3 signs the labor shortage could end soon – and one major sign that it won’t, according to UBS

Popeyes sign now hiring
The labor shortage is hitting fast food restaurants.

  • UBS Evidence Lab economists said job openings and retirement peaks may signify an end to the labor shortage.
  • Job gains in leisure and hospitality are also promising signs that people are getting back to work.
  • But bottlenecks, which slow economic growth, could prolong the labor shortage, they said.
  • See more stories on Insider’s business page.

The labor shortage is tough on the economic recovery. Consumers are spending and employers want to hire, but jobs can’t get filled fast enough right now.

There’s several signs that suggest the labor shortage will end soon, according to a Thursday note by the UBS Evidence Lab. But there’s one big reason it might not.

UBS’s Andrew Dubinsky, Pablo Villanueva, and Samuel Coffin wrote in a Thursday note that the labor shortage might be ending soon, given the increase in job openings and decline in retirement rates, among other things.

According to UBS, here are the three signs that the labor shortage could be ending:

Job openings keep rising

The indicator that makes “the best case for continued strong job gains is job openings which have continued to increase through the end of May,” the economists wrote.

They also note a drop in quit rates, which could suggest stable hiring rates accompanied by the job gains in May and June. The latter month added 850,000 payrolls, in the clearest sign that the shortage may be easing.

Opening rates continued to climb while hiring was stable
UBS: Opening rates continued to climb while hiring was stable.

Insider previously reported that a factor behind the job openings could be workers holding out for higher wages, and given that a number of companies are beginning to increase wages to get people back to work, more jobs will likely be filled as a result.

Retirements may have peaked

UBS found that retirements may have peaked for those aged 70 and older, which could help explain why participation rates are low.

Labor force participation rates compared with retirement
UBS: Labor force participation rates compared with retirement.

Other factors, like fear of contracting the virus and disruptions to childcare, are temporarily limiting the return to the workforce, the economists wrote, but they are expected to improve in the coming months.

Service jobs added to the high level of job openings

The leisure and hospitality sector made up 40% of the total job gains in June, adding 343,000 payrolls, showing a promising sign for job growth in the service industry.

Depressed services contributed to job gain in May
UBS: Depressed services contributed to job gains in May.

Pay in the sector also jumped 3.6% over the past three months, and the correlation between increased jobs and increased wages is suggesting that higher wages work. For the month of June, wages shot up 7.1% from a year ago, the biggest gain for any sector.

But these promising signs for the end to the labor shortage could be jeopardized by one thing: bottlenecks.

Bottlenecks occur when an industry has to slow its growth because it cannot keep up with demand, and the economists wrote that if bottlenecks don’t fade, the labor shortage will likely persist. Job fillings remain slow from the bottleneck caused by the pandemic recession, but the drop in quit rates, along with wage gains, suggest bottlenecks might be fading, UBS said.

“If bottlenecks fade, openings and listings gains imply job growth trends should remain strong,” it said.

Read the original article on Business Insider

People didn’t rush back to work when their unemployment benefits were cut early, a new study finds, despite what some GOP governors predicted

Arizona Governor Doug Ducey wears a black suit jacket and speaks into a microphone on a stage.
Arizona Governor Doug Ducey cut federal employment benefits in the state on July 10.

  • A new study found employment fell slightly in states that cut federal unemployment benefits early.
  • Some GOP governors have blamed unemployment benefits for sluggish jobs growth.
  • The study analyzed US Census Bureau survey data from between April and July.
  • See more stories on Insider’s business page.

People did not immediately return to work in some states that cut federal unemployment insurance (UI) early, a new analysis found.

In the 12 states that cut the benefit on either June 12 or 19, employment was largely flat in the weeks after, Arindrajit Dube, an economics professor at University of Massachusetts Amherst, found during an analysis of US Census Bureau data.

“Certainly there was no immediate boost to employment during the 2-3 weeks following the expiration of the pandemic UI benefits,” Dube said.

