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The Great Resignation: Why Millions Of Workers Are Quitting - YouTube
Channel: CNBC
[3536]
Americans are reassessing the
way they work. According to an
[3540]
August 2021 poll, more than half
of workers surveyed said they
[3543]
plan to look for a new job in
the coming year. Fifty-six
[3547]
percent of respondents said
adjustable working hours and
[3549]
remote work were a priority. And
while some people have left the
[3553]
workforce entirely, job security
and better pay are also top
[3556]
concerns for employees.
[3558]
It's time to find something that
is going to be better for my
[3563]
family, something more stable,
something that I can provide,
[3566]
where I don't have to go to work
and be like, oh, is he gonna,
[3569]
you know, am I gonna get fired
today? Or is he not going to be
[3571]
happy with, you know, the
service.
[3573]
In August 2021, almost 4.3
million Americans quit their
[3577]
job. The resignation rate hit a
20-year high of 2.9%. Working
[3581]
women have faced an even heavier
burden juggling childcare
[3584]
duties, virtual schooling and
their careers.
[3587]
We're all able to take a step
back in the last year and spend
[3590]
more time doing other things and
really question the value of
[3594]
what we're doing at work. A
number of people have made the
[3597]
decision I need to make a
change, I need to, I need to
[3600]
simplify.
[3601]
Dubbed "The Great Resignation",
the exodus of workers has left
[3604]
millions of jobs unfilled and
created hiring challenges for
[3607]
companies. So what does the
realignment of the workforce
[3610]
mean for employees and
businesses? And what steps
[3613]
should you take before quitting
your job?
[3621]
U.S. workers are leaving their
jobs in droves. In August 2021,
[3625]
almost 4.3 million Americans
handed in their resignation,
[3628]
including 971,000 people working
in the leisure and hospitality
[3632]
industry, which includes hotels
and restaurants. Another 1.3
[3636]
million workers were laid off or
discharged by their employer.
[3639]
Jessica Thomas is one of those
workers. She spent nine years in
[3643]
the restaurant business in
northern New Jersey before Covid
[3645]
hit. With cases surging and
customers avoiding dining out,
[3649]
the bar where she worked
temporarily shut its doors in
[3651]
the Spring of 2020, leaving her
without a job and a paycheck.
[3654]
But also in that industry, you
know, if you're not working,
[3657]
you're not making money. So
there are no sick days. There's
[3660]
no vacation time. There's no
health insurance.
[3664]
Uncertain when her job would
restart, the mother of three
[3667]
found herself at home relying on
unemployment benefits. Her
[3670]
husband, Derek who works as a
bartender, faced a similar
[3673]
dilemma.
[3673]
A lot of people took the time
that, you know, when you have
[3677]
the time off and you're sitting
home collecting unemployment,
[3679]
they took the time to find other
careers.
[3681]
I didn't hear anything from the
owner until I think it was a day
[3685]
before when he was going to okay
we're reopening. There was no
[3688]
communication, nothing. So for
me, that kind of just made me
[3693]
want to get out of that
industry.
[3695]
In August 2021, the separation
rate for hotel and food service
[3699]
workers, which includes quits,
layoffs and retirements,
[3702]
increased to 8.3% from 6.7% the
month prior. And while the
[3707]
pandemic has caused a severe
blow to employment overall, it
[3710]
is especially impacted working
mothers. As of January 2021,
[3714]
there were 18.5 million U.S.
mothers living with their
[3717]
school-aged children while
actively working, 8% percent
[3720]
less than a year earlier. On the
advisor brother-in-law, Jessica
[3723]
applied for a job at the Port of
Newark, New Jersey, home to the
[3726]
East Coast's busiest port.
[3728]
When I went in the gentleman at
the door said, "you know you're
[3732]
at the wrong building" and I
said "no, no, I'm at the right
[3735]
place." He goes, "no, no, the
the nurses for the Covid testing
[3738]
is the other building." I said,
"no no, I'm here to apply to be
[3742]
a longshorewoman."
[3744]
In Jessica's new job as a
longshorewoman, she helps load
[3747]
and unload cargo ships that
bringing electronic, apparel and
[3750]
consumer goods from around the
world.
[3752]
Monday I drove 1,700 Toyota's
off of a ship. We got there at
[3757]
7am we got done at 5pm. And you
drive the car off, get back in
[3761]
the van, go back up, drive the
car off until the ships done.
