After Work From Home and the 'Great Resignation,' Employers Seek the New Normal

The pandemic created a radical transformation in how people work and what people expect from their workplace, and the fallout is still ongoing... Market research firm Morning Consult did a survey of more than 6,600 U.S. adults in January looking for "insights into people's priorities, work preferences, and lifestyles." The responses paint a picture of […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] After Work From Home and the 'Great Resignation,' Employers Seek the New Normal By Berna Barshay --------------------------------------------------------------- [The Biggest Innovation of the 21st century - Steve Jobs (Hint: Not Apple)]( Just before his death in 2011, the founder of Apple said that the biggest innovations of the 21st century will be at the intersection of biology and technology. Exactly a decade later, one little known company is doing just that. The company already has million dollar deals with Fortune 500 companies. And Steve Jobs' biggest rival, Bill Gates has already invested millions in this company, which has the potential to become "[America's Next Big Monopoly]( --------------------------------------------------------------- The pandemic created a radical transformation in how people work and what people expect from their workplace, and the fallout is still ongoing... Market research firm Morning Consult did a survey of more than 6,600 U.S. adults in January looking for "insights into people's priorities, work preferences, and lifestyles." The responses paint a picture of a landscape where people are going back to work, but not back to the old normal. The new normal means different things for different people. For some, it means more remote work. For others, it means making big changes. The survey suggests that the "Great Resignation" is more like a "Great Reprioritization" and asserts that "instead of accepting what they can't change, workers are changing what they will no longer accept." With 14% of respondents having left their jobs since the pandemic began (a number which actually strikes me as low), people have voted with their feet against toxic work environments. This is much easier to do when unemployment is so low, sitting at just 3.6% in March. One thing that is clear from the survey is that a lot of people really don't want to go back to the office... Enthusiasm for a return to the office seems to have waned over time. Back in January 2021, 64% of workers who were full-time remote because of COVID-19 said they would like to return to the office as soon as it was safe. But fast-forward to January 2022, and that number had dropped to just 48%... Source: Morning Consult This is about personal preference – not safety. A year ago, 40% of these workers said they would be comfortable coming back to the office. Now that's 52% – on the rise – but the number who want to come back has plummeted. Simply put, it seems the majority of people have gotten used to working at home... and they prefer it. These preferences are less strong in the overall pool of employed adults – apparently the desire to work from home is strongest among those who have already experienced it. But directionally, the trend is consistent across cohorts. In a tight labor market, many employers will probably want to consider offering remote and hybrid options, given the preference of workers to apply where these options exist... Source: Morning Consult The survey found that only 44% of employed adults would prefer to work mostly in person, in contrast to the 62% who currently work mostly in person and 10% who work hybrid. Of the hybrid cohort, only 15% would want to go full remote. Gen Z and Gen X are more likely to want to work in the office... I'm guessing the millennial preference for work from home could be explained by that cohort being in the prime of their child-rearing years. --------------------------------------------------------------- Recommended Link: [The truth about rising interest rates...]( The interest rate hike is not a death sentence for the stock market. In fact, historically, rising interest rates have been good for stocks. Going back to 1989, the average return of the S&P 500 during a rate hike is 62.9%. The Nasdaq is up an average of 102% during a period of rising interest rates. [In this video, I'll tell you more about a small set of unknown stocks I think are going to thrive as interest rates rise](. --------------------------------------------------------------- The survey found that 14% of Americans had voluntarily quit their jobs since the beginning of the pandemic – and that this trend might not be over yet... Almost 25% of employed respondents said they are planning to leave their current job for a new one or to take time to look for a new one within the next year. Quitting without having something else lined up is a sign of the tight labor market... as is the fact that 17% of respondents indicated they received a job offer during the pandemic that they declined. As Morning Consult observed, "intention appears to be outweighing desperation as a driver of change." When trying to get at why people left their jobs, compensation was of course a big reason. But lots of softer reasons like escaping a toxic work environment or a difficult manager also came up. While reasons may differ for making changes, the overwhelming theme was that workers re-prioritized what was important to them during the pandemic and made changes when they thought their work wasn't giving them what they needed – be it money, flexibility, balance, fulfillment, or opportunities for advancement. Here's a look at why people left – or are thinking about leaving – jobs... Source: Morning Consult For employers grappling with how to attract and retain employees, Morning Consult's cluster analysis of the five worker prototypes of the post-pandemic era may prove helpful... Thirty percent of respondents met the prototype of "Traditionalists." To these folks, "jobs provide a means of living and some measure of satisfaction, but a job is just a job to them." They have higher job satisfaction than average, were less likely to quit during the pandemic, and generally prefer in-person work... So if your company employs a lot of these types, bringing them back to the office isn't a problem. But underpaying them would be – it's the reason they are most likely to leave. At the other end of the spectrum, the "Lifestylists" – the smallest cohort at 16% – have an extremely strong preference for remote work. This female-skewing (62%) cohort "cares about work as a means of providing and a source of benefits" but puts as much emphasis on flexibility, work-life balance, and self-fulfillment as money. If you employ a lot of Lifestylists, pulling them back to the office and offering no remote or hybrid option could be a disaster. "Transactionalists" – the second largest group at 19% – see the world in terms of quid pro quo. They aren't looking for meaning, community, or career growth. They tend to be hourly workers, work part-time, and are less likely to have dependents. They have relatively low job satisfaction and financial security but are also the least likely to leave for something better. "Aspirationalists" are the complete opposite of Transactionalists. They "see their career