Home Careers 40 Ways Millennials Have Changed Today’s Modern Workplace
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40 Ways Millennials Have Changed Today’s Modern Workplace

Trista Smith October 5, 2022

Millennials are the oft-discussed group of people who came of age at about the turn of the millennium. They were born between the early 1980s and mid-1990s. About a decade ago, they started entering the workforce. Employers were not ready for them. By all accounts, they seemed like a generation of coddled infants.

Nevertheless, a lot of the challenges facing employers and millennial workers are due to a lack of understanding about them. First off, many people hate their jobs, and employers don’t really take that problem seriously. However, with millennials came not only high levels of job dissatisfaction but unprecedented turnover. Most millennials hold a job for less than two years, meaning that there’s much less stability in companies now than before.

Understanding millennials can help uncover the roots of worker dissatisfaction and ultimately turn the tide against employee turnover. They’ve already survived one of the worst economic recessions in history. Read on to learn 40 reasons millennials have changed the way the modern workplace functions.

The modern workforce is looking for satisfaction from their jobs, not the daily grind of boredom. Shutterstock.

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40. Many Workers Don’t Like Their Jobs

Have you ever been in a job that you don’t like? Maybe you currently are. If so, you’re not alone. Many people do not like their jobs. They have plenty of reasons to be dissatisfied with their jobs. And employers have plenty of reasons to be concerned.

When workers are happy and feel satisfied, they’re much more productive. They also contribute more to the company’s bottom line. When workers become dissatisfied, they stop making as much of an effort. They can even begin to hurt company profits. Many workers fall into the latter category.

The wage brackets of 30 years ago are no longer suitable. Shutterstock.

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39. Millennials Are Underpaid & They Know It

We’ve all heard the numbers about how real wages haven’t grown much. For many, they’ve shrunk. Real wages refer to how much money a worker makes including inflation as a factor to determine just how far that money can go.

So while a job that paid $40,000 a year in 1970 might have put you in the upper echelons, today that same amount can barely support an individual in some places, much less a family. In some parts of the country, a family of four needs $80,000 a year just to meet their basic needs.

Millennials want a balance between work and personal lives for peace of mind. Shutterstock.

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38. They Don’t Have Time For Families

What’s even more disheartening than workers not making enough money is how much time and energy they are sacrificing to their employers. If they work 40 hours a week and possibly overtime, they need to be able to at least meet their basic needs.

However, not making enough money to pay for housing, food, and bills is made even worse by not having enough time for family. Giving all of your time and energy to a company, not having any for your family, and still not being able to pay the bills is a recipe for high levels of worker dissatisfaction.

They feel like cogs in a machine instead of people. Shutterstock.

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37. Many Feel Unappreciated At Work

What’s worse than not making enough money and not having time for family while spending 40 hours a week at work? Working for a company that doesn’t make any effort to make sure that employees are happy.

This is not to suggest that bosses should become therapists and turn their workplaces into therapy centers. However, little things like noticing hard work, sending a congratulatory email, and recognizing contributions employees make can go far in turning the tide on employee dissatisfaction.

Doing the same thing over and over again can get pretty tedious. Shutterstock.

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36. Others Feel They Have No Challenges

Everyone has days at work when they feel bored. But a problem for employees is when that feeling of boredom becomes habitual. They think they don’t have many opportunities to make meaningful contributions.

An employee who was part of a groundbreaking project may once that project is over feel a bit underwhelmed. Keeping employees engaged in their work and feeling that they have challenges can make them feel competent, appreciated, and satisfied.

That daily grind makes it difficult for many millennials to stay in one job for very long. Shutterstock.

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35. Some Are Just Burnt Out

Some professions are notorious for burning workers out. Healthcare workers and social workers in particular have to work mercilessly long hours, during which they have to make critical decisions that will affect people’s lives and well-being. They are tired and they are burned out.

Burnout is not just being lazy. It happens when people have given everything that they have, and there is nothing left. They may become depressed, apathetic, and listless as they try to find meaning in a world that they no longer have the strength to engage in. They may even need an extended leave of absence from work. Burnout is a problem employers need to understand.

Most want a change of pace so that their work responsibilities feel interesting. Shutterstock.

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34. Others Feel Overwhelmed By Bureaucracy

Few things are more disappointing than having a creative personality and a great idea that continually gets stymied by bureaucratic processes designed to reinforce the status quo. Workers frequently become dissatisfied with their jobs because of the levels of bureaucracy they have to go through to get anything done.

However, there is also the day-to-day drudgery of doing the same thing. Some aspects of a job will always involve drudgery, but other elements can be livened up. Moreover, some workers actually like spreadsheets. But forcing everyone else to make spreadsheets instead of giving them to the ones that like spreadsheets is a recipe for employee turnover.

There are a plethora of benefits for companies to reap when their employees are happy. Shutterstock.

