Farnoosh Torabi's Blog, page 52

Landing the Job With “Returnships”

[image error]Established professionals looking for new career opportunities or getting back in the game after taking time off are benefiting from a glorified internship of sorts called returnships.

Reserved for seasoned workers, a returnship is a short-term, non-commital way to recruit and support talented employees. Pay  - if offered – is often less than what you may earn in a full-time post, but the potential to get hired after the stint is usually solid. The trend is quite popular, particularly among the stay-at-hom mom set seeking employment after several years out of the labor force.

Carol Fishman Cohen, author of Back on the Career Track: A Guide for Stay-at-Home Moms Who Want to Return to Work, as well as the co-founder of the career re-entry program iRelaunch, says returnships are for those who “typically have a big gap on their resume, a number of years out of the workforce…and hiring managers view that gap in different ways.”  In an Internet-based field, for example, missing a year or two could mean a chasm of lost experience that could make it difficult to land a job.

Returnships gives mature workers a chance to prove their value and perhaps more importantly, offer training that can help someone who’s been away get accustomed to changes in the field that can ease re-entry.

Returnships are also a great deal for employers. There’s a massive amount of talent available in more mature workers. In fact, almost all potential returnship candidates hold bachelor’s degrees, 75% hold graduate degrees, and three-quarters worked for at least a decade before taking their break, says Fishman Cohen. She writes in the Harvard Business Review:

“Returning professionals offer enlightened employers a rare opportunity: They allow them to hire people who have a level of maturity and experience not found in younger recruits and who are at a life stage where parental leaves and spousal job relocations are most likely behind them. In short, these applicants are an excellent investment.”

Goldman Sachs was one of the first firms to launch such a program – they coined the term when they offered a returnship program for the first time in 2008, and due to it’s success, has since tripled its size. Food giant Sara Lee, and even online retailers, software companies and start-ups are launching similar opportunities. Sometimes referred to as “Executive Internships”, candidates are invited to a trial period lasting a period of weeks or months and, like college-aged interns, may earn little or no pay.  But, they get the chance to prove they have what it takes to be hired full-time.

If you’re looking for a returnship, consider these steps:

Research Existing Programs

In addition to the ones mentioned, MIT, Pace Law School, the National Institutes of Health, and U Mass McCormack Graduate School of Policy Studies, are among employers with active returnship programs. Other organizations like Encore.org, championed by AARP, highlight the value of experience and maturity for older workers, and help connect opportunities with those seeking encore careers.

Attend Returnship Conferences

Regional meetings, such as the Return to Work Conference sponsored by iRelaunch, offer a great way to learn about trends, as well as opportunities to network with progressive employers.

Take Advantage of Placement Agencies

Staffing firm MomCorps specializes in flexible workplace solutions, and 10 Til 2 is a placement agency for part-time, professional gigs. Both agencies offer returning professionals resources into placement. For workers interested in trying out a new career, Vocation Vacations and Pivot Planet allow you to pay for mentoring or experience in your dream job.

Broaden Your Search  

As well, traditional job boards are full of opportunities if you know how to dig.  Search under “temp work”, “contract work”, “executive interns”, “special projects”, “externships” and “fellowships”.  If a company is skeptical of a gap in your resume, suggest that they temporarily hire you for a returnship/internship, or in a consulting role.  This shows them you’re serious and ready to prove your skills.

Volunteer

Take volunteer roles that are in line with your career goals.  For example, if you want to manage construction, volunteer on a weekend build at Habitat for Humanity. This will add depth to a resume and can expand your contacts.

Use Who You Know

The fact is, 70 percent of hires still come through a personal connection. Finding a champion for you—either a friend, a fellow return-to-work-er, or simply someone who admires your work and skills.  Keep in contact with former supervisors, peers and those who were junior to you, as those are the same people who will inevitably move on to managerial roles.  You might even be able to find fill-in at a former employer: offer to cover maternity leaves, or do short-term projects or consulting work.  And finally, keep up with your field: read articles, stay on mailing lists, and even send research or articles to your former employer to maintain the connection — and, to keep your competitive edge.

