Tài liệu What Are Their Choices in Today''''s Labor Market? pdf

Guide to Retaining Employees

What Are Their Choices in Today's Labor Market?



P&G vs. Career Alternative (Dot.Com)


Conclusions derived from Focus Groups of P&G employees interested in potential P&G dot-
com work:
Attraction of P&G Career Attraction of Dot-Com Career;
P&G has the world's best training ground. Want to get experience in this space - good
resume fodder (even multi-dot-com experience is
considered a good thing on resumes).
Exciting leading edge work with consumers - P&G
examples are the case studies in marketing class
for brand management.
Changes the world - get in on the leading edge of
the new economy
Long term career development - high investment
in developing individuals.
Be an entrepreneur - would take a 50% cut in pay
to get away from the P&G bureaucracy. Looking for

a fundamental difference in the way work gets
done.
Balanced life style - work-life integration; time
with family/friends; reasonable work hours.
Location -

exciting places to work: Boston, Seattle,

San Francisco, New York (vs. Cincinnati).


Career Choices


MBA's Perceptions of Career Tradeoffs
Consulting Consumer Products
PRO'S CON'S PRO'S CON'S
• High pay
• Great perks
• Intellectual
challenge
• Young
environment
• Do important work
• Just like B-school
• On the road 4 days/wk
• 60-hour weeks
• Never get to drive "up or
out"
• Decent pay
• Decent perks
• Great training
• Run your own business
• Good lifestyle
• Decent hours
• Lifetime employement

• Dull location
• No "get rich" oppty
• May not like brands

• Bureaucratic
• Career growth slow

Entrepreneurship pre-95 Entrepreneurship post-2000
PRO'S CON'S PRO'S CON'S
• No bosses
• Great challenge
• High payout potential
• Drive right now
• 70-hr weeks
• No training
• High risk
• High pressure
• Under-market pay
• High barriers to entry

• Unsexy businesses
• No bosses
• Market pay
• "Anybody can do it"
• Huge upside potential
• Gobs of financing
• Sexiest of businesses
• Ton of responsibility
• Just like B-school
• 70-hr weeks

• No training
• High pressure

MBA View of a Dot.com Career
The calculus of pursuing an entrepreneurial path has changed.
•
Risk: In today’s environment, there is very little professional risk, salary risk, or
opportunity cost.
•
Reward: Everybody knows several people who have made HUGE fortunes even
people who weren’t founders, and the day rate ain’t bad.
•
Responsibility: People can come straight out of school and be the boss of a public
company, or at least be in charge of multi-million-dollar budgets.
•
Reputation: No question it’s cool to be in the Internet these days, and it’s even
more powerful on the resume than P&G.
The Dot.com Proposition
MBAs have strong reasons to consider Dot.com employers
•
Title: MBAs may come in at the director or VP level, depending on the size of the
organization.
•
Salary: $75,000 to $125,000 or more, plus possible bonus.
•
Options: From 10,000 on up, with VPs commanding from 0.5% to 3% of the
company.
•
Resume: One dot com on the resume means an immediate bump in salary of 15%+,
almost regardless of performance.

•
Responsibility: Marketing budgets are (or are planned to be) from $1-$20+ million
per year.
•
Footnote: VPs of marketing are the single hardest position to recruit, and the most
valued.


Excerpts on Dot.com Industry


1. Booz-Allen says "10% of the dot.com start-ups will succeed and there will be
significant fallout in the next 2-3 years. There is a lot of spending going into "share
of mind" advertising to gain awareness, but not very many profitable businesses
exist among the increasing clutter of dot.coms."
2. Internet Weekly magazine reports:
o "Only 220 of the tens of thousand of internet companies currently in existence
are publicly traded."
o "70% of start-ups don’t make it to the Initial Public Offering stage - therefore
the potential windfall from stock options isn’t necessarily a reality in the end".
(NOTE: Dirk Jager recently cited that only 6% of start-ups make it to the IPO
stage; however, the original source of this information is not known.)
o "Less than 50% of Silicon Valley companies show profit."
3. Wall Street Journal article "Ex-NBC Executive Fumbles His Options. . ." (Jan. 4
th

edition) cites a case study of Steven Carter an executive VP at NBC who earned
>$400,000 per year and left to become chief of sales and marketing for iVillage
Inc.for a promise of lucrative stock options and $175,000 plus $50,000 signing
bonus. His stake at iVillage would be1% - 280,000 options at $1.60/share which vest

over 4 four years. That was in July of 1997. By April of 1998, he was fired. His first
year of options ($70,000) hadn’t yet vested. Eventually, he was told he could stay 3
months until the options vested. . . and then needed to pay $100,000 to purchase
the options. Back on the job market, he found his prospects dimmed. Instead of an
NBC executive making $400,000 per year, Mr. Carter was now a middle aged,
$175,000 sales executive fired from a hot internet start-up. Recruiters steered him
to ad-sales jobs paying $150,000.
Click
here to read entire article (must subscribe to Wall Street Journal to
retrieve).