Monthly Archives: May 2013

ESPN LAYOFF EMPLOYEES BUT NOT STATE MONEY

BY: Adam Gavriel

Even the giants are not immune to the dwarfing economy.

Recently, ESPN – “the worldwide leader in sports” – announced that they would be laying off 400 employees. While employment agencies everywhere are champing at the bit to get a hold of this new talent that is hitting the market, ESPN and Disney are trying to keep their bottom line positive.

According to an article from Forbes.com, these 400 employees represent near 5% of ESPN’s total workforce. The article continues to say that ESPN continues to be a victim of its own size, as too many investments threaten to cripple their profit margin.

Some of these investments include the U.S. Open, and Wimbledon, two tennis tournaments that will cost ESPN $110 million a year to broadcast. ESPN will also pay over $1 billion per year to broadcast college football regular season and bowl games. And between the four major American sports (Football, Baseball, Basketball, and Hockey) ESPN will shell out over $3.5 billion – oh yeah, and that includes $0 going to hockey.

However none of that should scare the executives at ESPN who will generate $3.3 billion from ad sales, and nearly double that from affiliate fees. Unfortunately, the call came down from Disney to make sure that ESPN’s bottom line stays in the black, and they are willing to cut with nearly 5% of their human capital to accomplish this task.

The American sport industry is a huge landscape, and one that ESPN has dominated for some time. That doesn’t mean that they are immune to the struggling American economy though. And if ESPN is struggling, then you have to imagine things aren’t that close to a positive swing, even if the numbers are crawling – and trying to pull you – in a different direction.

As an employment agency and search firm, if you are an former-employee of ESPN and have been affected by these layoffs, we want to hear from you TODAY. At Crossroads Consulting, we are the only search firm putting the ‘human’ back into ‘human resources.’

We are currently scanning the market to fill our nearly 50 job openings as soon as we can, and we’d love to receive your resume. If you’ve been out of the job searching game for a little while and are not confident in your resume writing skills, we can help you there too with our recommended resume service.

Remember, most employment agencies will have you submit your resume to their database where it has a chance of never being viewed. With Crossroads Consulting, your resume will immediately enter the inbox of our recruiters, who will get back to you about the position the very next day.

ESPN may have to learn the hard way how important human capital is. At Crossroads Consulting, we know the value of the human aspect in today’s economy, and we want to pay it forward for YOU.

Quote

IDLE YOUTH

BY: Adam Gavriel

It sounds like a terrible band from the 90’s, unfortunately it’s a little more of an issue than a post-grunge band.

All across the globe there is a bleak outlook for the demographic of adults aged 25 through 34.

Since the year 2000, a major shift has taken place in the United States, that has put it’s youth in a precarious situation. Continue reading

CT…NOT OPEN FOR BUSINESS?

BY: Adam Gavriel

When you think about the government of the United States, what’s the first thing that comes to mind?

Democracy. George Washington. Founding Fathers. Leaders who would do anything to get the job done, by the people and for the people.

Is that what we get today?

According to a report from the Connecticut Business and Industry Association, the Connecticut government has come up with numerous workplace measures that will make it harder for the businessman in CT. Most importantly is the raise of mandatory wages, unemployment benefits, and steeper administrative hurdles.

First, workers compensation changes:

HB 6556 will allow employees to make new “sick building” illness claims, and make it harder for employers to challenge them.

SB 823 will allow employees to pursue workers’ compensation claims for psychological injuries.

SB 907 will create a paperwork nightmare for employers to challenge workers’ compensation claims, while SB 1074 will, with some modifications, stop medical claims and expenses from going through the roof for employers.

This all sounds great for employees, but if employer’s costs spike, hiring will plummet.

On to Unemployment Compensation:

The labor committee approved SB 188 which will allow teachers to collect benefits while pursuing further education, instead of being “available for work” or “actively looking for a new job” the two key features in being available for unemployment benefits.

SB 909 will penalize the false unemployment claims of individuals, but punish employers in a case where the Department of Labor paid out and the affected businesses did not participate in the claims procedure.

