Reasons your salary might not be going up in a strong economy

Reasons your salary might not be going up in a strong economyReasons your salary might not be going up in a strong economyThe US economy is growing at its fastest pace in four years. Unemployment recently sank to an 18-year low. Thats all led President Donald Trump to deem America as the economic envy of the entire world.But, you wouldnt know that by looking at your pay stub. Wage growth has been sluggish, as Business Insiders Rich Feloni recently reported.Even our lands top economists are baffled. Such low unemployment should mean that employers are kicking up pay in order to lure in workers. Yet, theyre not.Theres no single reason for why wage growth has been dismal. Business Insider spoke to three economists to shed light on their theories on the conundrum Jake Rosenfeld of the University of Washington in St. Louis, Economic Policy Institute senior economist Heidi Shierholz, and Brookings Institution senior fellow Jay Shambaugh.Heres what they sharedProductivity gains have been mi nimalA lack of productivity growth could explain the fall in wages, Shambaugh said.Growth in productivity, which is the output we get from every hour of work, has been declining in the US, as well as across advanced economies globally.Labor productivity grew at an average of 2.1% from 1987 to 2004, when it began falling, according to one McKinsey report. But since 2011, labor productivity growth has fallen to an average of 0.7%.Still, wages havent followed productivity gains in the longer run, according to the Economic Policy Institute. Productivity is up 243% since 1948, but wages are only 109% higher.Companies are increasing their spending on benefitsEmployers have been increasing their spending on benefits - particularly health insurance, as Pew Research Center reported. Theres also retirement-account contributions, transit subsidies, tuition reimbursement, and the like to take into consideration.Wage and salary costs have grown 5.3% costs since 2001, adjusted for inflation, whi le benefit costs are up 22.5%.While this is, as Shambaugh said, a pretty small part of the full picture, it may be keeping down workers pay in these past few years of economic growth.Corporations are directing more of their money to shareholders and executives, not everyday workersFor decades, corpotarif profits and employee wages grew at a similar pace. But since 2002 or so, corporate profits have surged past worker compensation.As The New York Times reported in July, Corporate profits have rarely swept up a bigger share of the nations wealth, and workers have rarely shared a smaller one.Jared Bernstein, an economic adviser to former Vice President Joseph R. Biden Jr., told the Times that workers would have significantly more cash in their pockets had their share of the countrys wealth not shrunk so much. In total, that amounts to about $532 billion, or $3,400 per person per year.Meanwhile, the majority of corporate profits have been going to corporate investors and chief executive s, whose compensation is often based on stocks, or foreign mergers and acquisitions.Tons of low-wage workers are finally re-entering the workforceFrom a technical standpoint, Shambaugh said wage growth numbers may appear dismal simply because tons of low-wage workers are only just now recovering from the Recession. Theyre now re-joining the workforce and lowering the median wage.If you keep adding people who are low-wage workers, it will bring down the whole wage series, Shambaugh said.But that doesnt explain why wage growth has been low in the long-run.Unemployment isnt as low as we think it isTons of job openings and not a lot of workers available to fill them ostensibly cause wages to go up. Employers raise wages in order to encourage their employees to stick around.However, the unemployment rate of 3.9% only accounts for those who are seeking work. So, Shierholz said, there are many jobless people out there who arent looking for work. That means that the job market is not as tig ht as it seems.Fewer working-age adults are participating in the labor force or job search than before the recession. Part of the reason is that wages are too low to incentivize people to work they might find it more economically viable to care for children or stay home if they have health problems.The wages are so low that its hard to draw people into the labor force, Shambaugh said.Membership in unions has declined, which means fewer wage gains to those both in and out of unionsFollowing World War II, one in three workers belonged to a union, according to Rosenfeld, who wrote What Unions No Longer Do. Thats since fallen to one in 10.The people who lose out on the decline of unions arent just union workers themselves, said Rosenfeld. Union spillover effects meant that non-union workers also enjoyed wage boosts because their employers would peg pay to the union rates so that their workers didnt unionize.Non-managerial construction, transportation, and manufacturing workers were fruc htwein likely to be unionized, said Rosenfeld.Shareholders dont want companies to raise wagesWhen American Airlines announced last year they would be giving raises to pilots and flight attendants, the companys stock tanked by 5.2% in one day.This is frustrating. Labor is being paid first again. Shareholders get leftovers, Citi analyst Kevin Crissey wrote in a note to clients, the Los Angeles Times reported.In fact, airlines are facing a massive pilot shortage right now because labor hasnt been getting paid first. Pilots median earnings decreased by 9.5% from 2000 to 2012, according to a Government Accountability Office report.Rosenfeld said that market moves like that have helped keep wages low.There is this idea that shareholders are the one set of stakeholders that deserve the largest share of a companys profits, rather than balancing the need of other stakeholders like workers or consumers, Rosenfeld said.In summary, economists say workers have lost much of their powerElevating s hareholders over the workers, the reduced presence of unions, and a general decline in labor standards have all taken power away from the workers.The tight labor market shifts bargaining power to workers, but the other things like labor unions and strong labor standards have taken a huge hit over the past four decades, Shierholz said.Now, 3.9% unemployment isnt enough to drive up wages.Given that those other things that have given bargaining power to workers have eroded so dramatically, you need a tighter and tighter labor market to fuspur meaningful wage growth, she said.This article first appeared on Business Insider.

