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Advantages of Working for a Large Company as a Young Professional

05.27.2020 by admin // Leave a Comment

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Choosing to work for a large company, a small company, or starting your own business can impact the quality of your life. These days there is a lot of advice out there about working for yourself instead of a large company. Certainly, there are benefits to working for yourself but there are also benefits to working at a large corporation, especially when you are a recent graduate. Here are a few advantages for working at a large company as a young professional.

Opportunities for Career Advancement

Most large companies have specific criteria for advancement. At times, this may seem bureaucratic. But, you’ll clearly know what you need to do to get that promotion. For many jobs, there is a clear career path. If you start in inside sales you can clearly see two career paths: advancement to outside sales and advancement to an inside sales manager position. If you’re in professional services like accounting or audit there is a clear career path leading up to partner or a clear path to get promoted to a certain level and then go in-house.

Career Development Opportunities

One advantage of working for a large company is the amount of career development opportunities offered for free. If you work for a large corporation your team likely has money for training and internal training available. They also likely offer training internally, ranging from company specific training to skills training that’s easily transferable. Some companies also offer LinkedIn Learning for free. Don’t hesitate to ask your manager about what training options you have available through your company, or what opportunities there are for external training / certifications.

It’s important to continue learning and acquiring additional skills. You’ve invested in yourself by attending college, but it doesn’t end there. There are other professional certifications and additional degrees that can significantly increase your earning potential such as MBA or another Masters degree, CPA, CFA or PMP. If the external training / certifications will help you in your current job your employer may be willing to partially or fully pay for it. While a large corporation may not pay 100% of these costs, they may have programs that can help partially cover these costs. In fact, this is how I was able to avoid student loans and get my MBA.

Networking Opportunities

It’s important to surround yourself with people you admire. Find someone that has the job you want and learn from them. Surround yourself with people that you learn from, have positive attitudes and you enjoy being around. When you work for a large corporation there are plenty of opportunities to network and find people you admire. Leaders in your company may host lunch and learns. Companies also have employee resources groups and community service opportunities. Both of these serve as opportunities to meet coworkers that you don’t work with day to day.

Additionally, find advocates within your company. At large corporations getting put on projects that are high visibility will help expand your network of advocates. Another way is to join a large corporation as part of a leadership development program. Many decisions will be made about your career when you aren’t in the room. Have people who are in that room that will advocate on your behalf. Sponsors will advocate for you to be put on good projects, considered for new roles and for promotions. They will help push you in the right direction, put you in meetings to help you get executive visibility or expand your network. You are more likely to get a job through an employee referral and will have even greater odds if the person referring you is one of your sponsors.

Formal Mentor Programs

Many companies offer formal mentor programs that you can sign up to be a part of. Mentors will help give you career advice when you don’t know how to navigate a situation and help guide you on topics you discuss. Think of a mentor like a coach. Career advice is especially important for young professionals because the visibility you have so far is limited. Those with more experience or have greater visibility to the bigger picture can help you dream bigger.

Experiencing Working with Different Cultures

When you work for a large corporation you likely have a much broader customer base and coworkers located around the globe to support that global customer base. There may even be opportunities to travel abroad!

It’s very beneficial to work with different cultures when you’re first starting your career. Diversity of thinking, creativity and access to talent anywhere were the top three benefits of global teams found in research conducted by SHRM. The diversity of thought helps you see situations from a different perspective and broadens your mindset.

Ability to Change Jobs Without Changing Companies

Your career path is as much about figuring out what you don’t like as figuring out what you do like. Luckily, at large corporations you can try many different jobs without having to leave the company. It is easier to figure out what you don’t enjoy at a large corporation because the opportunities are endless. This also helps you build transferable skills. Finding your niche skills will allow you to command a higher salary or start your own business down the line.

Are you in marketing and think you’d like sales better? Large corporations have large departments so there are more opportunities to make a career pivot. Want to live somewhere else? Large corporations have a large geographical presence and may even let you keep your current job and allow you to work remotely.

