OCTOBER MUSINGS

Perceptions

It is rare for subordinates to get a chance to formerly review their managers. Even though 92 percent of managers rate themselves as good or excellent, only 67 percent of their subordinates agree with the assessment. No manager ranked themselves as “poor”, 10 percent of their subordinates provided that assessment. (source: Hudson National Opinion survey of workers, 2006)

Many companies have tried 360 degree assessments to improve communication and productivity in the workplace. Evaluations tend to become popularity contests and do not always represent feedback that may improve employer-employee relations. Management at any level needs top improve its level of communication with employees. People in the workplace just want an opportunity to be heard.

Regular and informal conversations with employees will vastly improve relations and productivity without any of the expensive gadgets or fads that populate the workplace. The term used to be “work around management” or WAM and it is unfortunate that companies don’t use that simple technique on a daily basis.

Any company that wants to improve its productivity and ultimately its profitability needs to increase its “paying attention to people quotient.” Making the workplace meaningful will yield the kind of results management is seeking.

Wage Info Good News to Colleges

College administrators and recruiters love the kind of earning income reports that came out recently. Adults 18 and older with a bachelor’s degree earn an average of $51,154 in 2004. A high school diploma only earns the person $28,645 and non-high school grads only earn $19,169.

The greatest myth in education is that a college education leads to high paying jobs for all graduates. Using average income data, a college degree easily outpaces a high school graduate and a high school dropout. Yet the trend, measured since 1999, seems to show that the gap is closing.

In 1999, a bachelor’s degree earned over twice the amount of a high school graduate. Looking at the 2004 data, the gap is less than two times greater. Given the recent data that shows the average annual wage in the US is around $40,000, it seems that the gap between degrees has shrunk again.

Add to the supposed college wage advantage the average debt acquired by earning a bachelor’s degree, it could take up to 10 years for many college graduates to actually earn more than the high school graduate. For example, today’s newly hired teacher will most likely earn less than $35,000 in many school districts. After taxes and making loan payments, the difference will be much less than the customer service rep with a high school diploma.

There are some high paying jobs in the marketplace for college graduates, but not enough to justify the extreme emphasis on going to college. While nearly 70 percent of high school graduates try at least two years of college, only 45 percent of adults over 25 actually have a degree. And of those with a college degree, the average yearly income is influenced by the less than 1 percent that is earning millions of dollars per year as a CEO, entertaining or professional athlete.

Healthcare Crisis

There is a tremendous emphasis on healthcare with respect to those persons who do not have insurance. Universal healthcare is often discussed but will not become reality until the current crisis becomes critical.

The irony will be once universal healthcare is available is who will take of us? Retiring healthcare professionals will leave a tremendous void in communities. Just as “baby boomers” will be retiring in record numbers over the next 10 years, so too are people in the medical professions. Over 33 percent of today’s physicians are older than 55.

According to Arthur Garson, Jr, MD, Dean of the University of Virginia School of Medicine, healthcare providers are rapidly moving from providers to consumers. So while everyone may eventually get a ticket to the dance, very few of us will get a chance to hear the music.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

MISTAKES

Have an Interview? Avoid these Mistakes

According to a report in USA Today (10/17/06), the most common job interview mistakes noticed by employers are:

(1) Little or no knowledge of the company (47%)

(2) Unprepared to discuss skills and experience (17%)

(3) Unprepared to discuss career plans and goals (9%)

(4) Limited enthusiasm (9%)

(5) Lack of eye contact (3%)

Considering that today’s youth will spend at least 15 to 21 years in school you would think that someone would have reviewed the essentials on how to prepare for a job interview. Plus, access to the Internet leaves little room for excuses of ignorance or the lack of preparedness.

Most likely, someone at sometime did go over the essentials of job interviewing. The student was asleep, absent or “zoned out” during the presentation. The problem is self-discipline and the attitude of entitlement.

If you have an interview scheduled, learn more about the company. Go to their website; if it is a public company, look them up at Hoovers.com; call the local chamber of commerce; or ask a couple of employees about the company. Just don’t go in empty handed.

One of the “hidden” benefits of learning more about the company is your ability to negotiate a better contract, wages or benefits. Also, through research you may discover that the company may not be right for you.

