Tuesday, 29 March 2016

Why Companies Should Make Their Pay Transparent

Why Companies Should Make Their Pay Transparent
 Jennifer Deal

Jennifer Deal is a senior research scientist at the Center for Creative Leadership 
and an affiliated research scientist at the Center for Effective Organizations 
at the University of Southern California. 
She is co-author of “What Millennials Want from Work.”

In the past, it was difficult for the majority of employees to know how much people
in their organization or in equivalent jobs elsewhere were paid. 
Discussing pay was frowned upon in the workplace (and in some cases banned outright), 
and people felt protective of their privacy.
But today, because of technology and changing cultural norms regarding
sharing personal information, everyone knows a great deal more about how much others 
are paid. Employees have access to online systems like Glassdoor.com that provide crowd-sourced information about compensation searchable by job, organization, and industry,
in markets around the world. Individuals can look at equivalent jobs in their organization
and with competitors, locally or nationally, and see how their pay stacks up.
In fact, in our research, 60% of millennials and 53% of older staff said they use these sites.

In addition to online resources, we find that staff now discuss their compensation
with other people directly, in person or electronically. Millennials are most likely to discuss
their compensation with their parents (71%) or their friends (47%), 
but are less likely to discuss their compensation directly with co-workers (38%). 
In comparison, older staff are substantially less likely to discuss their compensation with co-workers (19%), friends (24%) or parents (31%).
In the past, hiding pay information was a technique leaders believed reduced pay dissatisfaction. But today, with the compensation information floodgates open, workers can use that information to decide which companies they want to work for. Though much of that calculation
is about the actual dollar figure and parity with other organizations,
part of the equation is about the perceived openness and honesty of the leadership.
And those who aren’t honest and transparent don’t win.
So leaders have a choice: Be open about pay, or leave a pay-information vacuum
that staff will want to – and can – fill. Distrust is toxic within organizations, and employers
who choose to hide information about compensation run the risk of staff thinking
they are being deceptive – or worse. When people are believed to be hiding something,
it makes others wonder what they’re hiding and want to investigate further. Recently some organizations have been perceived as discouraging staff from sharing information about pay,
which actually caused even more staff to share pay information, and many to come to the conclusion that the leaders of the organization were trying to hide unfair compensation practices.
Leaders who choose salary transparency reap the benefits of everyone at the organization
having a clear understanding of what the compensation situation is, and not feeling as if
the organization is trying to hide something, which increases trust. Pay transparency is likely to be especially important for those organizations that are trying to narrow the pay gap between groups like men and women, as it shows the leader’s commitment to pay equity extends beyond rhetoric, and all the way to providing real information showing what is actually going on
with pay in the organization.
If an organization pays well, leaders should leverage that information to increase trust
within the organization and build their reputation, while making sure their workforce isn’t always shopping for better compensation elsewhere. And if a company is just at the market norm,
being forthright about it may win points from employees who will feel respected and in the loop.
Tom Fisher
going waaaaaay out on a limb here - the author has never made a payroll in her life.
George Gmach
Secrecy can hide poor compensation administration or might be a legitimate factor when protecting the employer from predatory competitors.  There are cases where industries,
like government, have pay transparency.  The circumstances and competitive environment of each employer are different and so it is hard to generalize about whether transparency is good or bad from the employer's perspective.  It is easier to generalize about the benefits to employees.
Caution should be used when viewing free data, whether crowd sourced or published by recruiters.  As a retired compensation research professional, I have observed numerous cases
where information does not align with professionally gathered data or is so broad that it is useless.  Free data may lead to unwarranted dissatisfaction.
James Ewins
The terms of my employment are voluntarily agreed only by myself and my employer...
and of no business of anyone else. It is a contract with NO third parties involved.
Why should either of us wish to make it known? Where would be the advantages to either?

You can TCR software and engineering manuals for spontaneous recall – or pass that exam.
I can Turbo Charge Read a novel 6-7 times faster and remember what I’ve read.
I can TCR an instructional/academic book around 20 times faster and remember what I’ve read.
Introduction to Turbo Charged Reading YouTube
A practical overview of Turbo Charged Reading YouTube  
How to choose a book. A Turbo Charged Reading YouTube
Emotions when Turbo Charged Reading YouTube

Advanced Reading Skills Perhaps you’d like to join my FaceBook group ?

Perhaps you’d like to check out my sister blogs:
All aspects of regular, each-word reading and education.
Turbo Charged Reading uses these skills significantly faster
www.innermindworking.blogspot.com         gives many ways for you to work with the stresses of life
www.happyartaccidents.blogspot.com        just for fun.