Twenty-six states, mostly led by Republican governors, have said they will cut – or have already cut – the federal government’s $300 weekly top up for unemployed Americans ahead of its planned September 6 expiration. Dube’s analysis focused on the impact of cutting the $300, as well as states that cut other pandemic UI programs.

Cutting UI was followed by a slight drop in the share of the population receiving benefits – but Dube found the proportion of people employed also fell slightly in these states over the same period.

Employment share rose 0.2 percentage points in states where benefits were still available, Dube said.

Read more: Slashing unemployment benefits isn’t just a terrible economic idea – it’s a cruel gut punch for millions of Americans

Dube’s study used the most recent Household Pulse Survey (HPS), which collected employment data on 18-to-65-year-olds for the April 14 to July 5 period. The HPS asked respondents whether they had received UI in the past seven days, and if they were currently in work.

Some governors and businesses have blamed unemployment benefits for sluggish growth in hiring, and said the money held back economic growth.

Arizona Governor Doug Ducey, who cut all federal UI programs in the state on July 10, said in a May press release that he wanted to use “federal money to encourage people to work … instead of paying people not to work.”

Dube’s findings suggest that, at least in the short term, withdrawing funding has not led to a boom in employment. We need to wait longer to understand the full impact of the cuts, he said.

Dube’s analysis is supported by an Indeed study in June, which said that overall job-search activity had declined in states that cut benefits early.

But the evidence is mixed: Data from the Bureau of Labor Statistics released in July showed that 13 of the 15 states where employment rates are closest to their pre-pandemic levels had cut the $300 federal UI payments early.

The number of initial UI claims unexpectedly rose to 419,000 in the week ending July 17, up 51,000 from the previous week, despite a general downward trend, according to figures from the Department of Labor.

Read the original article on Business Insider

3 in 4 independent restaurants are still struggling to find staff, even as the hospitality industry adds hundreds of thousands of jobs, according to a poll

A server carries drinks to a table at P.J. Whelihan's restaurant and pub in Spring Township
Restaurants top Alignable’s list of small business sectors that are still in the midst of the labor shortage.

  • Restaurants are struggling to find staff more than other small businesses, a poll found.
  • 74% of independent restaurant owners say it’s harder to find workers now than before the pandemic.
  • Four in five small businesses told Alignable that their supply costs are higher, too.
  • See more stories on Insider’s business page.

The leisure hospitality industry appears to be on its way to recovery after adding 343,000 people payrolls in June, making up 40% of total US job gains – but independent restaurants say they still can’t get enough staff.

Seventy-four percent of independent restaurant owners say it’s harder to find employees than it was pre-pandemic, according to a survey conducted by small-business network Alignable in the first half of July.

As a result, restaurants top the list of small business sectors that are still in the midst of the labor shortage, according to Alignable.

Read more: These 9 food tech startups are capitalizing on the labor crunch with tools that help franchisees hire or automate the restaurant workforce

The lack of available workers is having huge effects on some restaurants across the US. Some businesses have been forced to reduce their hours because they can’t get enough staff, and half said that they struggled to pay rent in May.

After restaurants, the transport sector was the second-worst hit by the current labor shortage, according to Alignable’s survey, with two-thirds of small business owners in the sector saying they’re struggling to find staff. This was followed by the automotive industry at 63%, manufacturing at 62%, and the beauty sector at 59%.

Overall, half of the 5,911 small business owners that responded to Alignable’s survey said it’s more difficult to hire now than it was before the pandemic.

The labor shortage is forcing businesses to push up wages and roll out better perks to attract more workers. In Alignable’s poll, 44% of small business owners said they were compensating their staff more than before the pandemic.

It’s not just wages that are rising. Inflation is pushing up the price of goods, too. Four in five small businesses told Alignable that their supply and inventory costs had risen. Just over a quarter said that these costs were up by more than 25%.

“It’s killing my profit and it’s about ready to cause me to close my doors permanently,” an unnamed small business owner in the construction industry told Alignable.

