ARE WE AT 20% UNEMPLOYMENT?

 Before we begin, I would like to clarify the importance of the unemployment rate. Most economists (the nerds) will agree that it is a ‘lagging indicator’, meaning it reflects data in the past and does not accurately represent the current situation. Actually we will experience an improvement in the unemployment rate 3-6 months before that improvement is represented in the rate reported. That being said, why do I think the ‘real’ unemployment rate is closer to 20% than to the reported 10%?

1. Many jobs have been reduced to part-time or are less than 40 hours and are not accounted for in the rate.

 2. There are millions of discouraged workers who were banging the pavement and could not find work so they stopped looking.

3. There are still 4-6% of the work force that never has been able to keep a job and I see this number rising as desperation continues.

The danger we face is the number of ‘almost unemployed’. These are the families that are making less because of salary cuts, a cut in hours, or one member of the family is now unemployed. They are teetering on the ability to pay their obligations and one more layoff could force them into bankruptcy. This is a middle class problem that can tip the scales of the whole economy. We have bailed out all the big guys and have done nothing to help small businesses and families prosper. As I have stated in the past, if we do not get credit flowing again, this crisis will have a long, drawn-out recovery.

ANOTHER TOUGH WEEK FOR THE WORKING FOLK (NON WORKING ALSO)

 Last week I read an interesting article in the New York Times by Joe Nocera http://tinyurl.com/yhnsope.  He was taking Goldman Sachs (sacks) out to the wood shed for giving such high bonuses after they were given your cash to survive.   It is not only bad PR but a horrible business practice.  Giving them this money with few strings, allowed them to return to profitibilty and play the same math games with the financial system.  Basically, there was little pain involved for them and they did not learn a lesson from their bad decisions.  On the other hand, Joe Six Pack is paying the price in job loss, foreclousres etc. 

The small business person is forced to increase his collateral for loans and credit lines he repaid many times over, because he does not have access to the Federal printing press.  New legislation to protect the credit card user was gutted by everyone gouging for interest rate increases and additional fees before the laws become active.  Credit Card companies know that you can’t go somewhere else because no one is lending.  Hey…but thanks for the free handout, now we are going to punch you in the face!

 GMAC the financial arm of General Motors (Obama Motors) is asking for a third bailout.  If you can’t make it after two, then you need to go away.  What about legitimate small businesses looking for capital?  Too bad, we are going to prop up the dying three-legged donkey, and we will use your tax dollars to do it.  Am I the only person that thinks this is stupid?

Are your presentations putting people to sleep?

Since I have conducted a number of presentations with audiences ranging from a group of 6^th graders to 75 networking professionals, I wanted to offer some advice on how to create an effective presentation.  Good presentations and public speaking skills can help you to overcome other weaknesses you may have.  Ever notice that the best speakers sell more, get promoted more and are good at impromptu discussions?  Here are a few tips:

 1-     Know your audience.  Don’t use industry jargon in front of people who will not be familiar with the terminology.

2-     Practice in front of a mirror.  You may be making strange facial expressions, wringing your hands, or pacing. These bad habits can distract you audience.

3-     Watch the ‘umms’ and ‘you knows’.  Take a Toastmasters class and the group will track your ‘umms’ using a clicker. You will be amazed at the number you rack up! This is a great place to practice speaking in a nurturing environment.

4-     Vary your speaking tone.  M-o-n-o-t-o-n-e is boring.

5-     Pause during your speech and ask if people understand your points.  Allow time to backtrack and provide alternative explanations to get your point across.

6-     Beware of the use PowerPoint.  50% of the time it crashes and disrupts the momentum of your presentation.  Dimming the light for more than 5 minutes puts people to sleep.  The average human being has a 20-minute attention span.  Looking at graphs in the dark is a great way to get people to use their cell phones to send emails.

7-     Be careful with jokes.  You do not want to accidentally offend your audience. A better idea is to use a humorous personal or made up story about you.  Laughing helps people pay attention and relax.

8-     Throw in a couple moves during the speech. Switch sides of the podium, walk in front of the audience.  This forces people to follow you and not go comatose staring a fixed object.

9-     Don’t read your presentation.  This is a big no-no and the number 1 cause of audience boredom.  If you have back up reading material, hand it our after you are done or email it later.

10- Limit your number of handouts.  People will skip ahead and not pay attention to what you are saying.

11- If someone’s cell phone rings…STOP speaking until the offending individual mutes the phone.  Everyone will stare at them, and feel bad for you. Sympathetic listeners are more prone to hear your message.

Have a big presentation coming up at your company? Beware of these 3 people.

 The Casual Listener.  This is the person who was made to go by his boss. He would rather be texting his buddies than hearing you. 

The Numbers guy.  He/she likes to look over your financial data and check you math for accuracy while you are presenting.  This person can make you look like an ass when the questions come up at the end so make sure to double check your material for accuracy.

The Decision Maker.  This is the most important person in the audience.  If you know what he/she likes, you can make sure to hit those topics hard during your presentation. 

 Finally, be sure to make time for questions at the end of the presentation.  If there are no questions, then you probably were unsuccessful at capturing the audiences’ attention.  Make sure your presentation will cause people to ask questions by doing a dry run for a trusted colleague.  Have them make suggestions on how to stimulate the crowd.  Give some of these tips a try and see if they help your career down the road.

WHY YOUR COMPANY SHOULD DO BUSINESS IN ARIZONA

Recently, I have caught myself being too negative and I want to balance out my Karma with this open letter. 

 Dear Out-of-State Corporate Hotshot,

 Have you considered the benefits of doing business here in Arizona?  As most of you wake up, needing to sandbag your mansion or get some oars for your limo, we are enjoying another sunny day.  Here is a benefits list to present to the relocation committee.

1-     We do not have: Hurricanes, tornados, earthquakes (generally), gigantic mudslides etc.  If we get a stiff wind and a half-inch of rain, it will be the leading story on tonight’s news.  Those weather events can close businesses for days.  We don’t have that problem.

2-     You do not have to shovel ‘Heat’.  People can drive everywhere without weather interruption.  We only have the occasional melted tire.

