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Reasons 1 in 3 workers are thinking about quitting their jobs

Ismat Mangla, Senior Content Director at MagnifyMoney, joins Yahoo Finance to discuss expectations for July Jobs report and MagnifyMoney’s latest report showing a large number of workers looking to leave their jobs.

Video transcript

ALEXIS CHRISTOFOROUS: New filings for unemployment benefits remain stubbornly high. Filings fell just slightly last week to 385,000, well above the pre-pandemic numbers, which were typically around 200,000. The news comes, of course, a day before we get the government's all important monthly unemployment report for July. In what is being called the Great Resignation, 1 in 3 workers are now considering leaving their job while a whopping 60% are rethinking their career choices.

That's according to a report from Magnify Money. And joining us now is Ismat Mangla, Senior Content Director at Magnify Money. Ismat, good to see you. These numbers are kind of staggering. Break down for us some of the main reasons why so many people are thinking about quitting their jobs.

ISMAT MANGLA: Hi, thanks so much for having me. Yeah, I mean, when you hear 1 in 3 workers are thinking about quitting their jobs, that is pretty big. And I think the pandemic has certainly impacted the way people are thinking about work and even the future of work. In our survey, we found that the main reasons that folks wanted to leave their jobs were, number one, feeling like they were being underpaid. But then another big one was wanting the ability to work from home permanently. That has really changed with this pandemic. And then the third-most prevalent reason people are thinking about leaving their jobs is just feeling burned out-- not feeling like they can keep up with the pace of things.

KRISTIN MYERS: So then if you're an employer and you want to actually retain your talent, you want to keep your employees, is it going to be all about paying them more? Or is there something else that they need to start doing? Are there more perks, benefits that they need to start throwing at their employees allowing them to work from home and be more flexible? Or is it, frankly, an all of the above kind of situation where you have to throw everything but the kitchen sink to keep some workers happy?

ISMAT MANGLA: Yeah, I think in a lot of industries, workers are definitely more in the driver's seat. In our survey, we found that salary is still and is always going to be a big factor and a hugely important factor in deciding which job to take. That said, the ability to work from home, that is becoming something that a lot of folks are not willing to negotiate on now. Especially if their job requires them to have a computer, internet connection, and a phone, they're finding they can do that from there from the comfort of their home, eliminate commutes, and still be just as effective.

That's going to be, I think, a game-changer for a lot of companies. And we're already seeing that. Companies are redefining their sort of remote and hybrid policies, because that's-- you have to add for that flexibility in order to be competitive. You know, and then you mentioned sort all of the above approach-- I think, obviously, companies are going to have to think about offering different kinds of perks to retain workers. I think Target just announced today that they're going to be paying for college tuition. So a lot of companies are looking at expanding those kinds of benefits.

ALEXIS CHRISTOFOROUS: Talk to us a little bit about what the thought process should be that someone goes through if they are, indeed, thinking about quitting their jobs. Because in the spur of the moment when you get caught up in it, it might sound like a great idea, but what are some things that you should absolutely have in order before you really take that plunge?

ISMAT MANGLA: Well, I mean, there's two things to think about, right? One is, do you have another job lined up? Like, if you've got something lined up, if you've got a better offer than that that you're considering, then, you know, the things you're going to want to think about there are what is the long-term stability with the job that you're thinking about taking versus the one that you're leaving? What are your growth prospects there versus the one that you're leaving? What kind of benefits and perks do they offer that you may not be getting here?

And then if you're just thinking about going freelance or going out into the world and just taking your chance-- maybe you're going to take a little break or just leave your job without having something firm lined up, then I think it's really important to really take a hard look at your finances and make sure that you're prepared. I always suggest folks have at least six months of expenses in their emergency savings to cover. And then also maybe think about what expenses they can trim to, like, live on a more lean budget. I think those are the major considerations, so it really depends on your situation. Do you have something lined up or do you not?