Monthly Archives: July 2017

Liquidity in Job Markets

For the past month or so, I have been  looking at job postings in my field of specialization – Geotechnical Engineering – across the US and Canada. During my searches, I noticed some general trends that the companies exhibit when it relates to the expectations and/or qualifications of the candidates they want. Most are what is to be anticipated for the corresponding position. But of all the different expectations listed, one particular aspect has many interesting collateral impacts for the overall job market. And that is the requirement of Experience.

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In general, I noticed the following breakup in the job postings (I do not have hard numbers, but a constant exposure to the postings will pretty much confirm this):

  • Senior Geotechnical Engineer (40% of available positions): 10-15+ years of experience.
  • Intermediate Geotechnical Engineer (30-35% of available positions): 5-10 years of experience.
  • Junior/Entry Level Geotechnical Engineer (25-30% of available positions): 0-3 years of experience.

At first glance, the above description appears to be rather innocuous. A direct correlation between seniority of position and expected level of experience from the candidate is fairly obvious and definitely warranted. But this does not provide the complete picture. What needs to be looked at is that about 70% of jobs in the market are only for candidates who have experience in the range of 5-15 years or more. So what does this imply?

First, we have to understand where the labor supply – all experience levels – comes from and where they are currently and where they will be in the future. In the field of Geotechnical Engineering, I can think of a few hundred people graduating with a Master’s degree every year in the US, and a Master’s degree is pretty much a requirement for a career in Geotechnical Engineering. So that means there is a constant supply of maybe 200-400 eligible candidates every year for the Junior/Entry Level positions. For the sake of discussion, let us assume that all these graduates get an entry level job. (From my own experiences in trying to hire entry level candidates for my company, I can say that the demand exceeds supply. So this assumption is valid). And let us also assume that most, if not all, of the demand for the entry level/junior Geotech positions is fulfilled. So far, so good.

But this is where the fun starts. Because you see, unlike the constant supply of eligible graduates for Junior/Entry level positions, there is absolutely no such supply for the Intermediate and Senior level positions. The people graduating from colleges are unemployed and actively looking for entry level jobs. Companies are also actively looking to fill their junior/entry level positions. So there is a constant match between demand and supply for the entry level jobs.

But there is no such connection available between eligible candidates and the Intermediate/Senior positions. The ‘eligible’ candidates for these positions are typically already employed and lack any incentives to change jobs. The lack of incentive only increases with a person’s experience. That is, the longer a person spends time in a city or a company, they are unlikely to move away from either or both. People develop professional connections, drop roots in a community, buy houses, start a family and get settled in one place as they progress in their career.

If anything, the factors listed above only contribute to a ‘cost’ for the person if they were to consider changing companies and/or cities. And any company looking to hire for an Intermediate/Senior position will have to ‘compensate’ for that cost in some visible form – higher salary, higher position, faster career growth, better living/working conditions, etc. And it is not sufficient for the company seeking to hire the candidate to be just ‘better’ than the candidate’s current employer. They will have to be ‘significantly better’ since they will have to provide additional compensation for the ‘cost’ the candidate has to pay to change jobs.

All this points to a job market where the entry level positions are continuously filled and the intermediate/senior level positions are hard to fill. Most of the intermediate/senior level jobs typically stay open for a long time (several months). Anyone can login to any job platform and see this for themselves. In spite of this, one cursory look at the tone and content of the job posting requirements for intermediate and senior level positions reveals such a sense of idealism on part of the company seeking the candidates. There are typically such a large number of specific requirements listed for a candidate in these positions, one has to wonder exactly how successful are these companies in hiring people for this level?

And that is not even a rhetorical question from my side. I am genuinely interested to know what the success rate is for companies seeking to hire intermediate and senior level positions in a specific high skilled profession. What percentage of these positions actually get filled? How long are they typically open for? Do the recruiters ever relax their requirements? Do they promote someone from within the organization and/or give them additional responsibilities? Are the recruiters even aware of the nature of the job market? What do they do when they absolutely need someone?

Or in other words, exactly how liquid is the job market at the intermediate and senior positions for high skilled professions? 

These questions take me to yet more interesting aspects/impacts on the overall job market. In an illiquid job market, what does job creation even mean? Exactly how valuable is experience for a given role? How would/should one define skills shortage? And how should this be addressed? What should be the role of immigrants in such a situation?

These are questions I seek to address in future posts. Stay tuned.

