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Personal Finance From a Biblical Perspective

What To Do When You Don’t Get the Job You Wanted

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Have you ever applied for a job that you were absolutely sure was a perfect fit for you? You met all the qualifications, and the interview went beautifully, but…you didn’t get the job.

How does that happen? Why does that happen?

There may be several reasons:

  • There may be a flood of applicants for the job (which is very typical these days).
  • As qualified as you are for the job, there may be another applicant who has even better qualifications (or an inside reference).
  • You may lack an important skill, or be not as strong in a skill as the employer wants.
  • There may be a bad reference in your past.
  • The interview may not have gone quite as well as you believe it did, at least not from the employer’s perspective.
  • There may not be an actual job – the employer may just be on a fishing expedition for reasons you’ll never understand.
  • The job may have been eliminated before filling it.

As you can see, there are a lot of reasons why you won’t get a particular job. Your one consolation is that it happens to all of us, and usually more than once.

[How to take a tax deduction for your job hunting expenses!]

There’s no point being angry or bitter of the job that got away, but you can find ways to use the situation to your advantage.

Job Search

Find Out The Reason You Didn’t Get The Job

Even if the application and interview process went well, employers will often terminate your candidacy either through a form letter (that gives no concrete information), or they will ignore you completely in the hope you’ll “get the message”. But if you do get the word from a live person, you should get as much information as you can. This will be considerably easier if your application and interview was arranged by an employment search firm. Though the employer may not speak to you, they will usually give information to an employment agent.

Though it may hurt to find out why you didn’t get the job, this information can be critical in preparing you for the next prospective employer. If you are turned down because there was a stronger candidate, or because the position has been eliminated before filling it, it may be unfortunate, but it will not reflect on anything personal about you.

If on the other hand, the employer felt that there was a weakness in your skill set, or didn’t feel as well about the interview as you did, these are things you need to know so that you can make improvements in the future.

But most important – something you absolutely need to know – is if you received a bad reference. Out of fear of lawsuits, most employers will not give references whether positive or negative. But there are some who do, if only in an indirect way. Even more important, you may find that a reference that you gave has less than positive things to say about you. If you find that out, you want to drop that person from your reference list going forward.

Ask For Constructive Criticism

It may be that you came very close to actually landing the job, but failed to get it because you’re weak in a certain critical area. For this reason, you want to get constructive criticism that will help you to learn where you are weak so that you can make improvements in future job applications.

[When is it time to make a career change?]

Ask For Job Leads!

If the person who interviewed you does make contact with you, either by phone, by email, or by written mail, you should seize the opportunity to ask that interviewer for other job leads.

Just the fact that the interviewer took time to contact you to let you know that you are no longer in the running means that you are viewed as a credible candidate. Take advantage of that status – and also the opportunity to play on the interviewer’s sympathies – to ask the interviewer if they know of any competing companies who are looking to fill a similar position where you might be a good fit.

If the interview went particularly well and you built a rapport with the interviewer, you might even ask if they would give you a referral. You may not get it, but it never hurts to ask.

NEVER Let It Get You Down

If you have ever worked in a sales related job, you are well aware that you have to approach many prospects before you actually make a sale. The same is true when it comes to finding a job. You are being a salesman, and the product you are selling is you. It is the reality of sales that you will not be able make a deal with all prospects, or even most of them. For this reason, you should enter the job hunting process fully prepared for rejection.

You will have to be prepared to accept many rejections on the path toward landing a job, but no matter what, you can’t let it get you down. Upon learning of a rejection, you need to immediately spring into action to land more interviews. Getting down about the rejection, or worse – feeling sorry for yourself – will accomplish absolutely nothing productive.

[Tips on finding a job when unemployed.]

When looking for a job – as in sales – you should have “several coals in the fire” at all times. That means that you are working on more than one potential job at any given point. More important, you should never view any single job as a make-or-break situation for you. Sure, you may need a job, but you don’t need any particular job. The right one will come sooner or later.