[3765]
Nobody leaves until the ships
complete.
[3766]
Her new job also gave her a
salary boost, double the pay of
[3769]
her previous job at the
restaurant with benefits ranging
[3772]
from paid vacation to health
insurance. And according to a
[3775]
May 2021 survey, Jessica is not
alone. Almost half of workers
[3779]
polled said they are rethinking
the type of job they want in the
[3782]
future. More than half said they
would retrain for a new career
[3786]
if they have the opportunity.
[3787]
I feel like I'm always trying to
find balance in my life.
[3791]
Balancing with working and all
the kids stuff, my relationship
[3795]
with my husband. Everyday it's
like okay, how am I going to do
[3798]
this? How are we going to get
through this?
[3802]
According to an August 2021
study, almost a third of workers
[3806]
at large U.S. companies said
they are likely to change jobs
[3809]
in the coming year. Younger
workers are even more likely to
[3812]
uproot their careers. Half of
Gen Z workers, particularly
[3815]
those struggling with
productivity and time pressure
[3818]
issues at work plan to switch
jobs in the coming year.
[3822]
According to one financial
planner, there are three
[3824]
solutions to remedy a non-ideal
work situation. For starters,
[3828]
small changes can make a big
difference. The easiest and
[3831]
least disruptive way forward for
you and your company is to tweak
[3834]
the job you already have.
[3836]
I would encourage employees to
go have what I would call a job
[3839]
crafting conversation with their
manager and say I love this 60%,
[3843]
this 40% not so much, what can
we do, and that could be
[3847]
everything from maybe you just
cut back to three days a week,
[3851]
and your job becomes a smaller
job.
[3853]
Volunteering or side hustle
could be another way to
[3856]
cultivate experience and explore
new industries. Another benefit,
[3859]
after a couple months, you can
stop, continue or test out
[3863]
something else. And finally, if
you're in a job that is mentally
[3866]
or physically trying has a poor
work-life balance, or limited
[3869]
growth opportunities, that may
be a signal, it's time to look
[3872]
for a new job. But before
quitting financial planner Roger
[3876]
Ma advises to take a look at
your financial situation, and
[3879]
find out how much it costs to
fund your lifestyle.
[3882]
And then once you know that
number, let's just say that your
[3885]
expenses are $50,000 and to be
able to fund that you need to
[3890]
make $80,000 then you can start
to look at what are the roles,
[3894]
what are the positions, what are
the industries that pay that
[3897]
amount. It might be roles in a
similar industry that you're in,
[3902]
or maybe you've been in your
industry for a while and you're
[3904]
looking to pivot.
[3906]
While searching for a new gig
financial advisors say, it's
[3909]
easier to find a new job if you
already have one, and it also
[3912]
puts you in a better position to
negotiate your salary. Leaving
[3915]
on good terms is another tip.
[3917]
Even though you may think I will
never come back to this company
[3920]
again a little insurance policy
would be leaving on the best
[3923]
note possible. So maybe you
leave that door open to
[3926]
boomeranging back at some point
in the future.
[3930]
The U.S. has seen a record
number of people quit their
[3932]
jobs. But what's led to the boom
in resignations? Several factors
[3936]
according to Anthony Klotz,
associate professor of
[3938]
management at Texas A&M
University. For starters, the
[3942]
pandemic forced Americans to
take a hard look at their lives
[3945]
and reevaluate their careers.
[3947]
But as a result of the deep
thinking that people did during
[3949]
the pandemic, I reasoned that a
number of them would plan life
[3953]
pivots coming out of that
sometimes those life pivots
[3956]
would not involve a job change
but in many cases, because of
[3959]
how central careers are to our
lives, it would it wouldn't
[3962]
necessitate a career change.
[3964]
Working from home with another
factor. According to Klotz, a
[3967]
number of people who work
remotely at the start of the
[3969]
pandemic have been unwilling to
give up their autonomy.
[3972]
I think what we're finding is a
number of employees who worked
[3974]
remotely felt like they could be
more of themselves than they
[3978]
could in the office. And maybe
in some cases, they felt like
[3981]
there was less harassment, less
microaggressions, wear the
[3984]
clothes that they want, the hair
the way they want. Burnout
[3987]
and mental health are another
component. According to one
[3989]
survey, longer workweeks have
become even more embedded in
[3992]
business culture. And the
boundary between work and
[3995]
personal life has shrunk. More
than 40% of workers at large
[3998]
U.S. companies said they had
difficulty setting work and
[4001]
personal life boundaries. And
almost 45% said they felt
[4003]
pressure to be reachable at all
times.