The owner of Brady’s Restaurant in Maine told Insider that her food suppliers were hiking prices and substituting some orders for different brands or quantities. She said that she wasn’t able to get pineapple juice for around three weeks, and that her supplier substituted an order for 8-ounce burger patties with 2-ounce ones. Because of the ingredient shortages, she’d been forced to cut the restaurant’s opening hours, she said.

Businesses can get around the higher costs of goods and staff by putting their own prices up – but small businesses are reluctant to make big price changes, the survey shows. Forty-one percent of small businesses said they raised their prices during the pandemic, but only 7% had raised them by more than 25%.

Read the original article on Business Insider

Some restaurants are temporarily closing because they can’t find enough workers. One said diners have gotten ruder amid the labor shortage and even made staff cry.

server at a restaurant in California
Some restaurants say the worker shortage is making it harder for them to pay rent.

  • Some restaurants are temporarily closing or cutting their hours because of the labor shortage.
  • One opened for an hour less each day after staffing fell by nearly 50% compared with normal years.
  • A third of former hospitality workers said in a Joblist poll that they won’t return to the industry.
  • See more stories on Insider’s business page.

Some restaurants are cutting down their opening hours or temporarily closing for days on end because they simply can’t find enough workers to serve diners, amid the huge labor shortage hitting the hospitality industry.

One even shut down for a day after rude diners swore at staff and made them cry.

Central City Tap House in Kalamazoo, Michigan, said it was closing its doors “until we can find a full enough roster in our kitchen to re-open to our customers,” and urged people to apply for jobs at the company, Fox 17 first reported.

Fisher Lake Inn in Three Rivers, Michigan, also shut down Thursday and Friday “due to a staff shortage,” it said on Facebook.

“I’m about 80-85% staffed up for my summer season, so we are making it work,” Jeff Trickey, the restaurant’s owner, told Fox 17. “Periodically though, staff can’t work, and if I don’t have enough staff to operate the business then I can’t open.”

Read more: These 9 food tech startups are capitalizing on the labor crunch with tools that help franchisees hire or automate the restaurant workforce

Restaurants in Astoria, Oregon, were also forced to slash their operating hours after struggling to find enough staff, according to a report by The Astorian. This includes the Bridgewater Bistro, which closed its restaurant Tuesdays and Wednesdays, as well as between 3 p.m. and 4 p.m. on other days, to give current staff a break after it couldn’t find enough new cooks, servers, and dishwashers.

In Boothbay Harbor, Maine, Brady’s Pub and Taka Mediterranean Bar and Grill are also closing two days a week at what should be their peak season, while nearby seafood restaurant McSeagull’s shortened operating hours by an hour each day in the spring after its staffing fell by nearly 50% compared to normal years, The Boothbay Register reported.

One restaurant in Brewster, Massachusetts, even shut down for a “day of happiness” last week after rude diners swore at staff and made them cry.

Brandi Felt Castellano, co-owner of Apt Cape Cod, told The New York Times that diners seemed unprepared for the longer wait times and limited menus associated with the current staffing and supply shortages.

But not all the rudeness was caused by the labor shortage, Felt Castellano said. She told The Times that one group of diners threatened to sue the restaurant after they didn’t get the specific table they had requested.

Another customer got angry at a young employee who told him they could not take his breakfast takeout order because the restaurant hadn’t opened yet.

One in 3 former hospitality workers don’t want to return to the industry

The US is suffering from a severe shortage of workers which the US Chamber of Commerce has called a “national economic emergency.”

Joblist CEO Kevin Harrington told Insider that hospitality workers are leaving the industry “in droves,” in search of better pay and benefits. A third of former hospitality workers said in a Joblist poll that they wouldn’t return to the industry, and Harrington said that is primarily driven by people in entry-level, hourly-paid, and customer-facing jobs.

Some are hiking up wages because of the shortage, which is pushing menu prices up. Some restaurants say the worker shortage is making it harder for them to pay rent, too.

