Workers, Get Ready for the Great Rebalancing
This may be the year when employer-employee power dynamics begin to normalize
This may be the year when employer-employee power dynamics begin to normalize
American workers’ wild ride is coming to an end.
After three whiplash-inducing years of, first, professional vulnerability and, then, perceived invincibility, many people are returning to more typical levels of career security and leverage.
Call it the Great Rebalancing of the employer-employee relationship.
“We’re clearly headed there,” says Heidi Shierholz, president of the Economic Policy Institute.
Not long ago, at the pandemic’s onset, things were so bad that people lost jobs in record numbers as the U.S. unemployment rate reached 14.7%. Then things got so good that workers resigned in record numbers. There was a catchy name for this trend, I believe.
Adding to the volatility, savings swelled and shrivelled with the stock market, causing some people to lurch between hope for an early retirement and fear of working forever. Raises that made some feel flush were offset by inflation, in many cases.
The “quiet quitters” who reduced their on-the-job efforts while feeling untouchable last year may now be angling to fill key roles when their companies freeze or cut head counts.
Ms. Shierholz says that workers are still in good shape, overall, but certain key metrics are trending down toward normal ranges. December’s hourly earnings increase of 4.6% from a year earlier was the smallest rise since mid-2021, and the 223,000 additional jobs were the fewest per month in two years.
To complain about such decreases would be akin to griping if Yankees slugger Aaron Judge were to hit only 50 home runs this year, after smacking an American League-record 62 last season. It’s unrealistic to expect new peaks all the time, and it’s worth remembering what 2020 was like. (Mr. Judge, beset by injuries, hit 9 homers that year, by the way.)
Francesco Carucci, a California software developer, says he knew that his pay package was “wildly inflated” when he joined Meta Platforms Inc. last January. He says Facebook’s parent company tripled the total compensation that he earned at his previous employer, amid a hiring spree in a historically tight labor market.
Then Meta laid off Mr. Carucci late last year in a round of 11,000 job cuts. Being aware of his bloated comp didn’t dull the sting of losing it, he says, and he got an additional reality check this month when he accepted an offer that is worth half of the one he received a year ago.
Still, he says his new pay is reasonable—more than what he made a few years ago—and the interview and negotiation process was more in line with what he has usually experienced over a 25-year career. He adds that he’s trying not to take the layoff personally. He views it instead as part of a natural and inevitable correction to the job market.
Others would do well to practice the same attitude. Andy Challenger, senior vice president of Challenger, Gray & Christmas, which helps companies manage layoffs and provides career coaching to the dismissed, tells me that business is picking back up after two of the slowest years in the firm’s history. He offers a blunt translation of what that means: “We know that there are a lot more layoffs coming.”
Ominous as that sounds, Mr. Challenger says the prospects of finding new work are generally good. Job openings, while shrinking, still outnumber the unemployed by several million, according to federal data. He expects that gap to narrow as the year goes on and advises job seekers to redouble their urgency.
“It’s not a time to lay back and feel too comfortable about the tight labor market,” he says. “Even if you’re getting lots of messages from recruiters today, that can dry up pretty quickly as things turn.”
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Audible alerts at the gate call out travellers trying to board earlier than they should
TUCSON, Ariz.—Passengers in Boarding Group 1 were filing onto American Airlines Flight 2721 to Dallas Friday when an ominous sound went off at Gate B11: dip-dip-dip-DOOP. The gate agent delivered the bad news. The passenger was in Group 4. She asked him to wait his turn.
The same sound—the last-gasp sound from AirPods running out of juice, or sad “Game Over” music for an old videogame—went off minutes later. Dip-dip-dip-DOOP.
“You’ll be boarding with Group 5, sir,” the agent said. Five more passengers were turned back before Group 2 was called.
American Airlines is cracking down on line jumpers. All major U.S. airlines do their best to maintain boarding order since priority boarding is a perk for frequent fliers , credit-card holders and big spenders, and is often available for purchase. But American is the first to develop an automated system that instantly flags offenders.