[4005]
There were lots of reports that
burnout was at all-time highs
[4009]
for individuals and burnout is a
pretty clear predictor of people
[4012]
quitting their jobs. Increased
[4014]
economic independence has also
led to the rise of resignations.
[4017]
According to an August 2021
study from Oxford Economics,
[4020]
American saved an additional $4
trillion during the Covid
[4023]
pandemic. While about 70% of
that gain went to the wealthiest
[4026]
20% of Americans, analysts say
the economic uncertainty of 2020
[4030]
forced many people to delay
their retirement plans until
[4033]
2021.
[4034]
My sense is early retirements
are up. People taking a break
[4039]
from the workforce like their
own sabbatical is up. And that's
[4043]
supported by 2020 was only the
second year in the last 35-years
[4047]
where American household debt
actually went down.
[4051]
Businesses across the U.S. are
struggling to find workers. In
[4055]
August 2021 there are 10.4
million job openings across the
[4058]
country. According to a Q3 2021
CNBC survey, half of small
[4063]
business owners say it's harder
to find competent people to hire
[4066]
than a year ago and nearly a
third so they have jobs they
[4068]
haven't been able to fill for at
least three months. But while
[4071]
the number of job openings has
reached historic proportions it
[4074]
might not be an entirely new
phenomenon.
[4076]
Since the Bureau of Labor
Statistics began tracking this
[4078]
back in 2000 the rate of
employee resignations per month
[4083]
has gone up fairly steadily over
the past 20 years. To entice
[4087]
workers back employers have come
up with incentives ranging from
[4090]
college tuition to signing
bonuses. In August 2021, Target
[4094]
announced a program to pay 100%
of its workers college tuition.
[4098]
The big box retailer said in
addition to tuition, it would
[4101]
cover textbooks and fees for
employees pursuing 250 college
[4104]
programs at more than 40
institutions. Chipotle,
[4108]
Starbucks and Walmart offer
similar debt free education
[4111]
programs. Other companies have
boosted pay. McDonald's
[4114]
announced in May it was raising
hourly wages at company o
[4116]
ned restaurants. Walmart, U
der Armour and Walgreens
[4120]
ave announced similar pay hikes.
And according to analysts, hi
[4123]
ing new employees is only half
the battle. Companies face a
[4126]
teep penalty if they are unab
e to retain employees they al
[4129]
eady
[4130]
I think it's incredibly
expensive to lose talents and
[4133]
especially a lot of talent and
so that you've got the loss of
[4137]
maybe this person has been
thinking about it for some time,
[4139]
they're unhappy so you're not
getting the most out of them
[4142]
while they're there, and then,
you know, eventually when they
[4144]
decide to leave, you might have
to spend several months to be
[4149]
able to attract new talent.
[4150]
According to a 2017 study by the
Work Institute, based on a
[4154]
median U.S. salary of $45,000
the average cost of turnover per
[4158]
employee is $15,000. That figure
includes direct costs, like exit
[4163]
processing and relocation
expenses, as well as training
[4166]
costs and lost productivity.
According to the group, the cost
[4169]
to U.S. employers from worker
resignations in 2016 alone was
[4173]
$536 billion. But despite these
issues, analysts say that the
[4177]
wave of resignations we're
experiencing could ultimately
[4180]
lead to an improvement for the
lives of both workers and the
[4183]
organizations that employ them.
[4185]
I think the one silver lining
out of this is that the pandemic
[4189]
has gotten people to review or
question things that they've
[4194]
done in the past and maybe if
you have been on autopilot, it's
[4197]
given you that kick to say, you
know, this job, I've been on
[4202]
autopilot this doesn't really
align with my interests or my
[4205]
long-term goals and I'm gonna
make a change. With this
[4209]
many resignations that means
there's lots of talented
[4212]
employees who aren't working
right now for any number of
[4215]
reasons. And so a lot of
organizations see that as an
[4217]
opportunity as well, to improve
their organization and improve
[4221]
their talent pool. Invest in you
ready, set, grow, CNBC and
[4232]
acorns.
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