Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, August 23, 2011

Executive Vacation During Turmoil? Bad PR Move?

This week as President Obama parks the tour bus and travels to Martha's Vineyard for a break with his family, he is undergoing some criticism. Some question whether the chief executive should be taking a break at all, amid stock market volatility, a "crisis" economy, and dropping poll numbers.

Cheif among the president's critics, of course, are the declared GOP candidates for his job. Newt Gingrich blasted Mr. Obama for taking vacation, as Gingrich himself headed off to Hawaii for a "fundraising" trip. A more credible objection was voiced by the Washing Post columnist Colbert King, who says that the president already enjoys two taxpayer-subsidized residences and should devote his time off to talking with hard=pressed citizens, not rubbing elbows with the elite on Martha's Vineyard.

This "controversy" is probably more about PR than reality. After all, the man's completely accessible, and Congress doesn't get anything done even when it is in session - honestly. Plus, he does have 'vacation' time away from his job. But, it raising an interesting question, should chief executive take time off during rough times? If a company is being downgraded, your customers are losing confidence and your recovery prospects are uncertain do you take a trip or cancel it? Probably not.

Leadership is often conveyed through images. A CEO in crisis shouldn't be photographed in luxury surroundings, but neither should be be seen as desk-bound, beleaguered, or overwhelmed. A strong leader needs to be seen as engaged, committed, but also independent. This says, Rosabeth Kanter in her book Should Leader Vacation?

I think Obama should be able to take a vacation and enjoy time with his family. He is working hard no doubt and he is due for time off. Also, like previously said he is accessible at all times. He never truly tunes out. However, from a PR standpoint, this doesn't look the best and I would advise him to think of a way to do a working vacation in not such a 'wealthy' spot.

Monday, January 17, 2011

The Day Has Come, Companies are Finally Giving Something Back to Employees

For the last three years during the 'Great Recession' employees have felt nervous to ask for more from their employers, worrying that their jobs were at stake. But, the day has finally arrived that companies are giving back to hard workers.

Economic analysts say that often when the market resets, some companies' high-potential employees will start looking or new opportunities because they hung in their during tough times and want a fresh start. In order to survive, many companies have cut all of the perks they used to give - pay raises, flexible hours, even free coffee - but more businesses are realizing that if they want to hold on to their best employees they need to give them back the things they enjoy.

FedEx, the St. Paul Hotel, Ford Motor Co., Winnebago and the McKnight Foundation are among many of the companies starting to restore their perks. This is because many of their competitors are sniffing for talent. Another main reason companies are bringing back lost perks is because it's expensive to replace works and in the next decade many of the baby boomer generation will be retiring already.

As the economy recovers, employers are bringing back the goodies. Some are conducting employee surveys, hiring humorists or just bringing back the coffee and cookies that have disappeared. Here are other examples:

Aveda is lifting its ban on employee travel
FedEx and MPR are reinstating 401(K) and 403 (b) matches.

Ford Motor Co., which was thought to be closing soon, actually saw a raise in sales this last year and plans to hire 7,000 U.S. employees

The St. Paul Hotel has said that business has picked back up and they are restoring most of its 275 hourly works to full-time status. Also, they are breaking out the brownies, cookies and popcorn to revive its all-employee meetings

3M Co. froze wages in 2009, but now has reinstated merit pay last year.

Cambria Inc. rehired about 70 laid-off factory workers last year.

The Marsh fitness club in Minnetonka held its first staff party January 7th after a three-year hiatus.

Besides the fun job perks bring, they provide a lot more - employee satisfaction, and when you happy employees they are going to want to stay and create a happy company.
More optimism is buzzing than ever since 2007 and companies see that now that they can afford some perks, they need to give them, especially since turnover costs a lot more. I think is only going to get better from here.

Wednesday, December 22, 2010

Holiday Hours Extended to 24 Hours... Is It Worth It?

Over the month of December some stores have been in "we never close" mode. Target and Wal-Mart having been staying open until midnight and Toys 'R' Us and Macy's have been keeping the lights on all night for holiday shopping procrastinators.

For the first time ever, Toys 'R' Us will stay open 24 hours a day from now until Christmas Eve, when the doors will shut at 10p.m. They retailer's five temporary Toys 'R' Us "Express" stores in the Twin Cities and its Babies 'R' Us are not included in the frenzy.

The Macy's at Rosedale Center is one of a dozen of the chain's stores across the country to go 24 hours. It's the second year the store in Roseville has offered marathon shopping. Although Macy's won't share its sales numbers for the 83 hours of selling marathon, Macy's store manager at Rosedale, said the overnight blitz attracts hundreds of customers from around the area each night.

Sure, there are a few procrastinators, but mostly these people are people who have different lifestyles and different work schedules. When you shop at 2 in the morning, there's really a need. There are a ton of individuals in their working uniforms, third-shift workers, husbands and wives who work opposite schedules and come in when someone can watch their children. And then there are groups of women who went to a late show and came shopping after wards.