What do you do when you learn that you didn’t get a job you hoped you would?

photo credit: freedigitalphotos.net

Why The Contingent Workforce Is Growing, And What That Means To You

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As the outlook on the economy remains grim for many industries, many companies are still wary about hiring full-time workers. Very few companies are hiring in great numbers, and even less are continuing with employee recognition programs. Therefore, we are witnessing a rise in the number of companies that are turning to the contingent workforce in order to fill their staffing needs.

What Is The Contingent Workforce?

At one time, the only major distinction between workers was full-time vs part-time. However, as the workplace has evolved, so have the various roles.

When one speaks of the contingent workforce, they are referring to a group of workers which includes, temporary workers (working through an agency), contracted workers, per-diem, self-employed contractors, day laborers, and direct-hire temporary workers.

When I became a part of the workforce, these types of employees were very common in warehouses and/or industrial jobs, doing manual labor, office work, and tedious projects (such as mass mailings or taping together damaged money).

However, now we see the contingent workforce filling rolls in accounting, finance, health care, and information technology. With the rise in Internet sales & marketing, and freelance writers, designers, and programmers, we can expect these numbers to rise in the future.

The Rise In The Contingent Workforce

There has been a sharp increase in the number of temporary workers employed over the last few years. According to an article on Marketwatch:

Temporary-help services employment increased to about 2.3 million in March from a recent trough of about 1.7 million in mid-2009, according to the Labor Department.

That’s an increase of over 35% in about 2 years! Keep in mind that this is just one small segment of the contingent workforce. However, information from this category is probably the most reliable, since temporary workers are employed through agencies.

Why Are Companies Looking To The Contingent Workforce?

Many companies have present staffing needs, which must be filled in order for them to be able to conduct business. However, due to the unpredictable nature of the current economy, these businesses are not willing to make long-term commitments to large groups of workers. Therefore, hiring workers on a part-time basis, or bringing them on as consultants, seems to be the best move.

Reduced Benefits

Many contingent workers do not receive health insurance coverage, life insurance, retirement benefits (such as free money through a match, or the ability to take advantage of 401k contribution limits), or paid time off. Most temporary agencies will force their employees to wait for 6 months or longer before being eligible for such benefits.

There are also certain workplace laws that do not apply to contingent workers.

This makes it much cheaper to hire someone under this type of arrangement, which is one of the main reasons why employers are seeking more contingent workers!

No Long-Term Commitment

With most forms of low and mid-level employment, your contract can be terminated “at will”. This means that you can quit or be fired/laid off at any time. However, there is usually something owed when this happens. For instance, if someone is laid off, they are sometimes given a severance package, possibly vested (meaning that they can keep employer contributions) in a retirement plan, and even paid for unused time off.

This is usually not the case with contingent workers. Once the contract is terminated, the employer usually walked away from the relationship owing nothing. If an employer is not sure of long-term funding, this can be a great option. Of course, this also makes it very easy for an employee leave the company. This risk has to be weighed against the benefits!

Low Recruitment Costs

Since there isn’t much of a commitment made to these workers, it is usually easy to bring them on board. Many in the contingent workforce are hired through an intermediary firm, that does handles the initial interviews, background checks, competency testing, etc. This way, the employer simply has to pay a fee (or a percentage of the salary) to the firm, and doesn’t have to worry about the costs of advertising, background checks, and time spent holding multiple interviews. This also works out for the employee by reducing their job hunting expenses (especially if they work through an agency).

If these employees are offered any benefits, they are usually handled though the staffing firm (and are subject to a waiting period). This way, if the employment arrangement doesn’t work out, the employer hasn’t wasted any money by adding a worker or group of workers to their various benefits plans.

Why Does This Matter?

Most people are probably wondering why this shift is important. The main impact that it will have is that we may be forced to rethink how we market ourselves. Many people are not willing to take a job on these terms, because they have been looked down upon for so long. However, if you are currently looking for a job – or if you are suddenly laid off – you may have to consider becoming part of the contingent workforce.

Depending on your status, you may have to arrange for your own health-care coverage, and start paying self-employment tax. You may also have to look into various certifications that demonstrate your competency in your field. While the contingent workforce still makes up a very small part of all workers, the numbers are growing, and the trend will most likely continue in that direction as uncertainty about the economy lingers.