Invest in Retirement Early

Large corporations often offer 401(k) plans and employee matches. Many large corporations offer a company match up to a certain dollar amount or certain percentage amount. For example, if you put 3% of your salary into your 401(k) plan, they will match that 3% and make an equal contribution to your 401(k) account. This is free money.

401(k) plans are also a great investment vehicle when you’re a young professional because you have less responsibilities and you have time. Even if you’re paying down student loan debt, if you don’t have a mortgage and don’t have kids those are major expenses you aren’t paying right now. You’re able to take advantage of compound interest and have your wealth grow over time, faster.

Corporate Benefits Package

Large corporations have a number of other benefits in addition to 401(k) plans. They often offer health insurance, dental insurance, vacation time, sick time, tuition reimbursement and more. Your health insurance may include additional perks like money toward your gym membership and acupuncture. Some companies also offer Employee Stock Purchase Plans which enable you to buy company stock at a discount.

Not sure how much your benefits package is worth? Benefits accounted for 32% for employers cost of compensation for US workers in June 2018.

When you work for yourself, you think you have more flexibility for when you work and hours you work. While this is partially true, it is much easier to put on an OOO on during vacation when you work for a large company. Often, you’ll have either a boss or peer that you can put as your backup and they’ll cover for you. When you work for yourself, it is much harder to unplug and take uninterrupted time off.

Steady Salary to Pay Down Debt and Invest

When you work for yourself, your salary isn’t guaranteed. If you get sick and can’t work one day you won’t make money that day. If you get sick at a corporate job you’re much more likely to be able to take a sick day or PTO.

Because you know your salary when you work for a large company, you are able to budget and start forming an emergency fund. Within your budget, you can set aside money every month to put towards tackling any debt and money to invest.

Advantages Of Working For A Large Company As A Young Professional Summary

Advantages of working for a large company as a recent graduate include career advancement, networking opportunities, development opportunities, corporate benefits and more. Even though the upside income potential working for yourself is far greater, it’s hard to start your own business right out of the gate. Many either do not have the business acumen or risk tolerance to start working for themselves immediately.

Working for large corporations isn’t for everyone. It is very structured and you are one of thousands of people but there are plenty of opportunities for advancement. When you work for yourself, you may have unlimited income potential depending on the industry, but it’s also riskier. Regardless of which path you choose initially, you can always change your mind later.

What advantages did you see working for a large company as a young professional?

10 Passive Income Ideas in 2020

05.17.2020 by admin // Leave a Comment

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COVID-19 2020 has changed many of our income plans. While some people are able to work from home they may have reduced pay or uncertainty about their pay / hours. Others find themselves laid off or furloughed. With all this uncertainty, it’s important to have several income streams. This helps reduce the risk of no income should you get laid off or furloughed from your day job. Even though there is uncertainty of when businesses can return to normal there are plenty of ways to earn more money from the comfort of your home. Learn how to generate passive income and then get started with these passive income ideas below. These passive income ideas range from very easy – all you need to do is swipe the right credit card – to passive income investing – such as dividend stocks – which should be researched before the investment is purchased.

Use A Cash Back or Rewards Credit Card

One very easy way to start a passive income stream is to get a cash back or rewards credit card. This doesn’t mean spending additional money. What it does mean is to generate dollars, or rewards points, from the money you are spending anyways. This approach won’t put actual cash in your pocket. Instead, it’ll either help reduce your spending because you can now use points to buy things or it’ll help reduce your credit card bill with cash back. Instead of spending more money, save the money you would have spent.

Put Your Emergency Fund and Savings In A High Yield Savings Account

Every dollar you save, whether for investing or for an emergency fund, should be generating additional income for you. Any money you have saved for an emergency fund or for investing later should be held in a high yield savings account. Most of the online only banks tend to have higher interest rates (such as Marcus by Goldman Sachs and Ally Bank). Right now the highest interest rates are around 1.3% APY (annual percent yield). This means if you put $100 in the account in 12 months you will have made $1.30 in interest. Not sure where to put your money? Nerd Wallet shares the top 10 best high yield savings accounts.

