The Great Resignation:
A trend that is here to stay and worsen…
Here are our insights and foresights about this phenomenon
(Share your opinion and see what others are saying as well)
What is the Great Resignation?
A time to think long-term and actually, win
The last 10 months of 2021 saw the largest exodus of employees on record. More than 38 million people left their jobs by the end of 2021 for “something better”.
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.
What does this all mean for Self-storage owners?
Unmanned facility by choice or circumstances…
Earlier, we alluded that Self-storage Operators are trying to maximize their profitability through operational excellence, but losing an employee can be very costly. When it comes to the Liens to auctions process, it takes a lot of time to ramp up the training and skill of a local or regional manager, and continuity in the process is one of the major factor for success. When an employee departs in the middle of a liens to auction cycle, a lot of knowledge is lost, additional work is added to peers, and risks of errors increases dramatically. These errors tie to restarts, which leads to increased rent on the bad debt when written off, which means decreased net operating income and so on. The bottom line is: losing people when it comes to liens to auctions mean losing money and dramatically increasing liability.
The time to bet on “Hyper-automation”?
What your peers are saying? Yes!
We interviewed industry peers and compiled it all in this study
In the world we are living in we are either disrupt ourselves by choice or circumstances. “Too early is never too early, too late is always too late”. Many businesses today, faced with these new realities are betting on technology and it is the right move. We interviewed self-storage peers and key voices of the self-storage industry. Those who still operate with yesterday’s mindset will experience hardships. Here is what they said…
More Data & Facts:
Quit rates continue to rise…
Salary costs are inflating to attract talents…
How do you see the Great Resignation affecting you in the coming months?
In the News
Some news that could change or accelerate the trend:
- Big Tech about to slay jobs amid economic headwinds: Read here
- Read the top reasons why people left their jobs in the first place, according to Pew Research
- Nearly a third of Generation Z living at their parents home. Read here
- Multi-generations living: A growing trend Read here
- If the Job Market Is So Good, Why Is Gig Work Thriving? Read here
Thank you for reading
Thank you for being a part of our growing community and for your partnership.