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Job search
Three's a charm for references

How many references should a job seeker provide a prospective employer? Try three.

''Executives today are looking for a few good words when making hiring decisions,'' reports Accountemps, the California temporary staffing service. ''Senior managers typically speak with at least three references before considering someone for a position, which confirms the value of such endorsements.''

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The company based its findings on a survey of 150 executives from 1,000 of the largest US companies. Of those polled, more than half said that when conducting reference checks, their companies called three former employers or supervisors for information about the job candidate's work habits, abilities, and character.

The temporary placement agency said job candidates should prepare references before giving their names to prospective employers. Applicants should develop a list of three to five references and then clarify their relationship with those individuals by indicating whether the person was once a boss, a supervisor, an esteemed professional in the same field, an instructor, a mentor, or a colleague.

Then, an applicant should call each reference and ask permission to give out his or her name and telephone number. Choose references wisely, said the staffing firm. The reason: Some references might be more appropriate for one position than another.

''Provide references with a copy of the job description and your resume,'' said the survey report. ''The references are better able to put their responses into context if they know the types of positions you are seeking. ''Then, refresh their memories by helping the reference recollect your strengths. Discuss examples of your accomplishments while you both worked together.''

Lastly, said the company, try to keep your references aware of what is happening during the job search. Let them know where you have been interviewed. Follow up with a thank-you note and an update on your search.

Accounting and finance
CFOs are predicting slight bump in hiring

Robert Half International Inc., a professional staffing agency, reports that accounting and finance professionals will see a slight bump in hiring in the fourth quarter.

The company's poll of 1,400 chief financial officers at companies with at least 20 workers reveals that 8 percent will be adding staff in the next quarter but 7 percent anticipate layoffs. The majority of respondents, 81 percent, said they would make no hiring changes in the coming quarter. Four percent were undecided.

''The overall hiring environment remains conservative as executives wait for evidence of a sustained economic recovery,'' said Max Messmer, the chairman and chief executive of Robert Half.

''Businesses are adding staff gradually as productivity and demand increases,'' he added.

Of those executives who said they would likely boost hiring, 30 percent pointed to increases in business demand as the primary reason; 21 percent cited increased workloads; 9 percent cited changes in government regulations; 9 percent mentioned attrition; 22 percent were not sure; and 9 percent pointed to other issues.

Only 2 percent said they would cut staff, resulting in a net 28 percent increase in hiring, up 17 points from the third quarter.

Messmer attributed the boost in hiring to demand for qualified accounting and finance professionals due, in part, to banks' response to new federal regulations.

He added that low-interest mortgage loans also spurred home buying, resulting in more refinancing and loan activity.

Workplace
More generous raises await some next year

Many salaried employees did not receive big pay hikes in 2003, but some can expect more generous raises next year.

Hewitt Associates, the human resources outsourcing and consulting firm, reports that salary increases hit record lows in 2003, with 8 percent of the 1,276 companies polled introducing salary freezes.

Hewitt found that 77 percent of the companies cut back on variable pay or performance-related compensation. Last year, 80 percent of the companies offered this form of compensation, which is a onetime award that must be earned yearly and does not increase employees' base salaries.

Company spending on variable pay for employees exempt from overtime dropped to an average of 8.8 percent of payroll in 2003 and will reach only 9 percent of payroll in 2004, Hewitt said. That's down from 2001, when companies spent 10.8 percent of their payrolls on variable pay. In 2002, they spent 10.5 percent of their payrolls on the financial incentive.

John Challenger, the chief executive of Challenger, Gray & Christmas, a Chicago outplacement firm, said skimping on pay increases could hurt employers in the future. He maintained that top workers should receive raises that exceed cost-of-living pay increases, which range from 3 to 4 percent per year.

''Pay hikes should not just recognize cost-of-living expenses, but should also include compensation for corporate memory and the employee's unique skills or know-how,'' said Challenger.

''People often think that when we are in a period of low inflation and interchangeable employees, there is no value to raising wages. But each year an employee is with a company, he builds productivity for the company because he understands how the firm functions.''

When asked why they reduced variable pay, 74 percent of respondents said they were concerned about maintaining their position in the marketplace, 69 percent pointed to internal cost-reduction programs, and 60 percent said they were concerned about the depressed economy. At the same time, 48 percent acknowledged that the financial awards can help to attract talent and motivate top-performing employees.

Hewitt said employers in some cities will be more generous next year.

According to its survey, salaried professionals in Boston can expect annual pay to increase 3.5 percent in 2004, up from only 2.9 percent in 2003. In New York, salaried professionals can expect pay increases of 3.8 percent next year, up from 3.5 in 2003. In Los Angeles, annual wages for exempt employees are expected to increase 4 percent in 2004, up from a 3.6 percent wage hike in 2003. In Washington, D.C., exempt professionals can expect a 4.2 percent hike in pay next year, up from 2.9 percent this year, Hewitt said.

Not all employees will be that lucky. In Atlanta, employers offered raises of 3.4 percent last year, and they expect to offer the same in 2004, Hewitt found. In the Minneapolis-St. Paul area, annual pay for salaried professionals will rise 3.5 percent in 2004, the same as last year. Houston employers, who increased wages 3.7 percent, will offer reduced pay hikes of 3.5 percent in 2004. Meanwhile, salaried professionals in Philadelphia can expect wages to go up by only 3.5 percent, up from 3.4 percent in 2003.

DIANE E. LEWIS

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