So, is it worth it? Retailers say staying open the extra hours are worth it. Experts say only two costs go up with the 24-hour concept: labor and utilities. If merchants can grab extra sales on the graveyard shift, it may be worth it. However, workers say different. They are just feeling more burned out leading up the holiday.

Sunday, November 28, 2010

Round Two: Cyber Monday!

After a great weekend for retailers, shops are rolling out big deals for 'Cyber Monday.'

The holiday that always lands on the Monday after Thanksgiving gets its name from a retail trade group that promoted the idea that people will return to work after a festive weekend of food and shopping, log on to their computers and continue to shop.

Cyber Monday has become a bigger deal than in years past. In fact, as stores promote their Black Friday ads online, it's harder to tell the difference between Black Friday and Cyber Monday deals. Actually, this year more stores are promoting their Cyber Monday ads all week long because more shoppers are just going online rather than coming in their stores. For example, Walmart.com is promoting 'Cyber Week,' discounts from Sunday through next Friday.

Online spending still is a very small piece of the income pie, between eight and 10 percent. However, with it's recent growth in popularity stores get excited about the enthusiasm surrounding online shopping.

Thursday, November 4, 2010

Human Billboard Show Signs of Success for Some

Imagine this: you're driving down the street by a strip mall, look over at the corner while waiting for the stop light and find a person dressed up in a statue of liberty costume for the tax service business or holding a sign for a deal to a pizza place, car shop or hair salon. Think for a moment about this work ad: "Employee needed to work outside. Smiling and waving required. Dancing encouraged. Bring your headset." I've been seeing more of this type of advertising happening and it's got me to thinking about whether or not this advertising actually works?

Companies seem to be pulling out all bells and whistles to attract business. Many are trying new marketing such as doing social networking on Facebook and Twitter and coupon sites such as Groupon, but some have gone back to their roots and are bringing back old-fashioned methods.

The human billboards are a variation on an old marketing strategy, the sandwich board. What you're truly looking at though is an inexpensive outdoor ad. Businesses that sell luxury items such as jewelry have had a hard time these past two years. Some have moved to smaller locations where city ordinances wouldn't allow them to put a sign in the window. Instead, some of them have taken to the streets, dressing someone up in 'loud' clothing and holding a sign on a busy street. Other small businesses such as hair salons have reported that when they hire someone to dress up as a large pair of scissors and hold a sign on a busy street their business more than doubles.

But, then if this advertising works, why isn't everyone doing it? It really depends on who they hire. The person standing still, looking at the ground doesn't attract the attention someone jumping, smiling and laughing does. The second type of person pulls outsiders in. However, the 'waver' needs to be brand appropriate.

Research says that generally the concept works best for a spontaneous purchase, such as an oil change or a pizza. Some pizza places have someone stand outside from 4 to 7 holding a sign. It's perfect because those people tired, hungry and heading home from work see it. Most of the human signgs must try to have fun on the job, so it works best for a business with a sense of humor. Tax services don't usually elicit a lot of yuks, but Liberty Tax Service is trying to change that. Every tax season, from mid-January to mid-April, at least one employee from its 39 Minnesota locations is dancing near a busy intersection, drumming up business dressed as the Statue of Liberty.

The company employs wavers, an official title, in the coldest season of the year. Fortunately the costumes are baggy and can hide a coat underneath. It also helps that Liberty employees are encouraged to bring headphones. The wavers are a big part of Liberty's business model and auditions are held after applications watch videos of the company's favorite wavers. Prospects get suggestions such as saluting police officers who drive past and arm-pumping to get truck drivers to honk. But, does this actually make people choose a tax preparer because someone was in fun costume and waved at them? Liberty says that it helps potential customers who are nervous about filling out their tax forms feel more relaxed about the process.

So, what your probably wondering is who is the right person for this type of job? Old class clowns maybe? Turnover is high in these jobs, the pay is usually minimum-wage, and most wavers don't get commissions, despite the uptick in sales. Doesn't sound very good does it? On the other side, breaks are frequent and shifts rarely last more than four hours.

Thursday, October 14, 2010

There are More Unmarried Couples Living Together than Ever Before, Why? Is it the Recession or just a New Social Norm?

Recently, more and more young couples are living together and not getting married and the reason being seen as is the economic downturn. Further, this number is rising faster here in Minnesota, but why?

New U.S. Census estimates show the number of unmarried couples living together has spiked nationally during the recent recession and rose even faster in Minnesota. Demographers believe the increase is couples delaying marriage because of the cost, avoiding marriage altogether or moving in without a long-term plan because of short term financial pressures. While cohabitation has increased over the last 30 years, the recent uptick has surprised most experts. The Current Population Survey showed an increase nationally from 6.7 million unmarried couples living together in 2009 to 7.5 million couples in 2010. That's a huge jump!