As we know, if you keep up with the blog, that Small Businesses drive the economy, well, here’s one from Connecticut… HB 6451 will penalize employers if they fail to register with the Department of Labor with unemployment compensation within 30 days of starting or acquiring a business. The committee would also approve a 10% to 15% penalty for employers if they willfully fail to declare wage payments on quarterly reports.

Again, more and more costs for managers and employers.

How about Wages and Benefits? 

With a minimum wage hike in SB 387, many economists believe this will reduce entry-level jobs, and a standard wage bill (HB 5756) that will discourage companies from doing business with the state.

SB 906 will make the process for direct deposit for employees have to go through loopholes, requiring more training and or the hiring of another employee.

What most of these new bills have in common is that they will severely raise costs for Connecticut employers. Though the minds of politicians seems to be in the correct place, the practices are not following suit. It is understandable that politicians would want to increase the wages of their workers, but it is the employers who will suffer immediately, and then in turn the employees who will take the ultimate hit.

This is specifically the case with SB 387, which many believe will ultimately destroy the entry-level opportunities that are needed for college and high school graduates. A recent report from Yahoo! News cited that 40% of college graduates are unemployed or underemployed, having difficulties finding the correct entry-level job that can provide the training necessary to build a career. If managers have to pay higher wages for entry-level workers than they already have to, they’re going to be very picky about the talent that they choose. This of course will call for a huge increase in underemployed and unemployed college graduates.

As a small business directly affected by these measures, at Crossroads Consulting we will continue to make sure that we do what ever it takes to get you into one of our over 50 open positions.

As we try to put the ‘human’ back into ‘human resources,’ we hope the government remembers that they operate ‘for the people.’

CREATING JOBS? NOT IN CT THEY AREN’T

BY: Adam Gavriel

While the American economy continues to recover slowly, the Connecticut economy has had trouble falling suit. As numbers from the beginning of the year begin to be broken down more fully, Connecticut has fallen off the National pace.

According to a report from the Connecticut Business and Industry Association, the Connecticut department of labor announced that CT had lost 5,700 jobs in February. This news is even more heartbreaking considering Connecticut had ADDED 6400 jobs in January.

This would cause the CT Unemployment rate to rise to 8% off the national average which now stands at 7.6%

Economist Pete Giola called the report “disappointing.”

“It’s very disappointing – we really have a very negative report here,” Giola said. “It points to the real need for policymakers to do everything they can to help businesses grow jobs here.” 

Over the past 12 months, Connecticut has added just 2400 jobs, while recovering only 40% of the 121,000 jobs lost during the peak years of this recession.

1

Only government positions (900) and manufacturing (400) added jobs in CT in February. Professional and business services dropped 2400 jobs, Education and health lost 2300, financial activities (700), leisure and hospitality (500), trade, transportation, and utilities (300), information (100), and construction (100), all lost jobs.

So where are the jobs in CT you might ask? Danbury and Norwich-New London were the only locations to add jobs, adding 300 and 100 jobs respectively.

Hartford took the biggest hit losing 2500 positions, followed by Bridgeport-Stamford-Norwalk, 2400,  New Haven lost 1700 and Waterbury would lose 300.

As the nation recovers at a tortoise’s pace, it is time for CT to follow suit.

If you’re looking for jobs in the CT area, look no further than to us at Crossroads Consulting. As a small business based in CT, we are appalled at what is happening in our own backyards and neighborhoods. Since it is our job to get YOU working again, please come to our website today and browse our job openings. If you’re not confident in your resume, we can help you there too with our recommended resume service.

If you’re in Connecticut and struggling, we want to hear from you TODAY. Remember, Crossroads Consulting is here to put the ‘human’ back into ‘human resources.’

HOPE ON THE HORIZON?

BY: Adam Gavriel

Perhaps there is hope on the horizon.

According to an article released this morning from Bloomberg.com, the number of Americans filing for jobless claims dropped to a 5-year low this past week. This may signal a bit of optimism from employers, who are becoming more willing to hold on to their workers.

“Applications for unemployment insurance payments decreased by 4,000 to 323,000 in the week ended May 4, the least since January 2008, Labor Department figures showed today. Economists forecast 335,000 claims, according to the median estimate in a Bloomberg survey. For the first time, the average over the past month was the lowest since before the last recession began.” 