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33. Satisfied Workers Are More Productive

When workers feel satisfied with their jobs, they work harder. That is no secret. They are not only working for money; they are working towards a goal that they believe in. Workers are willing to put in extra hours not because they need overtime but because millennials want to make sure they get the job done well.

When workers take ownership of their tasks and projects, they feel more engaged like they are making a meaningful contribution to a bigger goal. Nevertheless, when they are repeatedly given tasks to complete with endless drudgery, they start looking for another job.

When people enjoy their jobs, they’re more likely to put their all into it. Shutterstock.

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32. They’re Better For The Overall Economy

Satisfied, productive workers make more money for the company. Instead of wasting their working hours daydreaming, sending personal emails, making shopping lists, or even doing online shopping, they’re getting the job done.

These workers make money for the company. They are also contributing to work culture by helping the people around them feel engaged and satisfied. When companies thrive because of satisfied workers, they can provide better to the overall economy and help improve people’s lives.

Disliking one’s job leads to high turnover rates in the workplace. Shutterstock.

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31. Too Many People Just Don’t Like Their Jobs

The benefits of having a satisfied, engaged workforce cannot be underestimated. A satisfied worker can complete in one hour what a disengaged worker may spend an entire day trying to get done (or not, depending on how you look at it).

The problem is that many people just don’t like their jobs. Job turnover today is higher than at many other points in American history, so employers are having to invest more in hiring and training workers than before. That energy could be going to achieving company goals instead. The key is engaging the workforce so workers feel satisfied.

Workplaces are not adapting to modern times, making it difficult for them to retain employees. Shutterstock.

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30. Millennials And Job Satisfaction

Job satisfaction is an essential component of being able to maintain a healthy, robust workforce. If people are not happy with where they are working, they may waste precious work hours and cost their company money.

Millennials, in particular, have particularly low rates of job satisfaction. Whereas workers in the baby boomer generation and even Generation X often found one job and stuck with it for their entire lives, millennials have a habit of hopping from one job to the next trying to find one that will make them feel satisfied.

When people are bored, they find other means to distract themselves from work. Shutterstock.

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29. Most Millennials Are Not Engaged

Studies show that fully 55% of millennials aren’t engaged at work. This means they’re not focused on the tasks they should be completing and going through the motions. Many are counting down the hours until the day ends.

What’s even more concerning is that 16% of millennial workers are actively disengaged in their jobs. It means that instead of also trying to focus on their tasks, they are engaging in other activities that distract them from the job they’re supposed to be doing.

Being disengaged at work means that nothing is getting done. Shutterstock.

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28. Over 71% Of Millennials Are Disengaged At Work

Nearly three-quarters of the workforce that is part of the millennial generation is not even trying at work. They may be staring off into space or pretending to type work emails and proofreading them dozens of times instead of sending them.

Only 29% of millennial workers are actively engaged in their jobs. So what makes the difference between engaged workers and disengaged workers? The answer comes down to job satisfaction and understanding what millennials want out of their work life. What they want is not the same as what earlier generations wanted.

You won’t find job loyalty with millennials if they’re not treated as people. Shutterstock.

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27. Loyalty Among Millennials Is Nonexistent

There are a few scattered millennials who go to work for the family company and plan to stay there until they retire. Nevertheless, for the most part, millennials do not feel any attachment or loyalty to the company they work for.

It’s a sharp change from baby boomers and Generation X, who could be counted on to stay at a company for most if not all of their working lives. So you can kiss goodbye to having the same mailman for 30 years or knowing the secretary of the company for a long while. Millennial workers are not staying put.

The job market is like a playground for millennials, as they seek to try new things to find satisfaction. Shutterstock.

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26. Millennials Switch Jobs Often

For millennials who are aged 28-32, 84% of workers have been with the same company for five years or fewer. 68% have been with the same company for less than two years. The idea that people should have their lives figured out by the age of 30 is dead.

Unsurprisingly, the numbers are even starker for millennials who are a bit younger. Among workers between the ages of 23-27, 88% have been with the same employer for less than five years. Considering that many people graduate college at about the age of 22, this means that nearly all college graduates have changed jobs at least once since graduating. However, the numbers get even more grim, seeing as fully 75% have been with their company for less than two years. Many have changed jobs two, three, or even four times in five years since graduating college.

Hopping from one job to the next can seem daunting to older generations, but it’s not uncommon. Shutterstock.

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25. Millennials Are Serial Job Hoppers

Millennials seem to jump from one job to the next with regularity. While this aspect may be irritating if it applied to a handful of millennials or small percentage, the numbers are high enough that there is a disruption to the American workforce.

Employers are finding that they cannot rely on millennial workers for long-term positions. Hiring is becoming much more difficult, and training seems to be a waste of time with the baseline understanding that the workers will be leaving within two years of employment. Companies all over the country are scratching their heads as to how to hire and retain millennial workers.