Photo Credit:2010/03/work-from-home-mum

2012 Year-End Tax Tips

[image error]

When it comes to taxes, the last month of the year is a brief window to get your financial house in order.

“Everyone needs to be on alert, not just the wealthy,” says Oklahoma CPA Joshua Jenson, of upcoming changes to tax law. “The average household, making $60-$80k a year, is looking at paying a minimum of $100 more in taxes in 2013.” Jenson says the hike will come as a result of some combination of raises in rates and a loss of deductions and credits. One change he highlights however is the Social Security tax cut that’s likely to expire. “Currently, every employed taxpayer has 4.2% withheld from their paycheck for Social Security. That’s the result of a temporary cut that’s set to go away in 2013. It’ll go back to 6.2% for your first paycheck in January.”

These changes are, of course, still up for debate in Washington but I spoke with Jenson recently to get his expert opinion on what taxpayers should anticipate in the New Year and what they can do by Dec. 31 to prepare and save money.

1. Pay Taxes and Other Expenses Early

In previous years, you’d want to shift as many deductible expenses to the end of the year. That still holds true, especially with likely tax increases. Jenson advises paying your year-end tax bill early. Do the same with next semester’s school tuition, for yourself or a dependent, taking maximum advantage of this year’s deductions. “If you’re not set up for automatic payments, pay all of your real estate taxes before the end of the year and make January’s mortgage payment next week. You’ll get another month’s interest to deduct,” Jenson says.

See More: Deducting Charitable Contributions

2. Accelerate Income

In years past, taxes were expected to stay the same or decline. “Right now the government is starving for revenue,” according to Jenson, so it’s a pretty good bet that they’ll go up – even if only slightly- for many Americans. The previous wisdom would be to put off discretionary income (such as year-end bonuses) til next year, but it’s perhaps better to boost your 2012 income by accepting them now.

3. Pay Medical Expenses

One of the big changes on the horizon is a decrease in how much you can deduct for medical expenses “A lot of people need to remember that right now right now you can deduct medical expenses that exceeed 7.5% of you’re adjustable gross income,” says Jenson. “If you’ve had a year with lots of visits, had an operation or a baby for example, make those deductions.” He says the next few weeks are the best time to pay off lingering medical bills and make visits to your healthcare professional because come January 1, the deduction threshold will rise to 10% (except for taxpayers age 65 and older.) Jenson says seniors, however, should rememebr that their Medicare expenses can also be itemized as deductions.

4. Couples: Double Up On Flex Spending

In 2013, there will be a cap on how much employers can place in your flex spending account to pay for out-of-pocket healthcare expenses. While most employers set the limit previously at $5,000 in pre-tax dollars, the Affordable Care Act will impose a cap of $2,500. Families that needed more to cover copays for things like eye doctor and orthodontist visits in the past should look to doubling up when they renew, usually around the New Year. In other words, married couples with access to FSAs should each look to request the maximum from their employers to match the previous year’s benefit.

Photo Courtesy, 401(K) 2012.

Jobs That Require No College Degree

The cost of a four-year college degree is rising far faster than inflation, with graduates racking up nearly a trillion dollars in student loan debt. But, you don’t have to break the bank to get ahead. Here are several careers that require just a two-year degrees or less to get started. Read the article here.

As always, we want to hear from you. What some great jobs that don’t require college degrees? Connect with me on Twitter @Farnoosh and use the hashtag #finfit.

3 Ways to Find Work From Home Jobs

Work-from-home, or “telecommuting” jobs are in high-demand. In fact, the phrase “work from home” was Yahoo!’s top job-search term of 2012. Finding one of these opportunities, however, is easier searched than done.

Telecommuting jobs are prized for their flexibility, especially among young professionals, freelancers and another group: parents. According to a recent survey conducted by FlexJobs, a site dedicated to telecommuting job listings, 93% of parents who responded said they would even take a pay cut to work from home. Most believed they could be just as productive a worker and a better parent, devoting more time to their children, if they had the flexibility of working from home. Also indicating the rising trend, many (75%) were encouraged by seeing other parents or their own parents (20%) work from home.

