US: People are cutting back on tipping, frustrated by ubiquitous requests for gratuities.
As of November, service-sector workers in non restaurant leisure and hospitality jobs made $1.28 an hour in tips, on average, down 7% from the $1.38 an hour they made a year prior. The data is according to an analysis of 300,000 small and medium-size businesses by payroll provider Gusto.
The tipping slowdown is a gloomy development for all types of workers who rely on holiday tips as a chunk of their annual income. It reflects a broad frustration with the proliferation of tip requests at dry cleaners and bridal boutiques and even self-checkout machines that have sprung up since the pandemic.
Mary Medley, a Denver retiree who described herself to The Wall Street Journal in July as a unilaterally prolific tipper, is one of those who has become more discerning in recent months.
“It feels not as good to tip now that it’s popping up everywhere,” says Medley, 70 years old. “What started out to be a way to acknowledge excellent personal service feels like it’s become a way to help supplement worker compensation.”
There is a cost to the tipping slowdown, however, say economists and business owners. When people tip less, workers suffer, says Jonathan Morduch, a professor of public policy and economics at New York University.
“We’re in a situation where workers still want and expect and need tips to some degree,” Morduch says.
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Some businesses are raising worker pay in part as a response to lower gratuities.
Dan Moreno, founder of Miami-based Flamingo Appliance Service, says he has noticed a slowdown in customers leaving tips for their repair people since the Journal spoke with him in July. The average base wages for his techs have gone up about 10% since then, though he hasn’t eliminated the prompt from point-of-sale machines.
“I don’t know if that’s because customers are just over it. I’ll tell you, personally, I’m a little bit over it,” Moreno says of how his own tipping habits have changed over the past year.
Meanwhile, governments have started to get involved.
In October, Chicago became the second-largest U.S. city to vote to require tipped workers to make the full minimum wage. The full federal minimum wage is $7.25 an hour, while the federal tipped minimum wage many bar and restaurant workers earn is $2.13 an hour. Legislation to get rid of tipped minimums is moving in eight states and measures are on the ballot in an additional four, according to worker-advocacy organisation One Fair Wage.
“There’s an ongoing rejection of the whole system by both workers and consumers who have been increasingly pissed about it,” says Saru Jayaraman, director of the Food Labor Research Center at the University of California, Berkeley and president of One Fair Wage, an advocate for higher wages for restaurant workers.
Restaurant workers earned an average of $3.83 an hour in tips and overtime in November, according to technology company Square, up 8% from the previous year. Between November 2020 and November 2022, that amount rose 50% from $2.36 to $3.54 an hour.
While governments, workers and owners wrestle with what to do about tipping, consumers have embraced the humor in tipping’s massive expansion into so many parts of life. Jokes mocking tipping’s proliferation have spread on social-media sites. In one image, a police officer holds out a tablet with different tip options after giving someone a speeding ticket. In another, someone pretends to ask for a tip for letting a stranger pet her dog.
Garrett Bemiller, a 26-year-old who works in communications, started to question his standard practice of always leaving 20% after being asked for a tip at a self-serve checkout station at an OTG gift shop in New Jersey’s Newark Liberty International Airport in April.
“We all know how absurd it is that it almost relieves some of that guilt in saying no,” he says.
He now always hits “No Tip” when he’s buying a black coffee—even when friends are watching.
Holiday tips
One area people might not cut back is tipping for the holidays.
Of the 2,413 U.S. adults surveyed by financial services company Bankrate, 15% said they planned to leave more-generous tips for workers including housekeepers, child-care workers, landscapers and mail carriers this year. About 13% said they planned to leave less.
Median amounts are so far up from last year across the six types of service providers Bankrate asked about.
“It seems that people view holiday tipping differently, perhaps because of the holiday spirit and also because of the regular interaction with many of these service providers,” Bankrate analyst Ted Rossman says.
Bemiller plans to give the super in his New York City building $100—not because he feels like he has to, but because he wants to.
“She helps me so much throughout the year and that tip seems genuinely justified,” he says.
Ever tried to get a good night’s sleep with your partner snoring or tossing around restlessly next to you?
You’re gonna like this: Therapists and sleep scientists say it’s OK for couples to sleep apart as a growing body of research shows the striking importance of sleep. It’s a reversal from the long-held marriage tenet that once partners move to separate beds, the romance is dead.
Sleep is “essential for a healthy body, mind and relationship,” says Wendy Troxel, clinical psychologist, sleep scientist at Rand and author of a book on couples sleeping. “It’s important to prioritise it.”
Therapists have a caveat. If you and your partner do move to separate beds, you need to find a way to continue to be intimate, both emotionally and physically. Co-sleeping provides important benefits for a couple, such as emotional closeness and opportunities for cuddling, sex and conversation. Partners who sleep well together should stick with it.
In the beginning of their marriage, Mark and Paula White shared the same bed. But neither of them was getting a good night’s rest. Paula is a night owl who keeps the TV on, even when she’s asleep. Mark keeps a fan running at the foot of the bed and happily wakes up at 3 a.m.
Once, he flipped over in his sleep and accidentally punched her in the face. Another time, his snoring and “garlicky breath” made her snap and scream: “I can’t breathe! You’re taking my air!”
That was 32 years ago. Since then, the Whites have mostly slept in separate rooms, even choosing separate beds on vacation.
“We’re better people and we have a better relationship because we get better sleep,” says Paula, 60, a business owner in New Albany, Ohio.
When we sleep well, we stave off a host of physical- and mental-health problems, such as diabetes, hypertension and depression. Our relationships improve, because we’re less irritable, less frustrated, and better at communication and problem-solving. When we’re cranky, we tend to take it out on the person closest to us.
Better sleep can boost our sex lives, too. One of the main reasons couples stop having sex is because they’re too damn exhausted.
“This is why couples say one of their most satisfying sexual experiences is when they go on vacation,” says Sari Cooper, a certified sex and couples therapist in New York. “They get time to rest.”
Here’s how psychologists suggest you can successfully sleep apart.
Have a conversation
Don’t stomp off out of bed. It could make your partner feel rejected. Both people need to be OK with the arrangement for it to work.
Choose a time when you are both well-rested. Don’t talk about this in the bedroom.
Ask your partner: Are you sleeping OK? Explain that you want both of you to sleep well. Be reassuring that this is about sleep and not attraction.
