1. Financial Aspects Of Career Planning
Chapter 02
Financial Aspects Of
Career Planning

2. Chapter 2 Learning Objectives
LO2-1 Describe activities associated with career planning and advancement. LO2-2 Evaluate factors that influence employment opportunities. LO2-3 Implement employment search strategies. LO2-4 Assess financial and legal concerns related to obtaining employment. LO2-5 Analyze techniques available for career growth and advancement.
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3. Career Choice Factors LO2-1:
Describe activities associated with career planning and advancement.
Job is an employment position obtained mainly to earn money
Most people change jobs several times during a lifetime
Career is a commitment to a profession that requires continued training
Career selection and professional growth require planning
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4. Trade-offs of Career Decisions
Career choice and professional development alternatives have risks and opportunity costs
Career choices require periodic evaluation of trade-offs related to personal, social, and economic factors
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5. Career Training and Skill Development
Level of formal training affects financial success
Training may be viewed in two main categories:
Technical Skills
refers to specialized career training for a specific profession
General Skills
are traits adaptable to most work situations, called social intelligence
some can be acquired at school while others require experience
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6. Education and Income

7. Personal Factors
A satisfying career may be identified using guidance tests that measure abilities, interests, and personal qualities
Aptitudes
Interests inventories
Your personality
Do you perform best in structured or high-pressure situations, or do you prefer unstructured or creative work environments?
Personal S-W-O-T analysis
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8. Career Decision Making

9. Career Opportunities: Now and in the Future
LO2-2: Evaluate factors that influence employment opportunities.
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10. Where jobs are; salaries, and living costs
Social Influences
Demographic trends
Working Parents
More food service and child care
Leisure time
More interest in health, technology and recreation
Longer life spans
Demand for travel, health care, and retirement facilities
Employment training
Demand for teachers, corporate trainers, and related careers
Geographic trends
Where jobs are; salaries, and living costs
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11. Geographic Buying Power Formula
To compare living costs and salaries in different cities:
City 1 Index number × Salary
City 2 Index number
For example, a person earning $30,000 in Nebraska would need to earn $39,550 in Chicago to have comparable buying power.
Chicago 123 × $30,000
Nebraska
= $ buying power
= $39,550

12. Economic Conditions Career Opportunities are affected by:
High interest rates
Price increases
Decreased global demand for goods and services
For example, high interest rates reduce employment in housing-related industries
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13. Industry Trends Service Industries with Greatest Employment Potential
Information technology
Health care and Medical technology
Environmental services
Business services
Social services
Sales and Retailing
Hospitality and Food services
Management and Human resources
Education
Financial services
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14. Employment Search Strategies
Implement employment search strategies.
OBTAINING EMPLOYMENT EXPERIENCE
Part-time employment
develop contacts
Volunteer work
develop organizational skills
Internships
experience helps obtain employment
Campus projects
obtain career skills
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15. Career Information Sources
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16. Using Career Information Sources
The Occupational Outlook Handbook
Career Development Office
Networking is the process of making and using contacts to obtain and update career information
Main sources of networking include:
Community organizations
Professional associations
Business contacts
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17. Effective Networking Effective networking means:
Preparing and practicing a 30-second summary of abilities and experience
Volunteering for committees and events of professional organizations
Asking questions to get others to talk about themselves and their experiences
Informational Interview is a meeting at which you gather information about a career or an organization
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18. Identifying Job Opportunities
Job advertisements
Career fairs
Employment agencies
Job creation involves developing an employment position that matches your skills with the needs of an organization
Visit organizations where you would like to work
Online searches
Be in contact with alumni in your field
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19. Applying for Employment
Resume is a summary of a person’s education, training, experience, and other job qualifications
Cover letter accompanies a resume and expresses interest in a job and interest in obtaining an interview
Interview
See Chapter 2 Appendix for detailed help in these areas.
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20. Financial and Legal Aspects of Employment
Assess financial and legal concerns related to obtaining employment.
ACCEPTING AN EMPLOYMENT POSITION
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 salaries for comparable positions
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21. Evaluating Employee Benefits
Meeting Employee Needs
Non-salary benefits include: child care, leaves of absence, and elder care
Cafeteria-style benefits allow workers benefit credits that they can use to meet their needs
Flexible spending plans and medical-spending accounts
Comparing Benefits
Compare job offer benefits based on market value or future value calculations
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22. Tax-Equivalent Employee Benefits
Employee benefits that are nontaxable have a higher financial value
Calculate the tax-equivalent value of a nontaxable benefit
Value of the benefit / (1 - Tax rate)
For example, receiving a life insurance policy with a nontaxable annual premium of $350 is comparable to receiving a taxable employee benefit worth $486 if you are in the 28% tax bracket
$350 / ( ) = $350 / 0.72 = $486

