C HAPTER 2

1. CHAPTER2 Financial Aspects of Career Planning Personal Finance 7e Kapoor Dlabay Hughes 2-1

2. Financial and Personal Aspects of Career Choice • Consider the trade-offs of career decisions. • Periodically evaluate the trade-offs related to personal, social and economic factors. • Formal training affects financial success. • There are competencies that successful commonly possess, such as willingness to cope with conflict and adapt to change. 2-2

3. $2.3 million $2.8 million $1.5 million How Education Relates to Income 2-3 Estimated lifetime earnings (40 years) from Bureau of Labor Statistics Two-year vocational degree Bachelor’s degree Master’s degree Professional or doctorate degree $2 million 2-3

4. Personal Factors AffectingCareer Selection • Aptitudes - What natural abilities, such as physical dexterity or working well in team settings do you possess? • Interests inventories - Help you determine what gives you satisfaction. • Your personality - How much structure do you like? Do you perform best in low-pressure or high-pressure working environments? 2-4

5. Stages of Career Planning and Advancement • Assess and research personal goals, abilities, and career fields. • Evaluate the employment market and identify specific employment opportunities. • Develop a resume and cover letter. Apply. • Interview. Assess your interview performance. • Evaluate the positions you are offered. • Plan and implement a program for careerdevelopment. 2-5

6. Social Influences on Career Opportunities • Demographic trends. • Increase in working parents increases demand for food service and child care. • More leisure time for some means more interest in health, fitness, and recreation products and services. • An increase in the number of older people raises demand for travel services, health care services, and retirement facilities. • Increased demand for further employment training creates opportunities for teachers and trainers. • Geographic trends. • Where jobs are, salaries, and living costs. 2-6

7. Economic Conditions AffectCareer Opportunities • Career opportunities are reduced by… • High interest rates. • Price increases. • Decreased demand for goods and services. • Some industries are affected by these more than others. 2-7

8. Trends in Industry and Technology Affect Career Opportunities • Increased competition from companies in Asia, Europe, and other regions has reduced demand for American-made products. • Automated production methods have decreased the need for many entry-level employees in factories. • Some service industries are expected to have the greatest potential employment in the 21st century... 2-8

9. Service Industries Expected to Have the Greatest Employment Potential Include • Computer technology. • Health care. • Business services. • Social services. • Sales and Retailing. • Hospitality and food services. • Management and human resources. • Education. • Financial services. 2-9

10. Employment Search Strategies • Obtaining employment experience. • Part-time employment. - do you like the work? • Volunteer work - develop organizational skills. • Internships - experience helps obtain employment. • Campus projects - helps obtain career skills. • Using career information sources. • Library materials. • Mass media career information. • World wide web. • Campus development office. • Professional associations and business contacts. 2-10

11. Identifying Job Opportunities • Job advertisements. • Career fairs. • Employment agencies. • Job creation. • Visit companies. • Telephone and business directories. • Web search. • Talk with alumni in your field. 2-11

12. Applying for Employment • Resume. • Cover letter. • Interview • See Chapter 2 Appendix for detailed help in these areas. 2-12

13. Financial and Legal Aspects of Employment • Research the job and the company before accepting an employment position. • The work environment. • Corporate culture. • Company policies and procedures. • Factors affecting salary. • Education, training, company size, and comparable salaries. • Performance quality and work responsibilities. 2-13

14. Financial and Legal Aspects of Employment (continued) • Evaluating employee benefits. • Nonsalary expanded benefits may be available to meet the needs of employees’ life situations. These include such things as child care, leaves of absence, and elder care. • Cafeteria-style benefits allow workers benefit credits that they can choose to meet their needs. • Those with young children may choose more life and health insurance, while older persons may want to participate in profit-sharing plans and retirement programs. 2-14

15. Financial and Legal Aspects of Employment (continued) • Evaluating employee benefits (continued) • Flexible spending and medical savings accounts allow you to set aside pretax dollars for health care costs. • Compare benefits of job offers based on market value (the cost of the benefits if you had to pay for them), or based on future value (long-term worth of benefits such as pension programs and retirement plans. • Know your employment rights regarding discrimination, minimum wage and overtime legislation, and worker’s compensation. 2-15

16. Long-Term Career Development • Training opportunities. • Career paths and advancement. • Changing careers. 2-16

17. Stages ofCareerDevelopment Pre-entry and careerexploration. Establishment andprofessional growth. Advancement andmid-career adjustment. Late-career andpre-retirement stage. 2-17

18. Online Career Planning • Career planning tips. • www.mapping-your-future.org • Lists of available jobs. • www.careerpath.com, www.hotjobs.com and www.monster.com, and www.careermosaic.com. • Resume preparation help. • www.monster.com and www.jobweb.com. • Career planning articles. • www.money.com., www.kiplinger.com, businessweek.com. • Employee benefit information. • www.ebri.org, www.benefitslink.com. 2-18

19. Elements of Developing a Resume • Personal data section. • Career objective section. • Education section. • Experience section. • Related information section. • References section. 2-19

20. Three Types of Resumes • Chronological. • Most use this type. It focuses on your experience in reverse-time sequence. • Functional. • If your skills are diverse this type focuses on your skills. • Targeted. • Prepared for a specific job. • E-resumes for applying for a job online. • Use a simple format and no attachments. 2-20

21. Creating a Cover Letter • Introductory paragraph. • Get reader’s attention. • Overview your qualifications. • Development paragraph. • Specific qualifications. • Refer to details on resume. • Experiences and training. • Concluding paragraph. • Ask for interview. • Include how to contact you. • Summarize how you can help the company. 2-21

22. The Job Interview • Prepare for the interview by getting information about your prospective employer. • Library resources such as annual reports or recent articles. • Internet searches of company and industry information. • Observations during company visits. • Prepare questions to ask about your specific interests, the organization, policies, and benefits. • Practice interview skills. 2-22

23. The Interview Process • Dress appropriately. • Arrive about 10 minutes early. • The interview process. • A screening interview is an initial, brief contact to reduce the pool of candidates. • “E-interviews” - Some screening is done online. • The selection interview is for finalists, and may involve a series of activities. • After the interview. • Express appreciation with a follow-up letter. • Self-evaluate your interview performance. 2-23

24. The End