More Employees Are Working Less, but Making the Same Money
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What is the main topic discussed in this episode?
Listen at schwab.com slash washingtonwise.
Hey, your money briefing listeners, this is J.R. Whelan. Here at YMB, we're all about bringing you important personal finance and career news to help you make better decisions about your money. But we want to know more about you. What personal finance topics would you like to hear more about? If you're listening on Spotify, look for our poll under the episode description, or you can send us an email to ymb at wsj.com. That's ymb at wsj.com. Now onto the show. Here's your Money Briefing for Thursday, November 2nd. I'm J.R. Whelan for The Wall Street Journal. In addition to things like health insurance and retirement savings programs, many employers are offering increased paid time off as a benefit to prospective job applicants.
It's a very tight labor market.
Why are employers offering more paid time off in a tight labor market?
There are more job openings than there are people looking for work right now. That's one way an employer can differentiate him or herself. It can offer better benefits, a better life-work balance.
Which types of paid leave have increased the most and who gets them?
We'll talk to WSJ economics reporter Jeffrey Sparshott after the break.
Listen at schwab.com slash washingtonwise.
The rise in paid time off offered by employers has resulted in workers doing less work for the same pay. Wall Street Journal economics reporter Jeffrey Sparshott joins me. So, Jeff, why are employers offering more paid time off these days?
Are small businesses also adopting expanded paid-time-off policies?
In part because they have to. It's a very tight labor market. There are more job openings than there are people looking for work right now. That's one way an employer can differentiate him or herself.
Will the rise in paid time off persist if the labor market cools?
It can offer better benefits, a better life-work balance.
Last month, we discussed how younger workers are taking more sick days. And in some cases, it's frustrating their managers. But how are employers working paid time off into what they offer workers?
How do increased paid leave policies create scheduling and staffing challenges for employers?
Statistically, it's going up as of this spring. Employers offered 80% of workers paid sick leave. That was up from 67% a decade ago. Paid vacation is up to 77% from 74%. And family leave had probably the most dramatic jump to 27%. of workers from 12%.
How has the gap between paid hours and actual hours worked changed since the pandemic?
And especially smaller companies, it can be challenging, but people are learning on the fly. Scheduling software is improving. Employees are often trying to be flexible and cover for each other and make programs like this work.
Yeah, so it's not just large companies doing this.
No, smaller businesses are doing it as well. I mean, if you look at the statistics, bigger companies have it more often. Higher paid industries and higher paid employees are more likely to get these types of benefits, but it is expanding. One of the companies that I spoke with is it's just a five restaurant pizza chain.
Can higher productivity offset less on-the-job time and preserve employer outcomes?
In the Minneapolis-St. Paul region, they have paid time off. Data from Indeed shows that more companies are advertising paid time off for low-wage workers as well as higher-wage workers. So it seems to be expanding. Even though the labor market is cooling off a little bit, it's still competitive and it's still a challenge to get workers.
Does this trend toward more paid time off seem permanent? Or could it change if and when the labor market cools off?
It's hard to say for sure, but it seems like benefits like this, once they go into place, they tend to stick. And worker attitudes seem to have changed with the pandemic as well. So this is something that workers expect more now than they have in the past. And data from Indeed shows that more companies are advertising that they offer paid time off, paid vacation. That's continuing to trend up. So it seems like this is something that companies are doing differently. As long as the labor market stays competitive, if we go into a recession and people start laying workers off, it's hard to say. It's hard to know what will happen next and what people will demand.
So workers and employers are seeing value in this rise in paid time off. But does it create a tricky situation for some employers who are struggling to have enough workers on hand on a day-to-day basis?
I've got some mixed responses. I mean, some people said that happy workers are more productive workers.
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Chapters
8 chapters
1
What is the main topic discussed in this episode?
0:01–1:18
2
Why are employers offering more paid time off in a tight labor market?
1:18–1:30
3
Which types of paid leave have increased the most and who gets them?
1:30–2:27
4
Are small businesses also adopting expanded paid-time-off policies?
2:27–2:37
5
Will the rise in paid time off persist if the labor market cools?
2:37–2:54
6
How do increased paid leave policies create scheduling and staffing challenges for employers?
2:54–3:15
7
How has the gap between paid hours and actual hours worked changed since the pandemic?
3:15–3:47
8
Can higher productivity offset less on-the-job time and preserve employer outcomes?
3:47–8:38
Speakers
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