You’ve Heard of Quiet Quitting. Now Companies Are Quiet Cutting.
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You’ve Heard of Quiet Quitting. Now Companies Are Quiet Cutting.

Layoffs are down, but employers are still finding ways to cut jobs

By RAY A. SMITH
Tue, Aug 29, 2023 8:39amGrey Clock 4 min

Workers are waking up to emails and team-meeting requests with a jarring message: They aren’t fired, but their jobs are gone.

People on the receiving end of these memos describe running through a range of emotions, from relief that they’re still employed to a sense of dread that their bosses secretly want them to leave. They are also facing a labor market that isn’t as robust as a year ago, leaving many to believe that the best option is to stay put and hunt internally for a better fit.

Adidas, Adobe, IBM and Salesforce, among others, have reassigned employees as part of corporate restructurings. Mentions of reassignment, or similar terms, during company earnings calls more than tripled between last August and this month, according to data from AlphaSense, a financial-research platform.

“Reassigning is definitely a huge part of the dynamic right now,” said Andy Challenger, senior vice president at Challenger, Gray & Christmas, an outplacement firm.

For companies that spent several years—and significant money—to hire top talent, reassigning workers to new roles can be a way to fill jobs vital to future plans while trimming costs associated with old strategies, say human-resources executives.

It can also be a waiting game. Employees to whom it would be costly to pay severance or months of unemployment benefits might decide to leave on their own if they feel stuck in a job they don’t want, executive coaches say.

U.S.-based companies announced 42% fewer job cuts in July than they did in June, Challenger said. July job cuts were also 8% lower than the prior-year period, marking the first time this year that monthly job cuts were lower than in 2022.

In interviews and online forums, many workers said they worried whether their reassignment meant they would eventually be pushed out the door. They also wondered how to work their way out of job purgatory and back into a position they actually want.

“I got the sense that it was like: ‘We appreciate everything you did so we didn’t lay you off, so you can either make the best of this or go find another job somewhere else,’ ” said Matt Conrad, a 34-year-old senior sales-enablement specialist at IBM who went through two reassignments in two years before landing his current role last fall.

In Conrad’s first reassignment in 2021, a manager scheduled a call to notify him that his manager role was eliminated. He was given a new job selling software he had no experience with, a move he said took a toll on his mental health.

Later that year, Conrad found a new job at IBM through a former manager that was better suited to his skill set. Then, in January 2022, that team was eliminated and he was reassigned again. Conrad asked the HR department to help him to find his remote, senior sales-coach role, a process that took six months.

Not quitting when he was reassigned was a matter of principle, he said: “I wouldn’t give in because I was a top performer and it just wasn’t fair.”

IBM didn’t respond to requests for comment.

Getting caught up in a reorganisation can create anxiety for workers, but it’s sometimes a genuine move on the company’s part to avoid letting people go, said Roberta Matuson, an executive coach and adviser to businesses including General Motors and Microsoft on human-resources issues.

“They’re basically signalling to you: ‘Look, this is the only way for me to have a job here for you, I need to reassign you, so wink, wink, if I were you, I would take the assignment,’ ” she said.

Other times, workers are purposefully pushed into jobs management knows they will be miserable in, prompting them to quit.

“They could be putting you out to pasture,” Matuson said.

Signals to look for include reassignment to a job that is far below the pay or skill level you currently have, Matuson said. Other warning signs: Being offered a role that requires relocating when your boss knows moving isn’t a viable option for you, or being reassigned to a division that’s rumoured to be on the chopping block.

Employees suspicious or nervous about a reassignment should ask their managers why, specifically, it’s happening and what the reassignment means for their career path, said Naomi Sutherland, a global lead of talent development with Korn Ferry, a consulting firm. The answers could reveal whether a job transfer is personal.

Without good information, “people are going to fill a void of information with whatever story they’re going to tell themselves,” she said.

Most of the time, there is little legal recourse for workers if their company reassigns them, employment lawyers say.

One exception is when a worker can demonstrate the reassignment was retaliatory, said Angela L. Walker, an employment attorney with Blanchard & Walker in Ann Arbor, Mich. The bar is high, she added. The employee would have to show prior evidence of discriminatory treatment or that they were unfairly singled out.

“I’ve seen lots of examples in my practice where employees are told they’re being let go in a ‘restructuring’ and it turns out that they’re the only one affected, or they’re the only one affected in their group,” Walker said.

Grant Gurewitz, 32, said it took time to adjust to a new role in Seattle earlier this year when his software company eliminated his position as head of growth marketing for employee experience in North America. He was given 24 hours to make a choice between two other jobs, or leave. He picked a global head of growth marketing role that came with more responsibilities but without a pay increase.