To quote the Dr Seuss himself, “The more that you read, the more things you will know.
The more that you learn; the more places you'll go.”

Saturday, 26 March 2016

468 Public Speaking fear isn't really about speaking publicly!

You can TCR specialist and language dictionaries that are spontaneously accessed.
I can Turbo Charge Read a novel 6-7 times faster and remember what I’ve read.
I can TCR instructional/academic books around 20 times faster and remember what I’ve read.
Introduction to Turbo Charged Reading YouTube
A practical overview of Turbo Charged Reading YouTube 
How to choose a book. A Turbo Charged Reading YouTube
Emotions when Turbo Charged Reading YouTube

Advanced Reading Skills Perhaps you’d like to join my FaceBook group ?

Perhaps you’d like to check out my sister blogs:
All aspects of regular, each-word reading and education.
Turbo Charged Reading uses these skills significantly faster
www.innermindworking.blogspot.com      gives many ways for you to work with the stresses of life

To quote the Dr Seuss himself, “The more that you read, the more things you will know.
The more that you learn; the more places you'll go.”

Monday, 14 March 2016

What careers follow the economics baccalaureate?

A buttercup and dandelion clock - what else might you need?

What careers follow the economics baccalaureate?

Economics majors are successful in a wide variety of careers. Although various roles in businesses are most common, economics majors are successful in law, medicine, government, non-profits,
and international relations, as well as in academic roles.
Career Earnings
One way to think about career opportunities is to consider the level of earnings typically found
with different levels and kinds of education in different careers.
The Corporate World & the MBA
Most economics majors pursue employment in the private sector. Graduates in economics succeed in many occupations. Some students plan to earn the Masters of Business Administration (MBA) degree in time. Others find employment with the BA is sufficient to fulfill their aspirations.
Economic Consulting
Some economists with BA degrees find employment as research associates with economic consulting firms. Consultants advise firms on business strategies, prepare economic evidence
for court cases, and develop analyses to influence public policy.
Law and Other Professions
Law school is also a common destination for recent graduates in economics.
The careful reasoning in economics is a good fit for law and many careers in the law influence significant economic decisions for firms.
Government and Not-for-profits
Some students enter government service or choose jobs with non-profit entities.
Governments at every level hire economists for their facility with statistics and analysis.
Professors, Teachers and Researchers of Economics
Some graduates in economics are interested in academic careers. They are drawn by the love
of the study of economics and the prospect of teaching and writing about economics as a career.
Career Earnings
The US Bureau of Labor Statistics, Occupational Outlook Handbook (online in 2014) reports annual wages for economists in 2010.  For economists of all educational levels, the median earnings in 2010 were $89,450 with $48,250 at the tenth percentile and $155,490 at the 90th percentile.  Source:  Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2013-14 Edition, Economists, on the Internet at http://www.bls.gov/ooh/life-physical-and-social-science/economists.htm (visited July 8, 2014).
Median Annual Wages for Economists in May 2012
in the Top Five Industries Employing Economists
(from the Occupation Outlook Handbook)
Finance and insurance
Federal government, excluding postal service
Scientific research and development services
Management, scientific, and technical consulting services
State and local government, excluding education and hospitals
Payscale.com reports its survey of people with Baccalaureate degrees (and no more)
who are employed full time, showing starting salaries (typically with two-years of experience)
and mid-career annual earnings.  Here are selected occupations for the 2012-13 report.
College Major
Starting Salary
Mid-career Salary
Chemical Engineering
Applied Mathematics
Political Science
Median earnings of economists by highest level of degree for persons of all ages
observed in 2010 are given in the table below by gender.
Highest Degree
Source:  National Survey of Recent College Graduates, https://sestat.nsf.gov/sestat/sestat.html 
[Viewed 2013].
Earnings Differentials for Economics Majors
Thomas Carroll, Djeto Assane, and Jared Busker use a large national sample from the American Community Survey developed by the Bureau of the Census with observations from 2009 to 2012
to estimate earnings differentials for economics majors compared to other college majors. 
The table below reports the estimated differential for economics majors compared to non-economics majors, on average, when the statistical estimate adjusts for personal characteristics
(age, ethnicity, citizenship, and English proficiency).  
Percentage Earnings Advantage of Economics Majors by Highest Degree Completed
Adjusting for Personal Characteristics.
Highest Degree
Source: Thomas Carroll, Djeto Assane, and Jared Busker, “Why it Pays to Major in Economics,” Journal of Economics Education, 45:3, (2014) pp. 251-261. Table 3.
The BA row reports the average percentage earnings differential for men and women
whose highest degree is a baccalaureate. 
The MA row reports the differential for those with masters degrees in any field. 
The Professional row reports differentials for those who highest degree is
an MBA or law degree. 
The PhD row reports differentials for people who earned academic doctorates in any field.
The analysis also reports differentials while adjusting for occupational choice (not shown here). 
The differentials show above fall by about half with adjustments for occupation. 
The implication is that about half of the differential show above is accounted for by occupation.  That is to say, about half of the payoff from the economics major is in access to better paying occupations and about half, given occupation.   Differences by location have little effect.
Geographic Difference in Earnings
Winters and Xu also use the American Community Survey (2009-2010) to estimate earnings differentials for economics majors compared to non-economics by state and metropolitan area.   Economics majors accounted for 2.28 percent of college graduates.
Economics majors have a higher earnings differential in densely populated, urban states like
New York, Connecticut, California, New Jersey, Illinois, and Massachusetts.  New York accounted
for 3.99 percent of economics majors and showed an 889 percent earnings differential
for economics majors compared to all others with no other attributes of people or jobs
 taken into account. Among metropolitan areas, New York, San Francisco, Boston, Los Angeles,
and Chicago show high differentials.   
Source: John V. Winters and Weineng Xu, “Geographic Differences in the Earnings of Economics Majors,” IZA Discussion Paper # 7584, Forschunginstitut zur Zukunft der it, (2013)  http://hdl.handle.net/10419/89939
Stability of Earnings and Employment
The Hamilton Project at the Brookings Institution provides an interactive summary of life-time earnings for people with different college majors. Jordan Weissman compares economics to other disciplines at “Want to Be Stinking Rich? Major in Economics,” Slate. The first figure below shows the  median earnings by years into a career for all BAs in a given major who are employed full-time including those with any subsequent graduate degree. The blue line at the bottom shows median earnings for all holders of BA degrees. The green line shows economics and the orange shows finance majors. The purple line at the top shows electrical engineers.  The economics major starts just above the finance major but shows a stronger trajectory, briefly topping the electrical engineers at about 15 years in the career but does not sustain the level of the engineers