3-     Housing here is cheap.  And…you don’t have to worry about your home blowing away when you are at work.

4-     We have plenty of labor.  With all of the corporate downsizing, housing crash, everything crash, we have a very large unemployed workforce.

5-     We have plenty of office space!  As a matter of fact, I know brokers that will fistfight at the airport, for the right to show you those properties.

6-      We have four professional sports teams (counting the Mercury).  Great for entertaining big wig clients.

7-      If you like fast food. We have 13 different places at every intersection. Including 500 Starbucks.

8-      We have golf courses galore.  There are lots of uninformed homeowners who actually buy homes along the fairway..Great fun to blast shots into grandma’s hot tub.

 We are booking onsite appointments for the recovery of 2010 – 2011.  We suggest you book early, since tornado season is right around the corner.  Re-energize your stale organization by moving to Arizona, before Mother Nature causes your insurance premiums to rise.

 Sincerely,

 

Michael D. Hayes

FEEL SORRY FOR BANKERS…JUST KIDDING.

 This week I went though the proctology exam that is renewing my bank credit line. I really liked the opening exchange where he said that we “lost some money” this year. How could this happen with such a blustery economy? The basic premise of the discussion centered on the bank “wanting more collateral” to  renew the line.

In plain English: We do not have any faith in your business model, and we got a pile of cheap cash from Uncle Sam that we are going to dole out with an eyedropper.

 Seriously, if you need a loan today you better have a paid off piece of real estate, stocks etc. or you are screwed. Long gone are the days of a personal relationship with your banker. He was always the first guy/gal to leave the Frat party after the beer ran out anyway. So fellow small business owners, the so-called engine of our economy, get a realistic budget and ride the storm out. You will be doing it alone. But please have a long memory when we turn this economy around.

Random thoughts on economy, jobs etc.

I wanted to compile some thoughts on my recent visits, with customers, vendors and friends over the past few weeks along with some other observations:  

• The guy who works the front desk at my gym was asleep all three days I visited the facility.  Today he had on a hooded sweatshirt on backwards covering his face while sitting upright.  I wrote about the same guy months ago (http://tinyurl.com/yc4lojf) and he is still there!
• I went to a presentation by a local bank.  The president said we had a morale obligation to pay our debts (mortgage, credit cards etc).  This is from someone who got bailout money.   He didn’t talk about how the bank was pulling credit lines, reducing loans for customers who were never late on a payment or delinquent.  Moral obligation?
• I was not in favor of bailouts but when we have a line around the block downtown today, so people can get help on their mortgage…that is a HUGE problem.  Who is bailing out ‘Joe Six-pack’…and what’s worse is he is providing the tax dollars to help others…who made worse decisions than him.
• I feel the local job market is about the worst it can get…does not look like any relief anytime soon.  I predict that when the economy improves, companies will temp workers to make sure it will be sustained.
• Most networking events I attend are full of people using used car selling tactics that run off most of the good people.  If you are doing this?  STOP
• Most customers I speak with are pretty down about their business in general, what will be the catalyst to change our opinion? 

As always, I welcome your comments either good or bad.  If you have  questions or concerns regarding interviewing tips, see our website and YouTube site for advice.  You can see both at http://www.momentumtrans.com/

STAFFING FOR THE NEW ECONOMY

Staffing your office in this new economy has never been more challenging. Posting on job boards will get you hundreds of non qualified candidates that will waste valuable time for your already limited office staff. You may have already faced some of the challenges listed below. 

 

• Do you have current employees that you should replace but do not have the time and/or ability to do it in secrecy?
• Are you wasting time talking to applicants who can’t follow directions, show up dressed inappropriately, or just don’t qualify?
• Do you have a current database filled with 14,000 candidates that were previously interviewed to assist your screening process?
• Are new employees drug screened, background checked, and is past employment being verified?
• Do you have a plan for the H1N1 (swine flu) outbreak when it attacks your office?
• Are immigration laws being followed so Sheriff Joe does not pay a visit to your facility?

 

Many staffing companies claim that they perform duties you take for granted.  What would you do if you had a legal issue and your staffing company was not doing the proper due diligence?  Most companies believe in error, that this will be a problem for the staffing vendor.  THAT IS INCORRECT.  The company will be the ultimate backstop for any litigation.  Deeper pockets (your company?) require protection from the staffing company doing the job you pay them to do.   Please make sure you ask your staffing vendor for a ‘shadow file’.  This is file that shows you the completed work on the candidate, including pre-employment drug screen.  This way you will be sure your investment is being put to good use.

Things I learned from last weekends Arizona Trucking Association annual conference.

Things I learned from last weekends Arizona Trucking Association annual conference.

1- The trucking industry is still struggling and the next economic upturn will not happen until this industry improves.

2- John McCain is a better speaker in a town hall setting than Barack Obama. (Notice I did NOT say prepared speech)

3- Air going into a Big Rig in California is cleaner coming out of the exhaust pipe!

4- We will have a huge driver shortage. Everyone agrees but does nothing about it.

5- Smaller carriers are being forced out of business by the bigger carriers and lower margins. Meaning…higher shipping prices coming to your town soon.

6- The real Green Industry is trucking. Engines are better, cleaner, more powerful and burn less energy than ever before

7- Being involved in trade associations can prevent you from appearing stupid.

8- The passenger vehicle causes two-thirds of traffic accidents involving a Big Rig.

9- Trucking is probably one of the most government-regulated industries around. (Too bad it isn’t banking)

10- Road congestion in Arizona is only going to get worse and there are no plans or projects currently in place to expand our highways (more wait times, gas usage, pollution).

WHY PEOPLE CAN’T FIND A JOB- PART 2

I have stated this before. The number one reason people can’t find a job….they cannot follow simple directions. Here is the recent evidence. We posted a job for an office manager that had a decent starting salary, benefits when hired on, and a convenient location. Here are the directions in the posting:

 Please compose an original letter, including resume, outlining your background and desire for the position. Generic cover letters will be deleted. Please forward to staffing100@gmail.com for consideration.

What was the result?