Millennials take this venture of job hunting in order to find something they’re passionate about. Shutterstock.

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24. There Are Reasons For This Job-Hopping

Millennials are not leaving their jobs just to irritate employers or to “find themselves.” They have legitimate reasons for always leaving jobs. Until employers start to understand why millennials have such a high job turnover rate, they’ll continue expending additional resources on hiring and training new workers.

Millennials are different from any other generation before them. While there is no way to generalize all millennials as being a certain way, there are some characteristics that they tend to share on a much larger scale than previous generations.

A lack of understanding of the millennial mind will only lead to more employee rehiring. Shutterstock.

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23. Understanding The Millennial Workforce

Millennials may spend their lunch break calling mom and dad, something that baby boomers and Generation Xers may never have even considered, but that’s because they usually have much stronger relationships with their parents than previous generations.

Yet too many employers don’t try to understand the different characteristics of millennials and instead try to fit them into a mold that worked for previous generations of workers. Understanding the millennial workforce and reducing job turnover has to start with understanding millennials and what makes them tick.

Millennials seek to find harmony in the workplace instead of vying for competition and the corner office. Shutterstock.

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22. Millennials Value Cooperation Over Competition

Many companies look for ways to get employees to compete with each other and offer incentives to the winners. They may offer a gift card to the worker who gets the newest clients or makes the most sales in a given period. They may base raises on who does the best and employee rankings.

But millennials, on the whole, are not interested in competition. They would much rather cooperate with their peers and coworkers to get a task done. Instead of flying solo to try to rack up as many new clients as they can, millennials would rather sit down and strategize on how they, as a team, can get and retain clients that are satisfied over the long term.

Millennials are more attached to their families, so they have no problems with moving back home. Shutterstock.

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21. Strong Relationships With Their Parents

While there were undoubtedly plenty of baby boomers and Generation Xers who returned home after graduating high school (and maybe after graduating college), the number of millennials who boomeranged back home was unprecedented.

One reason, of course, was that they graduated from college in an economy that had tanked, leaving them with substantial student loans and few job prospects. However, another reason is simply that they have strong relationships with their parents. Parents of millennials were much more engaged in their children’s lives than parents of previous generations, and millennials want to continue those relationships.

Millennials see through the veils of what corporations are trying to do and defy them at all odds. Shutterstock.

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20. Millennials Value Connection Over Corporate Agendas

The connection millennials have with their parents and other family members carry over into how they view the corporate world and their company’s culture. They want to work in an environment where they can connect with their coworkers and bosses more than they want to advance a corporate agenda.

Some millennials want to go out for drinks with their coworkers and don’t understand why the answer is no. But one challenge of engaging a millennial workforce is embedding the need for human connection into the corporate agenda so that the work culture values positive interactions among employees.

Millennials are more focused on helping each other out rather than trying to screw each other over. Shutterstock.

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19. The Kindest Generation In History

Millennials would instead work for nonprofit organizations that promote social justice than for a Wall Street bank that offers a sizeable salary and bonuses. They want to know that they are making a positive impact on the world and that people’s lives are better because of them.

They indeed are the kindest generation in history. Millennials want to solve problems with each other instead of fighting over them. They want to spread out profits so that everyone gets a fair share. Millennials would rather live modestly to make sure those around them have enough. While not all millennials share these qualities, on the whole, millennials are exceptionally kind people.

Millennials are focused on working together to accomplish the bigger goal at the end. Shutterstock.

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18. No Cutthroat Corporate Culture

Prioritizing profits over people is something that just will not ever mesh with the millennial mindset. They take massive issue with the idea that a company can increase its profits by laying off workers in favor of automation. And they would instead put in an average amount of work that doesn’t make other workers look bad if doing so would keep someone from losing their job.

For millennials to stay at a job, they need to see a corporate culture that prioritizes people and understands that you cannot outsource creativity or human connection. Otherwise, they’ll start looking for a new job within six months.

They can’t know what to expect or how they should act if no one tells them these things. Shutterstock.

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17. Millennials Don’t Understand Unspoken Rules

An employer can hire a 50-year-old worker and a 25-year-old worker at the same time. The 50-year-old Gen X’er will probably go to his or her desk or workstation and quietly get the job done without making any fuss. The 25-year-old millennial will probably knock on the boss’s door and ask questions.

Millennials don’t understand unspoken rules. If bosses want millennials sending emails instead of knocking on the door to get their questions answered, then they need to say so explicitly.

Instead of being told what to do, millennials want someone they can learn from. Shutterstock.

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16. Millennials Want Mentor-Type Figures

Back to the relationships many millennials have with their parents. They expect a mentor-type relationship with all of the authority figures in their lives. They want a boss who takes some level of interest in the work they are doing and help them on a path towards personal and professional growth.

