater value than the stated amount. What would be the tax equivalent value of a nontaxable employee benefit of $392? Assume a 30 percent tax rate.
Self-Test Solutions
1. Using the future value of a series (annuity) table on page 35, the result would be $66,214.80 ($1,800 3 36.786).
2. To determine the tax equivalent value, divide the amount by one minus the tax rate. In this situation, $392 would be divided by
0.70 (1 2 0.3), resulting in $560.
70
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FINANCIAL PLANNING PROBLEMS
1. Determining the Future Value of Education. Jenny Franklin estimates that as a result of completing her master’s degree, she will
earn $7,000 a year more for the next 40 years.
LO2-1
a. What would be the total amount of these additional earnings?
b. What would be the future value of these additional earnings based on an annual interest rate of 6 percent? (Use Table 1–B in
the Chapter 1 Appendix.)
2. Comparing Living Costs. Brad Edwards is earning $45,000 a year in a city located in the Midwest. He is interviewing for a position in a city with a cost of living 12 percent higher than where he currently lives. What is the minimum salary Brad would need
at his new job to maintain the same standard of living?
LO2-2
3. Calculating Future Value of Salary. During a job interview, Pam Thompson is offered a salary of $28,000. The company gives
annual raises of 4 percent. What would be Pam’s salary during her fifth year on the job?
LO2-3
4. Computing Future Value. Calculate the future value of a retirement account in which you deposit $2,000 a year for 30 years with
an annual interest rate of 6 percent. (Use the tables in the Chapter 1 appendix.)
LO2-4
R employee benefits has the greater value? Use the formula given
5. Comparing Taxes for Employee Benefits. Which of the following
in the Financial Planning Calculations box on page 65 to compare
I these benefits. (Assume a 28 percent tax rate.)
LO2-4
a. A nontaxable pension contribution of $4,300 or the use of C
a company car with a taxable value of $6,325.
b. A life insurance policy with a taxable value of $450 or a nontaxable increase in health insurance coverage valued at $340.
A
6. Comparing Employment Offers. Bill Mason is considering two job offers. Job 1 pays a salary of $36,500 with $4,500 of nontaxR
able employee benefits. Job 2 pays a salary of $34,700 and $6,120 of nontaxable benefits. Which position would have the higher
monetary value? Use a 28 percent tax rate.
D
LO2-4
7. Calculating the After-Tax Value of Employee Benefits. Helen Meyer
, receives a travel allowance of $180 each week from her company for time away from home. If this allowance is taxable and she has a 30 percent income tax rate, what amount will she have
to pay in taxes for this employee benefit?
LO2-4
8. Future Value of Advanced Training. Ken Braden estimates thatA
taking some classes would result in earning $3,500 more a year for LO2-5
the next 30 years. Based on an annual interest rate of 4 percent, calculate the future value of these classes.
D
9. Comparing the Value of a Career Change. Marla Opper currently earns $50,000 a year and is offered a job in another city for
R expenses than her current city. What quantitative analysis should
$56,000. The city she would move to has 8 percent higher living
Marla consider before taking the new position?
LO2-5
1.
LO2-1
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N FINANCIAL PLANNING ACTIVITIES
Researching Career Planning Activities. Talk to several peopleEabout influences on their current employment situation. How did
various personal, economic, and social factors affect their career choices and professional development?
LO2-2
2. Conducting an Informational Interview. Arrange an informational interview at a local company or with a business contact you
2
have made. Prepare questions related to needed skills in this employment field, current trends for the industry, and future prospects for this career area.
4
3. Searching the Web for Benefit Information. Using a Web search
7or the library, obtain information about various employee benefits LO2-3
such as health insurance, retirement plans, child care, life insurance, and tuition reimbursement.
9
4. Analyzing Employee Benefits. Talk with people employed in various types of organizations. Prepare a list of the most common
types of employee benefits received by workers. Using Sheet 12
T in the Personal Financial Planner, obtain information about
various employee benefits from current or prospective employers.
LO2-4
5. Obtaining Career Advancement Information. Talk with people employed in various types of careers (large company, international
business, individual entrepreneur, nonprofit, government) about the training and professional development activities they have
found most valuable. Create a list of competencies, skills, and technical abilities that you would like to develop over the next few
years. What actions will you take to obtain those proficiencies?
LO2-5
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6. Preparing for an Interview. Based on library and Internet research and experiences of others, obtain information about effective
interviewing techniques. Prepare a video that presents appropriate and inappropriate actions one might take when preparing for
and participating in an interview. (Chapter 2 appendix.)
