For the #3 trend, the article lists “To compete in the war for knowledge worker talent, some companies will shorten the work week rather than increase pay.”
You may remember in my email to you last week that I discussed another source (TechRadar) that noted the 4-day workweek would be a top trend in the job market in 2022.
Here’s what HBR had to say about this trend back in January:
“While some companies are able to compete for talent through compensation alone, others don’t have the financial resources to do so. Rather than trying to win the war for talent by increasing compensation, we are seeing some employers reduce the number of hours worked by employees and keeping compensation flat”.
And if you’re wondering if this form of compensation is somehow short-changing the very talent they are seeking to attract, remember one hard-to-overlook factor: inflation.
In addressing that factor, the article states: “employers will find the compensation they offer will be worth less and less in terms of purchasing power for employees.”
So yes, while the increase in wages has doubled (4% versus the normal rate increase of 2%) the inflation factor makes the apparent increase worth a little less than in past years.
So now time is being given as another form of compensation. And if the HBR article title is any indication, the prediction is that this will last even beyond 2022.
Dave O’Farrell helps his clients shorten their search, earn more money, and get better results. He helps employers soften the blow when they have to let employees go by offering the very best outplacement service on the planet. Reach out to Dave through his LinkedIn page.
I was recently on a Zoom call with a Customer Success Manager who declared he doesn’t schedule meetings on Thursdays because he has a 4-day workweek and Thursday is his during-the-week day off.
For physically demanding jobs, 4-day workweeks, even 3-day workweeks, can be common, since more time is needed to rest from the more grueling manual labor.
But white-collar jobs?
In case you think this is only the case with the most progressive companies, think again.
In an article published this year, TechRadar noted the 4-day workweek was among the 9 biggest work trends of 2022. Sure, work-from-home and better pay and benefits were among the 9… and that probably surprises no one. But the 4-day workweek?
The TechRadar article said that “while plenty of people love the idea of having a three-day weekend as part of their routine, trials and studies do show that moving to a four-day week can often prove beneficial for both staff and companies.
“Microsoft Japan,” Mike Jennings, the article’s author, went on to say, “trialed a four-day work week back in 2019 and found that it led to a 40% boost in productivity and 23% less electricity consumption.”
The article also cites studies in New Zealand and Iceland that found staff were both happier and more productive with a four-day week.
With an increase in productivity and employee satisfaction, it’s hard to argue with the results, but obviously the 4-day workweek wouldn’t be practical for every industry or company.
What about you? What do you think about the 4-day workweek? Where does it rank on your list of job priorities?
Dave O’Farrell helps his clients shorten their search, earn more money, and get better results. He helps employers soften the blow when they have to let employees go by offering the very best outplacement service on the planet. Reach out to Dave through his LinkedIn page.
As a client of Dave, I highly recommend his services. He is articulate, knowledgeable, and professional. Dave was able to help me by improving my résumé as well as offering coaching that helped me get the job interviews I wanted. This resulted in me landing my dream job within five weeks of receiving his services. He was quick to answer any questions and provided great mentorship.
Unemployment rose to 14.7% in April. This is the highest rate since The Great Depression, although this specific statistic only dates back to January 1948. Over 33.5M people have filed an initial unemployment claim in the past seven weeks. With Fridays’ press release, the U.S. Bureau of Labor Statistics reports there were 33M unemployed workers at the end of April (23.1M unemployed + 9.9M not in the labor force who currently want a job).
Nevertheless, let me be clear: look for a job now.
There are not 33M people actively looking for work right now. There are three groups of people who are not looking. First, there are 18.1M furloughed workers who hope to be recalled as the economy recovers. Second, there are 574K discouraged workers* who have given up hope.
Third, there are many people making more money each month on unemployment than they were making in January. They are collecting up to $365 per week from the State of Georgia, plus an additional $600 per week through the CARES Act. That’s a rate of more than $50K per year.
Many of you have asked me how long these benefits will last. In Georgia, if the seasonally adjusted UI rate is 9.0% or above, the maximum number of weeks a person can receive benefits is 20. The Federal benefit of $600 is scheduled to end on July 31. You will be competing for jobs with these folks beginning in August.
Of the 14.3M who are not furloughed or not looking, I estimate two-thirds of them are not yet looking because of the CARES benefits. So, don’t think you are in a job market with 33M seekers; it is more like 5M.
Do everything you can do to find a job now; and leave to God what only He can do.
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*Discouraged workers are those who have looked for a job in the past 12 months but not in the last four weeks.
Dave O’Farrell helps his clients shorten their search, earn more money, and get better results. He helps employers soften the blow when they have to let employees go by offering the very best outplacement service on the planet. Reach out to Dave through his LinkedIn page.
My dad smoked from the age of nine to 36; he died of lung, brain, and other cancers 46 years later. In fact, the second anniversary of his passing was two days ago. He died 39 days after the diagnosis. Despite the gap in time, his oncologist told my mom there was a cause-and-effect between the two.
We reap what we sow.
In addition to the two 63-year-old clients I mentioned last week, we’ve had other O’Farrell CM clients in the 55+ crowd land jobs. Last Friday, a client landed a job near her fair market value. Saturday morning, the first email I read was from a 65-year-old client who accepted a job at a former employer for 24 hours a week at an amazing hourly rate.
Monday, a client in her mid-50’s accepted a six-figure job. It’s a 25% increase over her old salary. And a 70-year old client accepted his third job in three months. He quit one because he didn’t like it; the other is on hold due to the quarantine.
All six (three men, three women) are in their mid-50’s and up. Two landed six-figure jobs. They have a few more things in common: they have world-class résumés, amazing LinkedIn and Indeed pages, and many hours of interview training. Pardon the shameless plug; they trusted in the Lord AND they worked with me.
Sow seeds by applying for jobs, building relationships, and learning new skills. Sow seeds by allowing me the privilege of recreating your résumé and building a custom-branded LinkedIn and Indeed page.
We will reap what we sow. Maybe in 46 days. Or maybe in 46 years.