For employers, this type of arrangement is a great way to grow your business, without all of the costs traditionally associated with hiring employees.

It is better to be prepared and able to adapt, than to be caught by surprise, struggling to support your family!

photo by Idea Go

How The IRS Wants To Help You With Your Job Hunting Expenses

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Normally, when we talk about tax deductions, we immediately think of IRA contribution limits, the standard mileage rate, or self employment tax. However, with so many people being out of work or working part-time hours, the job market is being flooded with applicants. This is why it is important to look at the tax deductions related to job hunting expenses.

Summer used to be the season for job hunting. I received a ton of announcements and advertisements for career fairs, resume services, and headhunters during the summer. However, since the economy has tanked, I get them all year long!

Due to this fact, the IRS has released a list of tax benefits for job seekers. So, while our Senators debate another payroll tax holiday, see if you qualify for any job search deductions.

A Few Guidelines Regarding Job Hunting Expenses:

  • You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. If your employer pays you back in a later year for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year.
  • You can deduct amounts you spend for preparing and mailing copies of your résumé to prospective employers as long as you are looking for a new job in your present occupation.
  • If you travel to an area to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can only deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.
  • To qualify for a deduction, the expenses must be spent on a job search in your current occupation.

So, be sure to save all records of any of these job hunting expenses. Don’t forget things such as printing and copying your resumes, paying headhunters and agencies, and even travel costs.

Other Things To Note About Job Hunting Expenses:

  • You may not deduct expenses incurred while looking for a job in a new occupation.
  • You cannot deduct job search expenses if you are looking for a job for the first time.
  • You cannot deduct job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one.

So, in order to deduct job search expenses, it can’t be your first job search and it can’t be in a new field. Of course, just to complicate things, the IRS does not go on to specify what a “substantial break” actually is. However, if you decide to start your own business and become a young entrepreneur, then there is another set of tax laws that govern your situation.

To find out more about deducting job search expenses, see IRS Publication 529. If you have any questions regarding any other issues, please visit our tax help page. Also, be sure to contact us for professional tax preparation once you are ready to file.

Be sure you are aware of the tax filing delay, as well as the fact that the tax filing deadline has been extended this year. To get the most out of your financial situation in 2011, you should know the IRA Contribution Limits, 401k Contribution Limits, and the Income Tax Rates for 2011!

photo credit: nidhug

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401k Contribution Limits

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Below you will find the 401k Contribution Limits for employees, employers, and also for participants who will be at least 50 years old by the end of the calendar year. You should also consult the IRA contribution limits before completing your retirement plan.

201620152014
401 (k) Contribution Limit$18,000.00 $18,000.00 $17,500.00
401 (k) Catch-Up Contribution Limit$6,000.00 $6,000.00 $5,500.00
401 (k) Contribution Limit for Those Over 50$24,000.00 $24,000.00 $23,000.00
401 (k) Employer Contribution Limit6.0%6.0%6.0%

As you can see, there was no cost of living adjustment from 2015, meaning that the 401k contribution limit for 2016 has stayed the same since last year.

As in previous years, plan participants who will be 50 years of age by the end of the year will be able to make a “catch-up” contribution. The catch-up contribution is an additional amount that those close to retirement are allowed to make. As you can see, the catch-up contribution limit will continue to be $6,000 for calendar year 2016.

Also note that the employer 401k contribution limit remains at 6% of the employee’s pre-tax salary. What this means is that an employee that has a gross salary of $100,000 will be able to contribute up to $18,000 during the year. If they will be at least 50 years old by the end of the year, they will be eligible to make a catch-up contribution up to $6,000; bringing their total annual contribution to $24,000.

401KContributionLimits

If they contribute enough to gain their full 401k employer match, then their employer will kick in an additional $6,000 toward the employee’s retirement. This means that the employee in our example will put away $30,000 this year for retirement!

I’ve talked before about contributing enough to qualify for your full 401k employer match, so be sure to read that article to see why it is so vital to your financial health. Basically, I show how you can earn a return of 167% on your 401k before you begin investing!