71
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FINANCIAL PLANNING CASE
Which Job? Are You Sure?
“Wow, you mean you have three job offers? How did that
happen?”
“I’m not quite sure, Joan,” responded Alexia. “I guess I just
carefully prepared for my job search.”
“Ahhh . . . could you be a bit more specific for those of us who
have no job offers?” asked Joan.
“After researching various organizations, I tried to match
my abilities and experiences to their needs,” Alexia continued.
“Then, in addition to my résumé, I sent a portfolio with samples
of my research work and creative projects.”
“OK, Alex, which of the three jobs are you going to take?”
asked Joan.
“Again, I’m not quite sure. I’ve created a comparison of the
three to help me decide,” Alexia replied.
“Let me see that!” exclaimed Joan. “Wow, you take this career
search stuff seriously!”
Job Offer Comparison
Position A
Position B
Position C
Position description,
organization
Advertising account
assistant for international
promotions with global
company with offices in
17 countries.
Marketing assistant for a
medium-sized equipment
company; sales offices in
eight southeastern states.
Public relations director
in local office of national
nonprofit organization
assisting low-income
families with food and
housing.
Salary situation
$46,000; performance
reviews and salary
increases every six
months for first two
years, then annually.
Vacation time (paid)/
year
Two weeks (first year);
additional two days for
each year of service.
Health insurance
coverage
Employer pays 80 percent
of health premiums for
doctors on list of insurance company.
Retirement fund
Employer contributes 5
percent of salary; additional contributions
allowed.
Educational
opportunities
On-site training seminars
to update employees
on global cultures and
advertising trends.
Questions
1. What steps might Alexia take when deciding which position
to accept?
2. What additional factors would you consider when selecting
an employment position?
R
I
C
$43,500; annual bonus
A
based on percentage of
R
company sales increase.
D
,One week after six
months on the job; two
additional days for each
six months of service.
A
Employer pays for HMO
D
coverage with some flexibility of doctors.
R
I
Employer matches
E
employee contributions
(up to 10 percent).
N
N
Tuition reimbursement
(up to $6,000 a year) for
E
graduate courses.
$38,500, with annual salary increases of 3 to 5
percent.
Two weeks (paid); additional unpaid leave time
up to four weeks a year.
Employer pays 60 percent of health premiums;
employee selects own
doctor.
Employer pays 2 percent of salary; employee
may make tax-deferred
contributions.
Two trips a year to seminars on topics related to
nonprofit organizations.
2
4
3.
7 Which employment position would you recommend
for her? Why?
9
T
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PERSONAL FINANCIAL PLANNER IN ACTION
Planning Your Career
Your selection of a career and professional development activities will influence many aspects of your life, including financial resource
availability, leisure time, living location, and acquaintances.
Your Short-Term Financial Planning Activities
Resources
1. Explore various career areas in relation to your interests, abilities,
and goals.
PFP Sheets 6, 7
www.mappingyourfuture.org
www.jobbankinfo.org
www.hotjobs.yahoo.com
2. Develop a résumé and sample cover letter for use in a job search.
PFP Sheets 8, 9
www.job-hunt.org
www.rileyguide.com
www.careerjournal.com
R
3. Research prospective employers and develop a strategy for effective interviewing.
I
C
A
Your Long-Term Financial Planning Activities
1. Analyze employee benefits based on your current and possibleR
future financial needs.
D
,
2. Develop a plan of action for professional development. Consider
starting your own business.
Career Decision
Life Situation
Single
Age 21
No dependents
College student
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PFP Sheets 10, 11
www.jobhuntersbible.com
www.careerbuilder.com
www.businessweek.com/careers/index.htm
Resources
PFP Sheet 12
www.benefitnews.com
www.dol.gov/ebsa
PFP Sheet 13
www.sba.gov
www.inc.com
www.startupjournal.com
CONTINUING CASE
Financial Data
Monthly Income $1,750
Living Expenses $1,210
Personal property $7,300
Savings $2,000
Student loan $3,000
Credit card debt $2,400
2
4
Shelby Johnson’s current employment position, a grooming specialist for a local pet store, provides her with a lot interesting activities each day. While she is not part of management, she does have7the opportunity to use various communication skills, record business transactions, and use current technology tools. Shelby especially enjoys working with the pets and their owners to achieve a
9
pleasing experience.