in the last two decades of the career.
The figure on Lifetime Earnings below reports the total lifetime earnings on the vertical axis
(in terms of present value) with the percentage distribution from the lowest earnings to the highest along the horizontal axis.  At the 50th percentile, the figure below shows the total for each of the four lines in the figure just above.  Although all four groups show a substantial flip up among those
in the top ten percent—income distributions are usually skewed right as indicated by the flip here—the economics major has the largest flip.  The economics major exceeds the electrical engineers at about the 65th percentile and widens the gap particularly with engineering but also with finance
up to the highest earnings.  The economics major then shows a wider dispersion of earnings but with a much longer right tail, that is, a high probability of very high earnings than the other majors.
During recessions, economics majors and other high-earning majors show more advantage relative to majors with lower average earnings. (See Joseph G. Altonji, Lisa B. Kahn, and Jamin D. Speer, “Cashier or Consultant? Entry Labor Market Conditions, Field of Study, and Career Success,” Unpublished essay. The essay is reported by Claire Cain Miller, “A College Major Matters Even More in a Recession,” New York Times Upshot, June 20, 2014.
Although most occupations show lower earnings in recessions, those involving college degrees
show a lower loss. Economics yields better relative outcomes in recessions.
Mid-Career Earnings
The Center on Education and the Workforce at Georgetown University reports the median earnings of adults working full-time for a full-year whose education stopped with the bachelor’s degree using data from the 2010 Census.   The table below is a subset of a report of 173 majors published
on the Wall Street Journal website at  http://graphicsweb.wsj.com/documents/NILF1111/#term
 “From College Major to Career”, October 24, 2013. 
The median earnings of economics majors is 32nd among all 173 majors.
The fifteen majors reported below are those with the highest median earnings among the 50
most popular majors. Economics is in ninth place in median earnings in this group. 
The table reports the percentage of the majors who are unemployed, the earnings
at the 25th percentile (Q1), the median, and at the 75th percentile (Q3).   
Economics has the widest dispersion between Q1 and Q3 with Finance in second place.
Major Field
Unemployment %