The Federal Reserve said the labor squeeze could last months – but Bank of America expects the job market to recover by early 2022.

Read the original article on Business Insider

What America’s CEOs are saying on inflation: We’re going to charge you more

In this photo illustration, hands are seen counting US $100 bills.
In this photo illustration, hands are seen counting $100 bills.

  • Inflation, or increased pricing for goods, is on the rise as the economy reopens.
  • Biden’s administration and the Fed says the price increases should be temporary.
  • But CEOs of major companies are saying that higher prices could persist.
  • See more stories on Insider’s business page.

The country is reopening and the economy is recovering from the pandemic, and while COVID-19 cases are down, prices for goods and services are on the rise. President Joe Biden’s administration says this phenomenon, known as inflation, is not a cause for concern, but CEOs of major companies are warning that they’ll probably keep raising prices.

The Bureau of Labor Statistics’ monthly Consumer Price Index release showed that inflation in June was much higher than expected, with prices surging 0.9% over May, the highest month-over-month inflation rate since April 2008’s 1.0% increase. It was fueled by big price increases for used cars, beef, and pork, and the government insists it should cool down soon.

Labor Secretary Marty Walsh told Insider in early July that he’s not worried about the increase in prices for goods, especially given that wages also increased in June.

“The one thing that we are not concerned about is … inflation,” Walsh told Insider. “We’re still in transition, so we’re not concerned about that. So I think anytime we can push for higher wages – and the president’s been very vocal on this – that’s a good thing for people.”

Treasury Secretary Janet Yellen said in May that the high prices should only last through the end of this year, and Biden said during a June press conference that the “overwhelming consensus” is that inflation should “pop up a little bit and then come back down” – similar to the consensus from America’s central bank, led by Federal Reserve Chair Jerome Powell.

The economics field is not close to that consensus. Former Treasury Secretary Larry Summers has pointed to Biden’s $1.9 trillion stimulus as the “least responsible” fiscal policy in 40 years, one that could potentially trigger the dreaded hyperinflation. Increasingly, executives are saying that price increases are here to stay. Here’s what else they’re saying:

JPMorgan Chase CEO Jamie Dimon

JPMorgan CEO Jamie Dimon.
JPMorgan CEO Jamie Dimon.

JPMorgan Chase CEO Jamie Dimon said during an earnings call on July 13 that inflation “could be worse than people think.”

“I think it’ll be a little bit worse than what the Fed thinks,” Dimon said. “I don’t think it’s only temporary.”

In June, Insider reported that Dimon said the bank was stockpiling $500 billion in cash in anticipation of higher inflation, during which he expressed the same concerns with the nature of inflation, in that it will be more persistent than what people are saying.

JPMorgan did not immediately respond to Insider’s request for comment.

 

BlackRock CEO Larry Fink

GettyImages 480950078

Larry Fink, the CEO of investment management corporation BlackRock, reiterated Dimon’s concerns on the nature of inflation in a CNBC interview on July 14.

“[Policymakers] are saying jobs are more important than consumerism,” Fink said. “That is going to probably lead to systematically more inflation.”

Biden has consistently touted job growth as a primary achievement of his administration so far, and Republican lawmakers have even cut off unemployment benefits early in an effort to incentivize people to return to work.

But Fink said that move takes the focus away from consumers, causing large-scale price increases.

“I’m hearing from every CEO that they have huge price increases, and they’re passing them on across the board, here in the United States and in Europe,” Fink said.

BlackRock did not immediately respond to Insider’s request for comment.

PepsiCo CFO Hugh Johnston

FILE PHOTO: Bottles of Pepsi are pictured at a grocery store in Pasadena, California, U.S., July 11, 2017.   REUTERS/Mario Anzuoni/File Photo
FILE PHOTO: Bottles of Pepsi are pictured at a grocery store in Pasadena

To help counter the effects of inflation, some business leaders are explicitly saying they’re raising prices for their goods on consumers. PepsiCo’s CFO Hugh Johnston is one of them.