Don’t blame. Use “I” instead of “you.” Try: “I get cold at night,” not “you are a blanket hog.”
Keep it targeted. This isn’t the time to talk about everything wrong in your relationship. “Stay focused on how you can be a better partner if you are better slept,” Rand’s Troxel says.
Try it part-time
This doesn’t have to be a full-time arrangement. You can sleep apart during the workweek, or take a break when one person is in a bout of insomnia.
This temporary approach is especially helpful when one partner wants to sleep apart and one doesn’t, Troxel says.
Plan regular intimacy dates
When you sleep in separate beds, there are fewer opportunities for spontaneous sex or even just snuggling. “You need to be intentional about creating the seduction, flirtation and planning to make it happen,” says Cooper, the sex therapist.
Pick a day when you know you will be most relaxed and plan to go to bed an hour earlier. (You’ll want energy!) Build the anticipation beforehand. Send a flirty text or leave a note on your partner’s bed.
And remember: Not all intimacy has to be sexual.
Get in bed together for a little bit each night
Cuddle. Watch a movie. Engage in pillow talk. Then say good night and head off to your separate beds.
“You can shoot for the best of both worlds: time awake in bed together and good sleep,” says Zlatan Krizan, a certified sleep scientist and professor of psychology at Iowa State University.
The Whites, who have been married 33 years, sometimes watch a movie in bed and snuggle. When they want to be intimate, they plan a date night or simply visit each other’s bedroom. Sometimes Paula tells her husband, “I’ll leave the red light on for you tonight.” Both spouses say sex is more pleasurable now because they aren’t so tired and tense.
They have one bedtime ritual they never skip, though. They go upstairs together, kneel on each side of Paula’s bed, and say their prayers. Then they kiss good night and head off to their own rooms.
“Now, when we’re together, we know it’s going to be quality time,” Mark, 61, says.
The fivefold increase in working from home ushered in by the pandemic is perhaps the largest change to hit U.S. labor markets since World War II. It has touched just about every manager in America, reshaped industries including real estate and business travel, and led to an exodus from city centres to the suburbs.
And working from home is here to stay—at least in a hybrid model where a commute to the office is limited to just a few days each week. Tracking detailed survey data, we see working-from-home levels were rapidly dropping from 2020 to 2022. But by early 2023 they stabilised and have remained flat ever since. Hybrid working has become the new normal for millions of professionals and managers across America.
So, it’s time to tally up the impact. Looking ahead to 2024 and beyond, who are the biggest winners and losers from the work-from-home revolution?
Start with the losers
The biggest losers are likely city-centre office and retail property owners. The massive shift to home working has created a doughnut effect in major cities around the world. Millions of employees are no longer commuting every day, leaving many offices half-filled and retail stores struggling for customers. The owners of this real estate—often pension funds, family firms and endowments—have collectively lost hundreds of billions of dollars of investments.
In the long run, the sector will slowly recover as supply contracts. New construction has slowed, some empty buildings are slowly being converted to residential accommodation, and some lower-quality offices will be torn down. But recovery will take years to complete. Winter has come for the office sector. One forecast that a major leasing company shared with me was it would take until 2033 for occupancy to recover to pre pandemic levels in San Francisco—perhaps the hardest hit city.
Another loser has been mass-transit rail systems. Ridership has dropped by 30% nationally as commuters shift from a five-day commuting schedule to two or three days a week. These commuter rail systems have high fixed costs due to inflexible track and train costs, alongside rigid union-controlled labor expenses.
Large drops in ridership revenue translate into larger budget deficits. To date these deficits have been bailed out by pandemic-era federal and state subsidies. But the fear is unless public transit costs can be right-sized, once these subsidies run out they will see devastating service cuts or outright closure.
Growing up in Britain, I heard about the infamous Beeching cuts of the 1960s, which cut station numbers by 55% and devastated rail travel. I fear something similar happening to U.S. transit for 2024 and beyond unless operators and unions can align cost with revenues.
The third big loser has been big cities. American cities occupy surprisingly small spaces. For example, San Francisco is less than 50 square miles, comprising just the tip of a peninsula. So, when city-centre residents fled for the suburbs, they took their tax dollars with them.
As we know from the experience of New York in the 1970s, cities can adjust by cutting expenditures. But this will be painful and risks a hollowing out of city centres if key services like police and education are cut. Indeed, bond markets have already cut the prices of many city municipal bonds, providing an ominous signal of the budgetary struggles ahead.
But there are winners
It isn’t all gloomy, particularly for the biggest work-from-home winners: the workers. In national surveys, employees report they value the ability to work from home two or three days a week as much as an 8% pay increase. Multiplied across the roughly 70 million Americans who are currently working from home, this is a perk valued at roughly $500 billion a year. This vast dividend has benefited employees through less commuting and lower stress, alongside more personal, leisure and family time.
One recent study highlighted how the typical U.S. home-working employee spends 40 minutes more a week on child care from the time saved from avoiding the daily commute. This will have longer-run effects ranging from higher labor-force participation rates—possibly pushing up growth rates—to potentially even a fertility dividend as parenting becomes somewhat easier.
Another winner is the environment, thanks to reduced travel and energy needs. A recent study found working from home two days a week reduces pollution by about 15%. This comes from lower commuting emissions alongside additional savings from lower office energy bills. A double dividend is the reduced congestion on emptier roads, with traffic speed data from Inryx suggesting the morning commute is 10% faster.
And perhaps the biggest work-from-home winner are companies. Research finds that hybrid working three days a week in the office has a net neutral on employee productivity, while allowing firms to save on recruitment and retention costs. Firms can save money by trimming office expenses while using remote working to lower labour costs by hiring employees outside major cities.
U.S. firms made about $1 trillion higher profits in 2022 than in 2019, an increase of almost 50%. While many factors likely contributed to this, including the strong economic growth, it is notable this happened alongside the fivefold surge in working from home. Indeed, the mass adoption of hybrid working by millions of firms across the U.S. and Europe is perhaps the strongest evidence of its positive impact on profitability.
Looking further out, the biggest change will almost surely come from the new technologies we use to work remotely. When I first started working in the 1990s, working remotely meant conference calls and emailing files. Now we telecommute and share files on cloud networks.
The future likely heralds similarly large changes. In discussions with startups and tech firms, I hear about systems for holographic meetings, wall-size screens and global connectivity. This technology means working from home hasn’t just stabilised but is now moving into its longer-run phase of expansion. Ten years from now we will look back at 2023 as the beginning of the long bull market in hybrid working.