5 correct responses

15 responses with no resume

25 with resume, no letter

155 resumes to a different email, no letter

I also gave this to my 15 year old and his buddies and asked them how would they go about applying.  They said it was EASY. Most of the applicants have college degrees and this is not rocket science. Moral of the story. One of the 5 got the job. Improve your odds, pay attention.

An investment website you can do without!

I usually only have a blog entry once per week, unless I hear something that would cause the non-existent hair on my neck to stand up.  Today was one of those days.  I heard an advertisement on CNBC (Sirius/XM) for www.Getcramer.com.  Jim Cramer, the CNBC stock pundit, is selling a service to notify you of his stock picks before he buys them (obviously to conform to SEC regulations).  Is this the same Cramer that around January 24, 2009 told you to purchase Bear Stearns because it had a “limited downside”? Is this the same Cramer that said in mid March 2009, Bear Stearns is fine!  Didn’t they go belly-up perhaps causing some of the major problems we are currently in?

 Don’t believe me, see the video of his comments at:   http://tinyurl.com/bqrue6.

 I was in this business for many years and not everyone can be right, but this guy is no longer a professional investor.  He is a carnival barker.  If you want to see one, just go to the circus or any state fair in the area.  If watching this guy made you rich, then all of his listeners would be rich- but they are not!  It is reprehensible that CNBC is allowing this guy to advertise on their station, using his fame and probably insider knowledge, to sell an investment website.  You would be better off putting your money in the mattress or blowing it on a hand of blackjack in Las Vegas.  Take a pass on his website and on CNBC.

Should you discuss the economy with your children?

When I was about 17, I had the unique opportunity to observe my Father, who was in the transportation industry, deal with the economic problems of the late 70’s.  Interest rates for loans could be as high as 20% and this took a toll on budgets and employment.  I watched my father struggle with layoffs and making things work when money was tight. He taught me about budgeting and discussed how/why we would be cutting back at home, on gifts for the holidays etc. 

 Many people are struggling today and you have the unique opportunity to include your children in the process.  I have kept my 14 year old in the loop since this mess started.  I have taken the time to explain what is going on and how he can help us.  This process will help your child prepare for these events if they happen again in the future.

 If you need some guidance on how to approach these subjects with your children, please contact me though this post.

ARE EMPLOYERS CUTTING STAFF TOO MUCH?

Another banking bailout is behind us.  Who maybe next?  Here in Arizona I have noticed a few things over the last few months:

 -Companies are eliminating staff at a very high rate.  When the recovery comes, will you have the qualified staff to take advantage of the upturn?  I would suspect not and you will be forced to pay up for talent.

-Today’s college graduates cannot correctly name a picture of Abraham Lincoln.  They all could name a picture of Spongebob.   Trained workers will command a premium in the next upswing.

 -Immigration legislation has had little effect on employers so far.  Our tough Arizona laws came about when the economy was already tanking.  Reports say there are about 350,000 illegals that have already left the state.  Who will take their place when the economy improves? 

 If you want to see a great article on this topic,  visit the New York Times website and pull up Why Should Recession Stop the Recruiters? By Kelley Holland

ARE YOU RIP VAN WINKLE??

 I work out in a gym most mornings around 5 am.  The other day, I noticed they hired a new employee for two days a week.  I noticed today he was sleeping under the front desk while people were just walking in without presenting membership cards etc.  How long do you think this person will have a job?  The other days of the week there is a very friendly girl that greets you, makes small talk and hands out towels.  Which one of these people would you want working for you?   Better yet…is the ‘Rip Van Winkle’ guy working for you?.NOW!

Moral of the story:

 In this economy you won’t have a job or a company if you are/hire Rip Van Winkle.

CAN SOMEONE PROVIDE A GOOD EXAMPLE?

It has been reported that Cerberus Capital Management, the investment group that owns Chrysler, has approximately 13 billion dollars in cash available.  Why are they asking the Federal Government for money to bail a private company out?  Would you invest in a company that the owner would not invest in?  Does that sound incredibly stupid to you?

 

If President elect Obama wanted to usher change in America, wouldn’t it be a great symbol to skip the inauguration for a small ceremony?  The inauguration strains the budget of Washington D.C., causes traffic and safety issues and costs the taxpayer about $15 million dollars.  A drop in the bucket to politicians, but what a statement he could make.

BERNIE MADOFF NEEDS TO BREAK ROCKS?

Since I was in the securities business for many years, I feel bad for the honest financial advisors that are being lumped in with the likes of Bernie Madoff.  For those of you that have been ignoring the news because it depresses the hell out of you, Bernie not only screwed big investors, he squandered the life savings of Ma and Pa Kettle, to the tune of 50 billion.   Some of these people will no doubt have to turn to the government for help.

 

My question is:  Is this guy any different than a guy who holds up a bank with an AK-47?  If we punished people like Bernie accordingly, meaning he was put in the general population of a nasty prison, would this deter the next guy?  Yes!

OUR GOVERNMENT MISSES THE BOAT AGAIN.

Once again our Federal Government has missed the boat with the auto bailout.  The real problem that hurt the economy over the last 18 months is the housing crisis, and we still have done nothing to address that problem.  Interest rates for home loans are practically free, but no one can qualify for them.  Banks have received billions in aid and they stuck the money under the mattress.  Some ideas going forward.

 

1-Bring back the Glass-Steagall Act.  Banks and investment firms have proven that they can’t play in the sandbox together.

 

2- Establish an account at a credit union.  They do traditional banking.  Take deposits; make loans, no funny business.

 

3-Don’t pay more for regulation of the financial markets; use the money you have more efficiently.  My 14yr old could have done a better job auditing these financial companies.

 

4- Prosecute, fine and imprison white-collar crooks just like everyone else.  No tennis prisons but send them to the general population with crooks, rapists and murderers.  That will deter the next wave of creative finance people.

 

As a final note, have you noticed that most of these individuals that have cratered the financial market are from Ivy League Schools…maybe next time they should hire someone from a community college.

 

 

When will we take financial responsibility for ourselves?

