THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Monday, September 26, 1994 TAG: 9409220321
SECTION: BUSINESS WEEKLY PAGE: 8 EDITION: FINAL
TYPE: Cover Story
SOURCE: BY JANET DUNPHY, SPECIAL TO BUSINESS WEEKLY
LENGTH: Long : 188 lines
Weary of longer sea duty and a downsized Navy, Lt. Colin Kane resigned this summer, pocketing a $31,000 military exit bonus.
Now holding a $42,000 job at an accounting office in his home state, Rhode Island, Kane stands as an exception in these uncertain times.
While droves of military personnel in Hampton Roads are looking for civilian jobs, Kane stepped quickly and surely to a corporate career. How he made the move is a story in itself.
Only five years ago, corporations favored hiring military hands, especially the officers, for their discipline and management skills. Today, companies have one more requisite: technical ability. New employees must swiftly fit in.
``The employers just don't have the luxury in this economy of developing a farm team,'' said Tom Wunderlich, assistant director of career services at Old Dominion University's engineering school.
Tens of thousands of military personnel in Hampton Roads face dislocation as the armed forces trim brains, brawn and budget in the wake of the Cold War.
Long the home for the U.S. Navy's largest base, Hampton Roads is awash in resumes. Chief petty officers and commanders are looking for jobs. But so are foremen and vice presidents. The military downsizing and corporate rightsizing have coincided.
``Right now you have midcareer officers with 10 or 15 or 18 years of experience who are looking for a midlevel niche in private industry,'' said Wunderlich, a retired Marine fighter squadron commander. ``They're really middle managers, and that's exactly the problem. The civilian corporations are downstructuring. They're getting rid of middle managers, too.''
So far, the repercussions of military downsizing have been blurred in the overall Hampton Roads economy. Ships and units have been moved to Tidewater from other states, a consolidation that increased the number of military personnel in Hampton Roads to 133,312 in 1992, according to the latest figures from the U.S. Bureau of Economic Analysis.
But for those leaving the service, the civilian economy can be daunting, especially for those without college degrees. Thousands are in classes, figuring out how to make military experience make sense on a job application. And many are looking for jobs outside Tidewater.
``This is a very saturated labor market. The competition for existing jobs is pretty keen, whereas other parts of the country are practically crying for skilled folks,'' said John Ickes of Little Creek Naval Amphibious Base's transition assistance program, which prepares military men and women for civilian employment.
Right now I think the economy is picking up,'' said Robert Larned of Robert Larned Associates Inc., a Virginia Beach employment firm that caters to junior military officers and enlisted technical people. ``There's a lot of opportunities compared to last year.''
Larned has a core base of Face dislocation as the armed forces trim brains, brawn and budget in the wake of the Cold War.
Long the home for the U.S. Navy's largest base, Hampton Roads is awash in resumes. Chief petty officers and commanders are looking for jobs. But so are foremen and vice presidents. The military downsizing and corporate rightsizing have coincided.
``Right now you have midcareer officers with 10 or 15 or 18 years of experience who are looking for a midlevel niche in private industry,'' said Wunderlich, a retired Marine fighter squadron commander. ``They're really middle managers, and that's exactly the problem. The civilian corporations are downstructuring. They're getting rid of middle managers, too.''
So far, the repercussions of military downsizing have been blurred in the overall Hampton Roads economy. Ships and units have been moved to Tidewater from other states, a consolidation that increased the number of military personnel in Hampton Roads to 133,312 in 1992, according to the latest figures from the U.S. Bureau of Economic Analysis.
But for those leaving the service, the civilian economy can be daunting, especially for those without college degrees. Thousands are in classes, figuring out how to make military experience make sense on a job application. And many are looking for jobs outside Tidewater.
``This is a very saturated labor market. The competition for existing jobs is pretty keen, whereas other parts of the country are practically crying for skilled folks,'' said John Ickes of Little Creek Naval Amphibious Base's transition assistance program, which prepares military men and women for civilian employment.
Typically, Larned places people with four to eight years of military experience who have a college degree and technical and leadership skills.
For college graduates leaving the military, the average starting salary on the civilian side is about $40,000, comparable to a Navy lieutenant's pay.