Corporate World & The MBA
Although the economics major does not provide training for specific occupations, it provides
the logical structure that pays off in understanding the big picture, the context for entering several fields in the corporate world. Its emphasis on logical thought and problem solving skills
has universal value. Many employers seek to hire graduates with these skills.
Some students aspire to earn Master of Business Administration (MBA) degrees, typically expecting to complete a two-year program in a graduate business school. Leading MBA programs expect applicants to have had several years of significant business experience before enrolling.
The average age of students entering top MBA programs is 27 years. 
Bloomberg Business Week (search for MBA) provides an online guide to MBA programs
as does Peterson’s, BusinessDegreeOnline, and a number of others.
The better MBA programs give some preference in admission to applicants with technical backgrounds including engineering, physics & math, and economics. Some areas of study in business like finance use a significant amount of mathematics. Undergraduate study in business then
is not a primary or even necessarily a desirable path to an MBA. Of course, people who have developed their own successful businesses or enjoyed considerable success in other ways
also tend to be attractive to MBA recruiters. The schools value success in many forms.
Students intent on careers as managers often seek a strong, general education. They want to learn effective communication skills, to develop habits of logical thought, and to practice their problem solving skills. Many undergraduate programs do this well; economics is often particularly effective.
In addition to careers as general managers and entrepreneurs, economics majors also often pursue careers in specific occupations common to the corporate world. Economics majors with
the BA degree find jobs in the financial world, in marketing, and consulting. Some pursue one-year post baccalaureate programs for entry into a target career. The Master of Accountancy (MAc),
for example, will launch an accounting career and go a long way toward completion of requirements for the Certified Public Accountant title.
Students who have a specific occupational goal will often do well in enrolling in a program of training specific for that occupation. For example, accounting majors readily get jobs as accountants
on completing a BA. Finance majors have a good chance of being employed as financial analysts
or budget officers. The broader horizons of the economics major are certainly not for everyone.

Economic Consulting
Economics graduates with good analytic and communication skills find employment with consulting firms. McKinsey & Company, Boston Consulting Group, Bain & Company, Accenture, Charles Rivers Associates, Mathematica Policy Research, and NERA Economic Consulting are examples.
Analysts with consulting firms often work with data, develop models of specific markets, and provide testimony in public hearings and in lawsuits. Many graduates find that a few years experience
with a consulting firm is a good lead into an MBA, law program, or graduate study in economics. Many consulting firms invite application for employment through their websites.

Law and Other Professions
The economics major is one of many common paths to law school. The Law School Admission Council provides the official guide to law schools for the American Bar Association.
The Guide emphasizes extensive reading and library research, skill in synthesizing large amounts
of information, and logical thinking. In addition to general skills, the Guide points to breadth
of knowledge of history, politics, finance, human behavior, and diverse cultures.
Many careers in law involve shaping economic decisions. Writing and interpreting contracts, supporting mergers and acquisitions, dealing with the tax system, addressing disputes of workers, landlords, and vendors; all involve decisions with significant economic content and implications.
A recent analysis of scores on the LSAT test for law school admission reported for students
who apply to at least one ABA accredited law school shows economic majors earned relatively high mean LSAT scores as shown in table 2. The LSAT score ranges from 120 to 180
with mean and median near 151. The first quartile is near 144 and the third quartile is near 157;
the 90th percentile is about 165. The LSAT score along with undergraduate grade point average
and the quality of the undergraduate college are important influences in the admissions decisions
of competitive law schools.
Table 2: Average LSAT Scores by Major, 2012-13.
Major Field
Average Score
No. of Students
Political Science
Liberal Arts
Source: Michael Nieswiadomy, "LSAT Scores of Economics Majors: The 2012-13
Class Update," Journal of Economic Education 45 #1, Jan 2014. Pp. 71-74 and
“Law School Admission Test,” Wikipedia, viewed Sept. 2, 2014.
Among the six disciplines with more than 2,000 students taking the LSAT, the 2,468 economics majors received the highest average score at 159.1 as shown in the table. Looking more broadly
at groups of similar majors with at least 325 takers in each group, economics ranked second
behind physics/math (418 takers with mean 161.7) and just ahead of philosophy/religion
(2,174 takers with mean 158.6).
Some economics majors enroll in medical and dental programs by adding enough science courses
to their undergraduate career to qualify for admission. Many undergraduate economics programs include courses on health economics and students often report that the physicians like talking about economic policy issues when they interview applicants to their medical schools.
Government and Not-for-profits
Governments at every level hire economists to manage and evaluate their operations.
The Office of Personnel Management (OPM) of the Federal government provides information
about Federal employment opportunities. Their USAJobs site lists thousands of openings of all kinds in many locations across the country. Search on "economist" to find information about specific current opportunities. There are often openings for economists with BA, MA, and PhD degrees.
The OPM website also gives general information about Federal pay scales. BA economists with
little experience are (to simplify a bit) at grade GS-7, with MAs at GS-9, and new PhDs start at GS-12. Although pay does differ with the cost of living in different locations,
BA economists started at $31,209 or above in 2006.
The Federal Reserve Board and its affiliated regional Federal Reserve Banks also hire economists
and research assistants at various levels of education. Skill with statistics and in managing data will be helpful for many entry jobs.
Economists are valued in the Foreign Service and civil service in the State Department,
and as analysts with the Central Intelligence Agency.
State governments have similar websites that list public service jobs with pay scales and application procedures. Searching the Internet for "state employment" will usually yield an appropriate link.
International agencies of many kinds hire economists for a variety of roles. Additional languages, strong communication skills, experience with diverse cultures, and statistical skills are often important. 
The World Bank, for example, offers jobs for economists.
The Bank has an internship program as well.
One way to learn about employment with non-profits is to go to the Idealist website 
and look for roles in economic development or other areas of interest.