Her income is based on an hourly wage which can result in financial
T stress during times of inflation. She has previously used her
credit cards to help make ends meet each month. However, the experience she is gaining will be especially valuable when she opens
S
her own pet salon in the future.
Questions
1. Given her current situation, identify some positive and negative aspects of her current career.
2. What suggestions do you think Shelby should consider related to her current and future career activities.
3. Describe how Shelby might use the following Personal Financial Planner sheets for career planning: Résumé Worksheet and
Preparing for an Interview.
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DAILY SPENDING DIARY
“My daily work expenses could easily be reduced if I’d be more careful with lunch and coffee spending.”
Directions
Continue or start using the “Daily Spending Diary” sheets, or create your own format. Record every cent of your spending in the categories provided, or set up your own categories. Knowing your spending actions and achieving financial goals can improve by using
this process.
Questions
1. What types of job-related expenses might be commonly included as part of your Daily Spending Diary?
2. What actions might be taken to reduce costs associated with seeking a job or when changing jobs?
The Daily Spending Diary sheets are located in Appendix D at the end of the book and on the student website at www.mhhe.com/kdh.
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chapter 2 appendix
Résumés, Cover Letters,
and Interviews
Developing a Résumé
R
Every business must present its product or service to potential
I customers in an effective
manner. In the same way, you must market yourself to prospective employers by develCinterviewing for available
oping a résumé, creating a letter to obtain an interview, and
positions.
A
R
RÉSUMÉ ELEMENTS
D
A résumé is a summary of your education, training, experience,
and other work quali,
fications. This personal information sheet is usually an essential component in your
employment search. The main elements are typically as follows:
A
D
Prepare a heading with your name, address, telephone number, and e-mail address.
Both school and home addresses and telephone numbers R
may be appropriate. Do not
include your birth date, sex, height, weight, or photograph in a résumé unless they apply
I
to specific job qualifications.
E
2. THE CAREER OBJECTIVE SECTION
N
Be sure to clearly focus your objective to each specific employment situation. A vague
N and one that is too specific
career objective will be meaningless to a prospective employer,
might prevent you from being considered for another E
1. THE PERSONAL DATA SECTION
position within the organization. Your career objective
may be omitted from the résumé and best communicated
in your cover letter. As an alternative, consider a “Career
Profile” or a “Career Summary” section with a synopsis
of your distinctive skills and experiences.
DID YOU KNOW?
2 Résumés often include vague words such as com4 petent, creative, flexible, motivated, or team player.
Instead, give specific examples of your
7 experiences and achievements to better
3. THE EDUCATION SECTION
9 communicate these capabilities.
This section should include dates, schools attended,
fields of study, and degrees earned. Courses directly T
related to your career field may be highlighted with
S
information about research activities, team projects, and presentation experiences. If your
grade point average is exceptionally high, include it to demonstrate your ability to excel.
4. THE EXPERIENCE SECTION
In this section, list organizations, dates of service, and responsibilities for all previous employment, work-related school activities, and community service. Highlight
computer skills, technical abilities, and other specific competencies that are in demand
by organizations. Use action verbs to communicate how your experience and talents
will benefit the organization (see Exhibit 2-A). Focus this information on results and
75
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76
Part 1
PLANNING YOUR PERSONAL FINANCES
Exhibit 2-A
Action verbs to effectively
communicate careerrelated experiences
• Achieved …
d…
• Administere
…
• Coordinated
…
• Created
• Designed …
• Developed …
• Directed …
• Edited …
• Initiated … R
d…
• Implemente
• Managed …
• Monitored …
• Organized …
• Planned …
• Produced …
…
• Researched
…
ed
iz
ar
• Summ
…
• Supervised
• Trained …
• Updated …
I
C
A
R
D
accomplishments, not characteristics. Consider using the S-T-A-R format to communi,
cate your experiences and achievements:
S
Situation, or the setting
Fund-raising coordinator for
campus organization
A
T
Task, your duties D
Prepared a plan to raise funds for
social service agency.
R
A
Actions you took I
Administered a team that solicited
donations on campus.
E
R
Result, the outcome
Donations of over $2,000 to a
N
homeless shelter.
N
On your résumé, this experience might be presented as follows:
E
• Coordinated fund-raising campaign to raise funds for social service agency, result-
ing in over $2,000 in donations to a homeless shelter.
The S-T-A-R format may also
2 be used when communicating your experiences during
an interview.