23. Your Employment Rights
Employees have legal rights both during the hiring process and on the job
Employment pregnancy rights
No discrimination in selection process
Minimum-wage and overtime pay legislation may apply
Worker’s compensation
Social Security
Unemployment insurance

24. Long-Term Career Development
Analyze techniques available for career growth and advancement.
A career can be for a lifetime
Skills and attitudes that can lead to a fulfilling work life:
Communicate well with others
Be flexible and open to new ideas
Develop efficient work habits
Use lists, goal setting, note taking, and time management techniques
Anticipate problems and areas for actions
Be creative and willing to assist others
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25. Training Opportunities
Continue to learn about new technology, diverse cultures, management strategies, and the global economy
Formal methods for expanding knowledge
company programs, webinars, seminars, and college courses
Informal methods for expanding knowledge
reading and discussions with colleagues
online sources
meetings with employees from other companies
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26. Career Paths and Advancement
A mentor can be an experienced employee or a retired individual who desires to share their knowledge and experience to newer employees
Mentors are attracted to those who show initiative
Prospective mentors should be receptive to assisting others, and help them in both the technical and social aspects of their careers
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27. Stages of Career Development
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28. Changing Careers
Changing jobs may be more difficult than selecting the first job
Carefully assess the financial and personal costs and benefits of changing careers
Determine whether a career change will serve your needs and goals
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29. Forced Career Changes
To cope with job termination while seeking new employment, you should:
Maintain appropriate eating, sleep, and exercise habits
Involve yourself in family and community activities
Improve your career skills through classes and volunteer work
Target your search towards high-growth industries
Consider opportunities with nonprofit organizations, government agencies, or temporary work
Target your skills to the needs of an organization
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30. Appendix 2: Developing a Resume
Personal data section
Career objective section
Education section
Experience section
Related information section
References
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31. Appendix 2: Types of Resumes
Chronological Resume
Presents education and experience in a reverse time sequence
Functional Resume
Appropriate for diverse skills and time gaps in experience
Combination Resume
Blends chronological and functional
Targeted Resume
Video Resume
Social Resume
Involves LinkedIn, Twitter, and other social media networks
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32. Appendix 2: Resume Preparation and Submission
Presented in a professional manner
Limit your resume to one page
Use a format that highlights how your experiences will contribute to an organization’s needs
Keep the format simple
Use keywords for the specific position and industry
Use plain text for online resumes to avoid formatting problems
Most resumes are submitted online
Use caution when using resume posting sites
Address ed resumes to a specific person
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33. Appendix 2: Creating a Cover Letter
INTRODUCTION
Get reader’s attention
Communicate the qualifications you offer
DEVELOPMENT
Highlight specific qualifications
Refer employer to resume for more details
Elaborate on experiences and training
CONCLUSION
Ask for interview
Include how to contact you
Summarize how you can benefit the company
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34. Appendix 2: The Job Interview
Prepare for the interview by getting information about your prospective employer
Annual reports or recent news articles
Online searches of company and industry information
Observations during company visits and of company products in stores
Prepare questions to ask about your interests, the organization, policies, and benefits
Practice interview skills
Dress appropriately
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35. Appendix: The Job Interview — Interview Questions
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