The reason for this increase is unclear. Joblessness might be one of the reasons why couples say 'ok, do we really need two addresses?' It was determined that couples who recently moved in together were less likely to have jobs than couples who lived together more than a year. Beyond economics, a major reason for more cohabitation is couples who have children, but don't get married. Many couples today just see moving in together as a natural extension of dating. First, you have a toothbrush, and then maybe some clothes, and then eventually it doesn't make sense to pay rent on two apartments.

It's unclear why cohabitation is rising faster in Minnesota. The state has more married couples living together fewer divorces and separations, and fewer multiple-generation households. Who knows, this could create a new social norm in which unmarried couples also want to live together if it hasn't already.

The negative stigma surrounding unmarried couples living together has lessened in the last three decades, but hasn't disappeared. The old "living in sin" idea has changed since the time when landlords would deny apartments to unmarried couples, but instead today some couples find it a challenge to find a church to perform their wedding ceremony unless they first get legally married or agree to move apart. It is common for most unmarried couples living together to split up or get married within two years. It's been concluded that only 14 percent of couples are unmarried live together after five years.

Really, there are pros and cons to living together before marriage, the debate is still on. Time will only tell if this pattern becomes the norm and if it improves the stats of divorce. It's an interesting situation. Why do you think this is happening and what do you think the future will be for unmarried couples who have decided to try living together?

Monday, October 4, 2010

Advertising on the Rise

When the economic slump started a few years ago advertising executives began to worry if the advertising downhill slide would ever end? Would marketing money return to all media or just a few?

The answers are becoming much more clear and the outcomes are showing proving to be positive. The American advertising market, which has benefited from government stimulus and old media are showing recovery.

However, not ALL old media are showing growth. Advertising is still leaching out of newspapers, in particularly regional ones. It is returning only slowly to magazines. Billboards are faring better. Yet, the greatest old-media winner is TV, is most countries the main advertising medium.

In early 2009, it looked as if many public TV broadcasting stations might go belly up, but at CBS, ad sales rose from $4 billion to $4.5 billion from then to now. Shares in the company have more than tripled from last year's lows, although they are still well below pre-recession peaks.

Most of the time the advertising business comes back last, but this time it led. A rebound effect is at work. Car dealers and banks that stopped advertising in 2008 have decided they cannot stay out of the market for ever. Yet, there is two inherent reason why a drop in advertising must be followed by a rise. Just look at newspapers, where a painful fall in advertising in 208 was followed by another steep drop in 2-09, with a further fall expected this year. Television is recovering more strongly than other media because it has two distinct and growing advantages.

Why? First, companies that want to make the emerging middle class aware of their brands inevitably turn to television. That's its big advantage. Second, its power to monopolize attention is undiminished. Many newspaper readers have moved online, where they are worth less to advertisers. Not so TV viewers. In the first quarter of this year the average American spent 158 hours per month in front of the box, according to Nielsen, a research firm. That was two hours more than a year earlier. By comparison, he spent just three hours watching video online and 3 1/2 hours watching it on his mobile phone.

Monday, September 27, 2010

Hazardous Resumes

The job market is still rough and there are many out there still struggling to find work; since it has been reported that there are more inaccuracies in resumes. It has long been the case that job seekers buffer their resumes to make themselves look like a stronger, but recently more candidates are downplaying their work histories instead of exaggerating so that they won't appear overqualified for a job.

You may think that the highest group of unemployed people are young professionals and recent college grads. However, it's been said that the greatest number of those looking for work are those who are middle age and have been laid off. This is why some experts say 'dis-embellishment' is happening. This group of individuals have the experience, but can't find jobs to meet their years of work. Typically, this group needs a steady income somehow to pay for things such as their houses, kids, food, etc, so they are willing to take almost any job that, even one that requires much less experience.

Advice: Bottom line is tell the truth. Any work of fiction on either end poses for risk. Further, if any hirer does some research, they can find out the truth themselves.

Thursday, September 23, 2010

Blockbuster Files for Bankruptcy Protection

The movie rental business has changed drastically in the past few years. Before, if you wanted to rent a movie Friday night all you had to turn to was your neighborhood movie rental shop. Now the business has expanded with Red Box, where you can rent new releases and old classics for just a buck a day, and Netflix, where you don't even need to leave your home to get a new movie. These players have strongly increased the competition making it hard for mom and pop shops, little alone big movie rental stores like Blockbuster to compete in the market. Recently, the previous movie-rental powerhouse, filed for bankruptcy protection and said it plans to keep stores and kiosks open as it reorganizes.

To compete with the new companies gaining popularity, Blockbuster did make some changes. The company ended late fees and started online and kiosk services of its own. However, it was still unable to keep its debt in check.