When I was in the investment business, my partner and I always bemoaned the retirees that would educate us on the Great Depression and safe investments like CD’s.  Boy, were they right.  Look what has happened over the last year:

 

1-     A prominent investment firm, stole over 50 billion dollars in a Ponzi scheme

2-     The mortgage market imploded after idiots like the management of WAMU gave mortgage loans to people who have no business getting a loan.

3-     The auto companies are going out of business

4-     Solid small businesses can’t get a loan, but the taxpayer bails out investment banks, that created the mess.

5-     Billions have been lost in retirement accounts due to the stock market crash, putting individuals near the brink of bankruptcy.

 

These events will help create a new retiree class that will mention these items going forward for the next 75 years.  In order to bring back money into the markets, you will need to get the trust of Joe and Susie Six-pack, and that is a long time coming. 

 

We as individuals need a lot more education on the topic of personal financial management.  It never happened in school because I have two degrees in business related topics but not one class on personal financial management.   We need to be more wary of getting advice from the mob on TV, radio and newspapers.  This media helped fuel the frenzy that created the mess we are in.  Now, all you hear is negative information in the media and that is good sign, because they are generally WRONG! Please tune out the media and educate yourself and your family on basic financial management.  The resources are endless with the Internet and books.  My advice would be:  if something sounds too good or easy, it’s probably a scam.

 

 

 

A BETTER ECONOMY IS COMING!!

Call me crazy, but with this massive stimulus packaged in place and still more to come, there will be a brisk pick-up in the economy at the end of the second quarter.   A currently massive amount of our cash is being invested for no return.  Sooner or later, capital will flow to areas to provide higher returns, and that logjam will eventually break open and loosen up the credit markets.  What does this mean to you?  Better job prospects going into the summer.  But what can I do now?

1-      If you are in school, stay there

2-      Locate a second job

3-      DO NOT quit your present job

4-      Have friends review your resume

5-      Do practice interview with colleagues

6-      Update networking contacts

7-      Keep up with local news for employment leads

8-      If you don’t have a job now, take something temporary if necessary

9-      Makes sure you have an adequate interview outfit –secondhand is fine

10- Don’t just blast out resumes- make a phone call

 

Good luck and try to keep a positive attitude, it will make you more desirable as a potential employee.

THE DUMBEST LAW I HAVE SEEN IN 10 YEARS!

 

Recently Arizona enacted a law that has a fine of $135 for license plate frames that obscure ‘ARIZONA’ on the plate.  What?  Cops have nothing better to do than stop people with an oversize license plate frame touting our support for Disneyland or our favorite sports team? “Hey..Central we can’t stop that bank robber because Grandma has a ‘sexy at 60’ license plate frame.

 

Arizona is obviously out of money and this is another form of a tax increase.  Every year the public votes down a raise for our local legislature…I wonder why?

TWO EMPLOYMENT SECTORS THAT WILL IMPROVE THIS YEAR!

With the new administration talking about a very large economic stimulus package, two sectors will benefit from this influx of tax dollars:

 

Construction:  The stimulus will probably come through infrastructure spending (roads, bridges) and that will require skilled and unskilled labor.

 

Transportation:  Large infrastructure spending will require movement of goods.  That means more truck drivers, warehouse and logistics personnel.

 

Since the poor economy and our laws against illegal immigration have reduced our unskilled labor pool, it will mean more jobs and higher wages for our workforce going forward.

 

I FEEL SORRY FOR THE HONEST FINANCIAL PROFESSIONALS

The financial services industry which employs a number of very honest people has taken a black eye while the regulatory system stood by and watched it all happen.  A former Governor of the National Association of Securities Dealers (NASD), Bernie Madoff, created an investment fraud that has rocked the industry.    Many people don’t realize that the NASD is supposed to watch out for brokerage firms that steal from the public.  So they elected the ‘wolf to guard the hen house.’  

 

When I worked for Wells Fargo as a financial advisor, we were required to perform some of the following duties in the name of regulation:

 

1-     Have all parties to a financial transaction sign a form that states you are stupid and will lose money.

2-     Thank-you notes to clients needed to be approved before sending them out.

3-     Forget about writing a blog…the bank might get sued!

4-     If we were doing an informational seminar, you were required to produce a detailed outline and wait 3 weeks for approval to go forward

5-     Before calling any potential customers, you had to have them run though the Do Not Call Database

 

What point am I trying to make?  We were over regulating the wrong people.  The honest person was buried in this minutia, while ‘Bernie and the Boys’ were making up profits in his New York penthouse.  The financial advisor was screwed just like the investor and the reputation of the industry has fallen off a cliff.

EMPLOYMENT TIPS

I recently did a spot on ABC 15 News in Phoenix about things not to do in an interview.  It is short but I think applicants should pay attention to the comments.  See it at: http://www.youtube.com/user/MichaelHayesSpeaks

Another important item is practicing your responses to questions with your friends..Or in a mirror.  Gauge your reactions and make sure your are not making any funny faces…good luck

HAVE YOU BURNED AN EMPLOYMENT BRIDGE IN THE PAST??

A few years back, we had our fair share of employees that left our clients without notice, walked off the job, or where just never heard from again.  Can you guess who is coming back looking for help in these tough economic times?

 If you have been having difficulty finding a job, see if you have done any of the following  “bridge burners.”

  -          Absent/late several times a week

-          After getting the job, failed a drug test

-          Walked off the job in the middle of the shift

-          Yelled at your boss and quit on the spot

-          Got another position and just never let your former company know.

  Now the shoe is on the other foot and if you think these habits may be getting you blackballed…you are probably right.   Going forward try to avoid these habits and leave on a professional level.  If you have to address these concerns in interview, tell them you were young and made some bad judgments and have learned from them.  Good luck.

ARE YOU GETTING MAD YET?

Where is all that bailout money?  I can tell you where:

1- the ex-chairman of Merrill Lynch spent over 1.2 million dollars redoing his office while his company was going in the dumper.  He bought a $14,ooo trash can?? Are you kidding me?

2- He also allocated about 4 billion bucks on bonuses before the was rescued by Bank of America.  When was the last time you got a bonus for running your business into the ground?

3- Citibank was going to buy a 50 million dollar jet for its executives…ever heard of Southwest Airlines?  A better choice when the taxpayer is footing the bill.