One of the current favorite interview strategies is to have you role play several different scenarios, including describing future goals and objectives. Run various scenarios through your mind to determine the best responses you can generate. Take a look at recruiting sites such as Monster.com to see what is typically asked during interviews and practice.

Finally, be enthusiastic and make good eye contact. These intangibles may be all that separate you from the “crowd” and a high paying job. No one is entitled to a job; you earn it.

Teacher’s Dead Man’s Chest?

Today, the US Department of Education announced that a new program is in place to reward teachers with cash bonuses when their students score high on standardized tests. Scandals: on your mark, get ready, set, go!

Instead of this absurd incentive program that if successful, will only prepare students to take standardized tests and will have little bearing on future success, why not increase the base salaries of new teachers? Currently, new teachers are entering their respective districts with pay that is $10 to $12 thousand below median wages in the US. These teachers are college graduates, have passed certification tests and are considered highly qualified yet are only making slightly more wages than a high school diploma salesperson.

Communities still pay teachers as though it is a woman’s job and a second income for families. The attitude that it is only a 9-month job somehow justifies that teachers deserve less. Is it any wonder that so many teachers quit after two years? Low pay and no respect certainly won’t make people feel very welcome.

So next year when the scandals start to be revealed, just remember how easy it could have been to avoid. Teach lifelong excellence and personal dedication over one-time test taking and pay teachers for the ultimate value they bring to our communities.

The Most Lucrative Big Business

If you have read these columns over the past several months, you would have learned about all the money colleges are earning through various means: credit card companies, alumni gift giving, tuition rate hikes, sports contracts and licensing, and investments and real estate deals. Next, add the contributions of the American taxpayer who will spend $30 billion this year on financial aid for college students.

Without financial aid, most high school students will stay at home. The average cost of four years of college is $49,000 at public schools and $116,000 at private schools. Since 1990, the average public costs for tuition, fees, room and board have more than doubled. For example in 1990, costs at private schools were $13,476; in 2006, $29,026. Public schools in 1990: $5074; in 2006: $12,127. (Data from USA Today, 10/17/06)

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

MINIMUM WAGE

Are Minimum Wage Laws Really Helpful?

In Pennsylvania, along with a handful of other states, lawmakers passed legislation to increase minimum wages from the Federal minimum of $5.15 per hour to $7.15 per hour by July 1, 2007. Lawmakers are now looking at steady increases in Pennsylvania minimum wages so that by 2010 it will be around $9.35 per hour. Statements such as “minimum wages that provide dignity instead of poverty” are echoed throughout the political world. Certainly lifting people out of poverty and offering a better quality of life can’t be a bad idea right?

Who really benefits from higher minimum wages? In Pennsylvania, the state income tax deduction is 3.3 percent. Higher wages increases the income for the state based on the gross pay. Another 1 to 2 percent is taken out for local taxes. On the federal level, Social Security and Medicare get their share and the federal tax rounds out the deductions.

The two dollar per hour increase is about $1.20 actual increase or $48 per week. This is less than $200 per month, $2400 per year, an amount not likely to lift people out of poverty. If you take into account inflation, the minimum wage needs to be around $15 per hour in order for people to afford a middle-class lifestyle.

Another negative effect on people living in poverty would be state assistance programs that are based on income. This increase will eliminate many individuals and families that once qualified for state assistance programs, such as housing, food and healthcare. There were no indications that minimum assistance levels would increase along with the minimum wage.

People will now need to make a choice between higher minimum wages and state assistance. Given the prohibitive costs for healthcare, people may choose not to work full-time. This sounds counter-productive and illustrates that money is not a simple solution to our social problems.

Perhaps a better idea, instead of raising the minimum wage, would be to exempt any taxes and other tax deductions from persons making less than $20K per year. At the same time, make sure that the basic needs for security and safety are addressed by providing healthcare, food and utility coverage for persons earning under the $20K amount. At least the lower per hour wage is “real” and won’t deter employers from providing or people from taking low-end paying jobs. Isn’t this the hot issue behind the immigration policies?

Families earning more than one million dollars per year are growing at 7 percent a year while people falling into poverty are increasing by 14 percent a year. The median yearly income is less than $32K per year. This data points to the idea that wealth is becoming concentrated and not being returned to our communities. People who have had good fortune are responsible for those who don’t. That’s a basic tenet of civilization and certainly most religions.

