Why 70% of Millennials Are About to Quit Their Jobs

What's up, guys? It's Graham here. So, one year ago, we were introduced to a topic that most people never expected. It was called the Great Resignation, where forty percent of workers thought about quitting their jobs, with "I quit" being the sign of an economic recovery. But now it appears as though the turns have tabled. It was just reported that 50% of companies want workers back in the office five days a week, and in a surprising twist of events, there might now be another wave of Great Resignations during a time where 72% of workers regret their new job and might have to leave again.

So let's talk about exactly what's going on, why so many people are about to quit their jobs for a second time, why the majority of Millennials have a major regret after leaving, and then finally, most importantly, what you could do about this information to make money. Because that's what we talk about here as a personal finance channel on YouTube. Although before we start, did you know that 72% of employees regret not smashing the like button for the YouTube algorithm? Well, thankfully, it's not too late to give it a gentle tap or subscribe if you haven't done that already. And as a thank you for doing that, here's a picture of a chipmunk. So thank you so much for doing that! And also a big thank you to ZipRecruiter for sponsoring this video, but more on that later.

As far as why we're about to see a second round of resignations and why 72% of workers have regrets about their new position, it's important to understand the background of what's going on. Because I have to say some of these reasons make sense, and most likely you're about to be impacted by one of these changes pretty soon. See, all of this started about two years ago when lockdowns went into effect across the United States, which forced non-essential businesses to close down and, in the process, either lay off or furlough their workers. However, a year later, when our economy began to reopen, it became apparent that employers were now having a difficult time getting people to return back to the office. Because on the one side, companies found increased productivity and creativity from the people who worked in person, while employees were 22% happier, less stressed, and more focused working from home. Other employees simply don't want to return to the office, having worked remotely or having relocated to an area that makes that difficult to do.

So throughout the last year, we have seen record-high numbers of workers quitting their jobs for better opportunities, with this movement known as the Great Resignation. However, even though this sounds like it should be a really good thing, one year later, 72% of workers who quit their job now regret their decision to leave. So to answer why and the impact this is going to have throughout the entire economy, we first have to explain why so many employees are choosing to leave. Because you might find yourself in a similar position as well.

First, employees quit because they wanted to work from home. The reality is many employees got used to working remotely, not having a commute, and being able to focus on their work without any office distraction, and that's something that they want to keep. In fact, it was found that one in four pandemic home buyers would choose to stay at their new home and find a new job if it required them to return to the office. On top of that, 10,000 employees surveyed thought that they were just as productive working from home; thirty percent of those respondents said that they were more productive and engaged with their work and that they were saving an average of 40 minutes a day from commuting.

Second, employees are looking for less work. See, during the pandemic, some businesses downsized their staff, and the increased workload fell on fewer employees who had to pick up the slack. All of a sudden, one person was doing the workload of two, and the expectation was that, in the very beginning, "Hey, at least I'm fortunate to have a job to begin with." But now that has completely changed with a labor shortage and a strong economy. Employees now have the chance to look for other opportunities where they can make the same, if not more money, with less work, so they're taking it.

Third, people are quitting because they value career growth. It was found that 80% of those thinking of leaving a job are concerned about career growth, and nearly 75% say the pandemic made them rethink their skill sets. Some people are even taking this into their own hands with new business applications, the highest on record in 2021. Employees are also quitting because they're getting better offers with higher pay. Now, I've covered this one before, but even pre-pandemic, workers who stay loyal to the same job make, on average, 50% less than someone who switches jobs every two to three years. That's because the workers who switch jobs are able to negotiate better terms with an increased pay, and now, during a worker shortage, employees have more leverage in terms of where and who they work for.

And fifth, companies are now just flat out getting more competitive. In 2022, employees had the upper hand. Even the industries in Silicon Valley are no longer geographically tied to San Francisco, with the staffing agency saying, "What we're seeing is basically a 40% premium when comparing current ranges against pre-COVID salaries for tech workers." However, unfortunately, this does not quite end here, because even though employees are able to pick and choose where they work, the reality is one year later, 72% of them now regret leaving, and that is something we absolutely have to discuss.

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So thank you guys so much, and with that said, let's get back to the video. Alright, so in terms of the Great Resignation and why it's turning out to be more like a big fat regret, according to a new survey, 72% of workers who changed their jobs were surprised to learn that their new roles were different from what they were led to believe, causing a term known as shift shock. Shift shock; it's hard to say—shift shock. The reason behind this is twofold: one, job seekers are not asking the right questions during an interview, or two, it could be that a recruiter misrepresented a job or was overly optimistic about the company to try to get them to join. As a result, more and more workers are choosing to quit their jobs again than stick it out for one to two years to avoid a stain on their record. In fact, eighty percent of Millennials and Gen Z say that it's okay to leave a new job in six months. One out of five admitted that they would quit within a month if it's not as expected, and nearly half will try to get their old job back.