Nicholas Bloom is a professor of economics at Stanford University.
A royal chair created for the boudoir of Marie Antoinette achieved €2.6 million (US$2.8 million) Thursday evening at Sotheby’s in Paris, setting a record for a single 18th-century chair.
The sale was the first in a series of four physical and online auctions being held this month featuring the collection of the late Hubert Guerrand-Hermès, a fifth-generation descendant of Thierry Hermès, founder of the French luxury house.
“Tonight’s sale was a celebration of prestigious provenance, as the undeniable response to Hubert Guerrand-Hermès’ eye for collecting showcased the continued demand for the most elevated world of refinement,” Mario Tavella, president of Sotheby’s France and chairman of Sotheby’s Europe, said in a news release.
The Louis XVI gilt walnut chair, made circa 1784-85, ignited a “flurry of bidding,” according to Tavella. It was one of 60 pieces sold on Thursday for a total of nearly €23 million, with fees, triple a pre-sale high estimate of nearly €9 million (which did not include fees). More than 80% of lots sold for more than their high estimates.
Guerrand-Hermès was a passionate, wide-ranging collector. The 1,000-plus items being auctioned across the four sales span centuries and include royal furniture and rare books in addition to works by contemporary artists such as Antony Gormley and Anish Kapoor.
Collectors appeared drawn to Guerrand-Hermès’ diverse tastes, fiercely bidding as much for the contemporary art as the 18th-century furniture, according to Tavella.
While the record-setting, carved, and regilded Louis XVI chair—which was thought to have been created for Queen Marie-Antoinette’s intimate personal rooms at Versailles—stole the headlines, the top lot of the evening was a monochrome canvas by Pierre Soulages, Painting 130 x 162 cm, February 28, 1970, which sold for €3.1 million —the highest price for a 1970s work by the French artist. Guerrand-Hermès had bought the painting at a Sotheby’s Paris auction nearly 14 years ago for €720,750
Guerrand-Hermès, who died in 2016 at the age of 75, had been vice chairman of Emile Hermès SARL, which represents the family shareholders, and general manager of the group’s real estate companies. He also served as a foreign trade adviser to the French government and was made an officer of France’s Legion of Honor in 1999.
The Guerrand-Hermès auctions will continue this week with a focus on the Duchesse de Berry—described by Sotheby’s as “one of the most famous and fascinating aristocratic figures of the 19th century.”
SMUG MINIMALISTS often tout the “one in, one out” rule, a clutter-control practice that involves removing one item from your home any time you add another. But during the amped-up accumulation of the holidays, even typically type-A housekeepers can find themselves derailed and searching for ways to cull the excess. “So much stuff is coming into our homes this time of year, along with pressure to be jolly,” said Chicago-based professional organiser Sarah Parisi of the Clutter Curator. “It’s a natural time to declutter.”
To help expedite the process, here she and other home experts share tips for deaccessioning effectively.
What to Do If…You Want to Make Some Cash
Prioritize. “The biggest question I ask my clients is what’s worth their time,” said Washington, D.C.-based decluttering expert Jenny Albertini. “Identify which pieces offer the highest return and focus your efforts on [selling] those.”
Local auction houses or upscale online décor marketplaces—like Incollect, 1stDibs or Chairish—are Albertini’s go-to for unloading particularly valuable furnishings. For everything else, New York-based interior designer Amy Lau prefers Facebook Marketplace. “It’s quick and commission-free,” she said—and though managing the selling process can be laborious, the payoff is usually worth it.
Craving a truly clean slate? Check EstateSales.org to find a house-clearing company to prep your home for a monster tag sale. “They’ll keep a percentage of the profit,” explained Albertini. “But you do much less work.”
What to Do If…You Want to Do Good
“The best way to get rid of stuff is whatever gets it out of your house fastest—usually donation,” said Dallas-based decluttering expert Dana K. White. For that reason, she encourages clients to think of organisations like the Salvation Army as service providers—and not to get hung up on which charity feels like a “just-right” match. Start with local homeless shelters, churches or Goodwill, which is as “ubiquitous as Starbucks” and a “good option for generalised donations,” Albertini said. Animal shelters sometimes accept odds and ends—like pillows and bedding—that other organisations won’t.
If you’re ready to part with an item but believe someone else could cherish it, steer toward organisations like Humble Design. This nonprofit—which operates in Chicago, Cleveland, Detroit, San Diego and Seattle—collects donated furniture and household items either by drop-off or pick-up and stores the goods in their warehouse. Humble’s designers and volunteers later “shop” the warehouse to furnish homes for families emerging from homelessness. Similarly, to keep reusable household items from landing in landfills, Habitat for Humanity’s ReStores accept used furniture, appliances, housewares and building materials and resell them to the public at discount, using the profits to build affordable housing worldwide.
What to Do If…You Want to Do Almost Nothing
Does decluttering seem like just another chore? For clients who are loath to add another item to their to-do list, Albertini recommends OfferUp, a classified service akin to Facebook Marketplace that requires fewer fussy photos and descriptions. She also likes the consignment site Kaiyo; it will pick up, store, clean and deliver your furniture to its eventual buyer for a percentage of the sale price. For anything leftover, hire a hauling service like 1-800-Got-Junk, Dolly or Junk King, which do 100% of the heavy lifting for you. Bottom line, says Lau: “If you don’t love it or use it, lose it.”
The Wall Street Journal is not compensated by retailers listed in its articles as outlets for products. Listed retailers frequently are not the sole retail outlets.
A Los Angeles nonprofit was given government land in January 2007 to build a few dozen units of affordable housing. They’re finally hoping to open the building next year.
Lorena Plaza, a 49-unit development rising in the predominantly Latino neighbourhood of Boyle Heights in eastern Los Angeles, is taking longer to complete, a city official said, than practically any other residential building this size in the history of Los Angeles.
The 17 years of false starts and delays are an extreme instance of how difficult it has long been to build affordable housing in California—for both the homeless as well as lower and middle-income workers—and in other states with complex regulations and high costs.
The development has faced nearly every hurdle that California laws allow opponents to place in the way of affordable housing. Approvals by politicians and commissions took years, often held up by a single determined opponent on the city council. It took the developers more time to win over skeptical neighbours who were particularly opposed to nearby housing for the mentally ill and homeless. Financing hurdles and other costs piled up along the way. Construction finally began about a year ago.
