A friend of mine was telling me about his experience doing tech interviews. Programming tests. Engineering interviews, program this based on this design. Personality interviews, what adversity have you faced, give an anecdote, what about challenges? Entire days are spent, multiple rounds. For almost everyone involved, it is worth it. Companies like Google and Facebook know that almost 80% percent of employee turnover starts from a bad hiring decision and with so many options, employees easily feel dissatisfied with the first company they find and, instead, want to find the one that fits. That's why they've become among the best places in the world to work for.
But not every business starts out with legions of professional recruiters or even the office space. Almost 70% of small businesses in the UK do not have a single member of their staff dedicated to finding the kinds of talent that make the difference between "that's a cool idea" and the next AirBnb. Without the people, it's just a talking point and a few unhappy investors. With the wrong people, it'll just become someone else's idea.
And that's a void that a host of new innovative recruitment technology companies like Sonru, LaunchPad Recruits or InterviewStream are trying to fill. Since people no longer look for jobs in the Yellow Pages, there's no reason your hiring department (especially if that's just you) to be stuck in the Middle Ages. Forget relying on emails or antiquated personality quizzes—innovative recruitment technology puts you in command of smart data-driven recruitment tools that give you access to a pool of millions of people all over the world to find the right fit for your brand.
Just like you wouldn't want a lawyer operating on you in the hospital, every company needs the right people to carry out their mission. At one of the newest of the recruitment technology innovators on the marketplace, LaunchPad Recruits, businesses can select the interview questions that matter most to their brand and use sophisticated recruitment tools to screen hundreds of possible applicants. Applicants respond through video assessments and the best are sent to you to review. After that, the program uses powerful analytic software to measure everything from communications skills to particularized cultural aptitude. Company culture is brand power, nonprofits need the caring hearts who can't avoid looking the other way, and venture capital firms need people whose lifeblood lives on the bottom line. Innovative recruitment technology gives small business the opportunity to connect with applicants before the hiring process even begins, creating the kind of workforce that's behind every optimal workplace.
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When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.