Bosses have never before had to deal with these kinds of workers on such a large scale. While asking bosses to mentor every employee is certainly unfeasible, companies can make some changes to help millennials feel more connected and have the support they need to thrive.

Being able to achieve both aspects of their lives is their ultimate dream. Shutterstock.

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15. Millennials Want A Work-Life Balance

Millennials prize connections and relationships over anything else. Very few will put in a 12-hour workday unless there will be an immediate trade-off in terms of work-life balance. They won’t be working overtime unless they see that the company makes sure that they do have time to spend with their families.

Millennials may take more days off than other workers, and bosses may not understand why. Usually, they aren’t lazy, they are looking for time to spend with their families. When they don’t have a good work-life balance, they dissociate from their jobs and start looking for new ones.

Outside of work, millennials have goals of their own that they want to achieve before they’re too old. Shutterstock.

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14. Pursuing Their Personal Goals

Millennials understand, more than any generation before them, that life is not only about making money. They need money to survive. This fact is indisputable, as millennials graduated college in an economy that had been trashed by the 2008 financial crisis. But they need personal goals to truly live.

Millennials need employers who understand that they cannot stay late when they have previous obligations. Furthermore, while that project at work may appear to be so much more critical than whatever else they have going on, the more significant issue at stake is that millennials need to be able to learn and grow in their personal lives to feel satisfied.

Being flexible in their work style is another of their ultimate goals. Shutterstock.

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13. Millennials Don’t Want To Be Tied Down

Griping about how millennials take so long to settle down and buy a house seems to be cliché by now. And those gripes come from not understanding the millennial generation and what their values are. Millennials are different from people in other generations. Period.

Millennials would rather travel the world than buy a house. They would rather have a mobile office or at least some kind of flexibility that allows them to work online so they can travel for extended amounts of time.

Using one’s mind to create something new is the fundamental basis of a millennial’s mind. Shutterstock.

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12. Millennials Are Creative And Innovative

Millennials intuitively understand you cannot outsource creativity. They know that creativity is necessary for companies and individuals to thrive. They also wonder why, if creativity is so incredibly important to humanity, it gets stifled with people getting stuck behind desks working spreadsheets.

However, millennials will likely be willing to spend time working spreadsheets if they feel that their creativity is being valued and appreciated. They are innovative people who are continually looking for new and better ways of getting the job done, and they want to work for a company that shares those values rather than perpetuating the status quo.

For all of their hard work, they want some recognition, more than just a paycheck. Shutterstock.

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11. They Want To Be Appreciated

All workers need to feel that they are appreciated on some level. Millennials have this need in overdrive. Many of them grew up with parents who made sure that they knew how valued they are. Moreover, those who did not have the fortune of growing up with warm and loving parents saw those relationships with their friends and friends’ parents.

No one should expect that their bosses will become parents and that their coworkers will become family, but companies can make efforts to showing workers that they are valued. Something as simple as an email that notices a meaningful contribution that an employee made can work wonders in improving worker satisfaction and reducing job turnover.

Millennials aren’t against going to work; they want what the workplace is to adapt to something new and satisfying. Shutterstock.

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10. They Don’t Hate Working

The myth about millennials is that they are lazy and entitled. While some certainly are those things, the truth about millennials is that they are also kind, cooperative, innovative, and creative. Moreover, they are looking for work cultures that share those same values.

Millennials are not quitting jobs because they hate working. Nevertheless, there is no question that they are leaving jobs in large numbers and costing companies a lot of time, money, and resources. But when they find that they have an engaging and cooperative work environment, they are much more likely to stay put.

With wages not climbing with the cost of other expenses, it’s hard for millennials to want to stay working. Shutterstock.

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9. Millennials Quit Because They Don’t Feel Valued

One of the biggest reasons why workers quit their jobs is because they don’t feel valued. They do not have a sense that they are making a meaningful contribution and think as if they are just cogs in a giant corporate machine.

This reason is particularly exacerbated among millennials because feeling valued and appreciated is connected to their sense of self-identity and purpose. If they do not feel appreciated, they feel lost and like they are doing something wrong, even if they are doing everything right.

Millennials want to see the light of the end of the rainbow that they’re working towards. Shutterstock.

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8. Meaningful Contribution

Millennials, on the whole, are not looking for someone to tell them how special they are. They are looking for opportunities to use their skills to make meaningful contributions to a goal bigger than themselves.

When millennials feel they are part of something important, they immediately become much more engaged in the job that millennials are doing and want to ensure they are doing it well. When they don’t feel that they are part of something important, they are looking for new jobs.

Raising their self-esteem as children is what has made millennials the way they are. Shutterstock.

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7. Millennials Were Part Of The Self-Esteem Movement

The self-esteem movement was a disaster. Schools, sports teams, and community organizations came up with the idea that for people to feel important, they need to be rewarded for every single thing they did. So kids got trophies for coming in last place.

