Staff POV

The Booms & Depressions Syndrome

In the past two years in the Human Resources (HR) industry, I have observed this phenomena. When the economic wave was strong, people rode that wave with confidence and insouciance. But when that wave crashed and the economic scene no longer fueled it, people became worried about security.  This sounds terribly kindergarten level in terms of an analysis, but nevertheless it needs to be said. Recruiters and HR people such as myself, watched a cultural meltdown take place last year, in the faces of people walking into our office. We didn’t have to look at a single statistic or listen to CNN or any local station to know the nuances of the job market. People walking through our doors revealed the zeitgeist of society in just a few brief moments with them. Their anxiety, their concern for job security – was enough to tell us what then followed. I observed countless many top level executive and industrial men and women of every field who could not now find a job – whereas months before – the jobs were there.

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How not to lose a finger

Calculating Labor Burden

Ask ten contractors what their labor burden is on $10 of gross payroll and you will get ten different answers – and all ten will swear that their number is right!  Here is how we calculate it using the example of a commercial carpenter with a class code of 5403 :

$10.000          Gross Pay

$ 1.3270 (+)    Workman’s Compensation Rate: 13.27% charged by State Fund for the 5403 class code (2009 rates)

$   .0531  (+)    NYS assessment: charged on anyone working in “commercial”.  It is 4% of the workman’s comp premium.

$   .0690 (-)     Experience Modifier: ours is .95 so we save 5% of the comp premium.  Yours may be more or less.

$   .6925 (+)    Unemployment: Your rate could be as much as 9.25%

$   .0750 (+)    State Reemployment Service fund

$   .0800 (+)   Federal Unemployment (Form 940)

$   .0200 (+)    Disability Insurance

$   .7650 (+)    FICA:  This is the employers contribution to the Social Security fund and the Medicare fund

$   .7000 (+)    Liability Insurance:  What percent of your gross payroll is your liability premium?

$ 1.5000 (+)    Medical benefits, vacation days, sick days, 401k, and first aid costs.  Estimate this number based on previous years as a percentage of your gross payroll.

$   .2500 (+) The administrative cost to process all of the above.  If you have a few employees then this number could be as much as $1 or $2.  If you are a large employer, then this is likely less.

$15.4816          Burden is just over 50% or $5.33 of every $10 paid out.

How do you calculate burden??  Leave a comment here.

Objective Statement #3 (example)

See also:

I mentioned earlier that working in an industrial setting for a large block of time might actually serve to stigmatize you.  In this example Joe worked as a welder for Ford for twelve years.  He took an early buyout on his retirement package just before the job market took a turn for the worst.  Joe is still young and has tons to offer, however he doesn’t have much to show during the last few years since Ford.

This is difficult because the experience he has the most of is not very marketable in the construction industry.  Therefore, if he really wants to move forward, Joe may have to take a step back first.  Since he can no longer sell his skills, he will have to sell his related experience, his potential, and his soft skills.  In Joe’s case he is positive, friendly, well spoken, he can think and make decisions, he can be part of a team, he is smart enough to have an impressive list of certifications – and these things are all proven!  He has decided that if he cannot get a job as an industrial welder, then his next greatest value to an employer is as an electrician.  So we go from there.

1.  Target trade:  Electrician

2.  Experience:  At Ford his welding skills were used largely for machine repair.  It is impossible to be responsible for machine repair without thorough knowledge of electrical.  He has twelve years of this.

3.  Skills (technical):  Journeyman certification in machine repair; certified in stick, mig & tig

4.  Achievements:  Volunteer for Extreme Makeover

5.  Skills (soft)/personality:  positive, friendly, helper, can think, leadership potential, well spoken, team player

So we put all this together and we come up with….

I am a journeyman in machine repair with 12 years of experience in industrial settings.  I put my skills to the test on extreme makeover!  I will bring my positive attitude to your repair, welding or electrical team

Or how about?

I am pursuing a career as an electrician after 12 years of machine repair.  I have ability: my certifications and experience prove that!  My positive attitude will make me one of the best electricians helpers you have ever hired.

Another Objective Statement example

See also:

Let’s work through another example of a targeted objective statement.  This person gained most of his experience from working as a plumber, steamfitter, and later as an inspector at a very large industrial plant in his city.  The market is flooded with ex-employees from this giant and quite honestly his time spent there could possibly serve to stigmatize him.