The airline is experimenting at gates in Tucson, Albuquerque, N.M., and Washington, D.C., as part of a broader upgrade to American’s boarding technology. The airline has tested the alerts on more than 4,500 flights this month and will expand to several more cities this year, with an eye to taking it systemwide if no major issues, such as slower boarding, arise at larger airports. The airline says early feedback from fliers and gate agents has been encouraging.
The idea for automated policing grew out of complaints from travellers fed up with line jumpers and the employees who feel their wrath. In particular, top-tier frequent fliers gripe about too many passengers in the first boarding group, says Preston Peterson, American’s managing director of customer experience.
Group 1 is reserved for travellers in first class, certain business-class tickets and American’s executive platinum status. Active duty military members with military I.D. are also allowed. Groups 2 and 3 are similarly elite.
“They’ve earned that [priority] boarding group and they want access to it,” Peterson says.
The biggest perks, of course: plenty of overhead bin space and no worries about the dreaded threat of gate-checking your bag.
The new system promises smoother boarding for passengers and gate agents. I flew to Tucson International Airport to try it out. I put the airline’s traditional boarding to the test at my departure gate in Phoenix. Could I slither into an earlier boarding group? I was in Group 4 but breezed right through with Group 2.
Gate agents tell me it’s hard to monitor passengers’ group numbers manually, big plane or small, especially with boarding-pass readers where travellers plunk their phones face down.
American isn’t telling passengers about the test before their flights, and that’s on purpose. It doesn’t want them to change their behaviour simply because they’re being watched.
Chad Vossen, a 46-year-old chief creative officer for a video-marketing company in Virginia, knew nothing of the test until he and a colleague tried to board in Group 6 instead of Group 8 for a flight to Phoenix. They had done it on other American flights and others, in hopes of avoiding gate-checking their camera equipment.
His first thought when the dip-dip-dip-DOOP went off: “Wow, that doesn’t sound good.”
Vossen says it triggered the sounds losers hear on “Hollywood Squares” or “ The Price is Right .” (American says the sound effects are generic videogame clips and is still testing different sounds.)
He stepped out of line and laughed about getting caught. Vossen says he sees the change mainly as a way to get travellers to pay up for priority boarding. He’s unlikely to pay, but says he will probably finally sign up for American’s loyalty program. Members get complimentary Group 6 boarding regardless of status. That’s one group ahead of regular Main Cabin customers without status.
Peterson, the American customer-experience executive, believes most passengers aren’t out to game the system.
“I think most people just see a line and go, ‘Oh, we’re boarding,’” he says.
About one in 10 passengers on American’s test flights have boarded out of order, the airline says. Not all want to cheat the system. Some are travel companions of those with better boarding positions. American’s policy allows them to board together if they’re on the same reservation but didn’t assign the same boarding group. (The alert still goes off, but the agent can easily override it.) And the airline says its system doesn’t flag pre-boarders, like those with wheelchairs.
Exceptions excluded, I counted as many as seven passengers on one flight boarding in the wrong group; on another, it was zero. That math no doubt changes at a busy hub like Chicago or Dallas. So does the potential for tension.
The passengers I saw seemed to take the ejection in stride, moving aside and waiting for their group. One even apologised to the gate agent.
The test is already having an impact beyond the walk of shame. Peterson says the airline has noticed some passengers jumping out of line after seeing fellow fliers turned away. He says he witnessed the same thing at a non-U.S. airline that began policing boarding groups.
Peterson’s ultimate goal: zero boarding group alerts. “I don’t want anyone to be dinged,” he says.
For now, passengers should expect a cacophony at American gates employing the new tech. Not all alerts will send you to the back of the line. Hear a slot-machine-like sound when you scan your boarding pass? You’re probably seated in an exit row.
Even if you get the dreaded you’re-in-the wrong-boarding-group alert, it could be a mistake. A passenger in Group 8 was taken aback Friday afternoon when it sounded on her flight to Phoenix.
“That did not sound good at all,” she said to the flight attendant.
“You failed at ‘Pac-Man,’” the agent joked.
She was in the right place. The agent hadn’t yet flipped the switch in the app to her group.
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