The result was a disaster. Kids came to feel entitled and expected other people to coddle them instead of working hard and finding worth and value inside of themselves. Those kids were millennials and are today’s workforce. The effects of the self-esteem movement linger.

Because of the way they were raised, millennials are always looking for affirmation from others. Shutterstock.

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6. Millennials Need More Affirmation

Millennials do expect more of their bosses than other generations of workers. They want their bosses to mentor them. They want employee evaluations to critique them in such a way that they develop a plan for personal and professional growth.

Moreover, they need more affirmation than other workers. Employers who want to keep their workforce instead of continuing the same pattern of turnover need to be prepared to give more pats on the back than they may be used to.

Working with other like-minded people is how millennials work best. Shutterstock.

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5. Employers Can Engage Them Better In Teams

Baby boomers and Generation Xers tend to work well in solitude. Not so with millennials. They went to school at a time when educators were beginning to see the value of group work. To them, nothing was a contest. The rule of the game was collaboration.

This team spirit that millennials have can be of great value to employers, as long as they recognize the need to put millennials in teams. Brainstorming sessions can be incredibly productive, as long as there is a strategy to follow up and make sure that ideas are being turned into reality.

Pay them the attention they deserve and reward them for their efforts with gratitude. Shutterstock.

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4. Valuing Their Skills Is Key

Millennials don’t need their bosses to tell them they are unique. They know they are special. They spent the first 18+ years of their lives hearing that from their parents.

What they want is for employers to recognize their skills and talents and put them to use. The millennial who majored in English needs to have a role in drafting corporate communications, even if that wasn’t part of the original job description. The artist needs to be able to use those art skills whenever possible. Giving those tasks to someone else will burn.

Treat them like people, not tools of the workplace. Shutterstock.

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3. Valuing Them As Individuals

Millennials need to work for a boss who sees them as more than a worker. They need a boss who calls them by the first name and recognizes them as individual people who have lives outside of work. While the boss may not be keeping up with all of their travel plans, he or she needs to show some kind of interest in their lives.

Many baby boomers and Generation Xers have long been happy to go to work, sit down at a desk, and only interact with people whenever necessary. Their relationships are at home. For millennials, human connection is the key to everything that they do. It unlocks their abilities.

The key to understanding millennials is to put yourself in their shoes, not undermine them. Shutterstock.

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2. Millennials Aren’t Really That Bad

Millennials are the kindest generation in the history of humanity, and employers need to adapt in such a way that recognizes the different impulses they have. They’re likely to spend part of their salary on a charitable cause or spend time volunteering.

When millennials realize they are appreciated, they will outperform any other employees. And even better, they will bring other workers up with them. They’ll set a standard and help others rise to it by assisting other people on their teams.

Loyalty is earned through mutual respect. Shutterstock.

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1. They Will Commit To A Company

The high turnover rate of millennial workers is due to a lot of factors, some of which simply cannot be controlled. They inherited a bad economy and graduated with an excessive amount of student loan debt. They may quit a job simply because they cannot afford their loan payments and need to move back in with their parents.

Nevertheless, there are plenty of ways that companies can engage with millennials. Employers that let millennials know they are committed to them will find that, in turn, the millennial workers are committed to the company. There may need to be changes in how bosses engage with workers, but in the long run, the result will be greater worker satisfaction, engagement, and productivity.

Home Business Organizations That Don’t Deserve The Bailouts They Receive
Business

Organizations That Don’t Deserve The Bailouts They Receive

Trista Smith October 2, 2022

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The economic fallout of the 2020 crisis prompted Congress to pass a stimulus bill that included payments for everyday people. It also provided enormous bailouts for multinational, multi-billion-dollar companies.

However, is providing these companies with bailout money a good economic move? We took a look at several large companies that seem to require bailouts quite often. These businesses seem to be the opposite of those who actually thrive during recessions. Then we discussed whether or not they actually deserve said bailout money. Dive into the debate below.

Bailouts provide emergency cash infusion.

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30. Bailouts Aren’t Necessarily Grants

A grant is money the government or other organization gives and does not need to be repaid. Grants are usually reserved for nonprofit organizations and research-based work, such as work done at hospitals.

A bailout is essentially a loan the government offers to a company struggling to survive. The leadership of the company has to approach the government and explain why a bailout is necessary for the company and public well-being. The government may choose to allow the company to fail or offer a bailout.

Enron would have failed even with a bailout.

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29. They May Fail Anyway

Bailouts are cash infusions that can keep companies afloat financially, but they have to be repaid. Nevertheless, there are reasons why companies can fail that do not begin with problems with cash reserves. Companies can fail because of weak or corrupt leadership, bad business practices, and/or a toxic corporate culture.