“Is there somewhat more inflationary pressures out there? There is,”  Johnston said on an earnings call on July 13. “Are we going to be pricing to deal with it? We certainly are.”

The CEO of industrial supplies company Holden Lewis echoed Johnston on an earnings call the same day, saying that “based on what cost is doing,” the company will have to increase prices on consumers.

Lewis said, though, that a previous price increase the company made was received “fairly well,” suggesting consumers might not be discouraged by increased prices. 

Pepsi did not immediately respond to Insider’s request for comment.

Read the original article on Business Insider

Just over 6% of workers say they would quit their jobs if told to go back to the office 5 days a week

quitting job lay off
Many workers say they’d quit, but the majority say they’d comply.

  • 6.4% of US workers said they would leave their jobs without a backup if they were asked to return to the office 5 days a week.
  • The Survey of Working Arrangements and Attitudes collects monthly data on remote work.
  • Half would return without complaint, while 35% said they would return to work, but look elsewhere.
  • See more stories on Insider’s business page.

Some 6.4% of US workers say they would quit their jobs on the spot, regardless of whether they had a backup, if their employer asked them to go back to the office for five days a week, according to survey data gathered for June 2021.

The Survey of Working Arrangements and Attitudes asked employees how they would respond if their employer announced to all workers that they must return to the office from August 1st 2021.

The majority would be happy to comply, with 57.8% of respondents saying they would return to their desks.

However, while they wouldn’t quit outright, 35.8% said they would return but will look for a job that offers working from home.

Other findings from the survey suggest that Monday and Friday are the most popular days to work from home if employees had to choose two, being chosen by 54.1% and 56.6% of respondents respectively.

Managers should be aware of the consequences of not listening to their colleagues

The survey was founded in May 2020 in order to track attitudes and patterns of remote work during the pandemic.

It is jointly run by academics from the University of Chicago, ITAM, and Stanford University and collects monthly surveys of between 2,000 to 5,000 US respondents.

It doesn’t however ask for identifying details, making it harder to draw more specific conclusions other than general sentiment.

Conversations about hybrid work are not straightforward and depend on the needs of the employee and the business, Nick Bloom, professor of economics at Stanford and one of the academics behind the survey, told Insider.

Nevertheless, he said managers should be aware of the potential consequences of asking colleagues to come back to the office.

“The labor market is red hot, plenty of firms are offering people work-from-home packages. So if I’m an employee, this is not an empty threat,” said Bloom.

Other surveys suggest that workers are reassessing their career plans following the pandemic.

In May, 3.6 million US workers left their jobs according to latest figures from the Bureau of Labour Statistics, down slightly from a two-decade-high record in April.

There are many factors behind what experts are deeming the ‘great resignation’.

In March 2021, 72% of respondents told Prudential they were reassessing their skillset as a result of the pandemic. A report gathered by the UK insurance firm Aviva suggests that some care less about their career following a year of long hours and burnout – 47% said they were less career-focused, according to the BBC.

With the labor market as it is at present, companies are balancing recruitment against retention, said Bloom. “It’s a direct choice: do you pay higher wages, or do you give better work-life balance and better work perks?”

As the US economy experiences soaring vacancies following the COVID-19 pandemic, organizations are turning to more generous and creative means as a way to retain and recruit new staff.

Read the original article on Business Insider

Papa John’s is giving its pizza makers bonuses of up to $400, as restaurants cling onto staff in the labor shortage

FILE PHOTO: The Papa John's store in Westminster, Colorado, U.S. August 1, 2017.  REUTERS/Rick Wilking
The Papa John’s store in Westminster

  • Papa John’s is handing out bonuses of up to $400 to many of its employees.
  • Existing staff can get up to $400 in increments, and $50 for referring a new hire.
  • Staff at corporate-owned restaurants are eligible. It didn’t say how it would decide exact bonus amounts.
  • See more stories on Insider’s business page.