Rates are falling with the Fed lowering rates. But, you’ll always need an emergency fund at minimum so you might as well get 1-2% APY.

Open Up A New Bank Account And Get A Signup Bonus

Sometimes banks run promotions where you can make $100 by signing up for a checking account or savings account! Usually there are conditions like a minimum deposit amount, setting up direct deposit or holding the money in the account for a set amount of time. Money Crasher’s has a list of 31 bonuses banks are running now, with bonuses up to $300!

Open Up A Certificate of Deposit

A CD (certificate of deposit) locks up your money for a set period of time but guarantees a return. If you’re just starting out and have fully funded your emergency fund a 12 or 18 month CD is a good place to start (assuming the rates are higher than a high yield savings account). It’s good investment to start with as you get to learn about illiquid investments but you know when you’ll be able to take the money out and it won’t be held for long. Don’t have a preferred bank? Here are the best rates for CDs right now.

Invest in the Stock Market

Stocks are a way to build wealth passively. Stocks are a type of investment that represents ownership in a company. Investors buy stocks that they think will go up in value over time. Investors don’t make (or lose) money until they sell the stocks they buy. There is no guarantee that the stocks investors buy will go up in value. This is true in any market, although it is more often talked about when there is a lot of market volatility. Don’t worry if you only have a little amount of money to invest. You can open up a trading account on Robinhood with $0 and can buy fractional shares of a company. Starting June 9th you can buy fractional shares of top companies on Charles Schwab with as little as $5. If you’ve never invested in the stock market before learn how to start investing.

Invest in Dividend Stocks

Dividend stocks are stocks that offer a discretionary distribution of profits. When researching stocks you’ll know if a stock is a dividend stock if you see a yield greater than 0. Dividends are paid out on a monthly, quarterly or yearly basis. Investors need to own the stock on the ex-dividend date in order to receive the dividend payment. Stocks that pay dividends typically provide stability to a stock portfolio but do not outperform high quality growth stocks according to Investopedia.

Invest in Real Estate Investment Trusts (REITS)

Think of a REIT like a mutual fund for real estate. REITs is a type of company that allows investors to pool their money to invest in real estate. In order to be considered a REIT, the company is required to pay out at least 90% of their taxable income back to their investors. That is what usually makes REITs a great investment to generate passive income. It’s important to be aware that in these tough times tenants may not be able to pay rent so before you invest in a REIT know who their top tenants are and what risks they may have in their portfolio. Already several retailers have announced bankruptcies such as J.Crew and Neiman Marcus. Investors should understand if the REIT they are investing in has exposure to these businesses or other retailers that may be at the brink of bankruptcy. Learn more about investing in REITs here.

Participate In An Employee Stock Purchase Plan (ESPP)

ESPP is a benefit offered by some publicly traded companies to their employees. ESPP is the ability to purchase company stock through payroll deductions at a discounted rate.

The effort required is minimal and requires enrolling in ESPP and selling the shares to realize gains (or losses). You have a guaranteed return if you sell the day you receive the shares. If you decide to hold the shares for longer, and the shares increase in value, it will help you accumulate wealth. Companies can offer a maximum discount of 15% on company shares. With current savings accounts interest rates at best at 1.3% APY, and average stock returns at 5-7% a year, but not guaranteed, this is a great deal.

Participate In A 401(k) Company Match

A 401(k) company match isn’t money you’ll be able to touch until you retire, but it’s another way to generate income without extra effort. 401(k) plans are retirement savings plans sponsored by employers that allows employees to contribute to their retirement savings pre-tax. Many employers also offer to match or partially match employee contributions. Learn more about 401(k) plans including tax benefits, employee company match and accelerating funding your retirement.