The Enron company, which failed in 2000, collapsed because of a high level of corporate fraud. Infusing more money into Enron would not have saved it. Large companies can fail for other reasons as well.

Bailouts can prevent unemployment.

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28. Bailouts Can Preserve Jobs

Imagine a company on the verge of collapse employs 20,000 people. Those 20,000 people will all lose their jobs, and could very likely have to rely on unemployment or welfare to meet their day-to-day needs.

The government may find a bailout for a company is necessary to save those people’s jobs. If all of those people can remain employed, the government has saved money because 20,000 people will not be receiving welfare payments.

Corporate failures cost a lot of money.

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27. Preserving Financial Investments

When Enron (2000) and Bear Stearns (2008) failed, people across the country lost their retirement and other savings. The collapse of these institutions was disastrous, not only for individual people’s financial well-being but for the welfare of the entire economic system.

The domino effect means that when those people lost their investments, the entire economy took a hit. The government may determine that offering a bailout to an institution is necessary to prevent thousands of people from losing their money and having to rely on the government for income.

A shuttered company cannot pay back bailout money.

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26. Bailouts Aren’t Always Paid Back

As previously mentioned, plenty of companies fail for reasons not directly connected to cash reserves. No matter how much money a company has, poor leadership can take an entire organization down. If the government offers a bailout to a company with poor leadership, that company can still fail.

If the company fails regardless, what happens to the loan? There’s no one to pay it back, so the burden unfortunately falls on taxpayers. The bailout loan was provided by the government with taxpayer money, so if the company fails and the loan cannot get repaid, then the overall burden falls on the rest of Americans whose money funded the bailout.

Taxpayers carry the weight of failed bailouts.

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25. A Bailout Is Different From A Bail-In

In a bailout, the government provides the money for a corporate rescue package. That money comes from taxpayers who may or may not have consented to the bailout program. Those taxpayers also bear the responsibility if the company fails.

A bail-in is different. In a bail-in, shareholders who have a financial stake in a company provide the cash infusion that will bring the company back from the verge of bankruptcy. In this case, the financial burden falls only on those who stand to benefit if the company succeeds.

Amtrak relies on federal dollars.

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24. Transportation Companies Often Get Bailouts

The government considers transportation to be of vital importance to the American economy. As such, public transportation networks, such as Amtrak receive federal funds to make sure they remain solvent and continue transporting people.

Also included in the category are airlines. Though air transportation may be a luxury for many, the government considers it to be a critical aspect of the country’s infrastructure and vital to the economy. Airlines are towards the front of the line in terms of receiving bailouts.

Banks are frequent recipients of bailout funds.

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23. Financial Institutions Do Too

One purpose of bailouts is to avoid a financial contagion from infecting an entire industry or even crossing industries and infecting the economy as a whole. A financial contagion may look like toxic assets that a bank or other financial institution holds. When the institution collapses as a result, it can take down the entire industry.

Financial institutions, such as banks, mortgage-lending companies, and insurance companies are also prime targets to receive government bailouts. The problem is that when a financial institution needs cash, the reason is almost always because of a toxic corporate culture and mismanagement of funds. So do these companies really deserve more money to mismanage, especially public funds?

Bailouts are for emergencies, many of which were well-planned.

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22. Bailouts May Be Based On Emergency

Companies don’t usually tell investors upfront they are struggling. With the Enron crisis in 2000, fraudulent accounting was used to make the company look like it was doing well financially and turning a profit. The company seemed to collapse overnight, but its collapse was a long time in the making.

A company’s financial distress may not come to light until the situation is so dire that the company may collapse within days or even hours. Government bailouts often come in emergencies such as these, but these emergencies can often be avoided by being forthcoming about a company’s finances.

Many people are opposed to bailouts.

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21. Bailouts Are Controversial

Taxpayers who have no financial stake in a company are often against bailouts, especially when the money is loaned to an institution with no strings attached. The money is given to companies that have been mismanaging money all along. Taxpayers are forced to bear the burden for problems that they did not cause.

Yet some economists see bailouts as a necessary evil. Even though companies need them because of mismanagement and sometimes because of fraud, a failure of one major company can lead to the collapse of an entire industry. Furthermore, all who have jobs and investments with the company can lose everything.

In 2008, the government bailed out Wall Street with no strings attached.

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20. The Most Notorious Bailouts Came In 2008

The 2008 financial crisis was the worst in history since Black Friday of 1929 when the stock market collapsed and began the Great Depression. Banks had been writing subprime mortgages to people who could not afford them but wanted to own homes.

The new homeowners found that their initial mortgage payments doubled, tripled, and even quadrupled months after buying their homes When they could not keep up with their payments, they lost their homes. These toxic mortgage assets flooded the market and threatened to take down the entire financial industry, not only in the United States but across the world.

Bear Stearns failed after receiving bailout money.