Blockbuster's future plans include closing hundreds of stores and continuing it's DVD vending kiosks, by-mail and digital business. Billionaire investor Carl Icahn will help steer the latest efforts to save Blockbuster, reviving a role he played long ago in trying to shape up the company. He has trusted himself into positioning the power of the company and this by time snapping up about one-third of Blockbuster's highest-priority debt. In it's filing it had about $1 billion in assets and $1.46 billion in debt.

Wednesday, August 11, 2010

If You're Going To Quit Your Job, Don't Jump Off A Plane, Quit With Class

People have been buzzing over the epic departure of JetBlue flight attendant Steven Slater, who quit his job in a dramatic fashion often reserved for movies and daydreams; just after this flight landed in New York City, he unleashed an expletive-laden tirade over the plane's public address system. He then deployed the inflatable emergency-exit ramp and left for his home in Queens, where he was promptly arrested. (However, I wouldn't be surprised to see him on the late night TV shows in the near future with all the publicity and fame he's getting for this incident.)

With economic recover still stalled, quitting any job requires some serious intestinal fortitude, but the sheer audacity of Slater's departure from his job might serve as a shining example of those tired of being abused or misused in the workplace. However, simply swearing your way out of the office lacks a certain je ne sais quoi.

Here are some ways to quit your job with class:

1. Keep Your Remarks Short: Don't rant your frustrations with the job. Just say what you need to and get out.
2. Make Your Reasons For Leaving Clear: Give your box something to think about so they don't drive away another valuable employee in the future. Whatever it is that is making you quit, be clear about it.
3. Have A Plan: If you're going to quit, at least know what's coming next.
4. Make An Impression: No swearing, no tantrums, no throwing stuff. If you leave respectfully and calmly, this will make a greater impression than lashing out.
5. Get Closure: If there's a way to make your departure more real in your mind, make it so. Don't dwell on your decisions. You're gone; now move on.
About the picture: This is a picture from Steven Slater's MySpace, a flight attendant for Jet Blue Airways Corp., looked pleased and relieved after cursing out a passenger on an airplane public-address system, grabbing some beer from the galley and using an emergency slide to hop off another passenger said Tuesday, August 10th. Steven Slater lost his temper after a passenger accidentally hit him on the head with luggage on the ground at Kennedy Airport on Monday police said.

Monday, July 12, 2010

Still Looking For Work? Here's an Idea: Act Like You Already Have the Job you Want

Next time you're at a job interview for a position you really REALLY want, forget trying to sell yourself as a candidate and imagine you're a consultant and ask thoughtful questions.

At last count, there were just over four million books published on the subject of interviewing for jobs. They tell you how to dress for success, how to sell yourself and how to answer all the tricky questions. Most importantly, they give you the confidence that only comes with having read a book or two.

Here's how it usually goes: On one side of the desk sits you, the candidate, waiting to hear from the interviewer why they should hire you of all people. On the otherwise of the desk sits HR, your potential manager, President or whomever, waiting to make a judgment of you. It's a standoff. There's nothing about this situation that isn't awkward.

Here's an idea: Stop being a candidate and imaging instead that you're a consultant, already being paid a non-refundable $10,000+ consulting fee to attend this meeting.

How does this change things? First, you don't worry about selling yourself. No posing, no posturing, no tap dancing of any kind. You're there to be helpful, to identify the needs of your 'clients.' You simply want to add value, to give them their $10,000+ worth of empathy and understanding. If you deliver, they're likely to come back for more of your time and advice. Second, now you can sit on the same side of the table (metaphorically speaking) and ask the hard questions. Not as skeptic, but as a doctor might do while conducting a thorough exam. You'll want to hear where the organization has been, where it is today and what type of goals it would like to achieve. What's the history of this particular role? How did the leaders come to define it as such? How will they recognize top performance, and by what method will they calibrate results?

Then, listen to how they self-diagnose while you make your own private diagnosis. Consider whether your assessment matches theirs. Never mind whether you're the right person for this role. You can think about that later.

What will stick with them is that you asked the right questions, paid close attention to the answers and really fathomed what their organization is all about. The more you want to be taken as a serious candidate, the more you should forget that you are one.

Thursday, June 3, 2010

Minnesota Nurses Negotiations: The Importance of Good Communication from Both Sides during a Strike

The 12,000 nurses that represent the Minnesota Nurses Association at 14 Twin Cities hospitals are threatening to walk out June 10 unless talks produce an agreement about pay increases of three percent for each of the three years, pension contributions and more flexibility in scheduling. Nurses claim to be stretched to the limit and don't have enough say in staffing levels. This is causing a low nursing morale and stressed out.

In this strike there are spokespersons from both sides stating their side of the disagreement. It's important this is, so that the clearest messages are communicated to one another and the press in hopes of reaching a settlement. I think that both defenders are doing a good job representing their sides' wants.