Papa John’s is paying bonuses of up to $400 as the restaurant industry scrambles to retain workers amid a huge labor shortage.

About 14,000 staff at company-owned restaurants, and in its supply chain, can get up to $400 paid in increments over the next six months. Papa John’s didn’t say how it would decide how much each staff member gets.

It’s also rolling out referral bonuses to recruit more staff. Staff can get $50 for each new hire they refer to the company – and new starters can get a $50 hiring bonus, it announced Thursday.

The bonuses apply to staff at the chain’s nearly 600 company-owned restaurants, which represent nearly a fifth of its restaurants in North America, alongside its quality control centers (QCC). Across the corporate restaurants and QCCs, Papa John’s employs about 14,000 people.

Read more: These 9 food tech startups are capitalizing on the labor crunch with tools that help franchisees hire or automate the restaurant workforce

The pizza chain said the staff benefits it introduced during the pandemic were now permanent. These include expanded health, wellness, paid time-off, and college-tuition benefits.

Papa John’s said that its bonuses, alongside extra investment in full-time staff at its higher-volume company-owned restaurants, would cost it around $2.5 million by the end of 2021.

“The incredible hard work and commitment of our team members, which powered Papa John’s tremendous performance and transformation over the past 18 months, is just as important to our sustained long-term growth,” Rob Lynch, CEO of the pizza chain, said in a statement.

“Similar to programs being offered by our franchisees, these new bonuses for our team members in our corporate restaurants and quality control centers reflect the value we place on growing, retaining, and supporting our dedicated team.”

The US is suffering from a severe shortage of workers, and restaurants have been especially hard hit, with a third of former hospitality workers saying in a Joblist poll that they won’t return to the industry.

The US Chamber of Commerce has called the national labor shortage a “national economic emergency” and warned it could hold back the recovery from the pandemic.

Together with rising ingredients costs, the labor shortage is pushing menu prices up at some restaurants. Some are struggling to pay rent.

Fast-food chains are trying perks to attract new hires and to cling onto existing staff. One McDonald’s restaurant said it would give iPhones to new hires while another handed out $50 to anyone who showed up for an interview. The company is also raising wages in its corporate-owned restaurants by an average of 10%.

The Federal Reserve said that the labor squeeze could last months – but Bank of America expects the job market to recover by early 2022.

Read the original article on Business Insider

I own 2 Hamptons hot spots that are busier than ever – but the worker shortage is crushing us

Zach Erdem seated at his Southampton restaurant Blu Mar.
Zach Erdem seated at his Southampton restaurant Blu Mar.

  • Zach Erdem is the owner of 75 Main and Blu Mar, two eateries in Southampton, New York.
  • Since reopening in June, Erdem says he’s struggled to find workers despite increasing the hourly pay.
  • Here’s what hiring has been like for him post-pandemic, as told to freelance writer Jenny Powers.
  • See more stories on Insider’s business page.

This summer has been busier than ever, and while it’s wonderful to finally be able to reopen our doors to full capacity and welcome our guests back, there’s a major caveat – it’s been virtually impossible to find enough staff.

Between my two restaurants, I have 87 people on staff. In an ideal situation, that number would be 100. But some of my staff weren’t interested in returning once we reopened – they told me they’d rather stay home on unemployment. I’ve had no choice but to seek out additional help.

I recently spent $2,000 posting job listings on Indeed and only received 10 resumes.

Prior to the pandemic, I never had to post jobs. People would just come in looking for work.

The people of Southampton have long supported me, so I always look to hire from within the community. I’ve also been known to approach customers I think would be a good fit to see if they’re interested.

These days, the tables have been turned and the employees feel like the real bosses, calling the shots in terms of how much they want to get paid and telling me when they want to work. My hands are tied in many instances; I have to do it if I want to keep operating.

In an effort to keep my staff in place and attract more talent, I increased the hourly pay, but I still can’t find enough people.