I recently spoke with Sara Sutton Fell, CEO of FlexJobs, for a better sense of what jobseekers can do to get an edge in the telecommuting job search:

Search Specifically

You want to be precise in your search for a flexible telecommuting job, says Sutton Fell. “Start with a niche agency or website, one that’s trusted in your field and that specializes in flexible jobs,” she says. “On the web, be careful of search terms like ‘work from home.’ It, and similar terms, are scam bait because of their popularity. I’d say for there are 60-70 scams for every legitimate ‘work-from-home’ posting.” Sutton Fell advises whenever conducting a search to use more specific (and less common) terms including: “remote,” “telecommute” and “telework.”

Don’t Poo-Poo “Part-Time” Posts

For while they may seem like they require your presence at the firm, they could just as easily become stay-at-home gigs. Sutton Fell says telecommuting positions are often afterthoughts on most job sites, even ones dedicated to freelance opportunities. Her suggestion: Keep your mind open in your search, considering posts soliciting freelancers and part-time work, as well, since they could turn into telecommuting opportunities. “There’s more work flexibility out there than you think,” she says and more often than not, at-home work can be negotiated. Sutton Fell says it’s no longer a fringe market and employers have taken notice in every industry with 15-20 million of people working in telecommuting positions. “And be honest with yourself in what you need. Perhaps you really want to work from home but if availability is the issue, you might be just as happy with a part-time job.”

Highlight Your At-Home Preparedness

Finally, Sutton Fell explains that employers hiring telecommuters are not only looking for job-specific skills and experience. They also want to be sure that you can handle the distance and nature of the employement. “Highlight any experience you have working from home,” she says. “A lot of employers worry that taking on someone out of the office is a risk. In the hiring process, I would assure them that you have certain things in place like a dedicated work space and uninterrupted work time as well.”

Photo Courtesy, slightly everything.

Buy This, Not That: Workout Gear

Even if you’ve traded in your gym membership for free workouts in the park or at home, it’s easy to go overboard on workout gear. It’s a multibillion-dollar industry that includes everything from yoga mats to medicine balls.

So for some savings strategies, I tapped Fitness magazine’s Argy Koutsothanasis. She breaks down what’s worth it and what’s not in this FinFit edition of Buy This, Not That: Workout Gear. Read more here.

And, as always, we want to hear from you. How are you keeping your fitness goals on track? Connect with me on Twitter @Farnoosh, and use the hashtag #FinFit.

7 Gift-Giving Do’s

In a previous post, we looked at some gift giving faux pas to avoid. Now, a review of 4 ways to wrap it right.

Ask Permission to Buy Yourself Something

In his book, Scroogenomics: Why You Shouldn’t Buy Presents For the Holidays, author Joel Waldfolgel says that he uses the gift-giving season to give himself things – or rather, he gets permission to buy himself something he truly wants, but would never trust someone else to pick out, like a digital camera with special features.  He says that for all the unwanted gifts and gear out there, and the collective time spent disposing and returning these items, our “giving for the sake of giving” — is getting out of hand.  A word of advice, however:  do let your partner in on this plan, otherwise you could end up like Alex Tabarrok, a Canadian-American economist and blogger, who made the mistake of giving his wife a blue-ray dvd player one year for her birthday– the exact item he wanted.  For his birthday?  She gave him a new dress.

Make it Personal

Levitt says the best gifts demonstrate that you know more about the receiver than they know about themselves. You’re hopefully picking something they’d never think to get, but yet, is exactly what they want. “If a person puts in a lot of effort it’s a credible signal of their investment in you,” says Levitt.  If you need help tying the gift to something unique and just for them, hobbies are a great place to start, as are sports teams, or sending gifts hand-crafted from your own city or home-state.

Make it Useful

No one can call it a useless knick-knack if it actually has a use.  Find something your recipient uses often and then exploit that need: maybe an avid golfer would appreciated personalized golf balls or a “fancy” golf ball tracker, a product they’d use but would never splurge on for themselves.  It’s a win-win.  Other ideas include compression socks for the runner in your life, a monthly movie-subscription for the movie-lover, or membership to an auto-club for a new car owner, etc.