I side with the Minnesota Nurses Association, but still I can see both sides. The hospitals are struggling just like any other business during this downturn. They don't want to guarantee higher wages and pensions and other benefits if revenue is not growing. Also, hospitals want to be able to move nurses around hospital units depending on census numbers, even if a nurse is unfamiliar with their new surrounding and may not work as efficient.

Hospitals are an important part of society and nurses are a big piece of their operation. Patients are nervous that their care will be affected by the strike and hospitals are trying to prepare. Hospital communicators are making it clear that the strike will not affect their patient's care, which is vital. There is hope that the strike can be averted all together before 10 arrives.

Affected hospitals: Abbott Northwestern, Mercy, Unity, United and Phillips Eye Institute (all owned by Allina Hospitals and Clinics), St. John's, St. Joseph's and Bethesda (owned by HealthEast Care System), North Memorial, Children's Hospitals and Clinics of Minnesota, Park Nicollet Methodist, Fairview Southdale and the Riverside campus of University of Minnesota Medical Center, Fairview.

Wednesday, March 24, 2010

Obama plans blitz to boost public opinion of health care bill

The first anniversary of Obama's presidency could hardly have been gloomier. Especially since the day before on Jan. 19, Republican Scott Brown shocked the political world by winning the seat long held by Kennedy, a lifelong champion of health care reform. The ramifications were huge. Obama's public opinion rating was dropping and he hadn't brought about any change liked he promised during the 2008 election season. However, with a lot of determination, deals and luck, Obama sealed the deal on his health care plan.

On Monday, President Obama began an immediate public relations blitz aimed at turning around Americans' opinion of the health care bill and so far there's been progress. A USA Today/Gallup Poll finds that 48 percent, calls the legislation "a good first step" that needs to be followed up by more action, and 4 percent says the bill itself makes the most important changes needed in the nation's health care system.

The reshaping the legislation's image will take place in three phases, White House aids said: the immediate aftermath; the seven months until the November midterm elections; and the several years that follow, during which many provisions in the measure will gradually take effect.

Obama and those in favor of the bill have a lot more PR to do though, especially since no Republicans are in favor of it and will do everything possible to point out the negative aspects of the bill.

A lot of the public dislike of the legislation is bound to not understanding how it will affect them or suspicious about Washington and the historically low approval ratings of Congress as an institution. Turning around that sentiment will require the law to be implemented smoothly. Many Americans believe that no matter what, the government always finds a way to screw something up. White House officials say they will handle this by developing a comprehensive public education campaign that helps people understand is as it comes on.

White House officials say that Obama will not make health care a daily topic for the rest of the year, and will quickly shift to financial reform and the economy. Hearings on revamping financial regulations will begin Monday.

But officials say there will be several key moments before November's elections when popular parts of the health care legislation, such as the provision that prevents children from being denied coverage and changes to the "doughnut hole" for seniors, will take effect. Obama will surely build high-profile public events around those moments.

Monday, March 1, 2010

Caribou Gets a Makeover

The latest phase in a year's worth of rebuilding and rebranding at Caribou Coffee hits the town today. The new look ranges from the subtle brown cup covers to the new-looking Caribou Coffee logo built out of a coffee bean. The company's theme remains unchanged - "Life is short. Stay awake for it."

This change, along with others, are part of a yearlong revitalization of a brand that was languishing a year ago when the company reported a $16.8 million loss. The hope is that all these changes will help the company reconnect with its customers. Caribou is a distant second to Starbucks in the coffeehouse industry, currently having 515 stores, including 112 franchised and licensed. The company also has a commercial wing that sells branded products to grocery stores, airlines, hotels and other merchandisers. Caribou is the official coffee partner of the Minnesota Twins in their new Target Field Ballpark.

The new Caribou includes:
  • A deeper blue backdrop for the caribou
  • Brown coffee cup lids - These proved to be more popular; they don't show lipstick marks!
  • Messages to coffee cups and napkins called "Bou-isms" in reference to the "Bou" nickname. Messages will say "Spend time with your kids, tomorrow they're a day older" and "Dare to adventure" and "Don't wait for New Year's to make a resolution."
  • New store decor
  • And coming soon, billboards and other outdoor venues that designers hope will resonate with consumers. These should start popping up in April.

Caribou Coffee has new leadership, CEO Mike Tattersfield, the third leader in three years. Under his direction the company has shut some stores, is now focused on its core markets, added new products and is concentrating on upping customer service. Last month Caribou added "handcrafted" oatmeal to its menu following the addition of new chocolate beverages late last year. The company now is testing in-store baked items in 25 of its Minneapolis locations, and five flavors of Tea Latte Fusion are being introduced this week. I think this rebrand is a great idea for Caribou Coffee. Since Caribou Coffee started 18 years ago, their competition has increased greatly, as many more coffee shops have started up. The company has had a rough patch financially and really does need to remind their customers why they're great.