In California, affordable housing developers typically abide by a host of requirements when they take public subsidies, such as tougher energy-efficiency standards and higher wages for construction workers. They often need to build amenities such as offices for social workers and transit-boosting features such as bike storage.
Los Angeles is aiming to construct more than 450,000 new homes by 2029. PHOTO: ALEX WELSH FOR THE WALL STREET JOURNAL
Even home builders who are sympathetic to these priorities say those same objectives undermine the state’s ability to produce enough affordable housing. That means California will continue to suffer stubbornly high rates of homelessness that plague the Golden State and are evident on the tent-filled streets of cities like L.A.
“We’re really committed to things like climate change and we’re very committed to transit-oriented development,” said Linda Mandolini, president of Bay Area-based Eden Housing, a nonprofit low-income housing builder. “But those goals don’t come for free.”
Housing costs and homelessness have become the top political issue in the state, prompting officials to set ambitious goals to build more housing, faster. Los Angeles is aiming to construct more than 450,000 new homes by 2029, a feat that would require five times as much construction as occurred in the previous decade, according to a May report from researchers at the University of California Los Angeles’ Ziman Center for Real Estate and California State University Northridge.
Los Angeles Mayor Karen Bass has pointed to the delays with Lorena Plaza as an example of what the city is trying to fix. The mayor is expediting permits for projects in which all of the units are considered affordable and cutting other red tape that has sidelined projects.
“How on earth could we expect to house 40,000 [homeless] people if we continue to do business as usual?” the Democrat asked in a speech at the development’s construction site last year.
There are still serious impediments to building enough housing in Los Angeles and the state. Existing subsidies that fund affordable housing construction are oversubscribed. And cities keep looking for ways to block new housing, market-rate or affordable.
The Bay Area suburb of Woodside, for example, last year tried to declare that its entire city was a mountain lion refuge to prevent apartment development. The town, which later reversed the decision, didn’t return a request for comment.
Affordable housing faces hurdles outside of California, too. In New York City, a developer’s plan to build low-income apartments at the site of a community garden in lower Manhattan has been held up for a decade by city review processes and lawsuits filed by opponents. In Dallas, a mixed-income apartment complex planned for an empty field in the northern part of the city was delayed for more than three years by deed restrictions that allowed neighbouring property owners to dictate land use.
An apartment building takes an average of four years to build in L.A., according to a UCLA and CSU-Northridge analysis of building permits from 2010 to 2022. Two-and-a-half of those four years come after the approvals process.
About 36% of projects that received permits in California between 2010 and 2022 had not yet been completed, according to UCLA.
“Thinking about building in a city like Los Angeles and dealing with the politics, navigating the bureaucracy, it’s the last place I want to be,” said Caleb Roope, chief executive of the Pacific Companies, a West Coast affordable housing builder based in Idaho.
California Gov. Gavin Newsom is pushing changes at the state level, as are the mayors of other cities where housing construction has been painfully slow and homelessness has risen.
In San Jose, Calif., the average cost to build just one unit of low-income housing shot up by 24% in 2022 alone, hitting a new high of $938,700, or roughly what it costs to buy a three-bedroom bungalow there, according to an October report commissioned by the city.
San Francisco permitted 856 housing units this year through October. New Braunfels, Texas, which is one-eighth the size of San Francisco by population, permitted 1,940 units in the same period, according to data compiled by the U.S. Department of Housing and Urban Development.
In Los Angeles, Lorena Plaza, if all goes as planned from here, will open in the late summer. Its 49 units will consist of studios up to three-bedroom apartments. They will measure between about 420 and 1,050 square feet and feature full-size kitchens. The rentals will be priced so that people making less than 50% of the area median income can afford them. The units cost $34.2 million to build.
The project’s wood beams are stacking up in Boyle Heights. It’s a neighbourhood that over the past century has made homeownership possible to a rotating cast: Irish and Jewish immigrants at the turn of the century gave way to Black residents barred from buying elsewhere, before becoming the predominantly Latino neighbourhood it is today. Vendors hawk elote, tamales and flowers on street corners.
Musicians play at Mariachi Plaza in the Boyle Heights neighborhood of Los Angeles. PHOTO: ALEX WELSH FOR THE WALL STREET JOURNAL
The neighbourhood has also seen gentrification in recent years, which has turned this barrio into a hotbed of housing activism. On the surrounding blocks, taco trucks coexist with $45 men’s haircuts. A Starbucks drive-through sits on what was once a Unocal service station and the historic Boyle Hotel, which once boarded mariachi musicians, now houses a La Monarca, the local chain of upscale Mexican-American bakeries.
Some 74% of the neighbourhood’s residents are renters, and for more than two decades, rents have risen faster than in the rest of Los Angeles, according to one city government-commissioned study, amid an influx of higher-earning residents.
In 2007, A Community of Friends, a nonprofit developer known as ACOF, proposed to build permanent supportive housing, a type of project designed for low-income people with specific needs. In the case of Lorena Plaza, it meant some units would be set aside for those who had experienced homelessness or mental health issues, and who would rely on services such as social work and healthcare provided by on-site staff.
The Los Angeles County Metropolitan Transportation Authority agreed to provide the land, but was slow to make it available, in large part because it was being used as a staging area during the construction of a train line. A global financial crisis further derailed plans. By the time the economy began rebounding in 2012, the deepest troubles for the 49 could-be apartments were setting in.
The city councilman representing the neighbourhood, Jose Huizar, had broad powers to delay projects on his turf. To get a city subsidy, the developers would need a signed letter from Huizar, who sat on the MTA board and remained opposed to the project for years.
Dora Leong Gallo, executive director of ACOF, recalled a nervous 2013 meeting with Huizar’s staff. Huizar’s staff wanted more commercial space, Gallo said. Once that was satisfied, they requested the approval of the Boyle Heights Neighborhood Council, a community advisory group.
“He moved the goal posts,” Gallo said.
Huizar is currently awaiting sentencing after pleading guilty to corruption charges unrelated to Lorena Plaza. His attorney said that “asking for additional commercial space and support from the neighbourhood council seem not only like routine asks, but responsible ones.”