President Obama called these acts ’shameful’, and this is the understatement of the year.  All the while, Bernie Madoff sits in his luxury condo on Park Avenue.  Email your Congressional leaders today and tell them to turn off the money to these idiots pronto!

WHO WORKS IN PR AT WELLS FARGO?

 Did you see that Wells cancelled a lavish company outing in Las Vegas after the Feds starting complaining that it was a bad use of the taxpayers money?  They said that the bailout cash would not be used on this event. That is the same as my wife and I owning a bucket of water and when I take a cup out…I say it’s not from her half!! I know some of you will say that ‘sponsors’ will pick up the tab, meaning Mutual Fund Companies etc. By the way, those are the folks that helped get us in the mess we are already in. Do us a favor Wells or any other company taking Govy handouts…ask the janitor in your building if these ideas sound good in today’s economy and fire your PR staff today!

BEWARE OF NEW INVESTMENT SCAMS

 If you watch TV like me, I am sure you have seen the ads about selling your gold, pitched by two has-been performers.  Do you think this is a really good idea?  I can positively say if you see this stuff on TV they could care less about helping you but just want to take advantage of gullible consumers.  A couple other ideas that are getting time on TV are:

 

1-people trying to fix your credit or help on a foreclosure

2- stock market trading strategies to get rich (always a loser)

3-buying foreclosed property

 

If you investigate these ‘investment opportunities’ just ask a simple question.

 

How do you get paid?

 

Generally if you get a lot of double speak…it’s a scam.  With all the problems in the economy the last year don’t let your desperation turn into a profit for someone else!

see my youtube site for my comments in the media  www.youtube.com/user/MichaelHayesSpeaks

WHERE IS THE BOTTOM?

 What will it take to reach a bottom in the real estate market and the stock market? It is pretty simple: when the scared money is done selling the market will improve. When investors for foreclosure properties have a lot of competition to purchase…you will reach a bottom in the housing market. Going forward the rules for investing and buying a home will change. It will be also harder to get credit, but banks have a ton of money and sooner or later they will not be able to pay their bills by NOT  loaning money. I know some of the big bank are in trouble but let them go with the likes of Chrysler and General Motors. That is money down a hole we will never get a return on.

Why are workers still unreliable in this economy?

I have some opinions on what the real unemployment rate is:  I think it is ten pecent with the percentages broken down like this:

-Four percent  are unemployable and always looking for work. These are the homeless, etc….

-Three percent are the workers people wanted to fire for years but because of past low unemployment, pulled the trigger now.

-Three percent are the workers companies had to layoff but wanted to keep.

 

So the real unemployment number is three percent .  Now you have to wade through the seven ercent , which is a large task.  That is why staffing and recruiting companies still have work because no one has the time and resources to commit to the screening process.  A recent Internet job posting we had generated 1200 resumes, for a job that clearly stated NO RESUMES.  That is how you screen out candidates.  We simply ask applicants  to come to the office to interview.  By the way, this was not a low paying job, so it is not just  blue collar workers who cannot follow directions.

We also have been given a recent order for temps and after carefully screening applicants, two out of four failed to show up for the first day. I guess reruns of Andy Griffith had a higher priority.   Another posting produced three candidates and two failed a drug test for ‘hippy lettuce’.  Can you believe that?

AN EMAIL FROM A JOB SEEKER

I recently received an email response to one of my newsletters on the unemployment rate. Here is as excerpt:

The Real Unemployment Rate – 3%

If this is true then that is a sad statement of our society. As one of the unemployed who has been looking for almost a year I can see why so many people just give up. That 3% that companies wanted to fire is reprehensible. Companies fire people because of: religion, color, age (that is a real big one), the way they dress, the way they think, their physical appearance (hot looking ladies and tom cruises never get fired no matter what). Rarely are they fired for inability to do the job or insubordination (2 good reasons). I have personally been fired from jobs for all the above reasons. In one case I was the top salesman at a retail store but was fired because I wasn’t a fit (BS way of saying they didn’t like me). It has come down to you need to be young, good looking and get along with everybody or right out of college foreigner. Folks like me with advanced degrees, lots of experience, older (I am 55) can’t find work even at minimum wage jobs. SO STOP MAKING ASSUMPTIONS

Do you feel the same way as this person? Are you projecting this venom during the interview process? Do you think all staffing companies and businesses treat employees this way?

Lets face it, I am a pretty ugly guy and I have never been fired for being that way. I understand there is a lot on anger today and people want to blame someone for this mess. But you need to vent in a productive way. If you have these thoughts doing the interview process only the best actors can overcome these feelings and project a positive image.

I appreciate comments like these because it helps me understand what is going on in the market. Getting things off your chest is a good way to let the stress out..Even if you are dead wrong in the eyes of many. Try to vent your frustrations with friends or family before you project these damaging opinions during the interview process. Hope this helps!

WHEN THE GOVENTMENT STARTS FIRING CEO’S OF PRIVATE COMPANIES, WE HAVE PROBLEMS.

 Let me be the first to say that I did not agree with giving bailout money to the auto manufacturers.  But telling one of the CEO’s he should resign is crossing the line right into socialism.   Where does this behavior stop?  Could they pressure more companies to fire their leaders?  Is the Government or President Obama have the experience to decide who should stay and who should go?  Has the government done a good job managing this situation or better yet, been the cause of the problem all along?

 

We need to re-think where we are going and fast.  It is a path you cannot easily change once you start!

TOASTMASTERS AND YOUR JOB SEARCH

Many people are looking for an edge when it comes to the interview process.  Being able to speak in public and in an interview situation can make up for deficits you may have elsewhere.   Have you ever noticed that the person with the best ’schmoozing skills’ is generally a very good speaker?  Do you have a great resume but have a hard time making your point?  Have you ever listened to yourself on tape and wondered who the person was?

JOIN TOASTMASTERS!

You can attend a few meetings free and the dues are really affordable.  There are many clubs in Arizona, so you can try a few out and decide the club that fits you best.