Over the last thirty years he as always been able to generate some additional income by using his credentials to work with some of the local contractors and even some of the public addressing their plumbing service and install needs.  This is probably more valuable to your average construction company than his industrial experience.

It was fairly easy to determine that his greatest value (to whomever he works for) is as a plumber.  He is about as talented as they come so we shoot for a “lead” position.

  1. Target job title:  Lead Plumber
  2. Relevant experience:  32 yrs of servicing residential & lt commercial; inspector at large manufacturer; 6 years steamfitting; pipe fitter at large manufacturer
  3. Achievements: Plumbing board City of Rochester
  4. Critical Skills:  Master of plumbing; many certifications
  5. Soft Skills (personality):  Educated & well spoken

My combination of 30 years of freelance plumbing along with my many certifications including master plumber, green plumber, and city inspector give me an ideal foundation to work with most companies as a lead plumber.

Or this

I am a plumber with thirty years experience.  With my combination of skills and certifications – from master plumber, city inspector, green plumbing – I am well prepared to offer you the best value as a lead on your team.

More on this subject:

Is it time for state-wide licensing in New York?

Twenty-one years ago I dropped $35 to buy the business cards that would provide repeated proof that I was a legitimate contractor.  I spent $15 on a classified that said, “Let John Do It”.  I even went to Office Max and bought a proposal template pad and a rubber stamp with my name on it.  My biggest expense was my insurance policy; and once I had that in place I was a “legitimate contractor”!  I cringe when I think about some of the projects I got myself into.  Projects I had no right even coming close to.  The most redeeming aspect for my clients then was that I was both cheap and honest.  So honest that even ten years after the project had closed I would come back to fix my mistakes.

Would the result have been different had state-wide licensing been in place?  If the licensing had come with an education requirement, then I have to answer, “yes.”  My intentions were well-meaning – but boy was my cart before my horse!

Opponents of this idea believe that a state license would really only amount to another tax.  I admit, I too am concerned that it might not be handled properly.  But what’s the alternative?  An army of would-be tradespeople with less certifications than your hair stylist (who is required to get state licensing) preying on a just as miss-informed public.

I know these are difficult times, and that folks are out of work.  Freelancing as a carpenter or a handyman is one thing.  But when you start calling yourself a contractor – you’re affecting people’s lives and safety.  Everyone you touch is at risk: your customer; your employees; even your vendors.

Florida has had state licensing in place for as long as I can remember and Massachusetts is implementing one this year.  Is it a good thing?  I think so – but only time will tell.  I for one think its time that New York State open the dialogue on state-wide licensing.

Now is the best time to build!


Check out this advertisement from 1929!

Was it Al Pacino who said, “There is nothing new.  There is nothing new.  Only history we haven’t heard?”

HVAC Service Technicians

The other day I met with one of WNY’s more prominent Heating & Cooling companies.  This particular company does tons of residential and light commercial.  Talk about a great place to work!!  They offer:

  • Training
  • Retirement benefits
  • Health benefits
  • Company tools & trucks
  • Regular business hours
  • Overtime
  • A close-knit family environment
  • And the ability to make a really good living!

Here’s the way it roughly breaks down: You start as a helper.  As a helper you will make between $10 and $14/hr.  Generally you ride along and learn from and assist an Installer or a Service Technician.  An installer makes from $14 to $17 and a Service Tech can make as much as $24 or $25.  I personally know a whole bunch of folks with college education that only make More >

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Unique Selling Proposition

The other day I met someone who was out of work. He gave me his calling card. On the back of the card was his USP or his unique selling proposition. Basically, your USP is just what it sounds like:  What’s your secret sauce?  What makes what you have to offer “unique”? What separates you from all the hundreds of other people applying for the same job.

Rather then simply look for work, I propose that you begin to market yourself.  In the business world a persons USP is sometimes called an “elevator speech”.  In the amount of time it takes to get from the first to the tenth floor …sell yourself.  Succinctly and memorably.

The somewhat unconventional approach that we at CPGworks have been taking for peoples resumes is to substitute the very under-utilized “objective statement” with ones USP.

Write yours.  Email it to me.  The most interesting ones will get posted on our site.