Side Hustles, Extra Shifts, or a New Job – Inflation Forcing Workers to Raise Their Incomes

Rhea-AI Summary

Qualtrics (NASDAQ: XM) reveals in a new study that 64% of workers find it harder to cover living expenses than a year ago. Rising inflation has led to 69% of working parents feeling their pay isn’t keeping pace. Many are seeking additional income through second jobs or overtime, with 38% looking for a second job and 57% wanting more work hours. Additionally, 18% of all employees have relocated to lower-cost areas, a trend more pronounced among parents. The study emphasizes the urgent need for employers to improve compensation to retain talent.

Positive

• Increase in demand for overtime and extra shifts (57% of all employees wanting more hours).
• Strong interest in job market (38% seeking second jobs).
• Identifies a trend of employees relocating for cost of living.

Negative

• 64% of workers report difficulty in meeting living expenses compared to last year.
• 69% of working parents feel their pay isn't sufficient.
• High employee turnover risk due to financial pressures.

Almost half of working parents say they have considered a second job, and more than a quarter have moved to a more affordable city to manage expenses

PROVO, Utah & SEATTLE--(BUSINESS WIRE)-- Workers are looking for new jobs, asking for extra shifts, or taking on side hustles to make ends meet as everyday expenses eat up a bigger chunk of their paychecks. A new Qualtrics (Nasdaq: XM) study finds that 64% of workers say it’s harder to pay for their living expenses than it was a year ago.

An increasing share of Americans consider their financial situation poor as inflation has pushed up prices on essentials like bread, eggs and baby formula. Compounding the impact of prices going up, many of the work-related expenses that were relieved by remote work, such as commute costs and full-time childcare, are returning as an increasing number of people head back to the office.

Rising costs are changing the employment landscape, and workers are taking steps to improve their financial standing by trimming their expenses, increasing their income, or both. Almost one in five (18%) of working adults have cut their expenses by moving to an area with a lower cost of living, and another 13% are planning to do so.

In efforts to increase their take-home pay, 57% of employees want the opportunity to work overtime or extra shifts. Outside of their current job, 37% have looked for jobs with higher salaries, and 38% of workers have looked for a second job. An additional 14% of people plan to look for a second job, meaning more than half of working Americans have considered holding multiple jobs to pay for their living expenses.

“With budgets tightening, workers are searching for ways to meet the rising cost of living, including finding new jobs,” said Qualtrics Chief Workplace Psychologist Dr. Benjamin Granger. “Employee turnover is a huge cost for companies, so it’s business critical for organizations to understand which of their employees are likely to leave and why, so they can make adjustments to reduce attrition and retain key performers.”

The quits rate is still above pre-pandemic rates as job seekers accelerate their search, trying to find a new role while openings are still available. But while the Great Resignation was largely marked by employees looking for companies whose values aligned with their own and trying to ease their mental health challenges brought on by work, today’s job seekers place the most value on compensation.

Working Parents Are Especially Strained

Parents are feeling the pressure even more - 69% of working parents say their pay isn’t keeping up with costs. Nearly half say they have looked for a new (43%) or second (47%) job, and 64% want to increase their work hours to increase their pay. Parents are also nearly twice as likely to have moved to cheaper cities as employees without children.

	All employees	Working parents	Employees with no children
Have looked for a new, higher-paying job	37%	43%	34%
Have looked for a second job	38%	47%	34%
Have moved to a cheaper city	18%	27%	14%
Want overtime or extra shifts	57%	64%	54%

Methodology

This study was fielded in August-September 2022. Respondents were selected from a randomized panel and considered eligible if they live in the United States, are at least 18 years of age and working full-time. The total number of respondents was more than 1,000.

About Qualtrics

Qualtrics, the leader and creator of the experience management category, is changing the way organizations manage and improve the four core experiences of business—customer, employee, product and brand. Over 16,750 organizations around the world use Qualtrics to listen, understand and take action on experience data (X-data™)—the beliefs, emotions and intentions that tell you why things are happening, and what to do about it. The Qualtrics XM Platform™ is a system of action that helps businesses attract customers who stay longer and buy more, engage employees who build a positive culture, develop breakthrough products people love and build a brand people are passionate about. To learn more, please visit qualtrics.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221017005380/en/

Lauren Braun, Qualtrics

press@qualtrics.com

Source: Qualtrics

FAQ

What does the Qualtrics study reveal about employee financial struggles?

The Qualtrics study shows that 64% of workers find it harder to cover living expenses than last year, with 69% of working parents feeling similarly.

How many employees are looking for second jobs according to the Qualtrics report?

38% of employees have looked for a second job as a means to increase their income.

What percentage of working parents have moved to more affordable cities?

27% of working parents have moved to cheaper cities to manage costs.

What is the impact of inflation on the job market as per the Qualtrics study?

Inflation has led to increased financial stress, pushing workers to seek higher-paying jobs and more working hours.

Why is it important for companies to understand employee turnover according to Qualtrics?

Understanding employee turnover is crucial as it has significant costs for companies, especially in the current financial climate.