During the weekly meeting you will have a chance to schedule a prepared speech, evaluate speeches done by others and participate in impromptu sessions called table topics that will sharpen and improve your speaking ability.   The atmosphere is very supportive and is designed to improve your abilities in front of an audience.  Correcting these mistakes in speech at a friendly meeting

If you want more information about my club, call Stuart Dille at the ARIZONA SMALL BUSINESS ASSOCIATION 602-265-4563 OR sdille@asba.com

COMMERCIAL TRUCK DRIVING SCHOOLS AND YOUR JOB SEARCH

 When I first bought Momentum, the company only placed commercial truck drivers.  I understand the trucking business very well and have recruited drivers for most carriers in Arizona.   What does this have to do with truck driving schools…plenty!

 

Over the years, many students who have graduated assume they will be able to get a job immediately after graduating.  This is generally false.  Most companies (or the insurance carriers) require someone to have a minimum of 1-2 years actual driving experience.  So a recent graduate does not qualify and that is when the problem starts.  Many schools have led people to believe they will be able to get work with ease.  I know this because I have interviewed over a 1000 drivers and the story is always the same.  Some items to be careful of when you are looking at training.

 

1-     Do the carriers that are hiring now require me to go over the road and drive 48 states; sometimes out 14 days or more.  Can I do that?

2-     Do they have local jobs available?

3-     Do they guarantee placement or your money back?

4-     Are you aware of all the costs involved in the process?

 

Right now the trucking business has been in a recession for 2 years and there are few jobs available.  It is a very cyclical business and a lot of people think they ‘can always drive a truck’ if they lose their job.  NOT TRUE.   It is a business of great skill and patience on the busy roads and highways.  You cannot entrust a 50,000-pound missile to someone that has had 4-6 weeks of training.

 

You can check the Internet for stories regarding the problems with truck driving schools.  See this link for one of them: http://www.ripoffreport.com/reports/0/420/RipOff0420039.htm

I am not saying that all schools are bad but you should do research on the school and talk to former students and the trucking companies themselves before you pay $4-7,000 for training that may not land you the job you are anticipating.

JOB SEEKERS…FOLLOW DIRECTIONS

What does the following mean? NO RESUMES ACCEPTED, YOU MUST COME TO THE ADDRESS ON THE AD DURING THE HOURS LISTED. Don’t send a resume…Right. Then why do we get 83 resumes in 4 hours? Because people are not paying attention. All these resumes just get canned because we are paid to screen applicants. Following simple directions is the number one screening tool we use. Are you reading the posting before you apply? Are you following the directions? I thought that the chance to actually meet someone for an interview would be enough to get some people out to visit the office. 1,2,3 more resumes just hit my inbox. Failure to follow directions is the most important first item you can do to impress employers…4,5 more resumes… If you have a question or comment please feel free to vent here! see You tube: www.youtube.com/user/MichaelHayesSpeaks for free job tip videos

WHY JOB FAIRS ARE A WASTE OF TIME

Have you seen the lines to job fairs?  Have you seen the people in line?  One person has a suit and the other guy has a “I’m with stupid’ t-shirt.  Some other random observations: 

-News coverage after the event always focuses on how job seekers were disappointed in the results.

 -A lot of companies are not really hiring.  Is this being verified before they come to the event?

 -Are job seekers going to get a fair interview with 2000 people wandering around during the interview?

 -As a person working for clients to find quality candidates, will I find them in this environment? …Probably not

 -You have a better chance of getting hit by lightning than getting a job at these fairs.

 Your time would be better spent networking with friends and calling past customers, vendors etc. for advice and council.  If you still want to go to these fairs, GO…but lower your expectations and don’t expect a miracle.

ARE YOU TURNING PEOPLE OFF AT NETWORKING EVENTS?

If you are attending networking events and immediately try to sell your product to the first person you meet…then you are in trouble.  Since I attend many events I witness first hand the ‘career suicide’ people commit by immediately hawking their product or service. At a networking event, you may have to attend up to 6 months to get legitimate leads.  You must be the first to show interest in what other people do, not what you do!  I recently commented about this last week in the Phoenix Business Journal as a warning to individuals who think networking is not working.   You may have to adjust your strategy going forward.

SMALL BUSINESS AND BANKS: HOW THEY COULD BE HURTING YOUR CHANCE FOR A JOB.

Most people realize that small businesses are the engine for a healthy economy.  Right now, that engine is running out of gas due to lack of capital to fund operations.  If small businesses cannot get access to capital, they cannot hire people, buy equipment and supplies that also provide jobs to other industries.   The stimulus money has yet to reach this important sector of our economy and the question is WHEN?  Some observations:

 1-banks got billions to shore up their balance sheet to be able to make loans.  Guess what?  They are not.  They are taking the money and using it on short-term very secure investments and taking the ‘spread’ for themselves.  The spread is what they pay you for deposits (zilch) and loan out at 5% plus…which is mostly profit.

 2- our government caused this mess because they thought banks would actually loan the money out.  It would have been better if those in Washington guaranteed loans to well run small businesses that would have used the funds to stay in business. We would have only had to lay out capital (the taxpayers) if the venture failed, not pumping funds into a pool with a hole in it.

 3- Banks only loan money when you don’t need it.  A couple years ago they were giving credit, creating risky swaps etc. like a drunken sailor.  Now when you actually need a loan the application must have a bag of cash wrapped around it. 

 4- Small business does not have the ‘too big to fail’ moniker like Citi Group or General Motors.  We are only rewarding bad management and bad decisions by keeping them open.  In the small business world, you just cease to exist.  In the animal world, the lion eats the weaker, slower zebra.  In our world, the poacher kills all the lions to protect the weaker zebra.

 Many small business owners have very good credit and have paid their bills on time.  You could never get rich (unless inherited) simply by using your own money.  Credit markets presently are not incentivized to foster small business lending.  Our entrepreneurial enterprises are at a very large disadvantage, because they do not have the big brother, with the big pockets to bail him/her out.

ARE YOU PAYING FOR CAREER COACHING?