Monday, February 15, 2010

Minneapolis Woman Puts 3/50 Idea on Blog & Now has 16,000 Supporters

The 3/50 Project started as a quick blog post by retail consultant and speaker, Cindy Baxter. Baxter was watching Oprah's talk show when Suze Orman was the guest telling viewers to cut out unnecessary spending in order to save money and help the economy. Baxter disagreed and posted "Oprah, you've got it wrong," in a blog entry, not knowing the post would launch a thousand e-mails and a new business venture.

Baxter's glob entry suggested an alternative: Pick three locally owned stores you don't want to see go away. Spend $50 a month among them. Keep local businesses humming. From there the idea went viral. Marketing expert Seth Godin stumbled across Baxter's blog and endorsed the 3/50 Project. Word spread quickly on Twitter. Businesses and individuals across the country became Facebook fans by the hundreds. Flooded with requests for more information, Baxter threw up a website and put together a ready-made marketing campaign that small business could download for free. She encouraged businesses to feature the 3/50 Project logo on their websites and to get fliers into the hands of customers who might not realize the power of their purse.

Baxter's fliers quote studies by civic Economics, an economic analysis consulting firm. That found that for every $100 spent in independently owned stores, $68 comes back to the community through taxes, payroll and other expenditures. National chains contribute to about $43.

I wanted to inspire all of you to voice your opinions and ideas, either through social media or another outlet. Things can happen if you just speak up. This blog post was inspired by reading the Star Tribune this morning. Check out the article printed in today's Business Insider Section for more info.

Monday, February 8, 2010

HR and Facebook: Companies that use social networking sites to screen applicants could be breaking the law

It's hard for company's HR and hiring managers to weed out applicants during this time of high job applicant numbers and many are using social media sites to cut names, but they may be walking toward thin ice as they follow a national trend of using social media networks to screen potential employees. A recent national study found that employers were impressed by personality, creativity and communications sills found via the Internet. But employers also reject job candidates for inappropriate photo, content relating to drinking or drugs and misrepresentation of skills. However, these businesses could be violating, or close to violating, anti-discrimination laws that have protected workers for decades.

Right now, there are no case law restrictions to the use of social networks like Facebook and MySpace by employers, but there will be. Lawyers say they have already noticed an increase in interest from business clients about the do's and dont's with social media networks, particularly when it comes to hiring. Maybe 2010 will be the year for creating policies to guide the use of social networks for both prospective and existing employees.

In a survey of hiring managers conducted earlier this yer for CareerBuilder.com 45 percent reported using social media in their background checks of prospective employees, up from 22 percent a year ago. Of those 2,600 mangers, 35 percent found something that caused them to not hire the candidate. This type of screening is becoming much more popular, but there is very little legal guidance for people.

Since sites such as Facebook and Twitter can be personal, employers must be cautious that the information they obtain doesn't result in discrimination by race, gender, religion, disability or sexual orientation. All are protected classes under law. For instance, employers would be breaking the law if they screened applicants, even before interviewing them, based on racial or ethnic details gleaned from social media sites. Also, employers are asking for trouble in thy reject an applicant who discloses union organizing,smoking r drinking on a social media site. All are lawful activities in the job candidate decision making process.

What you see on a social media site may not be true of the person or it could be dated or a misrepresentation of that person of it could be picture of another person all together. Advisers are telling employers to never use what they find to make hiring decisions based on race, age, or sexual orientation. Also, that employers should include a broad statement in their application process that makes any discovery found online about someone fair game, some statement that says 'we do reference checking, including use of information in pubic domain.'

Social Media Advice from Employers:

  • Have a consistent approach in the use of social media for screening job candidates' use it on all candidates for a position or none.
  • Do not access social networking sites through deceitful or fraudulent means.
  • Create a wall between the ultimate decision maker and the job screener so any legally protected information is not known by the decision maker.
  • Consider the validity and accuracy of online data before making a decision.
  • Tell all applicants in advance that the employer will be looking at social network sites as part of the review process.

Source: Star Tribune

Thursday, February 4, 2010

Toyota Grapples with PR Bungles and Tarnished Brand

Toyota Motor Corp -- one of the most savvy car brand-creators in Asia is floundering. Since the company has been faced with an unprecedented recall of millions of vehicles, rivals have been swooping in on its customers. The motor company has created a PR nightmare by consistently playing down the recurring complaints of unintended acceleration, breaking the cardinal rule in crisis management: assume the worst.

My PR background says that people want to know what's going on and that Toyota should fess up and take full responsibility, be empathic to the victims and their families and be in control by outlining the problem and how they intend to solve it. Right now, Toyota President Akio Toyoda, the grandson of the company's founder, has not formally addressed the public or media on the recall problems. Even when they announced the recall initially, they shouldn't have just said "We're going to do a recall." They should have explained what was going on. Also, there should have been a heartfelt apology from the top.