4
5. THE RELATED INFORMATION
SECTION
7
List honors or awards to communicate your ability to produce quality work. List inter9
ests and activities that relate to your career. Information on hobbies and other interests,
T individual.
can communicate a well-rounded
S
REFERENCES
At this time, you should also prepare a list of references, people who can verify your
skills and competencies. These individuals may include teachers, previous employers,
supervisors, or business colleagues. Be sure to obtain permission from the people you
plan to use as references. While references are usually not included on a résumé, have
this information available when a prospective employer requests it. Your reference list
should the person's name, title, organization, and contact information (address, phone,
e-mail).
When selecting references, choose people who will give a balanced view of your
strengths and areas that need improvement. Be sure your references offer a consistent
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Appendix
Résumés, Cover Letters, and Interviews
story that confirms your version of your work history.
Finally, your references should be people with credibility and integrity.
TYPES OF RÉSUMÉS
Three main types of résumés are commonly used:
1. The chronological résumé presents your education,
work experience, and other information in a reverse
time sequence (the most recent item first). Many
people find it to be the best vehicle for presenting
their career qualifications. Exhibit 2-B provides
an example of a chronological résumé along with
suggestions on how to create a more effective
presentation.
Exhibit 2-B
Résumé makeover
BEFORE:
CAREER OBJECTIVE
An entry-level position
in medical or health care
administration.
BEFORE:
Researched overdue
accounts, created collection
method for faster accounts
receivable turnover,
assisted in training billing
clerks.
SCHOOL ADDRESS
234B Weber Drive (Apt. 6)
Jasper, MO 54321
77
DID YOU KNOW?
To more effectively communicate qualifications, job
candidates are supplementing their résumés with
infographics. This visual representation of information and data can highlight skills and experiences.
Infographics may especially be appropriate when
applying for visual or creative positions, or when
you want to quickly convey extensive information.
Remember this device does not replace a traditional
résumé. However, this visual can possibly
put you ahead of other applicants in the
initial screening process.
R
I
C
A
R
CHAD BOSTWICK
bostwc@unsoark.edu
D
Phone: (407) 555-1239
,
HOME ADDRESS
765 Cannon Lane
Benton, KS 67783
A
D
R
EDUCATION
I
Bachelor of Science in Business Administration and Health Care Marketing,
University of South Arkansas, June 2015.
E
Associate of Arts, Medical Technician Assistant, Arrow Valley Community College,
Arlington, Kansas, June 2013.
N
ORGANIZATIONAL
N EXPERIENCE
Patient account clerk, University Hospital, Jasper,Missouri, November 2014 – present
E
Researched accounts to reduce uncollectible
amounts by 12 percent
CAREER SUMMARY
Customer service specialist in health care industry. Effective training, technology
capabilities. Qualified in team building and innovation development. Planned and
implemented strategies to increase customer satisfaction by over 20 percent.
…also consider
including relevant
class experiences,
such as:
coordinated team
research project to
identify health care
opportunities in Asian
markets.
Created collection method to improve accounts receivable turnover
Trained newly hired billing clerks in database applications
2
4
Maintained inventory records, processed customer records
Supervised quality control of entry-level
7 data clerks
CAMPUS ACTIVITIES
9
Newsletter editor, University of South Arkansas chapter of Financial Management
Association, January–June 2015
T
Managed editorial staff to research, design, and publish online newsletter
S on financial industry trends
Researched and prepared news stories
Sales data clerk, Jones Medical Supply Company, Benton, Kansas, January–
August 2013
Tutor for business statistics and computer lab, 2013–2015
Coordinated review sessions for exams and homework assignments
Developed problems and case studies to supplement course materials
BEFORE:
Newsletter editor,
University of South
Arkansas chapter of
Financial Management Association,
January–June 2015.
HONORS
College of Business Community Service Award, University of South Arkansas,
June 2015
Arrow Valley Health Care Society Scholarship, June 2013
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78
Part 1
PLANNING YOUR PERSONAL FINANCES
2. The functional résumé is suggested for people with diverse skills and time gaps in
their experience. This format emphasizes abilities and skills in categories such as
communication, supervision, project planning, human relations, and research. Each
section provides information about experiences and qualifications. This type of
résumé is appropriate when changing careers or if your recent experiences are not
directly related to the position for which you are applying.
3. A combination résumé brings together the chronological and functional types. With
this blended format, you first highlight skills and experience relevant to the position. This is followed by your employment history section, which reports specific
experiences that match the requirements for the job.