In a series of heated community meetings, some area homeowners and renters including vendors at El Mercado, a bustling, three-story indoor market next door, chafed at the idea of sharing the neighbourhood with mentally ill and homeless residents.
“They’re trying to bring mentally ill people to put our children at risk,” Pedro Rosado, the owner of El Mercado, said during a 2013 hearing. Rosado died in 2015 and his children, Tony and Marlene, continued his appeals. They didn’t respond to requests for comment.
In 2015, the development got a boost after the neighbourhood council voted 15-1 to let ACOF proceed. It took about another year to receive city approval on all the necessary zoning and environmental reviews.
State law provided an opportunity to stall Lorena Plaza further. The Rosados appealed the project’s city-approved environmental review, claiming it was too dense for an already-overcrowded area, according to the filing.
A landmark state law called the California Environmental Quality Act, passed in 1970 and signed by Gov. Ronald Reagan, allows any opponent to use appeals to slow down development if they claim environmental reviews are flawed. In Los Angeles, appeals are heard by the city council’s Planning and Land Use Management Committee. That body was chaired by Huizar.
“He had double power,” said Jose Torres, the project manager for Lorena Plaza at the time. “One as a council member of his own district, and the other as the chair of PLUM.”
The committee didn’t schedule a hearing on the appeal for more than a year. When the project did get a hearing, Huizar sided with the Rosados, saying an abandoned oil well on the site posed a potential hazard.
By 2017, California’s housing crisis was worsening. Economists estimated there was a shortage of three million homes statewide. On the campaign trail, gubernatorial hopeful Newsom was vowing to spearhead an effort to alleviate homelessness and slow down home prices by building 3.5 million homes within eight years. While housing production has ticked up in recent years, it still sits well below half the pace needed to hit that figure.
Media attention zeroed in on the Lorena Plaza project and its years long saga, prompting the Chamber of Commerce and the United Way to rally behind it. In early 2018, Huizar called up the Los Angeles Times to say he had changed his mind after the developer made concessions and would push for the project’s approval.
The owners of El Mercado then turned to the courts, filing a lawsuit alleging ACOF didn’t properly address potential soil contamination. The case dragged on until ACOF and the business owners settled in 2020.
By 2021, when the Lorena Plaza developers secured all the necessary funding, the project’s costs had shot up by $9 million, or about one-third, in the five years after it first received approvals to build, Gallo said.
“It’s unfortunate what happened, but I think it’s very illustrative,” Gallo said. “I think a lot of things have changed as a result of this particular project.”
Much of what stifled construction of Lorena Plaza likely wouldn’t have happened now due to recent law changes. Developers no longer need a letter of support from their city council member to receive affordable housing funding.
Environmental appeals have to be heard within 75 days. Zoning approvals for affordable projects, which took more than a year at Lorena Plaza, are now happening as quickly as a few months-time under a Mayor Bass executive order.
David Aghaei, co-founder of Eleos Ventures, a developer with a pipeline of more than 20 all-affordable housing projects in Los Angeles, said the changes have significantly improved the timeline for four of his larger projects. One of them, which will bring 222 units of affordable housing to South Los Angeles, received planning approvals in five months. Historically, Aghaei said, that could have taken as long as two years.
The new rules mean Lorena Plaza may permanently hold the title for perhaps the city’s longest-running development. ACOF plans to start taking applications from prospective tenants in the spring.
Chinese leaders vowed to increase government spending and monetary support for the economy at an annual gathering, signalling they plan to stick with a measured approach to stimulus despite calls for bolder action.
The Central Economic Work Conference, which ended Tuesday, capped a bruising year for the country’s economy, which has struggled with a drawn-out housing crunch and weak consumption.
The trouble shows no sign of abating. After a pickup in the third quarter, data in recent weeks has pointed to slowing growth again as exports struggle, activity in the services sector slows and deflation deepens.
Still, Chinese leaders offered few specifics Tuesday on how they intend to reignite consumer and business confidence and reinvigorate growth.
Chinese leader Xi Jinping presided over the two-day meeting, where leaders urged officials to increase fiscal stimulus and help expand domestic demand, according to Chinese state media. They also acknowledged economic challenges, including “excess capacity in certain industries and weak sentiment in the society,” according to a readout of the meeting.
Chinese leaders also called for strengthening the resilience of industrial supply chains and accelerating the development of artificial intelligence, as well as other strategic industries such as aerospace and biotechnology.
The closed-door meeting, which is typically held in December each year to map out plans for economic policy-making, sets out the leadership’s growth ambitions for the following year, though the detailed targets won’t be released until March, during the National People’s Congress.
Though the overall tone of the conference was pro-growth, “it is still not a call for massive stimulus,” economists at Société Générale said in a note to clients after the readout was published. Instead, officials are emphasising the need to stabilise the economy and stem risks to growth, they said.
Many economists expect Beijing to anchor its growth target at around 5% in 2024, taking their cue from a meeting last week of the Communist Party’s Politburo, its body of top leaders. Policy makers emphasised the importance of economic progress, saying the country needed to “pursue stability through growth.”
This year’s target was also set at around 5%. Despite its difficulties, the economy looks set to hit that goal this year, but economists say maintaining that pace will be tough without bigger measures to stimulate the economy.
Beijing has taken some measures this year including interest rate cuts and channeling cheaper loans to firms to arrest the downturn but has so far failed to reverse a broad-based loss of confidence.
China’s difficult year contrasts with surprising resilience in the U.S., where buoyant consumer and government spending have kept the economy motoring despite aggressive increases in interest rates by the Federal Reserve. The latest data on jobs and inflation has stoked optimism that the U.S. will avoid recession and instead enjoy a “soft landing,” in which price growth slows to target without a steep rise in unemployment. That marks a reversal in expectations from earlier in the year when China was expected to easily outpace a cooling U.S. economy.
And there are fresh signs of trouble for China.
Business surveys showed factory activity slid deeper into contraction in November as domestic and foreign orders dried up, while activity in the services sector shrank for the first time this year as consumers cut back spending.
Exports rose just 0.5% on the year last month after shrinking for six months, highlighting the drag from slowing growth in the U.S. and Europe.
Weak domestic spending and bloated industrial capacity caused consumer prices in China to fall in November for the second straight month, deepening a bout of deflation that economists say could prove hard to shake if the economy doesn’t pick up soon.
China’s slow-motion property crunch shows few signs of abating. Some developers have defaulted on their debts and construction has stalled on millions of homes. Home prices fell in October and new investment in the sector is shrinking.
