June BITES

BITES // 06.02.22 // TODAY’S TOPIC: THE CHANGING FACE OF BUSINESS AND WORK PRACTICES

Every month we collect six of the best pieces of content published on the web and share them with you because we believe that the most extraordinary thinking is inspired by looking to unexpected places. BITES is a reading list for those who want to bring a little of the outside, in.

OVERVIEW -

Work boundaries are blurring with people having the option to work from anywhere remotely as a permanent option. On the flip side, working from home has become a facade with people working more hours and blending their home and work life. We need to be aware of how people feel at work and how working with brands and products can either enhance or help people de-stress when it comes to a changing work environment.

1. AIRBNB MAKES WORKING FROM ANYWHERE PERMANENT

The hospitality tech giant is now allowing most of its workforce to live and work anywhere they want . Unlike other tech companies that have decided to dock pay for living in a different location, Airbnb won’t change employees’ pay when they move. The company has benefited from the broader shift to remote work: 20% of nights booked on the platform in the second half of 2021 were for stays of at least one month. Workers can be at home, on the road, or even just endlessly traveling, but their pay will be the same as commuting to the office in Silicon Valley — up to a $337,000 base pay for those lucky high rollers. CEO Brian Chesky summed the policy up, “the best people live everywhere.”

2. THE AGE OF FREELANCERS AND SIDE HUSTLES

While the pandemic created layoffs and financial hardships for many Americans, it created one of the biggest growth in jobs rates in the last decade.?One of the largest sectors of growth came within startups, freelance gigs, and side hustles ?showing how people returned to work and how they found a new sense of freedom and purpose in their work. The Bureau of Labor Statistics reported that during the first few months of the pandemic, applications for new businesses spiked 89% this year from 2019. Of those newly-created businesses, 4.1% were hired for the first time — the highest rate since the early 90s.?While many of these new businesses were created out of necessity a large number decided to stick with the freelance life . An?Upwork survey ?found that 18% of workers would start their own business if that meant they could continue working from home. While there are a lot of job openings available in the market, many may not be filled for quite some time. It’s not because people don’t want to work, it’s because people are just busy working for themselves.

3. THE NEW NIGHT SHIFT

The two primary times of day where people have their most productive stretches have been before and after lunch.?A Microsoft study found that since many have shifted to a hybrid model and remote work, a new period of productive working time has emerged: 9 pm to 11 pm. ?The study showed that some employees worked as much at 10 pm as they do at 8 am. As much as 30% of people have been experiencing this new “triple peak” working day. This “triple peak” working day could be because more of the company’s workforces are spread across several time zones, or indicate more employee flexibility. But, some critics have expressed that it could also reflect a lack of work-life boundaries within these ever-increasing remote teams. According to Microsoft’s research manager, people have 250% more meetings every day than they did pre-pandemic.

4. GEN Z REALLY DOESN’T LIKE THE OFFICE

Gen Z has no desire to return back to the office according to a recent ADP Research Institute study that was released. ?The study showed that 71% of workers aged 18 to 24 would consider getting a new job if their employers said they had to come back to the office full time. These young workers may have joined the workforce during the pandemic, where remote work has become more common. They’ve been used to seeing their co-workers through a screen and aren’t used to getting up early, getting ready, and making the commute to and from work. Compared to other generations, 64% of workers overall hold this view (still a high number, honestly). Nela Richardson, the chief economist at ADP said that this high number is due to a shift “across the board” that “workers place more value and priority on time.”?Almost half of Gen Zers would rather be unemployed than unhappy in a job , according to a new study. A majority of them put their personal happiness over work.

5. WHEN RETIRING GETS TIRING

Retired Americans are increasingly taking back on their early exit from the workforce . According to the Labor Department, the number of people aged 55+ either working or looking for work increased to 38.9% in March, from 38.4% in October with nearly half a million people in that age bracket entering the labor force in the last six months. This isn’t all due to people wanting to get back to work for fun but the American public’s expectations of inflation over the next year hit their highest level on record. For older folks who live on a more fixed income, it could be a signal to collect more paychecks. Another factor that experts say could be contributing to less people retiring was the labor shortage and businesses beginning to enticing workers back with perks like remote and flexible schedules, and higher pay rates. Also with vaccines and the world returning back to normal health concerns declined. Many retirees said that it was time to call their early retirement early and head back to work. According to an Indeed analysis, 2.8% of workers who were retired in January 2021 were back in the labor force a year later.

6. THE “GREAT RENEGOTIATION” IS BECOMING THE NORM

A study released by the Federal Reserve Bank of San Francisco, America has been through several Great Resignations before. While the “quit rate” is at a high 2.9% per month (about 4.4 million people). There were several high waves of quits prior to 2000 though — 1948, 1951, 1953, 1966, 1969, and 1973 that were all just as big as the one today. One reason why this seems so unusual is because it doesn’t show up in quits-rate data as much as it actually happens.?The waves experts say could coincide with wages increasing and workers ditching their current job for more freedom and better opportunities. ?People tend to only quit their jobs when they’re confident they can find a new one relatively soon.?The pandemic recovery has featured both stellar job growth and quitting.

TAKEAWAY-

As businesses have navigated the workplace, policies and hiring post-pandemic people have changed. People have prioritized themselves, their time, and their job wants more than ever, especially when it comes to Gen Z. The workplace will never be the same after the pandemic and as more people are discovering new and innovative ways to work.