5:01 and Done: No One Wants to Schmooze After Work
Office happy hours, client dinners and other after-hours work gatherings lose their lustre as more people feel the pull of home
Office happy hours, client dinners and other after-hours work gatherings lose their lustre as more people feel the pull of home
Patience for after-hours work socialising is wearing thin.
After an initial burst of post pandemic happy hours, rubber chicken dinners and mandatory office merriment, many employees are adopting a stricter 5:01-and-I’m-done attitude to their work schedules. More U.S. workers say they’re trying to draw thicker lines between work and the rest of life, and that often means clocking out and eschewing invites to socialise with co-workers. Corporate event planners say they’re already facing pushback for fall activities and any work-related functions that take place on weekends.
“The flake-out rate is so much higher at events now,” says Gretchen Goldman, a research director in Takoma Park, Md.
This summer Goldman sent an invite to 100 colleagues for casual after-work drinks at some picnic tables just outside the office as a goodbye party. She was taking a new job with the federal government. Fewer than 10 showed up.
“I guess people are just busy,” she says.
The pandemic altered eating and drinking habits, and pandemic puppies, now fully grown dogs, have to be walked on a schedule. With fewer people back in offices, there are fewer impromptu happy hours and a lack of interest in staying out late with colleagues, some bosses and workers say.
Andy Challenger oversees employees who participate in the fantasy football league at his outplacement firm, Challenger, Gray & Christmas. When some of them floated the same game plan as prior years—an in-office pizza party that goes past 11 p.m. as everybody drafts their favourite players—the pushback was swift. This season, the pizza arrived at 4:30 p.m. and everyone was finished and out of the office by 6 p.m.
“Normally that would have been the starting time,” he says.
For decades, an unspoken rule of office culture has been that much of work happens outside the 9-to-5 window. Getting ahead often requires being known outside the building and having organisational allies—the type of networking that’s helped by showing up for dinner with the boss and getting relaxed face time with co-workers at happy hours, says Jon Levy, a New York City-based consultant who advises organisations on connection and culture.
Now, even the go-getters are saying no to after-hours schmoozing opportunities.
The thinking is: “That 20th happy hour isn’t going to produce anything better for me,” Levy says.
People are less jazzed about eating out once they are home, and many got pretty good at making dinner during the pandemic, says David Portalatin, food industry adviser at Circana Group, a market research firm.
“When the consumer stretches and builds new muscles, they don’t abandon those behaviours completely,” he says.
In the past year, U.S. consumers had 264 million restaurant dinners after leaving work, which is down 43% from 2019 levels, according to Circana. And reservations are now earlier: In 2023, 26% of after-work restaurant dinners happened before 6 p.m., compared with 21% in 2019.
Barbara Martin hosts bimonthly evening soirees for clients of her marketing firm, Brand Guild. Traditionally, cocktails start flowing around 6:30 p.m. and the mingling could last until 9 o’clock—or beyond. But last Thursday she pulled the start time forward to 5:30 p.m. sharp.
“‘I’d love to come to these if you could do them earlier,’” Martin says she’s heard again and again this summer. “Nobody wants to overbook themselves until 10 p.m. on a weeknight anymore.”
Attitudes don’t appear to be changing as the summer vacation season ends. Kay Ciesla is helping organise an all-staff gathering for 80 people at the American Immigration Lawyers Association, the Washington, D.C., nonprofit where she works as a governance executive. She is considering an ax-throwing theme, and serving finger foods and cocktails.
“I’m already getting pushback,” she says of spending precious time that bleeds into personal hours on team building. Due to scheduling conflicts the group can’t gather until December. One employee voiced concern that the socialising could turn into a superspreader event ahead of Christmas travel.
Doug Quattrini, an event planner in the Philadelphia area, has already booked six Christmas parties. What’s different this year, he says, is that most are on weekdays, in the office—and end at 8 p.m.
“Nobody wants to take up people’s Fridays, Saturdays and Sundays,” says Fausto Pifferrer, co-owner of Blue Elephant Catering in Saco, Maine, near Portland, which has booked several office holiday parties for Monday through Thursday.
Younger Americans are drinking less. The share of people between 18 and 34 who said they “ever” drink alcohol has fallen to 62% from 72% two decades ago, according to Gallup data.