If politicians are opposed to taxing higher income families, then families should show their compassion by donating money to non-profit organizations that feed, clothe and offer help to people living in poverty. Instead of giving to world causes where your money may or may not be effectively utilized, consider giving to local organizations that are run by your neighbors and people you know.

Until minimum wage laws actually rise to the point where people are self-sufficient, communities need their wealthy members to be more generous. Ironically, by helping people pay their bills and live securely, they will become consumers with more money to spend on the products that make wealthy people rich.

Credit Card Marketing

USA Today (10-02-06) reported that the largest colleges in the US earn millions of dollars every year by allowing credit card companies to market on campus. Further, colleges share/disclose students’ contact information and where they live on campus.

The average outstanding balance on student credit cards is $2169 and the average college senior holds five credit cards. When will parents get some protection from these greedy institutions that are well-endowed by alumni contributions, supported by state and federally tax dollars and have no reservations about raising tuitions at a pace greater than inflation? How much money does this country need to pay for advanced high school?

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

OCTOBER THOUGHTS

Challenges for the Small Business Owner

From a survey of 1000 sole proprietors, the top challenges for them included:

1) The inability to focus on generating new business

2) Spreading time across multiple projects or roles

3) Limited resources

4) Running their business more efficiently

5) Not having enough time to focus on own passions

When you work alone or with a small group of people it is easy to be distracted. There are so many items that seem important and it is hard to know which ones to ignore. It seems like “that one might be the one” and so you pursue it until a dead end appears. Unfortunately, your time and financial resources get stretched even further.

Gurus tend to be a distraction more than offering value. Everyday it seems like experts surface with the solutions to your problems. It is difficult to evaluate all this knowledge and know when to leave it alone. Until you have been through it you just don’t know when new ideas or knowledge will help you. Experience does matter. One idea for evaluation: if the guru is selling something that is going fix your problem quickly and improve your bottom line, you can safely move on without a second thought.

There are professional groups that can help such as SCORE, the Small Business Administration, college business schools and your local chamber of commerce. These organizations give you a chance to ask questions and to learn how to ask questions that may help you analyze if the “new knowledge” is valuable or just re-hashed time wasters.

Most importantly, research, learn and be prepared before you start your business. If you start with a clear direction you are less likely to be distracted by the daily bombardment of ideas that will capture your time. In doing your homework beforehand you may also discover a key voice or someone who will be your mentor through the process. Think about it: in nearly every successful business story there has been two people that work together to develop their ideas, support and help each other resist the temptation to be distracted.

What is a Generation Y?

Baby Boomers, Generation X and now Generation Y; who are these people? Baby Boomers represent the graying of America, the AARP generation and the more than 70 million population group that will crash Medicare and Social Security over the next 10 years.

Generation X are the kids of Baby Boomers that were going to bring new thinking and direction to American society. Generation X are the people who are going to take care of the environment, the poor and homeless and keep society strong.

Generation Y are people born between 1982 and 2000, who are influencing the consumer habits of families. These are the kids were born to shop and are influencing their parents as to what is “cool.” From a marketing and manufacturing standpoint, Generation Y picks products that will help them stand out among their peers.

For example, Gen Y may pick a certain brand name and heavily promote it to friends and family. It may be a computer, an MP3 player, sweaters, pants, shoes or cars. They will focus on this item to build their image. Gen Y may have the most expensive plasma TV but at the same time will buy clothes in thrift shops or via eBay. That person wants to be known for his or her TV.

In promoting or marketing your products or services to the Gen Y consumer, you need to rely on viral marketing and get some notoriety from Gen Y influencers. That group is the savvy consumer and they will help you gain access to other consumer groups.

The Blogosphere

According to research by USA Today, since March 2004, the blogosphere has doubled in size every 5 to 7 months and now has over 53 million blogs. Everyday nearly 2 blogs per second are created and there are 1.6 million daily postings or 66,600 per hour.