 

 

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The Rewards of Reading/Watching a Full Speech or Interview

In this age where information comes from media stories featuring selective quotes and needless commentary, it is very easy to miss out on the beauty, elegance, significance, and sometimes the necessity, of reading or listening to a full speech or an interview AS IS. It helps us get the proper context for the words, compels us to decide for ourselves what the highlights of the speech/interview are, and most importantly, it allows us to frame our own opinion about the content and the person.

Whenever there is an interview or a speech given by some personality I am interested in, I typically just google the full transcript of it. Yes, it takes a little more time to get through it, but it is always very rewarding. The flow of the content is very important to me, as is the overall tone and content.

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I am specifically reminded of an interview Kanye West gave to Surface Mag. It is one of the best interviews I have ever read, and after reading it, I have to grudgingly accept that this man is one of the most fascinating human beings on this planet. At the risk of going against the very point I am trying to make here, I am going to pull out a couple of quotes from what Kanye says in the interview (You will see why this is justified!):

This is turning into a 12-minute freestyle. Which is good. When I talk it’s like a painting.

I think you should just run this interview clean. You gotta let the painting be open with this let-me-just-zone-out-with-Ye-for-a-second thing.

Just gotta admire the man! He knows exactly what he is saying and how people should hear what he is saying!

In all honesty, I am sure all powerful people who have ever given an interview or a speech – only to have the media cherry pick the most controversial statements and reduce the whole interview to just that one soundbite – will agree with Kanye on this one!

But there is another side to this story. It is the part where we, as common people, MISS OUT on something beautiful, elegant and sometimes absolutely necessary information or advice simply because we do not have the patience or the desire to read through a whole interview or speech. Let us face it. Today, we get our perspectives from Memes, our opinions from Facebook updates, and our news from a headline. We also watch videos only when the information or situation to be conveyed is done so in a compressed manner and is under 30 seconds.

Amidst all this cacophony of piece-meal consumption of information, it is easy to spot and observe what we do see. But it is hard to realize what it is that we do not see, especially when we do not know what to expect.

In essence, what we are missing out on is a deeper insight into some idea, a better appreciation (good or bad) of the person who is making the speech, or simply some crucial facts about an issue. When we finish reading a full speech without interruption (such as commentary/ads, etc), we even have the opportunity to pause for a second and just meditate on the words of the person. Anyone who has actually done that – say after reading a book or watching a full movie – will be acutely aware of its rewards. And the more people do that, the better the debate will be on any given topic.

John McCain has been dominating the news cycles for his No vote to repeal Obamacare and defeating the Republicans’ attempt to dismantle the law. Media outlets have also been showing clips of his speech prior to the No vote where he urged bipartisan attempts to rework the healthcare law and all bills in general. But what most folks missed out on is the full speech he gave. I read the full speech yesterday, and I was extremely moved by every word that he said. There was such an important message with so many details in what he said. The flow of the speech and the ultimate plea it makes resonated with me long after I had finished reading it. It was a speech that showed there is still some hope left for this Congress to work the way it was intended to. And for all the problems plaguing this administration and the Republican party, this speech showed there may still be some sane men left who know their duties and responsibilities. It is a speech every single American – liberal or conservative – should read/watch in its entirety. There is so much truth in what McCain says that one really needs to spend a few minutes just contemplating after reading it. Ultimately, it is what every American NEEDS to hear in this day of partisanship and great divide.

 

It is easily one of the best political speeches I have ever read. In fact, if this man was running for President, and gave this speech, I would tell all my friends to vote for him. (And that is a big deal coming from a guy like me).

So yes, please go ahead and read his full speech or watch it below in full.

I started writing this post as just a small Facebook update when it began to take a life of its own. But this is something I feel very strongly about in general and so I had to do justice to it, and hence this longer post.

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Reporting of selective quotes or providing needless commentary or background in a media story frustrates me to no end. And so, I offer the following general approach to bypass such unnecessary and/or incomplete articles:

If you read a headline you find interesting, first observe if the headline itself is a quote or a statement. If it is, and you already know the background of that story, then simply skip all the ‘reporting’ in the article and go straight to the quotes. Read the quotes and be done with it.

If you are not familiar with the story, then read the full article.

If the article quotes what Trump said on Twitter, close the news article, open Trump’s Twitter account and read all his tweets from the previous day or two up until his latest tweet. Then be done with it. There is really nothing more to know.

The above approach most commonly applies to all developing stories where there has been some incremental development. True journalism instead can be found in articles that are NOT developing stories and where there has actually been some investigation involved.

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