Caroline Wong, the chief strategy officer at Cobalt, a cybersecurity company in San Francisco, quit drinking in her early 30s and tries to plan social gatherings sans alcohol. A team off-site next month will be a tour of waterfalls near Portland, Ore. She’s noticed things wrap up earlier when there’s no drinking involved.
“It’s like, ‘You know what, we hung out for 90 minutes. We’re good and I’ll see you tomorrow,’” Wong says. “I think there’s something awesome about that.”
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When will Berkshire Hathaway stop selling Bank of America stock?
Berkshire began liquidating its big stake in the banking company in mid-July—and has already unloaded about 15% of its interest. The selling has been fairly aggressive and has totaled about $6 billion. (Berkshire still holds 883 million shares, an 11.3% interest worth $35 billion based on its most recent filing on Aug. 30.)
The selling has prompted speculation about when CEO Warren Buffett, who oversees Berkshire’s $300 billion equity portfolio, will stop. The sales have depressed Bank of America stock, which has underperformed peers since Berkshire began its sell program. The stock closed down 0.9% Thursday at $40.14.
It’s possible that Berkshire will stop selling when the stake drops to 700 million shares. Taxes and history would be the reasons why.
Berkshire accumulated its Bank of America stake in two stages—and at vastly different prices. Berkshire’s initial stake came in 2017 , when it swapped $5 billion of Bank of America preferred stock for 700 million shares of common stock via warrants it received as part of the original preferred investment in 2011.
Berkshire got a sweet deal in that 2011 transaction. At the time, Bank of America was looking for a Buffett imprimatur—and the bank’s stock price was weak and under $10 a share.
Berkshire paid about $7 a share for that initial stake of 700 million common shares. The rest of the Berkshire stake, more than 300 million shares, was mostly purchased in 2018 at around $30 a share.
With Bank of America stock currently trading around $40, Berkshire faces a high tax burden from selling shares from the original stake of 700 million shares, given the low cost basis, and a much lighter tax hit from unloading the rest. Berkshire is subject to corporate taxes—an estimated 25% including local taxes—on gains on any sales of stock. The tax bite is stark.
Berkshire might own $2 to $3 a share in taxes on sales of high-cost stock and $8 a share on low-cost stock purchased for $7 a share.
New York tax expert Robert Willens says corporations, like individuals, can specify the particular lots when they sell stock with multiple cost levels.
“If stock is held in the custody of a broker, an adequate identification is made if the taxpayer specifies to the broker having custody of the stock the particular stock to be sold and, within a reasonable time thereafter, confirmation of such specification is set forth in a written document from the broker,” Willens told Barron’s in an email.
He assumes that Berkshire will identify the high-cost Bank of America stock for the recent sales to minimize its tax liability.
If sellers don’t specify, they generally are subject to “first in, first out,” or FIFO, accounting, meaning that the stock bought first would be subject to any tax on gains.
Buffett tends to be tax-averse—and that may prompt him to keep the original stake of 700 million shares. He could also mull any loyalty he may feel toward Bank of America CEO Brian Moynihan , whom Buffett has praised in the past.
Another reason for Berkshire to hold Bank of America is that it’s the company’s only big equity holding among traditional banks after selling shares of U.S. Bancorp , Bank of New York Mellon , JPMorgan Chase , and Wells Fargo in recent years.
Buffett, however, often eliminates stock holdings after he begins selling them down, as he did with the other bank stocks. Berkshire does retain a smaller stake of about $3 billion in Citigroup.
There could be a new filing on sales of Bank of America stock by Berkshire on Thursday evening. It has been three business days since the last one.
Berkshire must file within two business days of any sales of Bank of America stock since it owns more than 10%. The conglomerate will need to get its stake under about 777 million shares, about 100 million below the current level, before it can avoid the two-day filing rule.
It should be said that taxes haven’t deterred Buffett from selling over half of Berkshire’s stake in Apple this year—an estimated $85 billion or more of stock. Barron’s has estimated that Berkshire may owe $15 billion on the bulk of the sales that occurred in the second quarter.
Berkshire now holds 400 million shares of Apple and Barron’s has argued that Buffett may be finished reducing the Apple stake at that round number, which is the same number of shares that Berkshire has held in Coca-Cola for more than two decades.
Buffett may like round numbers—and 700 million could be just the right figure for Bank of America.
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