Advertisements seem to be in every city, in almost every newspaper about career or interview coaching services. These seminars and courses are designed to help job seekers hone their skills, as they look for work in this difficult economy. Who is actually giving these seminars? Are the sponsors someone who has interviewed hundreds of people or just read a book about how to interview? If you are going to pay for advice on your job search, make sure you are getting advice from an expert, not a pretender. What should you learn from interview coaching? · The dos and don’ts of interviewing · Knowing how to understand what job goals are realistic based on your experience/education level · How to properly answer difficult interview questions · Importance of following directions · Practice interview scenarios · Receive a Binder with resources to reference along with personal critique sheets.  Make sure you select someone who has interviewing experience and understands what employers are looking for. You need to feel confident you are getting actual battle tested knowledge not something out of a magazine someone memorized.

ARIZONA LEGISLATURE WORRIES ABOUT GUNS AND NOT THE BUDGET

Before the ‘gun nuts’ go crazy, I have had a concealed carry permit for years and believe you need some training so you don’t kill yourself or others.  Now our legislature wants to do away with the permits and let everyone carry a gun with or without the expertise to do it properly. (see  http://www.azcentral.com/php-bin/clicktrack/email.php/8806041 )

Have you thought about passing a budget first?

 You would think this was a priority since we don’t want to follow California down the bankruptcy trail.  Our representatives are wasting valuable time on issues that we really don’t need right now.  Police departments are against it and if you knew anything about weapons, you would be against it also.  It is time our State Government spend time on reining in the wasteful spending just like the rest of us have had to do.  Heck…it’s only almost July!

HAVE A JOB? LOOKING FOR A NEW ONE? WHY APPLYING FOR BLIND JOB ADS IS A BAD IDEA

If you see postings that do not state a company name, should you apply?

 NO

 Many job seekers don’t realize that the posting may actually be for the company you are currently working.  It also may be for a vendor, or friend of the company management. You can bet they are going to call your boss to find out why you are looking for work.

 NOT GOOD

 Now everyone knows your are looking for another job and this will help pave the way to the unemployment line.  In some instances, staffing companies run blind ads for companies and they get individuals who apply from the same company…on company time.   You can bet they will alert your boss ASAP.

 So take my advice and skip the blind ads and do job research on your own time, not in the office.  It is ok to try to upgrade your position even in a poor economy, but be smart about it!

 Want to see helpful tips on job searching?  See my You Tube site for my media interviews http://www.youtube.com/user/MichaelHayesSpeaks

WHAT DO YOU TELL A NEW SALESPERSON IN THIS MARKET?

 Do you remember the ‘sales person’?   The friendly sometimes-pushy individual that calls you to buy their product.  Without these people there would be no business. I hired a new sales person about a year ago and I have watched her go through a tough transition from her last position. 

Most sales people are told about doing the networking, the cold calls and the constant follow-up.  But what do you do if prospects don’t have any money to buy your service? That makes for a pretty good objection since you can’t get a loan anyway.   We have had to fire up our public relations, social networking, and staying in touch with a ton of customers who do not need our service at this time. But that does not produce income to the new sales person who has part of her compensation as commission.

How do we continue to motivate staff and ourselves during this downturn?  Well…talking about it helps, ignoring it like your mother-in-law on your sofa does not.  Keep individuals focused on the future returns, rather than today’s failures. Have your staff stay connected with networking groups, and keep away from the guy/gal who is always negative…they will suck the life right out of body!

 So the next time you get a call from your friendly neighborhood salesperson, try to be a tad sympathetic…remember your company also has people in the field looking for business.  Let’s be a little more civil until the eventual economic upturn happens.

 

Why should we help Bashas’ Supermarkets?

As a capitalist in an increasingly socialistic country, I have thought long and hard about the fate of Bashas’. I have been a vendor to the company for over 6 years and they have always been a great client. I have also experienced what happens when a big company files for reorganization and they owe you money. You generally get nothing owed pe-bankrupcy. But why should we care? Some thoughts:

1- The stores have always been a great corporate citizen. Donating to schools and other charities in need.

2- Local ownership. How many more billion-dollar companies will leave the State. This is bad news.

3- A large part of their staff will be laid off. Adding to foreclosures, unemployment, late credit card bills and health insurance issues. Oh…that will cost you more!

4- Many small business owners will lose a good customer and may also go out of business themselves due to lack of business or bad receivables.

5- Isn’t it nice that we bailed out GM and several other industries that ran themselves into the ground, but there will be no such help for a local company.

Plain and simple. If Bashas’ does not exist it will hurt the local economy. One less competitor locally will only provide others with the opportunity to raise prices down the line. Less competition= higher prices. I know the store can be more expensive than Wal-Mart, but have you shopped at their Food City Stores? If you like Mexican food this place is a real find and they have products you can’t get at other stores.

My suggestion is simple. Stop shopping at other stores for a month, or budget an amount to spend to assist a local company through a tough time. You can’t afford not to!

HOW FAST ARE YOU RESPONDING TO INTERVIEW REQUESTS?

You would think in this job market individuals would respond rather promptly to an interview request. That is not the case. We posted some open positions on a job board and had the following results.

944 resumes submitted

500 applications submitted

55 interviews done

This is what the posting said:

If you meet the requirements listed above, please follow the directions below to apply for this position.

 1. FILL OUT ONLINE APPLICATION AT WWW.MOMENTUMTRANS.COM

2. COME INTO OUR OFFICE BETWEEN 9AM-3PM TO INTERVIEW (Mon-Thurs only)

3. Bring picture ID

944 resumes! Not following directions is a whole other issue but 500 applications and only 50 people bothered to come into the office. If you are out of work and you see instructions like these I would be down at the office immediately. In a tight job market you must respond urgently with your head and then your feet. The jobs were all filled and most on the first day after the posting.

 Gun slinging resumes while you watch Judge Judy is not looking for a job. You need face time with a hiring manager. If you get invited to interview…GO. You just may find a job.

NEW SMALL BUSINESS AD FROM AMERICAN EXPRESS IS A JOKE!