A central question for investors and economists is whether Beijing will experiment with novel stimulus approaches to shore up battered confidence among households and businesses.
At the meeting, Chinese leaders vowed to expand consumption and raise income for both urban and rural residents but offered little sign that they may pivot to giving cash handouts to households, despite repeated calls from policy advisers and economists to do so.
Instead, the government is seen as more likely to step up efforts to resolve the crisis in the property market, which remains a major drag on overall growth.
Chinese leaders called for equal treatment for developers to meet their financing needs—a likely reference to the perception that banks favour state-backed developers over private ones. They also urged accelerating the construction of government-subsidised affordable housing and urban village renovation projects.
Still, the meeting didn’t spell out a plan to help cash-strapped developers finish tens of millions of uncompleted apartments, a crucial step that economists believe will help restore household’s confidence in the government.
While officials aren’t expected to disclose a growth target until a political gathering next spring, economists and investors are already debating how aggressive Beijing will be with its 2024 goal.
Economists from J.P. Morgan predicted that policy makers will likely maintain a goal of around 5%, to signal a renewed focus on the economy. Robin Xing, chief China economist at Morgan Stanley, said he expects Beijing to set a target of 4.5% to 5% and pursue a stronger fiscal stimulus.
Others believe Beijing will stick to a more conservative target because of the headwinds facing the economy. Ting Lu, chief China economist at Nomura, said he expects China to aim for around 4.5%.
“I still think the Chinese government is quite rational,” said Lu, who cautioned that the economy hasn’t bottomed out and the actual growth rate could slip to 4% in 2024 from Nomura’s 5.2% forecast for 2023.
The CEO and founder of Pacifica skin care and cosmetics company had moved into a Santa Barbara, Calif.-area estate in December 2022, and something was blocking her from decorating the five-bedroom, five-bathroom space. A year ago, the only furniture in the living room was two sofas. A year later, the living room still only has two sofas.
Then there was the matter of honouring the property, a 1980s vestige originally designed for a television producer by interior designer Michael Taylor, the godfather of the California look. Harvey-Taylor, 54, and her husband have a great reverence for the house—which has Ibiza finca-style overtones and a Mediterranean feel—and how it sits in nature. “We wanted to show the property and the original owner gratitude,” says Harvey-Taylor, who declined to disclose the purchase price.
So Harvey-Taylor enlisted Colleen McCann, 44, a Los Angeles-based shamanic energy practitioner, to harmonise the property’s energy. Home harmonising is one of the services McCann offers through her consulting firm, Style Rituals, which she founded in 2015 after a 15-year career as a fashion designer and stylist.
Los Angeles-based energy stylist Colleen McCann doing home harmonising work at her client Brook Harvey-Taylor’s house in the Santa Barbara, Calif., area. VIDEO:TEAL THOMSEN FOR THE WALL STREET JOURNAL
In November, McCann spent four days at Harvey-Taylor’s estate. They performed a Celtic space clearing blessing, paid ceremonial homage to the original owner and upgraded a spiral staircase’s feng shui energy flow, among other activities. But the pair says the biggest aha moment came when crystals, tarot cards and a dowsing pendulum helped reveal that locating Harvey-Taylor’s office within the house was creating a family-wide creativity block. This revelation, Harvey-Taylor says, and the subsequent scheme to move her office into the garage, feels like the beginning of unblocking her creative stuckness.
Across the U.S., homeowners are hiring house-energy specialists to reset and elevate their home’s energy, often through modern-day twists on ancient spiritual practices and healing arts. Real-estate professionals are tapping into their mystical sides, too, embracing these same ritualistic endeavours.
Ele Keats, 52, is an actress—she starred in Disney’s 1992 movie “Newsies”—who has been designing crystal and gemstone jewellery for 20 years. Through her Santa Monica, Calif.-based shop, Ele Keats Jewelry, she offers house crystal consultations.
Crystal healing, to wildly oversimplify it, is a practice rooted in the belief that crystals have healing powers: citrine amplifies creativity and wealth; rose quartz enhances love; selenite clears and purifies; and so on. Practitioners believe placing crystals on or around the body, or in a physical space, can balance energy. Crystals can be priced as little as about $3 for a small, hand-held piece, whereas world-class, museum-quality specimens can cost roughly $100,000 to $1 million and higher.
Keats works with homeowners such as a client who wanted to revamp the sad, empty energy she felt permeated her Los Angeles dwelling. “There was no life force,” Keats says. To usher in vibrancy and aliveness, Keats helped the client with the personal process of positioning a half-dozen or so crystal types, varying in sizes and forms, inside and outside the client’s residence.
Keats was recently hired to select crystals to inlay under a 50-foot indoor saltwater pool at The Huron, a 171-unit condo building slated to open in Greenpoint, in Brooklyn, in January 2024. “It was top of mind to make sure the pool space is tranquil, rejuvenating and soul-cleansing,” says Jared White, senior vice president at Quadrum Global, the New York-based company developing the project, where offerings currently range from $750,000 studios to $3.16 million three-bedrooms. “That discussion went to crystals.”
In Boca Raton, Fla., Senada Adžem is Douglas Elliman’s executive director of luxury sales. She recently listed a $23.995 million Delray Beach, Fla., property at which the homeowners put their interest in crystal healing on display. They commissioned custom-designed chandeliers made from healing crystals. They use crystals as design pieces, including a nearly human-sized amethyst by the dining room’s doorway. Built in 2018, the house has six bedrooms and 10 bathrooms, and is 11,457 square feet of living space on 2.5 acres.
Additionally, after a house showing, the space is saged, says Adžem, referring to the ancient ritual of burning plants—in this case, sage—for purification.
Brook Harvey-Taylor’s energy stylist Colleen McCann says clients engage her in house energy work for many reasons. Some want their space’s energy refreshed annually. Others are experiencing a house-affecting life transition, such as moving, having a baby or divorcing. Others can’t put their finger on why they are feeling bad vibes. Then there are people who are freaked out. “They say, ‘There are doors slamming, the lights are flickering,’ ” says McCann, who works globally.
McCann says one of the many steps in her home-harmonising process is laying crystals and tarot cards on a house’s blueprint, and using a dowsing pendulum, tools she uses along with her intuition. Over the past 15 years, McCann has studied many different spiritual, mystical and metaphysical lineages. “My preference is to learn a lot of modalities and blend it together to make it my own,” McCann says. Consultations start at $1,000 and prices vary on the project’s scope.
