Why is it happening? (Our take on it)

• The war for talents: Good brands win them all
• Gig economy: People have new choices, Uber, Lyft, Amazon…
• New generations have a changed mindset and good reasons for it
• Did you know $84 trillion being passed to new generations?
• Covid19 is ramping up again: 500,000 missing from the workforce

The Great Resignation has several underlying and accelerating root causes that fewer people realize. Made simple: People have more choices. Here are few of the root causes we keep a pulse on.

Intensifying talent war between corporations

We can all agree on how costly it can be to see a talented, well trained employee leave and give just two weeks notice. Companies are doing a better and better job to develop loyalty programs, 4-day work weeks, and any other actions that can lead to more employee happiness (including salary increases, which means more costs). The companies that succeed at these HR plays are able to hire employees from other companies, emptying their bench rapidly. Employees have figured this out and are jumping the gun early! In the Lien process, that means often a lien to auction cycle that needs to be restarted, more bad debt, an aging list of overdue clients and a lot of headache to catch up…

Boiling hot employee market, people have new choices!

We are in a market where there are more jobs than there are people. This is a technology driven economy where gigs can replace traditional jobs. i.e. “working for the man”. Think, Uber, Lyft, Instacart, Amazon, the list goes on. With the upcoming fear of recession and end of year coming, some companies are planning some cost-cutting. Any employees seen as less productive may be laid off, so this could also turn things around slightly, but the workforce available is still continuously shrinking due to these other factors. So for now, we are still predicting a continuity of that employee market trend. Our advice, prepare yourself!

Millennials and Generation Z’ers don’t need or want to work.

The economy in the last decade has been strong and many households have been able to build wealth. Baby boomers are getting older and their kids, the millennials and Generation Z, have set for themselves new life expectations where work is not as central as it was for their parents. Instead, more mission driven, millennials tend to stay home longer, with their aging parents from whom they will inherit someday. In essence, our thesis here is that, youth in this day and age doesn’t have to work, because they are making the math. They will Inherit from their elders, a shelter, so they don’t really need to work as hard. Millions are in that segment. Did you know,? They are 70 million millennials and around 30 % still live at their parents at age 40!

These are the forces that are rapidly changing the employment market and challenging many companies today. Are you feeling this impact?

$84+ Trillion wealth transfer is occurring between now and 2045

Many have less incentives to work and do more of what they want to do because of that. A new reality that business owners must factor in.

New: 500,000 workers out of the workforce because of Covid19…

A study released by economists at Stanford shows that at least half a million workers are absent from the labor force due to covid, and that the labor force will feel this constraint until illness and exposure rates fall.

Quit rates continue to rise…

Salary costs are inflating to attract talents…