Thousands of résumés are submitted each day. To stand out, applicants have tried
various creative approaches. Employers report receiving résumés in the form of comic
strips, “wanted” posters, advertisements, and menus, and résumés attached to balloons,
pizzas, and plants. Some of R
these were effective; however, most employers view them
as frivolous. A creative approach
I may be appropriate for jobs in advertising, journalism,
photography, and public relations.
C
In recent years, additional types of résumés, and alternatives to résumés, have surfaced;
these include:
A
R for a specific job and highlights the capabilities and
• A targeted résumé is designed
experiences most appropriate to the available position. The format is usually similar
D
to the chronological or functional along with a very specific career objective.
, describing specific experiences and accomplishments,
• A targeted application letter,
can be used in some situations. After researching a position and the organization,
communicate how your specific skills will benefit the organization. Within your letA
ter (or e-mail), present a bulleted list with short descriptions of your specific experiences that relate to the available
D position.
• A career portfolio can provide
R tangible evidence of your experience and
competencies. Using a print or digital format, you might include a résumé, cover
I
letter, answers to sample interview
questions, and letters of recommendation. In
addition, research reports,Epresentations, creative works, and published articles for
class projects or campus activities can effectively communicate your abilities.
N
• A video résumé should be prepared in an expert manner. Be sure to dress
professionally. Don’t read;Ntalk as if you were in an in-person interview setting.
Be concise, make eye contact,
E and show enthusiasm.
Some career planning experts suggest that résumés are becoming online “living
entities.” Your social résumé will involve the use of LinkedIn, Twitter, and other social
2 your career competencies. Expect to interact with
media networks to communicate
hiring managers through social
4 networks before applying for a position using one or
more of these strategies:
7
• A LinkedIn profile highlights career achievements and competencies. Your ability
9
to provide a vibrant profile will enhance your employment potential.
T to communicate your unique skills and personal
• Twitter creates an opportunity
brand while linking prospective
S employers to your website or other professional
networking sites.
• QR (quick response) codes may be appropriate in some settings, especially a
technology-related position. Be sure to also include your website.
• Pinterest allows online posting of your résumé, photos, videos, and other visuals to
communicate career competencies, expertise, and achievements.
• Consider showing what others have to say about you. Your recommendations on
LinkedIn can provide a foundation for further discussion in the application process.
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Appendix
Résumés, Cover Letters, and Interviews
79
RÉSUMÉ PREPARATION
No exact formula exists; however, a résumé must be presented in a professional manner.
The use of bulleted items, bold type, and short sentences improves readability. Be sure
to read your résumé on a phone or tablet since many hiring managers review résumés
on a mobile device.
Limit your résumé to one page. Send a two-page résumé only if you have enough
material to fill three pages; then use the most relevant information to prepare an impressive two-page presentation.
Use a format that highlights how your background will contribute to an organization's needs. Remember, résumés are usually scanned for key words related to education
and technical expertise. The words and phrases used should be based the job description
and industry. Some commonly used words to impress a prospective employer include
“foreign language skills,” “software certification,” “research experience,” “problemR
solving,” “leadership,” “team projects,” and “overseas experience.” Avoid overused and
vague words such as “team player,” “energetic,” “results Ifocused,” “confident,” “creative,” and “professional.” Also, instead of just listing yourCability to use various software packages (such as Excel or PowerPoint), describe how these tools were used to
A
research information or to present findings for a specific project.
When preparing an online résumé, consider the following: R
PFP Sheet 8
Résumé worksheet
• Keep the format simple; avoid bold type, underlines, italics,
D and tabs. If you do use
various formatting styles, save your résumé as a PDF.
,
• Avoid attached files that may be difficult to open.
• Use keywords (especially nouns) for the specific employment position and industry.
Ae-mail, and other infor• When filling out fields for name, address, phone number,
mation, paste only plain text to avoid formatting problems.
D
Résumés posted online may be viewed by your current employer,
whom you may not
R
want to know about your job search. Also, some suggest putting a date on your résumé
I ago is for a current job
so your current boss will not think your résumé from two years
search.
E
For an improved résumé, seek guidance in preparing and evaluating your résumé.
Counselors, the campus career services office, and friends N
may find errors and suggest
improvements.
N
E
RÉSUMÉ SUBMISSION
Traditionally, résumés have been mailed or hand delivered.2When presenting a résumé
in person, you have an opportunity to observe the organizational environment and make
4
a positive impression about your career potential. Today, however, most résumés are
submitted online.