Invest in Startups

According to Fortune, while the number of U.S companies continues to grow, the number of U.S. companies that are traded on stock exchanges has plunged 45% since peaking 20 years ago. Additionally, new companies have been completely disrupting traditional business models but many of these companies aren’t yet public. If you only invest in public companies, you are limiting your investment options more so than previous generations.

Additional Ways to Increase Your Income

Often you’ll see blogging, investing in real estate and flipping items on eBay referred to passive income streams. Yes, these are all ways to make more money. However, all of these options require a lot more time and effort to see the payoff. Becoming a landlord isn’t just buying the real estate, getting a tenant and collecting a check. A passive income stream is truly a set it and forget it. If you’re willing to put in more effort, learn about how to make money fast with a side hustle.

What are ways you’ve found to generate passive income streams?

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What to Do When You Lose Your Job

04.19.2020 by admin // Leave a Comment

You’ve just been told you’ve been laid off or furloughed. It’s horrible news on top of everything else going on right now. It’s hard, and finding a new job will be tougher than polishing off your resume. If you’ve been furloughed you now need to understand exactly what that means and realistically when you’ll be able to go back to work with full pay again. So, what do you do when you lose your job? First, create an immediate plan for your finances. Know what unemployment benefits are available to you, especially new resources through the CARES Act and take action to reduce your expenses. Second, create a short term and mid term career plan. Lastly, take steps such as reaching out to your network and identifying companies to apply to and put that plan into action.

Know What Unemployment Benefits Are Available For Laid Off and Furloughed Workers

Before you even formulate a plan for your career, apply for as many unemployment benefits as you can. And, understand what benefits you still have through your employer and for how long. Is your company offering you a package or not? Do you get to keep your health insurance and if so, how long? Does your household qualify for the $1,200 per adult and $500 per child financial stimulus through the CARES Act? There are differences between being laid off, pay reductions, hour reductions, and being furloughed. For example, some companies are continuing to pay healthcare benefits during furloughs.

Additionally, the CARES Act extended unemployment benefits to include gig workers, self-employed and independent contractors. The United States government also included an additional $600 / week unemployment until July 31st. Make sure you understand your situation and what benefits you qualify for.

Do A Thorough Review of All Your Expenses and Take Action

You now find yourself in a situation where you’ll have less cash coming in and uncertainty about what income you’ll have coming in in a few months. It’ll be easier to focus on your job search and develop your short and mid-term career plan if you know where you stand on your finances. It’s important to do a thorough review of all of your expenses and understand where you can start cutting back immediately. Not sure where to start? Here are 12 Ways to Save Money and Cut Expenses During Coronavirus.

Create a Short Term Career Plan

The situation we’re in won’t last forever but it will impact the short term and possibly the next few years as well. Even when the shelter in place guidance is lifted things still won’t return back to normal. It’s unknown how consumer demand will react. People may not feel comfortable traveling or going to sports games for awhile as an example. There will likely also be guidance that remains in place around social distancing and limits to how businesses reopen. As a result, your plan should take the macro level environment into account.

Evaluate What Industries Have the Highest Growth Potential

The industry you worked in before you got laid off or furloughed may not be the industry you work in next. Are you in an industry that will be struggling until a vaccine will be created? Or, are you in an industry which should bounce back quickly once shelter in place is lifted? You can still find opportunities to do what you love, but you may have to switch industries in the short term. The industries with the lowest risk right now are those that are considered essential such as IT, e-commerce and distribution of essential items like food.

Know Your Skill Set

Next, review your skill set. Being able to manage a pipeline, maintain good customer relationships, and turn prospects into sales are great skills to have no matter the industry. If you’re in hospitality sales now and furloughed explore sales opportunities in the technology industry.

This is true for many other skill sets. If you are good at managing inventory and running inventory sufficiency analysis in retail, look for opportunities to for these roles at e-commerce companies.