as a means of making a real impact on the world." They are drawn to employers with strong work cultures and ESG initiatives. They tend to be the most satisfied with their work (88%) but are also the most likely to jump ship for a new role – either because they are burned out and seeking flexibility or because they are seeking more money or an advancement opportunity. Another group that poses a flight risk for employers are the "Minimalists." While they have much lower expectations about deriving meaning from their work than the Aspirationalists, they are similarly likely to have intense dependent responsibilities... which makes them prone to burnout. Both of these stressed-out cohorts want a hybrid option. Here's a cheat sheet for the cohorts... Source: Morning Consult One thing remained consistent across the cohorts... Most people worked more hours during the pandemic... Source: Morning Consult But there were big differences in how people across cohorts responded to remote work. For almost everyone, getting life tasks done was easier with remote – whether it was spending more time with family, getting to a doctor's appointment, or juggling childcare. But when it came to getting work done, being productive, working well with co-workers, and feeling positioned for advancement, there were big differences. The Aspirationalists hardly skipped a beat when they went remote, but Traditionalists and Transactionalists found working remote very challenging... Source: Morning Consult The takeaway from all this is that there's no one-size-fits-all answer about what to do regarding a return to the office... If your company relies on a lot of Type A, self-starter Aspirationalists, these folks are probably more productive at home than they were in the office. You likely need to worry more about them burning themselves out than them sloughing off in a perma-remote or hybrid situation. Similarly, if your business relies on the creative bursts from an army of Lifestylists, making them report for duty in-person may prove counterproductive. On the other hand, if you employ old-school Traditionalists, not only will they likely be thrilled to come back – they will be bummed out if their boss isn't there too. It's also important to consider what workers have to do. While tasks that require collaboration and interaction may suffer in a remote or hybrid environment, those that require great focus or deep analysis may be more efficiently performed alone at home. If you employ many Aspirationalists and Lifestylists, aligning with their values and enabling self-fulfillment will be important... but for the other groups, which represent two-thirds of workers, you would be investing in a folly. The one thread that is consistent across all the groups is a desire to be compensated fairly. So in a tight labor market with 24% of folks planning to switch jobs in the next year, getting compensation right – like always – will be paramount. In the mailbag, more reactions to Disney's (DIS) controversy in Florida... Do you see yourself in one of these five worker prototypes as defined by Morning Consult? Are you an employee who is considering leaving for a new job this year? If so, is the desire for a change about compensation, work-life balance, self-fulfillment, or something else? If you are an employer, have you been battling above-average turnover recently... and is there a theme for why people are leaving? Share your thoughts in an e-mail by [clicking here](mailto:feedback@empirefinancialresearch.com?subject=Feedback%20for%20Berna). "Hi Berna, Chapek should have come out and said that the 'Don't Say Gay' bill has a misleading title that the press and others avoid clarifying. Obviously, most people have never read the bill and mistakenly think it's an anti-gay bill, which it is not (the word 'gay' isn't even in the bill). It is targeted for Kindergarten through 3rd graders to not allow their teachers to teach them about various sexualities, as if kids in this age group could understand anyway. I don't want my 5-year-old learning anything related to these topics from their teacher. Maybe in middle school or slightly before would be acceptable for some. "I don't think putting the power of making sex education decisions back in the hands of parents is a bad idea. I'd rather teachers focus on the classical education topics and leave the other topics up to the parents. My 2 cents. BTW, I enjoy your articles!" – Bob H. "Berna, Love reading your research. Today's report on HB 1557 portrayed the issue as being applicable to all grades, which is not the case. "'Classroom instruction by school personnel or third parties on sexual orientation or gender identity may not occur in kindergarten through grade 3 or in a manner that is not age-appropriate or developmentally appropriate for students in accordance with state standards.'" – Tom O. Berna comment: With the caveat I am not a lawyer and I'm only repeating what I have read, some lawyers worry that the term "developmentally appropriate for students" isn't modifying "kindergarten through grade 3," so as written can be applied to middle and high schoolers. What is "developmentally appropriate" is obviously open to debate and a wide range of opinions, and this is what worries opponents of the bill. Opponents worry that non-straight 16-year-olds won't be able to acknowledge their sexual orientation at school or that 6-year-olds won't be able to talk about their family life in class if their parents happen to be the same gender. "With respect to Disney CEO, no normal people care. Only political activists and financial people may give it attention. As far as providing less value to customers for more money, this is standard fare these days. Have you noticed that you get less gas for the same amount you paid last year? Or you get less Windex per bottle, but it costs more? Most people could care less about Disney and care more about their entire grocery bill going up what feels like 50%. I never watched for sales, but I sure do now. I noticed the chintzy serving of food at an airport fast food market three weeks ago. My husband bought a serving of [kung] pao shrimp and a drink at Wei Pei for $21.00 and it felt like 1/2 serving. That's what we notice." – Sonja C. Berna comment: Sonja, I agree with you that inflation is a huge issue. I was writing about whether Disney CEO Bob Chapek was likely to keep his job or not because this is a financial newsletter, and lots of people do own DIS shares – so this is of interest to them. Readers have reacted primarily to the controversy in Florida, but even if that had never happened, Chapek would still be in trouble because of low worker morale and heightened turnover following unpopular restructurings, what some perceive as eroding customer loyalty in the face of price changes at the Parks, a PR blunder in the dispute over Black Widow, and an underperforming stock price. I'll write about inflation soon... Stay tuned! Regards, Berna Barshay April 4, 2022 If someone forwarded you this e-mail and you would like to be added to my e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2022 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 601 Lexington Ave., 20th Floor, New York, NY 10022 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. 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