The rush by Corporate America to save money by outsourcing business departments–to have work such as janitorial services done by outside, independent firms–may be slowing.
A survey by the American Management Association (AMA) found that more than half of the firms studied have taken back in-house at least one previously outsourced activity.
And only 25 percent of the firms said that outsourcing actually reduced their costs, according to a report in Recruiting Trends, a newsletter for recruitment executives,
But the research also shows that employers still outsource an average of nine functions. Finance, accounting, information systems and marketing show the highest increases.
If you’re an employee worried about losing your job to outsourcing, there may be a glimmer of good news in the AMA report.
And if you’re an employer who uses outsourcing, it’s a business practice you should closely monitor.
– Money, money, money. People are more than willing to tell you their age, weight and all about their sex lives–even if you don’t want to listen. But salaries–that’s an entirely different matter.
Particularly in the case of a job search.
As regular readers of this column know, the debate over job seekers revealing their salaries has been raging for months. Interviewers want to know what you earn in advance. Job seekers don’t want to reveal it.
I believe it’s counterproductive to mention on your resume your present salary or what you expect to get: The numbers can eliminate you from consideration.
But Douglas Terry, vice president of Jacobson Associates, an executive search firm specializing in the insurance industry, sees a new trend emerging in salary history in–of all places–the cover letter.
“To deal with the issue of salary,” said Terry, “candidates are beginning to close their cover letter with variations on this theme.” For example:
“While the right opportunity in a dynamic environment is my primary goal, you should know that in recent years my compensation has been in the range of $35,000 to $50,000 annually.”
Terry says he finds this approach “informative as well as refreshing. The candidate is letting me know that the right opportunity is essential, and that dollars, while important, are secondary.”
It would also be helpful if employers gave a little, too, if salary history is such an important screening device. A job seeker reports that a human resource representative told him, “We’re both wasting our time if I’m filling a $20,000 job and you’re at a $40,000 level.”
The job seeker observes: “Well, if that’s the case, put the salary range in the job ad. Job hunters should be entitled to a fair game. That’s why I will never put a salary history on my resume.”
– Healthy babies. Doing well by doing good is shown in the results of a work site prenatal program introduced by Cigna Corp., a health-care, insurance and financial services firm headquartered in Philadelphia.
In 1992, Cigna initiated a Healthy Babies program that encourages early and regular prenatal care. Expectant mothers who use it get a $50 savings bond.
The results: The program has been successful in the past five years in ensuring healthier, less complicated pregnancies.
And on the business side, in 1996 it saved the company an estimated $2.4 million in “avoided” medical costs.
Cigna also provides on-site lactation centers, on-site child care, emergency backup child care, adoption assistance and take-home meals.
The success of the Healthy Baby program, the company says, leaves it “tickled pink–and blue!”
– Book beat. Here is an excerpt from a book that pertains to the world of work:
“Economic power is the key to success in a capitalistic society. Business is the means to that power. African-Americans can play this game and we can win at it . . . We are doing it today in numbers greater than ever before, launching businesses as never before and leveraging a collective annual income that today exceeds $400 billion.” From: “How to Succeed in Business Without Being White,” by Earl G. Graves (Harper Business, $25).
– Coach’s Tip. You can’t achieve your career goals unless you know what they are. Write them down and use them as a guide to move forward.
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Carol Kleiman’s columns appear in the Tribune on Sunday, Tuesday and Thursday. Send e-mail to ckleiman@tribune.com
