Thursday, August 27, 1998

Small businesses create worse, lower-paying jobs, study says

By Carol Kleiman

Chicago Tribune

Even though small businesses have been described as the "engine of economic growth" in the United States, smaller may not necessarily be more beautiful.

Though employment experts have been urging job seekers not to forget small firms when they're out job hunting, the latest research shows companies with fewer than 50 employees in the long run do not generate more jobs than large firms.

That's the conclusion of a study by the Economic Policy Institute in Washington, which states that even though new businesses do create new jobs at a higher rate than the nation's top 1,000 firms, the problem is they also eliminate them at a higher rate.

And the research by the nonprofit economic think tank also uncovered another discouraging bit of news: "The quality of jobs created by small businesses is inferior to those created by large businesses."

The report, titled "Small Consolation: The dubious benefits of small business for job growth and wages," also finds:

-Employees at large firms earn on average 39 percent more than employees at small firms. The gap has been widening, not declining, over the past 20 years.

-Health insurance is available to 68.7 percent of employees at large firms; only 30 percent of workers at small firms receive it.

But don't give up on small firms: They're still the source of much of the energy, excitement and creativity in the U.S. economy. And hiring.

x x x

"I find very interesting your correlation between the dress-down day of Friday and a drop in productivity," a reader says. "Based on personal experience, I agree."

She says she had to wear a school uniform, and "on the days we were allowed to wear 'street clothes,' there was always an outbreak of detentions, reprimands and generally poor behavior."

The ex-uniform wearer acknowledges that her observations "sound overly conservative and stodgy, particularly coming from a woman with a nose ring and a tattoo, but employers should pay attention to what private schools have been saying for years."

And what they've been saying is that how you dress may affect your behavior.

I repeat that my suggestion about a connection between dress and performance at work is only theoretical. But I do appreciate this women's remarks. And her nose ring. And her tattoo.

x x x

A job seeker says one reason he refuses to divulge his current salary to a potential employer is that his current employers "would go absolutely ballistic. Since my paycheck comes from current employers, my allegiance is to them. I consider it completely unprofessional to reveal that information in a cover letter or resume that will be passed to an unknown number of people. ... It's none of their business. My mother and siblings don't know what I earn, so I'm not about to reveal it to total strangers."

I agree that it's counterproductive to give salary information before you have a job interview because it can rule you out before you get a chance to show what you can do.

It's a very touchy subject, but I jokingly asked the job seeker this question: Does this mean you're not going to tell me your salary? How about your mom?

x x x

It's important to keep your resume up to date whether or not you're job hunting. But when it comes to a specific job you want to apply for, you may want to pare it down.

"How many years back should a resume go?" is a frequently asked question. It's one that makes a lot of sense, particularly because age discrimination is rampant.

If you have skills and qualifications that pertain to the job you're applying for, include them on your resume, no matter how far back they go. Otherwise, you don't have to list everything.

x x x

Here's an excerpt of interest from a new book that pertains to the world of work: "Make the best art you can, then push yourself further. An artist always is in the process of becoming. If you find yourself repeating past successes, making the same painting over and over, or painting to please your friends or your dealer, you probably are avoiding the next step in your growth."

From: "Taking the Leap: The Insider's Guide to Exhibiting and Selling Your Art," by Cay Lang (Chronicle, $16.95).

-Coach's Tip. No matter what your profession is, you continually have to make changes and do things differently - or forever stand still.

(Send e-mail to ckleiman(AT)tribune.com)

(c) 1998, Chicago Tribune.

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