 If you have been an AMEX account holder you will find their new ad just plain hilarious. http://www.youtube.com/watch?v=pSkA91_nURo This is the same company that back- stabbed their longtime loyal customers less than a year ago. Do I sound bitter? You bet I am. Here’s a quick synopsis:

AMEX, who changed to a bank holding company so they could partake in the giant Government bailout, slashed credit limits and lines of credit with practically no notice. After people like myself were embarrassed by check and credit being turned away from vendors they had the intestinal fortitude (usually referred to as ‘balls’) to tell many of us they were ‘limiting their exposure’. Well guess what? I am going to ‘ limit my exposure’ by not using them going forward. In a word, let’s all boycott them. If you think this is a one sided blog, just check out Google for hundreds of stories that are similar to mine.

They profess in the new ad that ‘small business is the backbone of the economy’ but when people who pay their bills on time every month needed them…they told us to get lost. Makes you feel good that we..The Taxpayer…bailed them out. Who bailed out us?

RANDOM MUSINGS OF A MANIAC

Sometimes when I try to think of a good blog entry, I find myself reaching to come up with something relevant.  This is that type of week.  However, I do have some general comments about a wide variety of topics.  Here are some:

 1-      Number 1 reason people can’t find a job.  Failure to follow simple directions in the posting.  It is mind-boggling.

2-      Many job seekers have left past employers with little or no notice, failed to show up for work one day, or actually told the boss to go ‘shove it’.  Not good for recommendations and even worse to mention in the interview.

3-      We had someone mention ‘Tent City’ as a past employer…No really!

4-      Please don’t stop at 7-11 and buy a ‘forty’ before you interview.

5-      One applicant was offered a job and then showed up for a drug screen with 107-degree pee…that is why you don’t use the microwaves at convenience stores.

6-      American Express- the worst credit card company in the world..See earlier post.  Sorry, I just keep picking that scab.

7-      The citizen outrage on the healthcare debate is no joke and the political capital President Obama is spending will strangle the rest of his agenda.

8-      Banks still are not lending and booking profits like a loan shark.

9-      If you use a staffing company in Arizona, you better make sure that they are checking ids and using E-verify.  You will be responsible also if they are not.  Sheriff Joe will be stopping by to interrupt your day.

10-  Resumes are overrated.  Spending time on the Internet sending your resume is not looking for a job, it is a ticket to continued unemployment.

 We have had an uptick in business this week.  Companies that have cut back staff are looking for quality hires.  If you have a hopscotch background it is very difficult to compete in this market.  Face time with hiring managers either through industry contacts, friends or networking groups is a must.  If you have not been cultivating these relationships over the years, it may be too late to start

IS THE CURRENT ECONOMIC SITUATION MAKING YOU MISS THE IMPORTANT THINGS?

For people that know me, sappy stuff is not really my bag. However, sometimes I see something that makes me think a bit harder than normal (And yes it hurts).  Today was one of those days.

I attended my Toastmasters meeting today and there was a humorous speech contest.  The point of the contest was to be humorous.  One of the speakers’ started to talk about a fall his father recently had that landed him in the hospital.  During the speech he broke down crying about his dad’s condition, I suppose because he realized his father was mortal and eventually would not be around.  Maybe this was the first opportunity he had given himself to step back and realize how important his father is to him.  While I watched I was thinking if this is a humorous speech, what would be the speaker’s serious one?  He got t-boned in a car wreck?

 I had a similar event after being on heavy pain medication after a dirt bike accident.  I removed the pain patches, stopped all the Vicodin and suddenly became in tune with my feminine side.  This was complete with crying, telling everyone I loved them and having my friend leave work to come over and knock some sense into me.

 I had both of my parents die early.  One from a heart attack at sixty-four and another by her own hand at 42, so I could sympathize with the speaker’s plight.  He realized that a person of great importance to him would not live forever and he better make sure he knows how much his son cared…or he may not get another chance.

So, the point of this story is, there are many of us that have faced numerous negative impacts in light of the recession including job loss, financial hardship, rising mortgage payments, and more. It is easy to get so engulfed by the negative that you forget about the positives that still exist. Don’t forget to stop for a moment, take a step back, a deep breath, and remember what and who is truly important to you.

End of sap!

Is Facebook the new crack? Video Blog

http://www.youtube.com/watch?v=TfhXnPe2fdA

H1N1 VIRUS IN THE WORKPLACE: PREPARATION, NOT PANIC

Momentum Specialized Staffing will be holding a workshop to discuss the best way to prepare for potential employee shortages that may be caused by the upcoming flu season.  The Center for Disease Control has estimated that up to 40% of the population will be infected with the H1N1 virus in the following months.  This presentation will focus on how to manage your staff and sustain your business through the labor shortages this pandemic might cause. 

1.       Do you have a plan to complete essential job functions if your staff gets sick?

2.       Have you assigned a key person in your organization to develop, monitor and implement procedures regarding employee sickness?

3.      Are you looking at revising sick day allocations to deal with employees who are affected or may have to care for someone else who is affected?

4.      Schools may close causing employees to miss work due to lack of childcare.

5.      Do you have a reliable staffing provider who can assist you with temporary workers and/or back-up staff?

6.      ARE YOU PREPARED?

This seminar will provide the key components you will need to develop a plan of action for surviving the potential impact this flu season may have on your workforce. It is time to protect your business against this very realistic scenario. The clock is ticking.

Michael D. Hayes, Owner of Momentum, will be hosting this workshop.  Michael is considered an expert on employment and staffing. He has been quoted in every media outlet in Phoenix, AZ (see http://www.youtube.com/user/MichaelHayesSpeaks).  See a story we were featured in on FOX 10 News in Phoenix http://tinyurl.com/ldmc8v

This workshop is designed for: Business Owners, Upper Management and Human Resource professionals.  You are encouraged to attend, and participate in this seminar. Please make time to attend this important presentation.  It may hold your key to surviving this flu season.

DATE:  September 30, 2009

TIME: 8-10am

WHERE: Corporate Office Center, 4600 E. Washington #300, Phoenix
(Across from the A.S.B.A.)

Please RSVP with your name, title, company name, and phone number to hazer@momentumtrans.com

THERE IS NO CHARGE FOR THE WORKSHOP BUT WE ARE LIMITED TO 50 PARTICIPANTS