What to expect from the job market in 2013

By Matt Ferguson, CEO of CareerBuilder
Employers are heading into the new year with cautious optimism. The economy has been growing at a gradual but steady pace and is poised to stay on this path in 2013 barring any major disruptions. More employers are expecting to hire than in recent years, but the modest recovery, along with the weakened global market, means that companies will continue to play it safe.

This guarded approach to hiring was apparent in the results of CareerBuilder’s 2013 U.S. job forecast*, which polled more than 2,600 hiring managers and human-resources professionals and more than 3,900 workers across industries and company sizes. According to the report, more than 60 percent of employers say they are in a better financial position than last year. Twenty-six percent plan to add full-time, permanent employees, up three percentage points over 2012. However, due to mixed expectations for the coming year, the number of employers planning to reduce headcount is trending up as well. Nine percent of employers say they plan to decrease headcount, up from 7 percent last year. The fiscal cliff is likely on employers’ minds; whether or not the U.S. goes over it may impact actual hiring behavior.

Temporary and contract hiring on the rise
When companies are cautious about making major hiring commitments, they often turn to staffing and recruiting companies and temporary workers to help meet increased market demands. The study found that 40 percent of employers plan to hire temporary and contract workers in 2013, up from 36 percent last year. Among these employers, 42 percent plan to transition some temporary workers into full-time, permanent employees over the next 12 months, perhaps as they see how various economic factors play out over the course of the year.

Where the jobs will be
It may not be surprising that the top two positions companies plan to hire for in 2013 are sales (29 percent) and information technology (27 percent), two fields that have continued to experience healthy growth. Other roles employers will hire for include customer service (23 percent), engineering (22 percent) and production (22 percent).

Location-wise, the West and the South will again lead other regions in hiring plans as they have in past forecasts. Twenty-eight percent of employers in the West plan to add full-time, permanent workers in 2013, up from 24 percent in 2012; 9 percent plan to reduce headcount, the same as last year. In the South, 27 percent of hiring managers anticipate adding full-time, permanent employees in 2013, up from 23 percent in 2012. Nine percent will likely reduce headcount, up from 7 percent last year. Both the Midwest and the Northeast will hire more than last year, but headcount reduction will tick up as well.

Small businesses show confidence
Small business hiring will rise, but likely so will headcount reduction, as companies remain unsure about financial stability and market demand. Hiring plans increased at least three percentage points over the year across small business segments, while plans to downsize trended up the same amount. Nineteen percent of businesses with 50 or fewer employees plan to add full-time, permanent staff in 2013, up from 16 percent in 2012, while 6 percent plan to reduce headcount, up from 3 percent last year. Of the companies with 500 or fewer workers, 24 percent plan to add full-time, permanent headcount, up from 21 percent in 2012; 7 percent plan to make cuts, up from 4 percent last year.

Companies fight to close the skills gap
The demand for skilled positions has continued to grow at a much faster pace than the supply. However, companies are finding solutions to narrow the skills gap, which they’ll continue to implement in 2013. Workers looking to fill highly skilled roles should pay close attention to the following three trends in the new year:

1. Employers scouting workers from other companies: Employers will be more aggressive about approaching workers with the right skills, whether or not it’s solicited. Nineteen percent of workers say they’ve been asked to work for another company in the last year without applying for the position. Sales workers have been courted the most, at 33 percent, followed by professional and business services workers at 31 percent and IT workers at 26 percent.

2. Employers will pay more for qualified candidates: In an effort to keep and attract the best workers for skilled positions, employers expect to provide higher compensation for both current and potential employees. Seventy-two percent of employers plan to increase compensation for existing workers — up from 62 percent last year — while 47 percent will offer higher starting salaries for new employees — up significantly from 32 percent last year. Most increases will be 3 percent or less.

3. Companies will take matters into their own hands: Oftentimes workers possess a base level of skills that, with the right training, can be built upon to meet an employer’s needs. So instead of waiting for applicants with the right résumé to come to them, employers are taking the initiative to “re-skill” workers to fill positions. Thirty-nine percent of employers plan to train people who don’t have experience in their particular industry or field and hire them for positions within their organizations, up from 38 percent last year.
*Totals may not equal 100 percent due to rounding or respondents being able to choose more than one answer.
Matt Ferguson is the CEO of CareerBuilder.

Your 2013 Job-Search Guide

Now that the holidays are over, the nonstop party hopping has ended and the New Year’s ball has dropped, it’s time to get serious about your job search. Yet the thought of job searching can be overwhelming — where do you start? How do you avoid missing any steps?
We’re here to take some of that anxiety away by breaking down the job-search actions to take throughout the year. While there’s no one-size-fits-all approach to job hunting, this should serve as a guide to ensure you’re setting yourself up for a successful search.
We’ve put together a brief quarter-by-quarter overview to help frame your job-search plan for the year. Each job seeker should go at his own pace, but we think this timeline can help you stay on track.