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19. Bear Stearns Was First To Fail

Bear Stearns was a multinational bank that held many of the toxic mortgages given to people who could not afford them. When the real estate market began to collapse in 2007, Bear Stearns was hit particularly hard.

In March 2008, Bear Stearns received emergency bailout money to try to prevent a complete collapse of the bank. However, its mismanagement of funds and poor leadership, especially toxic mortgage assets, caused it to fail anyway. The money the government had loaned them was lost.

Lehman Brothers failed next.

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18. The Next Bailout Request Was Denied

Lehman Brothers was the next domino to fall in the financial crisis of 2008. When it requested bailout money in September 2008, the government declined the request, at least in part because of the failure of Bear Stearns.

Lehman Brothers collapsed within days. Thousands of employees across the country lost their jobs, and even more people lost their savings. The question remains, should the government have bailed out Lehman Brothers? Or was it right to deny a bailout that could have staved off the collapse of the bank?

The 2008 bailouts were extremely unpopular.

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17. More Bailouts Came After Lehman Brothers

With the failure of Bear Stearns and Lehman Brothers, the entire financial industry in the United States, and throughout the world, was in danger of collapsing altogether. Economists warned that the world was heading for another Great Depression that would take decades to recover.

The American government granted a massive bailout to struggling banks, the same banks that had caused the crisis by writing subprime mortgages to people who could not afford them. The alternative was to allow the country’s banks to collapse and destroy the economy.

Taxpayer money turned into corporate bonuses.

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16. CEOs Used Bailouts To Give Themselves Bonuses

The money the government loaned to the banks came with no strings attached. There was no stipulation on how it should be spent, though legislators expected the banks would use the money to increase liquidity and become solvent.

Yet the first thing that the CEOs of the banks did was award themselves large bonuses. That money came from the government, by way of taxpayers. Instead of helping the banks regain their footing, ensuring employees kept their jobs and preserving people’s savings, the money went to buying yachts and vacations.

Airports were empty as the economy ground to a halt.

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15. 2020’s Crisis Resulted In A Bailout Bill

In 2020 when the world economy ground to a halt to try to prevent the spread, companies immediately began bleeding money. Air travel dropped precipitously, with many planes taking off with only a few passengers aboard. Each flight cost the airline money.

Restaurants and non-essential retail stores had to close to the general public except for take-out and online options. Millions of workers became furloughed or laid off as companies could not make payroll. It became clear bailouts were inevitable.

Airlines stood to gain the most. Unlike the banks in 2008, they did not cause the crisis.

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14. The Crisis Wasn’t Caused By Companies

In 2008, the companies that received bailout money from the government were the same companies that had caused the financial crisis in the first place. But the companies that took a hit with the 2020 crisis had nothing to do with the current situation.

The extent to which they could have been involved is simply the workers that got sick, possibly because of exposure at work. Many of the companies that needed bailout money are small businesses with a low-profit margin and could close without help.

A decade of corporate buybacks instead of paying back loans did not prepare companies for the crisis.

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13. Some Were Mismanaging Funds

Plenty of people argue that billion-dollar companies that received bailout money should have enough in cash reserves to continue paying employees while they were furloughed.

The situation becomes even more questionable when one considers the salaries of the CEOs. Many CEOs have salaries in the millions of dollars while employees furloughed are making less than $10 an hour. One of the upper-level wages could pay hundreds of employee salaries.

The money could have funded more corporate bonuses.

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12. The Original Plan For Bailout Money

Keeping in mind that in 2008, the CEOs of companies that received bailout money used it to give themselves bonuses, the 2020 bailout money becomes even more offensive. Moreover, in the original bill proposed in Congress, there was no oversight for the bailout money.

There were no qualifications for how the money should be spent, meaning CEOs could once again use the bailout money to award themselves bonuses. They didn’t have to use the money to pay employees who had been furloughed or keep the company afloat while operations were temporarily frozen.

Corporate bosses cannot profit from the crisis, and some of the money helps small businesses.

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11. The Final Package Has Oversight

Democrats who opposed the original bailout called it a slush fund for the president, whose real estate empire could have received a significant amount of bailout funds. They saw it as taking funds from taxpayers who are suffering from a new financial crisis to fund more corporate bonuses.

The bailout package that passed through Congress provided for someone to oversee how the bailout money was spent. It also provided for loans to small businesses, not just multinational, billion-dollar corporations, so that they could weather the crisis. Small companies that bring back employees after the crisis ends do not have to repay the loans, so they essentially become grants.

Airlines stood to get a lot from the bailout package.

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10. Airline Industry Got $50 Billion

The airline industry is one of the most opportunistic in the world. It has been raising fares for travelers, making refunds or flight changes increasingly harder so airlines can keep more of the travelers’ money, charging for amenities such as meals and luggage that used to be free and squeezing travelers into smaller and smaller seats.