New York-based Holly Star, 45, has 20 years of energetic work experience. She studied for five years with various gurus, healers and shamans. Her space-clearing process tends to involve custom bundles of herbal and botanical mixtures, sometimes up to three or four mixes of 10 or 15 types, such as frankincense, copal, pine, lavender and sandalwood. When working on a house, she does a lot of burning and bells. “I kind of go into a trance,” Star says. “It’s almost like I pan back from the space and I can feel the energetic templating shifting.” Afterward, clients often tell her their spaces feel light, says Star, who also owns Matter and Home, a spiritually inclined luxury homegoods boutique. Her space clearing fee starts at $2,000.
Sometimes houses need healing like people do, says London-based Emma Lucy Knowles, 39, who has been working in clairvoyance, crystals, energy, hands-on healing, light, meditation and spiritual coaching for 20 years. Knowles says she treats a house like a body: She reorients, manipulates and liberates a space’s energy to its true form. She uses energy healing, elemental sources (such as crystals and fire, the latter through burning palo santo, sage and incense) and sound (such as music, sound bowls, mantra or chanting). To close her sessions, she lights a violet flame for intention. She often decorates with crystals, which she says work like energy hubs around the house. Her space energy clearing work depends on square footage, but starts at $400.
Brooke Lichtenstein, 46, refers to herself as spiritual guide and family energy healer who, with her husband, is renting a five-bedroom, five-bathroom, 4,800-square-foot house in Los Angeles’s Pacific Palisades neighbourhood, where the median listing price is $4.3 million. In her house, she performs clearings, healing and blessings through rituals such as prayer, light visualisations, herb burning, rosewater spraying and sound healing using her voice in prayer and playing instruments such as crystal bowls, chimes and a harp. To her, this is home maintenance. “People do a lot of things to maintain their homes,” she says. “This is paramount for us.” Her 7- and 8-year-old sons sometimes join her practice. “To watch them owning their own space is a privilege to witness,” she says.
“People have a desire to have a spiritual component to their lives,” says Lytton John Musselman, Old Dominion University’s Mary Payne Hogan Professor of Botany, Emeritus, who is an expert in the intersection of plants and spirituality. The University of Texas at Austin’s curator of gems and minerals, Kenneth Befus, agrees. “Humans believe in religion and the spiritual realm,” says Befus, a crystal expert. “We want to. It brings us peace.”
The problem, both scholars say, is separating the religious and psychosomatic from medical efficacy. Musselman says, “If I plant lavender in my garden and feel better, is that because I want to feel better? Or because I enjoy planting it, or smelling it? Or does it really have an effect on my other senses?”
Befus says crystal healing has no empirical scientific evidence. “Crystal healing is in the realm of metaphysical,” he says. “We call it pseudoscience.” However, he acknowledges the potential of the placebo effect. “That’s a place where crystals could be healing,” he says. “It’s not in the word ‘energy’ or ‘chakra’ or ‘aura.’ ”
Musselman—whose latest book, “Solomon Described Plants,” is a guide to biblical botany—says as a scientist he seeks documentation from field studies and scientific literature. “I was at a large, wonderful bazaar in Iraq, and I saw a very poisonous rosary pea,” he says. “I asked the vendor what it was for, and he said, ‘For women to drive away evil spirits.’ I thought, ‘How are you going to test that?’”
Energetic healing practitioner and energy consultant Holly Star says, “People may not be able to scientifically prove how something came to be, but I believe how you feel and seeing change in your life or home is the proof.” She says sometimes the most powerful part of a clearing lies in homeowners learning about themselves. “Their lives start to open,” she says. “It’s kind of a backdoor.” Jewellery designer and crystal-store owner Ele Keats shares a similar sentiment: She says she’s heard countless stories of how crystals have enabled breakthroughs and life improvements.
Chelsea Leibow, 33, took the backdoor approach when she addressed a problem in her house using tarot, a tool for divination and tapping into one’s intuition.
In September 2022, Leibow and her husband, Mike Farrell, 34, purchased a five-bedroom, four-bathroom, 3,200-square-foot house in West Orange, N.J., for $805,000. Early on, they splurged on hiring painters for their front foyer, stairway, second-floor landing and back hall. The painters did a great job. The issue was that Leibow deeply believed she chose the wrong color of white paint.
“I could not live with myself,” Leibow says. “I was like, ‘It’s wrong and I hate it and I want to fix it immediately.’ ” Her husband, on the other hand, thought they should embrace the paint. He thought it looked exactly like every other white paint.
To get a grip on the situation, Leibow sorted through her feelings using tarot, a modality she dabbled in during college but got more serious about in 2020, when, during the Covid-19 pandemic, she began attending a Sunday Zoom group led by a practicing witch who is an expert in tarot and astrology. “The cards were like, ‘You’ve got to chill out. Just give it a beat,’ ” says Leibow, who owns communications firm Chelsea Leibow Communications.
Leibow listened to her husband—and the cards. The couple agreed the paint would stay, but if Leibow still detested it a year later, they’d get it fixed.
A year later, their foyer, stairway, second-floor landing and back hall are now a new colour of white paint.
Chris Pinner, a 42-year-old technical writer in Cleveland, knows his last day on the job is Dec. 29. The software company where he works told him so back in April.
At first, Pinner was puzzled by the supersize notice that his job would be eliminated. But the advance warning has given him more time to look for a new position, which Pinner said he appreciates. He is still in job-search mode as his end date draws closer.
Pinner and many other workers facing termination are experiencing a different kind of corporate cutting—layoffs with a long runway that can take weeks or months to finally come to pass. Wells Fargo and Disney are among large employers that have done some long goodbyes instead of more-traditional, abrupt ones, in which laid-off workers learn they are cut and leave on the same day, often escorted out by security.
The old way protected companies from security problems or lost clients as laid-off workers walked out the door, and workers had little recourse. Now employers are trying to appear transparent and compassionate when cutting, several executives and leadership consultants said.
“Companies can’t lay people off on the quiet anymore,” said Sarah Rodehorst, chief executive of Onwards HR, a software platform that helps companies with legal compliance during employee terminations. “Whatever they do is much more under a microscope. They have to hold themselves to a higher standard.”