With this type of return, and the generous amounts that we are allowed to set aside, contributing to a 401k should be at the top of your list of New Year Resolutions!

photo by MJTR

6 Free or Frugal Ways to Show Appreciation to Employees

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As a result of the downturn in the economy, many companies have decided to do away with raises and bonuses. If you are a manager or a business owner who is searching for ways to demonstrate employee appreciation and employee recognition for all of the hard work performed by your workers throughout the year, without breaking the bank, then keep reading. This way you can ensure that your employees don’t choose a different career path once the recession is over!

Here are six simple things that you can do to demonstrate both employee recognition and employee appreciation:

Employee Appreciation for Free!

Offer Flexible Schedules

Not all employees need to work a 9-5 schedule. For those who have work responsibilities that can be handled during any hour, this may be a great benefit to them. Think about it, if you have a harsh commute when working a 9-5 shift, changing your hours to 7-3 would do much to reduce the stress and cost of your commute!

Allow Employees to Occasionally Work from Home

Telecommuting is becoming increasingly popular. If it isn’t possible to allow your employees to do this full-time, allow them to choose one day each week on which they can work from home.

This will not only save on energy, water, and all other costs associated with having more bodies in your building, but it will also save the employee on gas and wear & tear on their car (or paying for public transportation)!

Offer Opportunities for Additional Training

This would be a real benefit to employees, as they will have a chance to learn additional skills – or improve on what they already know – and position themselves for promotions and other opportunities!

This can be as simple as having members of your IT staff offer periodic training in MS Office, or other commonly-used software; or as complex as implementing a rotation program where employees are allowed to function in different positions and develop new skill sets!

Have Dress Down Days

Allowing your employees to dress down for one or several days a week can help to lighten the mood of a stressful work environment (of course this gesture is meaningless if you are not already being a godly employer)! It may also help to change the dress code to a more casual one – especially for those employees who do not need to meet with clients/customers.

Employee Recognition on a Budget!

Partner With Local Vendors

There are two ways that you can do this. First, you can leverage the buying power of your group of employees to get massive discounts for them – this can work for anything from cars to computers to tax preparation!

Second, you can barter with local vendors – providing your services to them in exchange for free services for your employees! Even if you aren’t able to give a raise or bonus, you can still provide a tangible benefit to your workers by providing them with a free session with a local tax preparer or financial consultant.

Another great way to show your appreciation for your employees is to bring in a local massage therapist once a week to provide free basic massages! Here are some other gift ideas to help you get started!

Celebrate Employees’ Achievements Each Month

Depending on the size of your workplace, this may need to be handled at the department level. Cater a basic lunch (a pizza party works for me) and give simple awards to your employees. You can have them vote on things such as “the most helpful coworker”, or “most dependable”, etc; then give out these awards once a month or quarter!

Broadcasting various customer/client accolades may add a nice touch as well. This would definitely be a great way to show employee recognition and employee appreciation for a minimal cost.

You can also use this as a time to acknowledge all of the birthdays that occurred during that month.

Set Up a Rec Room

If you have the space, set up a recreation room for your employees. You can include a TV, an air hockey game, pool table, or even a massage chair! You have to set a few guidelines on when this can be used, or you can just trust your employees to be responsible and get their work done in between their air hockey tournaments.


Remember, with whatever programs you implement, you should seek to do one of two things. Demonstrate your appreciation to your employees by providing a tangible benefit to them (more than just a “thank you”); or make the workplace more enjoyable by creating a more relaxed atmosphere.

Both of these goals can help to foster an attitude of loyalty in your employees, even at times when you are unable to offer raises and bonuses!

Reader Questions:

For Employers

  1. In what ways do you demonstrate your appreciation toward your employees?
  2. In your mind, how far do these, and similar, measures go in fostering worker loyalty during a time of salary freezes?
  3. What else would you add to this list?

For Employees

  1. Does your company offer any of these non-traditional benefits?
  2. Does this change how you view your employer at all?
  3. What else would you add to this list?

photo by bettyx1138

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