In the last three years, changes in the U.S. employment market have been more rapid than bullets from a machine gun. And just when we thought things were settling down, now the newest, latest trend in employment has emerged. As with all its predecessors, this change is about employee attitude and is driven primarily by Gen Z and Millennials.

 

First, we got “The Great Resignation.” Beginning in April 2020 and moving through March 2022, there was a massive blitz of workers leaving their jobs and getting new ones. The number of available positions was so great compared to the number of people to fill them that workers could write their own ticket. To fill positions, employers were forced to pay higher wages, provide additional benefits, and often times, pay signing bonuses.

 

It didn’t take long before we got The Great Regret. A survey by Paychex found that 80% of the people who quit during the Great Resignation regretted it. They changed jobs for better pay, better benefits, better work-life balance, more respect from an employer and more power resting with the employee instead of the employer. The workers who changed jobs decided it didn’t work out the way they thought it would. As it turned out, Gen Z’ers had the most regret about swapping jobs.

 

This led to Quiet Quitting, employees so unhappy with the new job that they settled into a pattern of doing the absolute minimum requirements of the job, putting in no more time, effort, or enthusiasm than absolutely necessary in order to keep the job and draw a paycheck.

 

That led to Career Cushioning. Employees put in just enough effort to keep their job and their paycheck while they looked for side hustles and opportunities to moonlight, to have something in the wings just in case they get laid off or downsized.

 

And now we’re in the era of… Loud Quitting, young malcontents quitting their job and slamming the company on social media. According to the Gallup State of the Global Workplace 2023,  loud quitters are employees “who take action that directly harms the organization while undercutting the company’s goal and opposing its leaders. For example, by bad-mouthing their boss on LinkedIn before swiftly handing in their notice.”

 

But loud quitting has joined forces with Live Quitting. Rather than just type a post about leaving the job, Gen Z and Millennials in particular are recording and posting the moment they hit the send button with their resignation attached, the phone call they make to their manager to quit, or the zoom call where they tell the boss to stick it.

 

Gallup surveyed 120,000 global employees and found that almost 1 in 5, or 18% are loudly quitting and actively disengaged from their job.

 

Whereas quiet quitters’ silent disengagement can impact a company’s culture long term, loud quitters are far more immediately dangerous. It’s not just that they are dramatically quitting their jobs and telling the world how evil their former employer is, they’re also dragging down those around them on the way out.

 

Gallup says, “They aren’t just unhappy at work. They are resentful that their needs aren’t being met and are acting out their unhappiness. Every day, these workers potentially undermine what their engaged coworkers accomplish.”

 

Gallup went on to say, “The harmful actions of “loud quitters” have the ability to both disrupt and damage businesses. Those working for the firm may be impacted by the wave of detrimental distractions and increased turnover; meanwhile, prospective new hires will undoubtedly see any derogatory online comments made by disgruntled workers.”

 

And while some young professionals may be getting positive reinforcement from their circle of social media followers, career and HR professionals say it’s not a good idea, explaining that loud quitters are doing what makes them feel good rather than thinking about the long-term consequences. Overly confessional or otherwise unprofessional videos of loud quitting and live quitting will surface on the internet for years to come, potentially turning off future employers that might fear being similarly exposed.

 

Workplace consultant Mike Jones, founder of Better Happy, a consulting firm that focuses on employee engagement says, “If it’s done with a bad attitude, that will reflect badly on them in the future, and it’s difficult to make something disappear from the internet. Even if your employer treated you poorly, you’ll have a video of yourself being unprofessional following you the rest of your life.”

 

Why is it happening? The Gallup report says, “At some point along the way, the trust between employee and employer was severely broken, or the employee has been woefully mismatched to a role, causing constant crises.”

 

Gallup blames management saying 70% of team engagement is attributable to the manager. “Poor management leads to lost customers and lost profits, but it also leads to miserable lives. Having a job you hate is worse than being unemployed.”

 

Employers say there’s more to the story. They find that young workers are demanding greater flexibility for remote and hybrid work, greater work-life balance, higher pay, and an employer who cares about their well-being. And while there’s nothing wrong with those things, companies say these workers are putting all the responsibility for their wish list on the employer without reciprocal responsibility in the employee-employer relationship—things like fulfilling their job description with excellence and loyalty to the company.

 

While outlining what sets engaged employees apart from their disengaged peers, Gallup found that the employees who thrive are those who find their work meaningful, know why their work matters, and feel connected to their team.

 

According to Gallup, low-engagement workers cost the global economy an estimated $8 trillion and account for 9% of global GDP.

 

 

Disclaimer

This information is presented for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy any investment products. None of the information herein constitutes an investment recommendation, investment advice, or an investment outlook. The opinions and conclusions contained in this report are those of the individual expressing those opinions. This information is non-tailored, non-specific information presented without regard for individual investment preferences or risk parameters. Some investments are not suitable for all investors, all investments entail risk and there can be no assurance that any investment strategy will be successful. This information is based on sources believed to be reliable and Alhambra is not responsible for errors, inaccuracies, or omissions of information. For more information contact Alhambra Investment Partners at 1-888-777-0970 or email us at [email protected].