However, many take a pay cut once they figure in the absence of military benefits: a housing allowance, free medical care, sea pay, yearly cost-of-living raises and in some cases a food allowance.
A former Navy helicopter pilot, Larned said relocation is almost as important as skill when it comes to securing a job outside the military.
``A lot of people want to stay in Tidewater. It's driven the market down here,'' he said.
Relocating to Rhode Island thrilled Colin Kane. Less than one month out of the Navy, in possession of a golden resume, he was hired as a consultant in the government contracting division of KPMG Peat Marwick.
Kane, 28, had an engineering background as a 1988 U.S. Naval Academy graduate, as well as management skills, having served most recently as flag lieutenant aboard a Norfolk-based destroyer. He also had something that gave him an edge in the civilian world: an MBA from Georgetown University.
After 6 1/2 years, he left the Navy, preferring to spend more time ashore with his infant son and wife, also an academy grad.
``The scheduled time at sea was going up, and the time in port was going down,'' Kane said. And the Navy downsizing meant the possibility of promotion was pushed into the future. ``That's taking money out of your pocket,'' he said.
In June, those in the 1988 academy class year were offered an exit bonus of $31,000 before taxes. Kane accepted the bonus and his first job offer - Peat Marwick offered a $42,000 salary, and bonus, medical coverage and 20 vacation days. He figures it adds up to a $4,000 pay cut.
``But I look at it as an opportunity to go up,'' Kane said. ``We have lived high on the hog in the Navy. But we were leveling out.''
Most people are absolutely willing to relocate because they've been doing that for years,'' said Jack Friel of the Non-Commissioned Officers Association in Norfolk.
One of 175 worldwide, NCOA is a nonprofit lobbying group. It files resumes on behalf of job seekers and makes the files available to employers. And it offers free job fairs, resume service and counseling to military men and women, mostly enlisted.
With technical ability in demand, management skills have taken a back seat as the selling point on a resume. That can hinder the military person who draws increasingly important administrative duties but has to neglect hands-on technical skills.
Nevertheless, corporations remain interested in military personnel. For example, an August job fair in Norfolk sponsored by NCOA drew representatives from more than 40 companies as well as 1,300 people, chiefly from the Norfolk area, who had either left the military or were thinking about it, Friel said.
Hewlett-Packard Corp. and Intel Corp. alone hired 140 people at the fair, Friel said. Other companies in attendance were Brown and Root Services Corp., Eastman Kodak, GTE Government Systems, Martin Marietta and Mutual Life Insurance Co. of New York.
Friel said military men and women appeal to companies for several reasons. Those retiring after 20 years in the military are allowed one free move a year. And they don't mind work.
``Their work ethic is beyond question,'' Friel said. ``When they are given a job, they do the task.''
But military life has left many in the armed forces ill-prepared for job searches in the civilian world.
``Some guys show up at these job fairs without resumes,'' Friel said. ``It amazes me. They're in such a caste society where everything is pre-planned for them. The environment is absolutely different for civilians.'' ILLUSTRATION: [Color cover photo by Ian Martin]
Color staff photos by Ian Martin
John Ickes, above, of Litle Creek Naval Amphibious Base's transition
assistance program.
Left, Zane Shippa attends one of Ickes' workhops intended to help
military personnel make the transition to civilian jobs. Shippa has
been in the Navy 16 years.
Color staff photo by Mort Fryman
Robert Larned. above left, of Robert Larned Associated Inc., a
Virginia Beach employment firm that caters to junior military
offices and enlisted technical people. At right is Navt Lt. Alfonso
Pena, an electric warfare officer aboard amphibious assault ship
Kearsarge. Pena is due to get out of the Navy next year.
Color graphic by Janet Shaughnessy
Armed Forces' Economic Impact
In terms of payroll, the military is the largest sector in the
Hampton Roads economy after the service industry.[for years 1972,
1982, 1992]
Total personal income in Hampton Roads in billions of dollars
Military payroll as a percentage of Hampton Roads total personal
income.
Number of military personnel in Hampton Roads
Source: Hampton Roads Planning District Commission
For copy of graphic, see microfilm
by CNB