Last year, our dishwashers made $15 to $16 an hour; now it’s $19 to $22. Busboys, servers, and bartenders make $10 an hour plus tips and hostesses make between $18 to $30 based on their experience. Last week alone, some bussers took home $2,000 while some servers took home $5,000, because we’re busier than ever.

When it comes to hiring hostesses, I have three main criteria.

They must be fluent in English because they are representing our front of house and interfacing with everyone who walks through our doors; they must be familiar with POS (point of sale) systems to handle takeout orders and reservations; and they must be able to smile despite whatever may be going on. That last one is sometimes the hardest part.

Being in a front-of-house role is a tough job, especially these days now.

People are impatient and often it’s the hostess that will get the brunt of it.

Customers will yell and scream and complain, but we have to just grin and bear it. Last week I had a hostess burst out in tears and run into the kitchen. It’s not easy.

I insist on personally interviewing every hire down to the dishwasher.

I ask hypothetical questions that will allow me to get a snapshot of the type of person they are, like if they were free and a manager texted them to come in on their day off, what would they do? Their responses factor into whether I’d hire them, since I want a staff of team players who see this job as more than just a paycheck. At the end of the day, we spend more time at work than at home sometimes, so we have to work as a team.

I live above the restaurant and with the exception of the hour I take to exercise on the beach in the morning, I’m pretty much always at work.

Despite all the craziness, my favorite time in the Hamptons is still between Memorial Day and Labor Day.

I’ve been in the restaurant industry since 2002 when I first walked through the doors of Southampton’s 75 Main at the age of 21 and was hired on the spot as a dishwasher.

I myself rose up the ranks from dishwasher to busboy, then server and bartender to finally, manager. In 2010, I bought 75 Main from the owner who had originally hired me.

Sometimes I still can’t believe it, considering in 1994 I was living in my home city of Erzincan, Turkey, working as a shepherd and had never set foot on American soil.

Although I’m the owner now, I’m still running around, doing whatever needs to get done, including bussing tables. I’m happy if I get four hours of sleep a night.

A long time ago I vowed whatever I did, I would be the best at it, and you don’t become the best by sitting around watching everyone else work.

This month, we’re shooting a TV pilot inside 75 Main so people can see what it’s really like to work inside a restaurant like ours. It was one of our customer’s ideas. This place has all the elements of a movie: comedy, action, entertainment, and plenty of drama.

Read the original article on Business Insider

Bain & Company’s head of recruiting shares his top job-seeking tips for people feeling uncertain after the pandemic

Keith Bevans
Bain & Company’s Keith Bevans says new grads should be open to a nonlinear path while building their careers.

  • Keith Bevans is the head of global consultant recruitment at Bain & Company.
  • He spoke with Insider about how job-hunting has changed for recent graduates during the pandemic.
  • Job-seekers should be open-minded and flexible rather than hyper-focused on any one company or position.
  • See more stories on Insider’s business page.

The global impact of the the pandemic has left many college students and recent graduates uncertain about their professional futures.

Keith Bevans, partner at Bain & Company and leader of their global consultant recruitment efforts, understands the uncertainty many of these individuals are facing.

Bevans enrolled in Harvard Business School in the summer of 2000 during the “high-flying dotcom days” and graduated in 2002, one year after the dotcom bubble burst.

“What I saw at the time were a lot of students starting their journey toward the next degree with a clear vision for a specific job they wanted right after they got their diplomas,” Bevans told Insider.

These students had acute aspirations in mind and were hyper-focused on specific companies, departments, roles, and markets that they believed would create a direct path to their goals.

Instead, many were confronted with the realization that their desired companies were no longer hiring and that certain positions ceased to exist.

“For a lot of goal-oriented people it was tremendously unsettling. They were in part seven of their 21-part career plan and the wheels had come off.”

At the height of the pandemic, the US unemployment rate was elevated to levels not seen since the Great Depression. Tens of millions of students around the world were also at-risk of dropping out of college.