Err on the Side of Quality, Not Quantity

Don’t miss out on the opportunity to show off your taste and presentation skills.  Better to get a smaller quantity of high-quality chocolates that will get savored, over a larger bag of cheap candy (unless it’s a candy you know they love).  Levitt’s wife told him the best gift she ever received from him was a pair of tweezers – he got her just this one small token but he made it a good one: he bought “TweezerMan” brand tweezers, a bit more expensive but have a reputation for being excellent tools.  A small gesture can pay off big when it’s something that will last and be appreciated.

Recycle,  Upcycle,  Give-away, or Swap

We all have so much stuff.  And so why not, as part of your regular gift this year, include something you’d like to give away– and give it to the person you think would specifically enjoy it?  For example, along with her regular gift I’ll be sending my younger sister a box with some gently used necklaces and my practically-new pumps-that-never-quite-fit-right, which I know she’ll love (I know this because we’ve had the same tastes since we were teenagers, and she’s a half-size smaller than me).  I’d take this solution any day over dumping my duds in the trash. Try shopping around your own home first — and then preface the gesture with, “I’d love for you to have this if you’d like it, as I’m getting rid of it anyway.”  They can decline or pass it on if it’s not for them.  Or, donate freely and often to the “donation” spot in your neighborhood or apartment building; if there isn’t one–time to start one up!  Your trash is another man’s treasure – and

Pay It Forward

In his article titled “The Gift Economy,” Pulitzer-prize winning journalist Paul Van Slambrook encourages us all to go ahead, buy a coffee for the person in line behind you – or, say, pick up the toll for the impatient driver who’s been tailing you for the past 10 minutes. He says that these gestures can have a trickle down effect, and with a sputtering economy, “gifting” our way back to fiscal health may make a real difference.  He sites the case in Blue Springs, Missouri, where on the heels of the recession, one woman going through the drive through decided to treat the car behind her with a free beverage – and the gesture was repeated nearly 1,000 times in a row without breaking the chain as each person felt so good about the their free treat, they couldn’t help but repay the favor.

Give Cash

Though cash is unabashedly impersonal, if you’re looking for an easy, effortless gift that is always appreciated, then go for bills.  Why not?  When given the choice over, say, yet another gift card–most will swear cash is king.

Photo courtesy of christmasstockimages.com

5 Gift-Giving Faux Pas

On a recent “Freakonomics Radio” podcast (a segment on NPR’s radio show “Marketplace” where hosts Kai Ryssdol and Stephen Dubner get economist Steven Levitt’s perspective on everyday issues), they discuss the downsides to gift-giving. In particular, they describe a “dead weight loss”: the phenomenon where, after holiday gifts are given, they’re considered much less valuable by the ricipeint than they actually cost the giver. This makes the whole thing terribly inefficient and, according to economist Steven Levitt at the University of Chicago, a huge waste of everyone’s time, energy and money.

However, I’d like to make a case for RE-THINKING the act of gift-giving.  When was the last time you gave or received a present, where there wasn’t some sort of unspoken understanding about reciprocity? A real gift should be given out of inspiration and love, without any expectation of anything in return. If we re-calibrate what it means to give presents in our culture — as an expression of appreciation — maybe we’d find ourselves with less dread over the budget-busting, holiday consumerist feeding frenzy at the mall each year.  I know I will!

To help, here are some of the Don’ts of holiday cheer (for the Do’s click here), to make your gift-giving truly count:

Don’t Overthink it

In other words, don’t overspend based on what others might think of you.  Justin Wolfers from the University of Michigan calls this the Spotlight effect: when you perceive that everyone is looking at the gift you’re about to give with great scrutiny – when they’re not – and you spend too money on it as a result.  As Wolfer’s says, “You’re not that interesting. Don’t over think it.”