Dismissals and firings have dropped off in recent days, as employers are confident in their current workers to handle the load. Unfortunately, hiring is not following suit as the American unemployment rate remains high at 7.5%

1

There is only so much companies can cut layoffs before they have to start thinking about adding to headcounts,” said Guy Berger, an economist at RBS Securities Inc. in Stamford,Connecticut, who projected claims would drop to 325,000, the lowest forecast in the Bloomberg survey. “The longer this continues, the more likely companies will have to add to headcounts.”

These numbers bode well for those already employed, but what about Americans who are still looking for work? 1.76 million Americans have already used up traditional benefits, and are currently collecting emergency and extended payments. On top of that figure, 3.01 million Americans are still collecting jobless benefits and a reported 11.7 million Americans remain unemployed.

There remains a bit of pessimism on the horizon, as the government sequester and spending cuts loom, small businesses are holding their money a little bit closer to their wallets

As a small business ourselves, our job at Crossroads Consulting is to get YOU working again. Every time we see the United States unemployment rate as high as it is (because let’s be real, 7.5% is still way too high!) we take it to heart. With services to get you employed from start to finish with our recommended resume service, and our nationwide job postings we are looking to fill TODAY, we want to hear from you.

We can promise you that the job hunt with Crossroads Consulting is a different, and overall rewarding experience. Remember, we’re here to put the ‘human’ back into ‘human resources.’

REAL UNEMPLOYMENT NUMBERS

BY: Adam Gavriel

In the case of the American economy, slow and steady is NOT winning the race.

Disappointing numbers from April are starting to leak out, and a report from CNBC.com from Wednesday reports that private companies created just 119,000 jobs last month, well below expectations.

Economists had expected 150,000 jobs to be created in April (a prediction down from March), and the economy under-performed to the lowered standards.

“”Nearly every industry has seen slower growth since the beginning of the year,” Moody’s economist Mark Zandi said on CNBC. “Smaller businesses are experiencing much weaker growth.””

Without the support of strong small businesses, the American economy will have difficulty creating jobs. Small businesses would account for just 50,000 of the added 119,000 jobs. Zandi believes that this may be due to the Affordable Healthcare Act (Obamacare). Zandi went on to say in an interview that, “The data seems to be suggesting healthcare is having an impact.”

Continuing reports from CNBC.com suggest that Gross Domestic Product (GDP) is in the middle of its longest sub-3% growth rate since 1929!

Unemployment, that also includes the jobless, and the underemployed (often referred to as the “real” unemployment rate) remains at 13.8%.  Nevada has been hit the hardest with a real unemployment rate of a staggering 19.6, nearly one-in-five Nevadans are out of work. Only six states have real unemployment rates of less than 10%. They are North Dakota at 6.2%, South Dakota at 8.1%, Nebraska at 8.6%, Wyoming at 9.5% and Oklahoma and Iowa at 9.8%. (See the actual numbers of all 50 states HERE).

Although the national reported unemployment average has actually decreased as of late, the real unemployment rate has risen in six states, and stayed the same in three (including Connecticut).

Michael Pento, founder of Pento Portfolio Strategies, had this to say about the economy:

“The fact is that the U.S. economy isn’t growing fast enough to significantly increase the revenue to the government, but our debt is still soaring. It’s a shame they won’t just implement real measures to grow the economy like reduce regulations, simplify the tax code and balance the budget.”

The Bureau of Labor Statistics will release the April numbers officially Friday.

While the economy remains at a standstill, we at Crossroads Consulting are trying desperately to help, but we need you to fulfill our goal of finding rewarding work for as many people as we possibly can.

With over fifty job openings, Crossroads Consulting is looking, not only for people with good resumes, but just good people to fill openings we’re working on all around the nation.

Send us your resume NOW. If you’re not confident in how it looks, we are available to help you there too with our recommended resume service. 

Human resources is a human game, and human capital is what makes it work. Our attitude is right there for everyone to see in our motto, “We’re putting the ‘Human’ back into ‘Human Resources.'”