If airlines have been using business practices to line CEO pockets while providing fewer services for travelers all while paying flight attendants and other workers low wages, should they receive $50 billion, even if it is a loan that must be repaid?

The cruise industry may not recover.

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9. Cruise Lines Took A Huge Share Of Bailout Money

With social distancing measures to avoid the spread of the illness, cruises have ground to a halt. Some cruise ships that had people on board when the crisis began found that by the time they were aware of a sick passenger, the outbreak had spread to infect many passengers.

With cruises at a complete standstill, cruise lines took a substantial financial hit. Unsurprisingly, cruise companies requested bailout money from Congress to help them weather the crisis. However, like airlines, cruise lines have been raising rates while offering fewer services and not raising employee pay. Why were they not prepared for an emergency?

Better financial management could have prevented the fallout for hotels.

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8. Hotels Were Also Bailed Out

The travel industry was one of the most immediately affected, outside of healthcare, due to the current crisis. Stay-at-home orders meant very few people are traveling, work events are being canceled, and no one is booking hotels.

The result is hotel staff getting furloughed as the industry struggles to survive. Like airlines and cruise lines, hotels took home a massive share of the bailout money. Nevertheless, the question remains: Do they deserve it? Would better financial practices have helped them be prepared for the crisis?

Bailouts seem to be something that companies can rely on during a crisis.

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7. Lacking Financial Responsibility

Responsible management of finances means that when there is a period of prosperity, individuals, families, and companies will save some of that money for a rainy day. The rainy day is here now, so if airlines, hotels, and other industries have been experiencing so much prosperity over the past decade, why are they not prepared?

Because they’ve been using their cash influxes to buy back company shares and increase payments to upper-level management. They haven’t been using it to repay loans or build up a reserve fund to carry them through a difficult period.

Did the bailouts help the economy?

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6. Bailouts Could Have Been Better Spent?

With the economic stimulus package, small businesses could apply for loans that would also keep them afloat as they weather the current crisis. Individuals who have a social security number and an income below a specific limit also received cash payments. Some economists argue the only good use for the bailout money is for these small businesses and individuals.

Why? For one reason, individuals and small businesses have to practice financial responsibility regularly because they know they cannot rely on bailout money in a crisis. They can’t be using extra money to fund corporate bonuses, and are the ones hurting the most right now from the disaster.

Some argue that more money should have gone to healthcare.

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5. Will Bailouts Hurt the Economy?

The question needs to be about the long-term health of the economy, but right now, no one knows what the future holds. The current crisis is so unprecedented that there is no telling what will happen. However, many can agree on the fact there are significant changes underway.

So what will be the long-term impact of the bailout money that Congress gave to billion-dollar companies that have not been financially responsible? The answer depends on the systemic changes that happen as we weather the current crisis.

Bailouts are increasingly common.

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4. Poorly Managed Companies May Keep Looking For Bailouts

With a history of the government providing bailout money now well-established, there’s a fair chance that the large companies with poor financial practices may continue looking to the Federal Reserve as their corporate slush fund.

But will the government continue giving bailouts? Many indicators now show that the country’s current economic practices, which provide tax breaks to the wealthy and encourage financial irresponsibility among major companies, are on their way out.

Corporate bailouts undermine the workers that the packages are meant to help.

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3. Workers Are The Foundation Of The Economy

Without going in the direction of communism, many people can agree that the foundation of the American economy is the workers who go to their jobs every day, often for low wages, and are now unemployed. Those that are not unemployed are on the front lines of the crisis, like grocery store workers who stock shelves so people can get food for their families.

They are doing so at the risk of their health because they stand a higher chance of contracting it. When a large share of these workers is no longer able to go to their jobs, the entire economy takes a big hit. Now that we recognize the significance of these workers, public policy will hopefully shift in their direction.

Bailouts may do more harm than good.

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2. Enriching Large Companies/CEOs Is Bad For The Economy

These essential workers that support the entire economy so families can buy groceries have been working for low wages that haven’t been rising even to keep pace with inflation.

Meanwhile, CEO and upper-level management salaries have been going up. To come out of the crisis with a healthy economy, or one that is at least becoming healthy, we will need to appreciate the jobs that low-wage workers do and enact policies to benefit them and their families.

The entire economy needs a makeover.

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1. People Not Having Sick Days Is A Bad Idea

While CEOs of major restaurant chains have been enriching themselves through a decade of low taxes and high profits, workers have been operating in an environment where they don’t even get paid sick leave. What does that mean when a deadly illness takes over the world?

It means that people who prepare your food cannot afford to stay home even if they feel ill, meaning that they stand a higher chance of spreading the disease, and can’t go to the doctor. So really, the current financial practices of the country have been contributing to the present crisis. Therefore, we can’t expect those same financial practices to bring us out of it.

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