Don’t Obsess About Jewelry

The saying “Diamonds are a girls’ best friend” has made our country a little “bling” crazy — but economists say there are few places cash can disappear as quickly as Fine Jewelry– especially when diamonds can, literally, disappear (down your drain, at the gym, etc).  Consider also, that jewelry is incredibly difficult to pick out for another person; it’s a gamble whether your tastes will be appreciated. Levitt offers his vote for giving fake jewelry as a gift, as paraphrased from an interview:

“Years ago I grew tired of my wife fussing over a pair of diamond earrings I’d given her – she was always too afraid to wear them for fearing of losing them. So, one year I bought her 10 pairs of cubic zirconium earrings for fraction of what the real studs cost me, and my wife loved it.  She could continue wearing what looked like real diamonds — but never worry about losing them. Over the years this came in handy, as she’s now almost through her ten pairs of fakes,” says Wolfers.

Don’t Give Gift-Cards Unless It Counts

From an economic perspective, gift cards are a terrible gift.  They’re impersonal, it requires the recipient to go to a store you choose (whether it’s a place they normally shop or not) — and that’s if the card doesn’t expire before they get around to spending it. If you do give these as gifts, make it count: make sure there’s enough on the card to buy (an entire) ‘something’ at a store you know they already shop at (you’d never want to give a $25 gift certificate to Bloomingdale’s, for example – since you really can’t buy anything there for $25!)

Don’t Forget About the Little Guy

Don’t neglect this opportunity to thank the folks that make your life easier all year-round.  Use this time to pay back debts and favors, to reconcile differences, and be generous to those around you. How about cleaning out closets and donating old coats to the needy, canned food to the homeless—and why not?  Tipping your service providers for the year or, just a little more than usual.  Spreading holiday cheer doesn’t have to cost more than a few extra bucks here and there.

Don’t Be Afraid to Re-gift

Along the lines of give-aways and swapping (see below), know that re-gifting is a perfectly acceptable way to recycle your unwanted items.  Don’t let the giver’s poor choice be a waste — pass the trinket on to someone who might appreciate it more than you will.  A note that it’s best to re-gift as soon as possible, so as your recycled gifts don’t become expired, dated, or simply sit around gathering dust.

Photo courtesy of christmasstockimages.com

Make A Splash At Your Office Holiday Party

[image error]For the next few weeks, your social calendar is likely to be filled with holiday party invites. And if you’re like me, such events can be a bit awkward – especially the office holiday party.

More than 90% of companies plan to have a holiday party this year, according to a recent survey by executive search firm Battalia Winston. More than half the companies responding said the goal of the office party was to boost employee morale and, perhaps most interestingly, 66% of the respondent said they expect their company to grow and increase hiring in 2013. So while the office party may be a fully of etiquette landmines, it’s also fertile ground for opportunities to connect and network in ways otherwise unavailable throughout the workweek.

Prepare for your work function with these tips to successful holiday socializing.

Know Your Limit

You’d think it would go without saying but there’s always someone at the office party that has one too many drinks. Don’t be that person. The workplace is somewhere you want to shine for your judgement, precision and competence - three words not usually ascribed to the inebriated. Prepare for a few cocktails by eating high-fat, high-carb foods before you get to the party. It’ll keep you from setting up shop at the refreshment table but also work to slow down the effects of alcohol in your system, according to the National Institutes of Health. Nothing, however, beats knowing your limit and stopping before you get to it. To make make your limit that much clearer, New York magazine put together this informative and amusing infographic of how many drinks you’re allowed based on your rung on the corporate ladder.

Mix the Mingling

As much fun as it might be to talk with your office buddies, how many opportunities do you have to hobnob with your boss’ boss? Seize the moment by introducing yourself or having someone introduce you. At the end of the day, nothing beats an extended hand followed by, “Hi. My name is…” Remember, many companies holding parties are looking to hire and clearly have an interest in their employees, so don’t be shy. Exploit commonalities (kids, known hobbies, work roles) as an entryway in to the conversation.

Keep It Light

Not many want to talk about work during off hours and the office party is not the time to lobby for a promotion, hash out conflict or the details of a project. It’s also best to stay away from controversial topics. That doesn’t mean you can’t talk issues that might relate to your work. It’s appropriate to engage your coworkers on emerging issues in your field. In fact, it can establish you as a thoughtful professional. And because most people enjoy talking about themselves, it’s also a great space to learn more about your colleagues’ backgrounds so ask questions like, “where did you go to school,” “what did you do before this job,” etc. You might find that you have something in common or gain insight to their work/management style.