7
Most résumé posting sites are free. Never pay a large
9
fee; scam artists have set up phony websites with an
T
online payment system to defraud people. Be cautious
of sites not based in the country in which you desire
S DID YOU KNOW?
to work. Only post to sites with jobs in the geographic
region of interest to you, and for which you qualify.
Identity theft can occur using an online résumé.
Résumés sent by e-mail should be addressed to a
Do not put your Social Security number on your
specific person with a subject line referencing the sperésumé. Thieves will often contact you and
cific job. Your e-mail should include a cover letter to
pretend to be a prospective employer in
introduce yourself and to encourage the recipient to
an effort to obtain other personal
read your résumé. Properly format your résumé and
information.
include it in the body of the e-mail.
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80
Part 1
PLANNING YOUR PERSONAL FINANCES
Follow up with a call or e-mail to reinforce your qualifications and interest. Ask
about how and when to follow up on your status in the job search process.
EXAMPLE: Your Career Brand
Your professional image, or “brand,” should:
• Communicate unique skills, experiences, and competencies.
• Provide a vision of your potential contribution to an employer.
• Have a consistent message online, in print, and elsewhere.
• Involve ongoing actions that communicate your image, such as “collaborator”
or “international expert.”
R
I
C
A
Your résumé must be targeted to a specific organization and job. A cover letter is
R
designed to express your interest in a job and help you obtain an interview. This letter
Dusually consists of an introductory paragraph, one or two
accompanies your résumé and
development paragraphs, and, a concluding paragraph.
Creating a Cover Letter
INTRODUCTION
A
The introductory paragraph should
D get the reader's attention. Indicate your reason for writing by referring to the job or type of employment in which you are interested. CommuniRcate what you have to offer the organization based on your
I experience and qualifications. If applicable, mention the
name of the person who referred you to this organization.
DID YOU KNOW?
The Q letter (Q for qualifications) provides a sideby-side comparison of your experiences and abilities
with the job requirements. The two coordinated
lists allow you to be quickly rated as a viable
candidate for the position.
PFP Sheet 9
Planning a cover
letter
E
NDEVELOPMENT
N
The development section should highlight the aspects of
Eyour background that specifically qualify you for the job.
Refer the employer to your résumé for more details. At this
point, elaborate on experiences and training. Connect your
2skills and background to specific organizational needs.
4
7
CONCLUSION
9
The concluding paragraph should request action from the employer. Ask for the opportunity to discuss your qualifications
and potential with the employer in more detail; in
T
other words, get an interview! Include information to make contacting you convenient,
S
such as telephone numbers, e-mail address, and the times when you are available. Close
your letter by summarizing how you can benefit the organization.
Prepare a personalized cover letter (see Exhibit 2-C) for each position. Be sure to
address (or e-mail) the letter to the appropriate person in the organization. In the subject
line of an e-mail, state the job title for which you are applying.
A résumé and cover letter are your ticket to the interview. You may possess outstanding qualifications and career potential, but you need an interview to communicate
this information. The time, effort, and care you take to present yourself will help you
achieve your career goal.
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Appendix
Résumés, Cover Letters, and Interviews
81
Exhibit 2-C
Sample Cover Letter
May 23, 20
15
Ms. Hanna
Cabral
Human Re
sources Di
rector
Global Tran
slation Serv
3400 Supe
ices
rior Boulev
ard
Jamestow
n, NY 1345
6
Dear Ms. Ca
bral:
Experience
in providin
g superb cu
application
stomer serv
for the clien
ice for glob
t relations
recommen
al organiza
position. Br
ded that I
tions is the
enda Kelly
contact yo
basis of my
along with
in your acco
u. An abili
my studies
ty
unting depa
to
connect w
in internat
foundation
rtment
ith
ional relatio
people fro
for this po
m
ns and glob
varied cultu
sition. In ad
along with
al business
res
dition, I ha
an internsh
pr
ov
ve several
ide a stron
ip in the ex
courses in
g
porting de
internationa
My previous
partment of
l
bu
work in cros
sin
an
es
s
electronics
s-cultural en
with a perso
company.
vironments
n who is ab
provides yo
le to:
ur organiza
adapt to va
tion
ried busines
s settings an
use langua
d meet the
ge skills to
diverse need
handle custo
prepare cr
s of clients.
mer relatio
oss-cultura
ns with inte
l
m
ar
keting mat
implement
rnat...
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