He chose to look on the bright side, because a global role probably would’ve been the next position he wanted and it builds on his existing skill set.

“There’s still a lot of runway for me to learn and grow and develop in this role, which is the glass-half-full approach to all of this that’s happened,” he said.



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The generational investment divide for Australians

A new report on the impact of cost of living pressures reveals a stark contrast between age groups in investment strategies

By Bronwyn Allen
Fri, May 17, 2024 3 min

Four in five Australians say they have changed their investment and savings goals over the past 12 months, with 44 percent doing so primarily to make ends meet during the costofliving crisis. A further 25 percent say theyve switched strategies to protect their wealth against inflation, according to a new survey by financial advisory firm, Findex.

The Superannuation and Retirement Insights report shows Australians have also changed their goals to grow their wealth (31 percent), to create a regular income stream (29 percent) and to reduce taxes (17 percent). Transferring wealth to their children or other family members has motivated 10 percent of Australians to alter their investment plans, which is likely reflective of the increasing role played by the Bank of Mum and Dad in young people’s first home purchases.

The report found that traditional investment avenues, such as property and superannuation, remain the most popular choices, with more than eight out of 10 survey respondents ranking these asset classes highly. But there is also an increasing inclination towards investments that offer the potential for quicker returns, additional perceived safety, and better liquidity or accessibility to funds.

Eighty percent of survey respondents also nominated bank savings as among their top five investment choices right now, followed by shares (66 percent) and cash (51 percent).

This shift reflects a broader strategy to mitigate current financial uncertainties, balancing the pursuit of long-term wealth accumulation with the need for immediate financial security,” the report says.

While superannuation is considered a cornerstone investment for retirement and long-term wealth accumulation, 85 percent of Australians are exploring investments outside superannuation. The most common investments outside super are bank savings (64 percent), property (38 percent), cash (35 percent) and shares (34 percent).

However, when the data is broken down by generation, stark differences are revealed in how each age cohort chooses to invest their spare income and why.

Most popular investments outsider super and the motivations to invest by generation

Baby Boomers (born 1965-1964)

Outside superannuation, Baby Boomers prefer to invest in bank savings (60 percent), property (50 percent) and shares (46 percent).

By far, their primary motivation for investing is planning for retirement (80 percent). They also want to build wealth (51 percent) and support their children or other family members (25 percent). Other motivations include preserving wealth to beat inflation (22 percent) and paying off a mortgage or other debt (20 percent). They are the least likely generation to be saving for an investment property.

Gen Xers (born 19651980)

Gex Xers prefer to invest in bank savings (57 percent), property (43 percent) and shares (36 percent).

They are motivated to invest for retirement (66 percent), to build wealth (50 percent), to save for emergencies (36 percent), and to pay off a mortgage or other debt (30 percent). Interestingly, Gen X is the generation most concerned with supporting their children or family members (33 percent). This may be because Gen Xers have grown up during Australia’s long-standing property boom that began in the late 1990s and continues today.

Millennials (born 1981-1996)

Millennials have the strongest interest in bank savings as an investment avenue (70 percent), followed by property at 41 percent. They also like cash (35 percent) and shares (33 percent). Millennials have the highest uptake of exchange-traded funds (ETFs) at 21 percent. ETFs are a relatively new type of asset class, with the first ones trading on the ASX in 2001. ETFs are a basket of shares that can be purchased in a single transaction for instant diversification. Millennials are also the generation most interested in cryptocurrencies, with 22 percent invested.

Their biggest motivations for investing are to build wealth (55 percent), save for emergencies (50 percent) and plan for retirement (49 percent). They also want to support their kids (32 percent) and pay off their mortgage (32 percent). Millennials are the generation most likely to be saving for an investment property (28 percent) rather than a first home (17 percent).

Gen Zs (born 1997-2009)

Gen Zs spread their money across more asset classes than their elders. They like investing in bank savings (66 percent), cash (42 percent), shares (22 percent), ETFs (17 percent), property (14 percent) and cryptocurrencies (13 percent).

While Gen Zs are the youngest age cohort within the survey, they also have long-term goals just like their elders. The biggest motivation to invest among Gen Zs is to build wealth (52 percent). More Gen Zs are saving for a first home than any other generation, with 42 percent pursuing this goal. They are also the generation most concerned with preserving wealth to beat inflation (29 percent). Gen Zs also want short-term security, with 46 percent saving for emergencies. They’re also the generation most likely to be saving for other major purchases like a car or holiday (41 percent) and investing just for enjoyment (26 percent).

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