Dress For Work – But Nicer

Although the office party is a time to dress casually, maybe even fancy, save the weekend wear for an outing with your friends. Months ago, we wrote on the “New Rules of Dressing Down At Work” and they apply to the holiday party as well as the workday. First, remember your at work, even if the event is held off premises. In this day and age, it’s also likely photographs will be taken that’ll exist long after the party’s over so dress sharp and professionally. But feel free to dress comfortably, pairing a sportcoat with jeans for example. Ladies can also take the opportunity to accessorize beyond what they would during the day. If all else fails, don’t be afraid to ask a coworker what they’re planning to wear to the party. No ugly sweaters unless the invitation dictates.

End Conversations Gracefully

Finally, and something I myself have trouble with, is know how and when to end a conversation. Inevitably, you’ll find yourself stuck in a dead end conversation - one to which you can contribute nothing. In that situation, perhaps the best thing you can do is end the awkwardness by taking your leave. But how? The good folks over at Life Hack have tips for you with the guiding principle being to stay polite. Some others that I find especially seamless: 1) Excuse yourself by saying just that, “excuse me.” 2) Get a glass of water or snack or 3) turn your exit into a connection by introducing a friend to the conversation. Say something like, “I have to go but I want you to meet my friend…”

Photo Courtesy, TheUglySweaterShop.

2012 Naughty and Nice Retailers

In my latest video for Yahoo! Finance, I present some of the big names topping Consumer Reports’ 2012 list of Naughty & Nice retailers. Read more here.

As always, we want to hear from you. What’s a retailer whose policy you find naughty or nice? Connect with me on Twitter @Farnoosh and use the hashtag #finfit.

New Car Contract: 3 Tips to Help Navigate

The months leading up to the New Year and immediately after are a peak selling period for car dealers.  There’s the traffic from holiday sales. Then, come January, new models will roll onto lots. That means tons of sales and promotions and, as one recent survey points out, happy buyers.

Car buyer satisfaction is up, according to the recent 2012 U.S. Sales Satisfaction Index. In fact, among buyers, the most significant indicator of satisfaction was “working out the deal,” which included: price of the car, the price of a trade-in and the terms of the car loan. Of course satisfaction varied widely depending on the car dealer with luxury brands ranking high. But you don’t have to make a big buy to score a winning deal. Everything you need to know about your new car deal is in the agreement. To help you navigate it, here are three tips courtesy of the wise folks at Edmunds.com.

Set Terms Up Front

“Make sure that your terms are clear before drawing up a contract,” says Ron Montoya, consumer advice editor for Edmunds.com. He says, when discussing the deal, you want to be clear on the length of the agreement, monthly payments and credit you’ll have from a trade-in or downpayment. Montoya also suggests getting pre-approved for an auto loan with your local credit union or bank before ever stepping foot in a dealership. “It’ll give you a bottom line from which to negotiate and help keep the other expenses in check.”

Ask For the “Worksheet”

The contract to finance your new wheels will include several important parts. You’ll want to read it in its entirety, paying special attention to the boxes where fees and prices are itemized. Often the sticker price you’ve negotiated will start to disappear, as dealers tack on fees in these boxes. “In some cases, the difference could be only a few dollars, attributable to a small local fee such as tire disposal on your trade-in. But in other cases you might find a new, more substantial fee added to the contract,” says Montoya. Ask for the “worksheet,” a sort of invoice of costs, and review it carefully.

Look Beyond the Sticker Price

Montoya says the biggest mistake a car buyer can make is getting caught up on the sticker quote when so many other factors go into making a deal good or bad. If you’re buying a car with cash, your contract should only include four items: the purchase price, sales tax, motor vehicle registration fees and a documentation fee for preparing the contract. When financing a new car, pay close attention to the down payment/trade-in value, interest rate, amount financed and the length (or term) of the loan. Finally, the components that will make up your new car lease contract are: the cost of the car (or “capitalized cost”) drive-off payment, term of the lease and the allowed mileage, the miles allowed for the length of the lease. With these in place, and in comfortable range, you’ll add to the growing list of satisfied car buyers this year.