Professors, Teachers and Researchers of Economics
The Doctor of Philosophy degree (PhD) in economics is necessary for a faculty position in economics at most four-year colleges in the US. A masters degree is the typical credential for faculty
at two-year colleges. Although some students complete masters programs before entering PhD programs, many go directly from BA programs into PhD programs. Completion of a PhD requires about six years of full-time study. See the AEA website for information about graduate study. Holders of the Ph.D. often also choose research careers outside of academics, including roles
at the Federal Reserve, international agencies, and government policy and evaluation departments as well as in private banks, investment houses, and other for-profit ventures
There are about 100 universities in the US who together produce about 1,000 new PhDs each year. About half of the graduates are US citizens and the other half come from abroad. [John J. Siegfried and Wendy A. Stock, "The Undergraduate Origins of Ph. D. Economists," Working Paper, May 2006] Although the number of economics majors has grown significantly over the decades, the number
of new PhDs who intend to pursue careers in the US has declined. As a consequence, employment opportunities for PhD economists in academia should be excellent in the decades ahead.
The Commission on Professionals in Science Technology (mentioned above, page 8) reports starting salaries for assistant professors by field. At $78,567, economics is well above the average of $65,205 of all fields in 2006-07. The table below reports average salary offers to newly hired economists
at each academic rank by type of institution.
Average Academic Salary Offers for Senior Level Economists by Rank and Type of Institution, 2006-07
Rank of Academic Economist
All PhD Granting Institutions
BA & MA Institutions
Senior Assistant Professor
Associate Professor with Tenure
Full Professor
Source: Nathan E. Bell, Nicole M. Di Fabio, and Lisa M. Frehill, “Salaries of Scientists, Engineers
and Technicians: A Summary of Salary Surveys.” The Commission on Professionals in Science
and Technology (CPST: Washington, DC 2007) selected curricula from page 268.
Academic economists at PhD granting institutions play leading roles in the development of new ideas in economics and publish their work in the journals and books mentioned on the 
publications page. As teachers, economists play an important role in supporting the undergraduate major in economics and the various graduate programs.
A number of PhD economists hold faculty positions in MBA programs, law and medical schools, public policy programs, and in a number of other fields. Economists on the faculty of leading professional schools often earn premium salaries.
A number of for-profit and not-for-profit enterprises hire research economists as do many government and international agencies. The National Association of Business Economics provides information about business careers for economists. The career sites for government and
not-for-profits mentioned above also point to opportunities for researchers.
Current job openings for economists in academia
and with some other employers appears in JOE, Job Openings in Economics.
Most of the jobs listed in JOE require graduate study in economics.

You can TCR specialist and language dictionaries that are spontaneously accessed.
I can Turbo Charge Read a novel 6-7 times faster and remember what I’ve read.
I can TCR an academic book around 20 times faster and remember what I’ve read.
Introduction to Turbo Charged Reading YouTube
A practical overview of Turbo Charged Reading YouTube 
How to choose a book. A Turbo Charged Reading YouTube
Emotions when Turbo Charged Reading YouTube

Advanced Reading Skills Perhaps you’d like to join my FaceBook group ?

Perhaps you’d like to check out my sister blogs:
All aspects of regular, each-word reading and education.
TurboChargedReading uses these skills significantly faster
www.innermindworking.blogspot.com      gives many ways for you to work with the stresses of life

To quote the Dr Seuss himself, “The more that you read, the more things you will know.
The more that you learn; the more places you'll go.”