• Q1 (January – March): Devote the first few months of the year to getting organized — organize your thoughts, organize your application materials and organize your contacts. 
• Q2 (April – June): A few months in, you should be going full-steam ahead with your job search. Your days should be filled with applying, following up, networking and (hopefully) going to interviews. If you’re a college student, get a head start in your professional job search by tapping alumni, using your school’s career resources and making initial contact with companies of interest.
• Q3 (July – September): At around the mid-year mark, take a step back to review what’s working and what’s not in your job search. It’s not too late to course-correct to ensure that you reach your goals during the back half of the year.  
• Q4 (October – December): During the last few months of the year, take advantage of the season. Network at holiday parties, consider seasonal job opportunities and take the time to thank those who have helped you professionally throughout the year.

Q1: Get organized
Here’s a closer look at what to get started on right now:

• Put your goals in writing: Before diving into your job search, take a step back and organize your thoughts. Do you know what you want to do next? Have you researched the positions that fit your interests and expertise? Do you have the skills needed to get the job you want or do you need additional education? Once you’ve thought all of this through, write down your goals and how you’re going to achieve them. Doing this will help focus your search.
• Conduct an audit on your application materials: Have your application materials gone untouched since the last time you applied for a job? Do you even have everything you need? To find out, conduct an audit: Do you have a recent résumé and cover letter? When was the last time these documents were updated? Do you a have any supporting materials that might be needed for applications, such as client work, writing samples or news clips? Also look at your online presence: Are your profiles on professional social networks up to date and do they match with the content of your application materials? Would creating a personal website to house your portfolio potentially give you an edge in your search? After you’ve determined what you have and where the holes are, get to work. Remember, you want to create personalized résumés and cover letters for each position to which you’re applying, so keep that in mind when making changes. Check out this infographic for a guide on how to refresh your résumé.
• Reconnect with contacts made during the holidays: Did you meet potential professional contacts during your holiday party-hopping? Now that the season is over, it’s time to follow up. Don’t wait too long — as more time passes, it’s more likely that your new contacts will forget your meeting and won’t think of you for job opportunities. If you’re squeamish about cold calling semi-strangers, start by writing emails. Remind them who you are, how you met and how much you enjoyed the conversation. Ask them if they have time to speak again on the phone or in person. Once that initial connection is made, you can talk more specifically about your career goals and how they may potentially help you achieve them.

By Debra Auerbach

6 ways to kill your chances in the interview

From applicant tracking systems to appropriate résumés, there are more than enough hurdles to overcome before making it to the interview in a job search. However, this may feel like the greatest challenge for some job seekers, as many have come out of interviews without the slightest clue how it went.

CareerBuilder surveyed hiring managers to find out what’s going on in job interviews and why a promising candidate for a job may not get picked. Six major factors were a part of why interviews go badly for some, and while these mistakes may not seem substantial on their own, the job market is still too competitive to allow these simple errors. Learn from these six ways to kill your chances in the interview and how to avoid certain death.

When asked to identify the top detrimental mistakes in job interviews, hiring managers reported:

Mistake No. 1: Appearing disinterested is a top turnoff, according to 62 percentof employers.
Tip: Body language and how you respond to the interviewer’s questions may be sending a different message than what you mean. Be attentive during the interview, sit up straight and make eye contact with your interviewer. Also take your time responding to give thoughtful answers that will make it clear you’re interested.

Mistake No. 2: Answering a cell phone or texting – 60 percent
Tip: As soon as you enter the company’s building or the site for your interview, turn your phone off and put it away. While it may be tempting to use your phone while you’re waiting or leave it on silent, don’t risk your chances of getting the job because you wanted to check your phone. Give your attention to the interview and focus.

Mistake No. 3: Dressing inappropriately – 60 percent
Tip: While what you wear on the job will vary by industry and company, the standard and most appropriate look for a job interview is a business suit or a version of “business casual,” a collared shirt and dress pants. You should look and feel professional so both you and the interviewer can focus on your answers and not your clothing.

Mistake No. 4: Talking negatively about a current or previous employer – 58 percent
Tip: Interview answers walk a fine line between appreciating your past employers and making it clear that this job opportunity is preferable. Stay positive during your interview and concentrate on how your past roles and employers have prepared you for this current role, and if you do have a negative experience, keep your answer short and end on a positive, like what you learned and have done better since.

Mistake No. 5: Failure to make eye contact (72 percent) or smile (42 percent), bad posture (38 percent) and a weak handshake (28 percent)
Tip: While a certain amount of stress is understandable for an interview, do your best to appear confident and friendly by preparing for your interview and practicing your answers ahead of time. When you feel adequately prepared, your confidence and smart answers will wow the hiring manager.

Mistake No. 6: Not providing specific examples – 34 percent
Tip: When answering your interviewer’s questions, remember that they’re trying to make a smart business decision about who to hire. While you may feel that you’re the most creative, capable and task-oriented candidate, it’s better to provide quantifiable proof of your worth, like how much new business you brought in or the top ways you saved your company money.

What else can job seekers do to prepare for interviews? “A job interview can be one of the most nerve-wracking experiences out there, so it’s important to plan and practice,” says Rosemary Haefner, vice president of human resources at CareerBuilder. “Have a friend run through a mock interview with you, asking questions you think will come up and some curve balls you’re not expecting.  Thoroughly research the company ahead of time and draft responses that incorporate your accomplishments.  The more prepared you are, the less likely you are to run into mishaps.”

By Susan Ricker