Through November, the company continued to blame loose mats for the problem. That has eventually spread to a potential problem with accelerator pedals, and U.S. safety regulators are now renewing efforts to re-confirm whether the electronic throttle control system could have been at fault.

At a news conference in Nagoya n Tuesday,the first appearance by an executive form headquarters since the recall expanded last week, there was no deep bows, a standard fixture in Japan when a firm declares it is responsible for its mistakes.

Now, the problem seems to have spun out of control. At a more recent news conference, a Toyota executive in charge of quality, Shinichi Sasaki, said part of the reason Toyota decided to use U.S. auto parts maker CTS's accelerators was to help contribute to the local U.S. economy. That was not what customers want to hear, especially when tragic memories of the car crash incidents are still fresh.

So, what has Toyota done to reach out and communicate the problem with its customers? Toyota ran full-page ads in major U.S. newspapers on Sunday alerting consumers to the recall and production shutdown. Jim Lentz, president of Toyota Motor Sales U.S.A., appeared on U.S. TV and expressed regret for worrying drivers of its cars. Lastly, they are conducting a very extensive recall, which shows they are taking the recall seriously.

Since this issue with Toyota, U.S. motor company's sales have been up. Toyota's sales have slipped 16 percent and it could fall further. They have lost an estimated 20,000 in sales after it stopped selling eight models because of the defective gas pedals. Ford announced that its sales have rose 25 percent, Hyundai said sales rose 24 percent for the month, GM said its sales increased 14 percent and Nissan rose 16 percent.

Monday, January 11, 2010

The Last Decade in a Nutshell

When I think back on the last decade two things come to mind: war on terror and technology. The CBS News announcement that 'Google' won top word of our nameless past decade (in front of "9/11," "green," "blog," "text," and "war on terror") spurred me to think about what really big did happen in the news over the past ten years.

Top ten stories of the decade according to Associated Content News:

  1. September 11th, 2001: This day changed the way Americans live forever. It impacted our economy, security and the way we travel. It was the beginning of the 'war on terror' we're still fighting today. Also, I'm almost sure this day was the first time I started to hear the words 'terrorism' and 'terrorist' on the news. Now, we hear it every day.
  2. Wars in Afghanistan & Iraq: News programs cover this on a daily basis. Many Americans have served time or given their lives in this quest. Right after 9/11 majority of Americans supported going into these wars, but as time has gone on support has dropped. This war is different than any other war we've been in. The war is so far away for many of us. As in previous wars, Americans were asked to serve in the military or work in an industry on behalf of the war. Now, most of us just see a glimpse of it on TV. Also, 'war on terror,' is very undefined. It means that we don't really know who we're fighting against, many are just ordinary citizens, not military people.
  3. President Barack Obama's Election: In November of 2008, the U.S. public elected their first African-American President. It was an election of many firsts besides this and it got more coverage and interest than any other. Women took a large step in politics as well. Hillary Clinton was the Democratic Party's choice right behind Barack and Sarah Palin, Governor of Alaska, was chosen for Senator McCain's running mate.
  4. U.S. Supreme Court Decides 2000 Election for George W. Bush: Five (Conservative) Supreme Court justices terminated Florida's vote recount and gave the "appointed presidency" to Bush. They supported federal power over Florida's state rights and asserted that Bush's "equal protection" civil rights would have been violated if the recount continued. This drastically hurt the Supreme Court's creditability.
  5. Globalization and Near Depression: The economy has been down most of this decade. The news is reporting high unemployment rates all the time, interest rates from banks are down and therefore so is spending. The big manufacturing cities in the U.S. along with the small towns have all been suffering. At the same time, globalization is increasing. Companies are working internationally more and more. You're behind if you aren't! Lastly, the 'green environmental movement' has begun in the last decade. People and corporations are making more moves to downsize pollution after scientists worldwide stated global warming would place the planet at risk if we don't cut down on our carbon emissions.
  6. "Googleization": It's hard to believe, but most of us didn't even know what Google was ten years ago. Social media sites such as: Facebook, Twitter and YouTube have all started up in the last decade. Since, majority of news outlets and corporations use the Internet and social networking sites to communicate with their public. Computers and the Internet are all just becoming a way of life for us and the older generations are feeling a left out because most of them still do not have even a clue how to use one!
  7. National Health care/insurance reform: This discussion will continue into the next decade. Health Care's been on the rise and has left many Americans without insurance. Recently, more compromise since the passage of Medicare and Medicaid in 1965.
  8. Health care research: In 2003, scientists mapped out the human genome. Researchers have continued to make progress in finding genetic variations that could unlock huge doors toward treating diseases. Stem-cell research has continued to emerge as a related issue.
  9. Hurricane Katrina: This devastating hurricane that hit in late August 2005 hit New Orleans and a lot of the Gulf Coast. This are still not fixed up completely today. Media was criticized for portraying an unequal society.
  10. Y-2-K: Remember this?! Forecasters talked about this for weeks before the new year and predicted that once the clocked ticked over to the new millennium, everything would be thrown off. It caused so much buzz that people stocked up on food and water because they were afraid of what would happen. Well, nothing happen!