The jobs available to you are likely much broader than you think. Being able to clearly articulate your skill set and how these skills are valuable to the jobs you apply to will be key. And, if you don’t have the skills yet to do your dream job? Now is the perfect opportunity to learn those skills.

Know Your Passions

Were you doing what you were passionate about before? If you were in your dream job and that dream job is in an impacted industry other jobs you see may not excite you at first glance. Take a step back and really understand what about your last job you were most passionate about. Was it the product you supported? Your team? Certain projects? Then, look for those same qualities at other companies. If you’re still stuck, look at what employees say about the company in their Glassdoor reviews.

Develop Your Short Term Career Plan

Take your analysis on industries that have the best opportunities for growth right now, your skill set and your passions and combine that all together. Where do these intersect? Is there an industry that stands out, or a particular role within that industry?

Combine this new information with your existing career plan. What level role are you looking for? What salary and benefits are you looking for? Are you interested in being an individual contributor or a manager? The jobs available may not meet all of your criteria so it’s important to be flexible but also mindful of looking for roles that can still put you on the right path. Don’t have an existing career plan to add to? Build a career plan using these tips.

Execute Against Your Short Term Career Plan

Now that you have a short term career plan it’s time to turn that plan into action.

Identify Which Companies You Want To Work At

Start your job search by focusing on the industries that are considered essential. While there have been a lot of news articles about hiring in the front lines such as grocery workers there are plenty of jobs that need to support those jobs too. For example, recruiting, HR, distribution operations, etc. Information technology is a great industry to be in and there are plenty of jobs in IT that don’t require being an engineer.

Next, find companies within those industries that you’re interested in working at. What companies in that industry made the list of top places to work? Do you have friends or former coworkers that work at those companies? It’s always great to get feedback from current employees directly about what it’s like to work for that company.

Update Your LinkedIn

LinkedIn is a social networking site for job searchers. But, did you know that 87% of recruiters use LinkedIn as part of their candidate search? There are plenty of ways to use your LinkedIn profile to help with your job search. This includes updating your profile with a profile picture, relevant headline and your latest experience and skills.

Lastly, be sure you’re connected to former coworkers and friends on LinkedIn. This will help you identify where you already have connections at companies you want to apply to. It’ll also show you what mutual connections you have with hiring managers and more.

Leverage Your Network To Get Your Resume Seen

Your network is critical during your job search. It’s easier to get a job through an employee referral than it is to apply to a job without that recommendation. Reach out to your mentor to get guidance on what other jobs your skill set may be conducive for. Talk to your career sponsor and ask if they know of any jobs they can refer you to or strong connections they can put you in contact with

Invest In Yourself Through Free Skills Training

Perhaps you find this is an opportunity to completely reinvent yourself. Maybe you didn’t enjoy what you did before or you liked what you did but you wanted to earn more money. Instead of viewing this situation negatively, view it as a positive and take advantage to come out of this situation stronger. There are plenty of free learnings out there to help improve your skill set.

Free Skills and Interview Training Offered by LinkedIn

LinkedIn Learning has a one month trial period for free. This site offers a wide variety of courses including how to rock your LinkedIn profile, cloud computing courses, sales courses and project management courses.

Free Skills Training Offered By Kahn Academy

Kahn Academy is a non-profit that offers personalized learning and trusted content. There are plenty of courses to chose from including courses on computer programming, entrepreneurship and careers.

Free Career and Interview Training Offered By States

Know what other trainings and career resources your state government offers. For example, Illinois has virtual training which includes webinars on interview techniques, starting your business in Illinois and changing long term goals due to disruptions.

Take Advantage of Free Time

Often it feels like there is not enough time in the day. Now that you’ve been laid off or furloughed you’ve been given some time back. This is the perfect opportunity to learn something new, spend time with immediate family, or do household projects. You will get a job again and when that happens you’ll be really busy getting ramped up. Take advantage of the downtime now because that too will pass.

What advice do you have for people that have lost their job?