By language, 39 percent of blogs are written in English, 31 percent Japanese, 12 percent Chinese and 2 percent in Spanish. Only about 40 percent of bloggers (people who write blogs) tend to stay active for at least 3 months.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC

SMOKING and DRUGS

Tobacco Use Drops

The percentage of boys and girls ages 12 to 17 that used tobacco products is dropping. In 2002, the reported use was 12.3 and 13.6 percent for boys and girls respectively. By 2005 the use had dropped to 10.7 and 10.8 percent respectively.

Since the early 1970’s, smoking education programs have been in place in K-12 education. All the non-profit health organizations such as heart, lung and cancer have introduced games, booklets, videos and mascots to send the message to K-12 students that smoking is harmful and needs to be avoided. After nearly 35 years of effort, the programs seem to be working.

Or are they? The cost for a pack of cigarettes has increased dramatically, enforcement agencies have deterred small shop owners from selling to minors and society in general has shunned the habit with more laws banning public smoking. And, in the workplace, employment may hinge on answering the question about whether or not you smoke. Some companies have targeted employed smokers whenever there are terminations.

These messages may be stronger than education. Adults see smoking as a negative behavior even among the ones who smoke. This kind of talk around their children sends a message of disgust and that may be the turning point. Researchers know that children follow the lead of their parents. If they hear enough negative talk about smoking, health and social acceptance that may be the trigger point not to start.

Education about smoking now completes the adoption of non-smoking behavior by reinforcing what the child hears at home. As long as the program focuses on healthy alternatives to a smoking lifestyle that can be as satisfying, smoking among young people will be minimized but not totally eliminated.

To completely eradicate smoking among school students of all ages, schools need to influence the social circles of peer groups. Every school has cliques and they are part of the dominating social circles. The leadership in these larger circles needs to be influenced so they set the trend of not smoking. If you lose any of these social influencers, many more students will follow and the drop in smoking numbers may start to reverse.

Stop Anti-Drug Campaigns

Is there anyone who really believes that people who use drugs will be influenced by commercials showing “eggs in a frying pan?” Remember the crash and burn films in driver’s ed that were supposed to encourage safe driving? Behaviorists know that people use “cognitive dissonance” to justify their behaviors, even ones as simple as buying new clothes. In essence, we can talk ourselves into anything that we want to pursue.

The Government Accountability Office issued a report in August 2006, that reveals anti-drug campaigns are not working and should end. The campaign actually seems to be increasing drug use. The 2007 budget has requested $170 million to continue the commercials, a $20 million increase over this year’s budget. Why?

Here’s another scenario where the survival of bureaucracy is trying to trump the science of investigation. If independent research says “it’s not working,” then why continue along those same strategies? Why not investigate other ideas that may have an impact? When it comes to drug abuse and how to minimize its spread, there are many credible voices that need to be heard.

The “war on drugs” began in the 1970’s (a familiar theme?) generally has not deterred the use of drugs despite some instances of success. The harder to achieve (with more long-term results) solutions that would have a greater impact are too much “leg-work” for those in bureaucracy. These solutions call for stronger education at all grade levels, better housing and prospects for employment and raising the hopes of those that for generations have struggled. In general, give people a reason not to use drugs or to sell drugs as a way out of their environment.

Solving drug abuse at the social level is not as glamorous as tracking down and capturing drug lords but it is the long-term solution that makes sense. Cut off the demand and you will eliminate the supplier.

Hoopla Around Professional Models

Recently, the annual fashion shows were making their rounds across the globe introducing new styles. Young girls are influenced by these glamorous people. The result is to do whatever is necessary to keep thin. While a certain degree of thinness is healthy, purposely denying your body of nutrients during the “growing years” will result in long-term chronic illness such as heart disease and osteoporosis. Fortunately, this devotion to thinness appears to be short-term infatuation.

Professional models often wear a size 4; the size most often sold in retail is size 14. The average proportion of physical features for size 4 is 32-24-35. For size 14 the attributes are 38-31-42. If young girls can make it through the formative years with minimal bodily damage, it appears they will “catch up” as they get older.

Physical fitness needs to be stressed more as a healthy way of creating thinness not only during the teen years but for life. As with all behavioral issues, quality alternatives need to be introduced in order to replace the negative choice.

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GROWTH <> LEADERSHIP <> EXCELLENCE

© 2006 3 Minute Learning LLC