Top Stories of 2009 according to The Associated Press:

  1. THE ECONOMY
  2. OBAMA INAUGURATION
  3. HEALTH CARE:
  4. AUTO INDUSTRY
  5. SWINE FLU
  6. AFGHANISTAN
  7. MICHAEL JACKSON DIES
  8. FORT HOOD RAMPAGE
  9. EDWARD KENNEDY DIES
  10. MIRACLE ON THE HUDSON

The Associated Press stated that their research began before the Tiger Wood's scandal enveloped.

Monday, December 14, 2009

Not Just Popular Items are Out of Stock this Year; All Inventories are Lean

If you've been holding off from shopping in hopes of retailers giving you better deals, you should rethink your plan. The word on the street is that after last year's overstuffed holiday, retailers are cutting their inventory by as much as 15 percent to dodge huge markdowns that cut into profits.

Like every year, there are items that are more popular than others and there will not be enough to go around, for example the Zhu Zhu pet hamsters. Except this year items that you wouldn't expect to be gone are, and stores will not be restocking their shelves. Macy's said that Ugg boots are sold out at most of their stores and they will not be getting anymore in and many stores are running out of Christmas lights with no plans to order more in.

Retailers are finding this strategy very helpful. Since there are only a certain amount of products, it makes the consumer demand for them higher. Shoppers are more likely pay full price for the item if it is harder to find. Further, stores will sell all of their products without any leftovers. However, the right number of products can create a slippery slope. Stores who could have ordered and sold more of one product are losing sales to online disturbers like Amazon and eBay.

It will be interesting to hear how stores do this holiday season when typically 40 percent of the holiday sales come in during the 10 days before Christmas.

Monday, December 7, 2009

Retailers Find Success with Internet and Social Media, But Does this kind of Shopping Improve the Economy?

With the economy down and Internet use up, the media has reported that online buying may be retailers hope for the holiday shopping season. However, does online shopping and social media promotions really have that big of an impact on a company's income and does this kind of shopping actually help the economy?

This Cyber Monday many stores offered discounts to online shoppers and they worked, more customers than ever came. Online sales grew 16 percent from last year according to online marketing firm Coremetrics. The entire Thanksgiving weekend struck success for online sales. Discounts spurred an 11 percent jump in online sales on Black Friday and a 10 percent increase on Thanksgiving according to research firm comScore. The whole month stood out for online purchases where online sales were up an average of three percent. This shows that customers are appreciating retailer's online discounts and creative promotions.

Big retailers such as Toys R Us and Best Buy are using the web, especially social media sites Facebook and Twitter to direct buyers to discounts this year. Companies are using special codes for online coupons. This makes this method very easy to track its effectiveness.

Lately every company seems to be jumping on the social media bandwagon. More companies created holiday social media plans this year than ever before:
  • 47 percent of retailers planned to increase social media use for the holidays
  • 75 percent will improve their Facebook pages
  • 59 percent will boost their Twitter use
  • 60 percent of consumers will use social media to locate coupons and discounts
  • 53 percent will research gift ideas through social media
Source: Deloitte Services, National Retail Federation

Online sales only represent a small portion of retail sales, estimated to be only between 4 and 7 percent of a retailer's overall income. Overall, holiday sales will not be greatly affected by e-commerce. According to the National Retail Federation, in 2008, Americans spent $141 billion online. In stores, we spent $2.4 trillion (excluding auto, food, gas and beverage). Overall, holiday sales will not be greatly affected by e-commerce.

Perhaps no web retailer has been as effective in driving consumers to their site as Amazon. The company did not even feel the recession last year when they reported having one of their best holiday seasons ever. Their fourth-quarter revenue rose by 18 percent to $6.7 billion last year.

Even with a slight increase in retail sales from in store sales, the National Retail Federation, the largest trade group predicts a one percent drop from last year (excluding online) in shopper sales.

Even though online shopping increases a store's revenue, it doesn't exactly improve the economy. According to the Minnesota Department of Employment and Economic Development, there are more than 15 million Americans working in retail jobs. In Minnesota, nearly 300,000 are employed in the retail sector. If we shifted to all online shopping, we'd kill jobs in the retail economy. There would also be a cost to jobs at restaurants and other businesses that surround our major retail centers. The states would lose out on considerable sales tax revenue, as well. Minnesota's House Research estimates that the state loses $50 million in a two-year period due to unpaid sales taxes. By law, retailers with physical stores in Minnesota have to collect sales taxes at the time of purchase. Retailers without a physical presence do not have to collect taxes. Individual residents are responsible for self-reporting Internet purchases if the resident purchases a total of $770 a year.