On top of that, we're now beginning to see a shift back to the office, with fifty percent of companies wanting their workers to return in person five days a week. But as you're about to see, it's not going so well. Goldman Sachs, for example, demanded that their workers return for a five-day work week, but only half showed up. The CEO explained that part of the secret sauce is that they come together and collaborate and work with people that are much more experienced than they are. Now, as for why workers don't want to return, the reason is no longer over COVID, but instead, 61% say that they want to work from home because they want to—despite their offices having reopened.

Now, in terms of management's response, nearly 70% said that remote workers are more easily replaceable than on-site workers. About 62% contend that full-time remote work is detrimental to employees' career objectives, and 72% say that they would prefer all of their subordinates to be working in the office. Surprisingly, the majority of employees agree with this. Those employees admitted that they're missing out on opportunities for networking, and people who are working from home feel the pressure to log even more hours in a day to validate their jobs, even though remote work is beneficial and increases performance. But still, 52% of workers would choose permanent full-time remote work if given the option.

In Google's case, employees are pushing back against the April 4th deadline to return to the office three days a week, saying that the policy should be work from the office when you want or when it makes sense. Plus, you know things are getting bad when other companies are resorting to free food to get people to return, with even the IRS struggling with competitive pay when they can't offer more than fifteen dollars an hour right now. Employees are beginning to redefine the worth-it equation in terms of where they want to work and what they're willing to give up in return.

There's also very much a disconnect between employers and employees, with 81% of employees saying that they're more productive today compared to a year ago, but 54% of business leaders saying that productivity has been negatively impacted. But regardless of what the surveys show, workers are beginning to quit en masse, with 64% citing better work-life balance and 17% saying that they've relocated and cannot easily reach the office anymore. Gen Z, however, is taking matters to the extreme by publicly quitting on TikTok, with one worker, Aaliyah, having switched jobs every 18 months and doubling her salary in just three years. In this case, job hoppers are taking advantage of the worker shortage and using that upper hand to enter new positions at an even higher salary.

Although this is really nothing new. Like I mentioned earlier, workers who stay at the same employer for longer than two years, on average, earn 50% less than those who hop from one job to another. This allows you to start over your new baseline salary at a much higher amount than if you had stayed at the current job and just gotten a regular raise. So, of course, people are going to leverage this for higher pay, better opportunities, and more flexibility. Over the next 12 months, it's expected that another quarter of the workforce is going to quit, and nine percent say that they're ready to flat-out retire. That's continuing to create a worker shortage, with 11.3 million jobs available in January and salaries continuing to increase.

Although, in terms of my thoughts on this, as someone who both works from home and hires people who work from home, honestly, I'm a bit mixed. On the one hand, I see the advantage of working from home, and during a worker shortage, if you're trying to attract the top talent, if you don't give them something competitive, somebody else will. But on the other hand, there is something to be said about the magic of collaborating in person that can't be replaced over Zoom. I found firsthand that meeting face to face does inspire more creativity, free thinking, and new ideas. Is that true, Alex? Really? Uh, yeah, I think so. Jack, where's Jack? You know what, send him the next part where you say that people who show up to the office are more likely to make more money.

Alright, let's get back to the video. The way I see it, there has to be a balance between the two, and eventually, there's probably going to be a shift back to the office for industries that can't as easily be outsourced. I'm also concerned that in more traditional corporate settings, remote workers will have a tougher time building relationships; they'll be less likely to receive a promotion and they'll be more prone to being passed over by other employees who are willing to show up every single day at the office. After all, the saying that 80% of life is simply just showing up is extremely true. And over time, I could not see how the employee who shows up every single day would not have a huge advantage over another remote worker, assuming they're both doing the exact same work.

That's why I believe there's going to be plenty of people out there who use that to their advantage and show up every single day as a way to climb the ladder a lot faster than the other people who do that remotely. But by and large, I think we'll end up seeing a hybrid model between the two, with the worker who shows up in person more consistently getting ahead and getting more money. I think this is an incredibly interesting topic, and regardless of what we wind up seeing, the pandemic has absolutely shifted the way businesses operate, and this is likely going to last many, many, many decades in the future. Unless, of course, the metaverse just happens to take over, in which case we are all...so with that said, you guys, thank you so much for watching. Make sure to subscribe, hit the like button, feel free to add me on Instagram, and thank you so much for watching, and until next time!