Such a substantial loss of career development opportunities has left countless professionals of all ages with uncertain futures. Here, Bevans shares tips for job seekers looking to kick their job-searching into high gear.

1. Don’t be afraid to go the nontraditional route

Bevans is quick to mention that his peers who overcame the dotcom bubble burst developed their skills in a nonlinear path in order to achieve their long-term vision.

“The most important thing you can do to prepare for your five-to-10 year career track is to understand the experiences that you need to collect to be successful. Find a job and employer that can provide as many of those experiences as possible.”

Those who were able to remain on their journey without losing their equilibrium were those who creatively sought out nontraditional routes to gain beneficial experiences, Bevans says.

Along with Bain & Company, global firms like Boston Consulting Group have adopted new hiring and intern programs in response to the pandemic. Internships and externships at PricewaterhouseCoopers, McKinsey & Company and other major firms, whether in-office or virtual, are also valuable resume-enhancers that often lead to full-time employment.

Bevans also encourages job seekers to work with nonprofit organizations that they’re passionate about; in his own spare time, he runs a tutoring program at his church and volunteers with organizations like Junior Achievement.

2. Stay resilient and keep engaging

Job hunting is a stressful endeavor for many professionals. Unfortunately, many applicants will receive more rejection notices than offer letters. In fact, when Bevans was first offered his role at the company, the partner hiring him had been rejected three times before he finally secured employment at Bain & Company.

Bevans encourages applicants to keep an open mind, engage in virtual recruitment activities, and continue pursuing the experiences that they desire, even if that doesn’t lead to a position with their dream company immediately.

To those who feel like COVID-19 has irreparably disrupted their career goals, Bevans is optimistic that the next generation of professionals and executives will rise above this challenge, just as his classmates did in the early 2000s.

“At the end of the day, there are tremendous opportunities out there and I think that the people who weathered the storm best were those who had a five-to-10-year career vision and understood the skills and experiences they needed to achieve that vision.”

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Chipotle has started accepting TikTok video resumes to encourage Gen-Z to apply for jobs at the burrito chain

People crowd in front of a fast-food counter with a lighted Chipotle sign
Order up, King of Prussia Mall.

  • Chipotle is among several big brands to have begun accepting TikTok videos as resumes.
  • On Wednesday, TikTok launched a video resume service to compete with LinkedIn.
  • It’s “essential” to “directly engage with Gen-Z,” a Chipotle exec said.
  • See more stories on Insider’s business page.

Chipotle has started accepting TikTok videos as resumes for job applications, continuing a cultural shift in US retail towards meeting applicants on their own terms.

“Given the current hiring climate … it’s essential to find new platforms to directly engage in meaningful career conversations with Gen-Z,” Marissa Andrada, Chipotle’s chief diversity, inclusion, and people officer, said in a statement Thursday.

The move comes as US retailers struggle to find staff amid the nationwide labor shortage. Jobless claims took an unexpected leap upward last week and unemployment in June was more than 2 percentage points above pre-pandemic averages, according to the Bureau of Labor Statistics.

One in every three hospitality workers weren’t expected to return to their pre-COVID jobs. Employees were telling their employers to “shove it” at a record pace. And an estimated 95% of workers were thinking about quitting.

TikTok on Wednesday began rolling out its resume site, tiktokresumes.com. LinkedIn has long allowed users to post video resumes.

“Don’t be afraid to let your personality shine through,” TikTok said in its “do’s and don’ts” for the new site.

A slate of retailers on Saturday morning had job openings posted on the new TikTok site. Among them were Target, Abercrombie & Fitch, and Forever 21.

Chipotle built one of the most successful brand pages on TikTok, with more than 1.6 million followers. It’s been busy posting guacamole making, Chipotle-bag dressmaking, and customers using extra-long forks.

“TikTok has been ingrained into Chipotle’s DNA for some time and now we’re evolving our presence to help bring in top talent to our restaurants,” Andrada said.

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