Career Alternative Dot.Com Conclusions derived from Focus Groups of P&G employees interested in potential P&G dot-com work: P&G has the world's best training ground.. Want to get experi
Trang 1Guide 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:
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
• 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
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• 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
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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 4th 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)