How to Prepare for Different Types of Job Interviews

How to Prepare for Different Types of Job InterviewsHow to Prepare for Different Types of Job Interviews1Congratulations You made it through what many consider to be the toughest part of the job search process- landing an interview Now its time to consider how to convince the employer that you are the right fit for this job.Check out these tips on how to prepare for differenttypes of job interviewsPanel InterviewCompanies that conduct panel interviews will typically bring in a variety of representatives (perhaps someone from human resources, a manager from the pertinent department, and an employee) to get a group consensus on candidates. Each person will ask questions and provide information relevant to his or her role.Key Try to connect with each member of the panel.Prepare a question for each person.Greet every individual with a smile and a handshake.Address and make eye contact with everyone, not just the rep you consider most important.Learn all names, and send each interviewer a thank-you note.Group InterviewThis technique is often used as a way to prescreen applicants for a particular position. Several candidates may be invited to a presentation about the company and the job(s) available. Each job seeker is likely to be asked a couple of questions in a one-on-one setting after the presentation.Key View it as a learning opportunity.Pay attention during the group portion. Jot notes on what stands out and statements that could use further clarification.Observe the interactions between those giving the presentation. You may gain clues about company culture.Use your question and answer time as an informational interview to determine how interested you are in working for this employer.Career Fair InterviewA variety of potential employers gathered in one place for the purpose of screening job candidates can feel like a pot of gold or a meat market, depending on your perspective. Your time frame to make an impression is often very limited, so be memorable.Key Foc us on getting to the next round.Dont just drop your resume and leave. Hold a conversation with the representative.Craft an awesome elevator pitch that gets the ball rolling and makes the employer want to know you better.Do research beforehand on companies of interest. Youll be able to ask thoughtful, intelligent questions rather than basic ones.Ask about the next step in the process, and follow up.Phone InterviewWhether the first step in a recruiting process or the sole interview tool, phone interviews need to be taken just as seriously as in-person meetings.Key Preparation.Secure a quiet place away from noise and disruptions.If using a cell, make sure its charged.Keep the job ad, your resume, and other information handy.Be ready with questions and talking points.Ask for an email address in buchung to express thanks and follow up.Skype InterviewEliminating the time and travel costs of an on-site interview, but providing a deeper impression than a phone conversation, video interviews are especially popular among companies with a global presence and ones hiring for telecommuting positions.Key Same as for a phone interview, but with a few additional considerations.Dress professionally from head to toe.Declutter your environment.Perform a test run with a friend to ensure equipment is working and you know how to use it. Practice will help you get comfortable being in front of a screen, and feedback before the event allows time to adjust lighting, volume, centering, and other things that influence how you come across.Lunch/Dinner InterviewIf there was travel involved for either party to make the interview happen or if the employer wants to get a sense of your social skills, you might be asked to interview over a meal.Key Stay professional in a social setting.Never order an alcoholic beverage, regardless of what the interviewer does. Politely decline if it is offered.Follow the interviewers lead on making a menu choice. Dont order a filet if they choose a hamburger.C hoose something that isnt messy or difficult to eat over a conversation (and preferably wont leave bad breath).Be sure your table manners are at peak formDestination InterviewHolding the interview at a coffee shop or other establishment is an option for companies that lack a brick-and-mortar office or prefer a more casual atmosphere.Key Same as for a lunch/dinner interview, but with a few additional considerations.Confirm all details in advance. You dont want to find out too late that your interviewer is at the Starbucks on Main while you assumed she meant the one on Elm.Ask how to recognize the interviewer. He may be hard to spot in a busy place.Remember that it is still an interview. Dress appropriately (business casual), bring your portfolio and other material, jot notes, come prepared with questions, and follow up within 24 hours to express gratitude and enthusiasm.Regardless of the interview scenario, dont sweat it if the process ends up being different from what you were antic ipating. Being able to handle whatever comes up in an interview is one way for companies to determine whether you are the right person to handle the job. Go in with confidence, remain calm, and roll with the punchesWant more interview advice? Check out our job interviewing tips category.Carol Cochran contributed to this post.

This is how people want to be recognized for success at work

This is how people want to be recognized for success at workThis is how people want to be recognized for success at workHow would you like to be recognized for a job well-done? Is a thank you enough? What if you hit a major goal would you expect more? And is money the best way to say thanks, or do you think longer-term, like a promotion?Deloittes Business Chemistry kollektiv surveyed 16,000 people about recognition in the workplace.When it came down to how people preferred to be recognized for day-to-day accomplishmentsVerbal thank you 54%Written thank you 31%(Women preferred a written thank-you at 36% to mens 28%)Celebration 7%Gift 7%Thats 85% of employees who expect a simple thanks and possibly a pat on the back for a job well done on their everyday, routine tasks.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moreFor major accomplishments, however, employees had higher expectations for recogni tionNew growth opportunity (like a promotion) 47%Salary increase 23%High-performance rating 21%Bonus 10%Interestingly, a new growth opportunity was by far the fruchtwein popular and preferred form of recognition for a major accomplishment with monetary rewards like salary increase and bonus far down in the rankings. It looks like employees are thinking strategically.When employees were asked what they would want to be most recognized for, success was kingSuccess 40% (46% men, 34% women)Knowledge or expertise 24%Effort 20%Living core values 16%And when it came down to who employees preferred to be recognized by, the results were split into thirds leadership above direct supervisor (37%), direct supervisor (32%), and colleagues (31%).Now that youve been recognized and maybe even rewarded at work, how do you prefer your company to share the good news? Celebrations and balloons?Actually, most people take their recognition with a dose of modesty. Nearly half (49%) prefer the public, but narrow approach recognition shared with just a few people or delivered privately. Another 34% prefer that their recognition be delivered privately to be shared only with them. And an extroverted 18% would wish their accomplishments be blown up on social media theyd like the sharing to be public and broad, and shared with as many as possible.Good job on the job well done.