Avoiding a backlash
Demand for white-collar workers has taken a big hit this year, as companies acknowledge they over hired during the pandemic and job openings dry up. The tightening job market means employers are piling on layers of new requirements and lengthy, additional rounds of interviews for a few coveted jobs, dragging out the hiring process as they grow more selective about whom they bring on.
Layoffs that are seen as insensitively done can spark backlash on social media, with laid-off employees venting online and circulating internal details, said George Penn, a managing vice president at Gartner who advises companies on staff restructuring.
“Layoffs became not only a legal but a reputational nightmare for some organisations,” he said.
Federal law requires employers of a certain size to give 60 days’ notice to workers when conducting big layoffs. Some companies have gotten around advance warning by paying terminated workers a lump sum to cover that period.
Some affected employees said they would still receive severance pay after their long layoff notice periods, though it would be reduced if they left before their designated end dates.
In the Houston area, James Ridgway Jr., 40, is working at Huntsman, a chemical company, after learning in August that he would lose his job at the end of the year. The father of two children with another on the way said the news was initially an “existential gut punch.” He said the long lead time has given him more time to network and tighten family finances.
“It’s not a great place to be in, but I appreciate that I do have that runway,” said Ridgway, adding that the notice is helping him as he hands off responsibilities to co-workers.
Ridgway, a communications manager, is still looking for another full-time job. Because his colleagues know he is job-hunting, ducking out for interviews is less awkward than feigning doctors’ appointments, he said.
Wade Rogers, Huntsman’s senior vice president of global human resources, said giving laid-off employees months of notice shows remaining and prospective workers that the company treats its people well. That approach, he said, could help the company recruit and retain good hires in the future.
“How we handle ourselves and how we handle our relationships with our associates matters,” he said.
‘Take every advantage’
Not all workers want to stick around after a layoff. A Wells Fargo employee said staying motivated after being terminated was tough. She was told months ago that her job would be eliminated. No precise date was given, making it hard to plan her job search.
“Every day, you go in, and you’re like, is it going to be today?” she said.
Wells Fargo said it periodically needs to adjust its staffing levels according to business needs. During layoffs, “We always treat our employees respectfully, including giving them reasonable time to prepare,” the bank said.
At Disney, a former corporate employee who was given several months’ notice this past spring said she was annoyed that she was expected to keep doing her job even though it was ending, until her manager said she could stay home and stop working. Two other Disney employees said they weren’t asked to work during their advance-notice period; they used the time to consider next career steps.
Earlier this year, a laid-off Disney marketing executive was given two months’ notice of his layoff. While he collected paychecks, he used the time to job-hunt and made use of his employee benefits. He took his children to Disneyland free several times.
“I am going to take every advantage of this as possible,” the former executive recalled thinking.
Disney declined to comment.
Some companies simply can’t give employees much warning, but some of those are trying to soften the blow.
“If you’re dealing in an environment where you have confidential patents or access to business plans, you just want to protect your company assets,” said Tashia Mallette, a longtime human-resources executive who conducted layoffs last year at Therabody, a wellness-technology company.
Mallette said that workers were notified on the day they had to leave but that Therabody encouraged managers to check on them and created an alumni Slack channel so people didn’t feel abruptly cut off. Mallette herself has left the company.
Companies don’t want workers to feel burned during a layoff. If anything, they want workers to feel that they would rejoin the company if given the chance.
Jennifer Bender managed layoffs of hundreds of people during her years at Change Healthcare, where until this past spring she was a senior vice president of human resources. The company had to trim staff during acquisitions and project and client fluctuations, and it also had to fill hundreds of openings a month, she said.
The company decided to tell people two to four weeks ahead of their layoff dates, she said. It felt more compassionate to workers, and it also made it easier to redeploy some people into other roles the company needed to fill, which was a benefit to the company and employees who were interested in staying on.
While longer notice periods involve risks, including security issues or unmotivated people who don’t want to work during that time, Bender said the company let employees know that performance issues could still result in corrective action, including termination for cause. That meant, she added, that it wasn’t much of an issue.
“It’s really a best practice at this point,” Bender said.
Chris Pinner, a 42-year-old technical writer in Cleveland, knows his last day on the job is Dec. 29. The software company where he works told him so back in April.
At first, Pinner was puzzled by the supersize notice that his job would be eliminated. But the advance warning has given him more time to look for a new position, which Pinner said he appreciates. He is still in job-search mode as his end date draws closer.
Pinner and many other workers facing termination are experiencing a different kind of corporate cutting—layoffs with a long runway that can take weeks or months to finally come to pass. Wells Fargo and Disney are among large employers that have done some long goodbyes instead of more-traditional, abrupt ones, in which laid-off workers learn they are cut and leave on the same day, often escorted out by security.
The old way protected companies from security problems or lost clients as laid-off workers walked out the door, and workers had little recourse. Now employers are trying to appear transparent and compassionate when cutting, several executives and leadership consultants said.
“Companies can’t lay people off on the quiet anymore,” said Sarah Rodehorst, chief executive of Onwards HR, a software platform that helps companies with legal compliance during employee terminations. “Whatever they do is much more under a microscope. They have to hold themselves to a higher standard.”
Avoiding a backlash
Demand for white-collar workers has taken a big hit this year, as companies acknowledge they over hired during the pandemic and job openings dry up. The tightening job market means employers are piling on layers of new requirements and lengthy, additional rounds of interviews for a few coveted jobs, dragging out the hiring process as they grow more selective about whom they bring on.
Layoffs that are seen as insensitively done can spark backlash on social media, with laid-off employees venting online and circulating internal details, said George Penn, a managing vice president at Gartner who advises companies on staff restructuring.
“Layoffs became not only a legal but a reputational nightmare for some organisations,” he said.
Federal law requires employers of a certain size to give 60 days’ notice to workers when conducting big layoffs. Some companies have gotten around advance warning by paying terminated workers a lump sum to cover that period.
Some affected employees said they would still receive severance pay after their long layoff notice periods, though it would be reduced if they left before their designated end dates.
In the Houston area, James Ridgway Jr., 40, is working at Huntsman, a chemical company, after learning in August that he would lose his job at the end of the year. The father of two children with another on the way said the news was initially an “existential gut punch.” He said the long lead time has given him more time to network and tighten family finances.
“It’s not a great place to be in, but I appreciate that I do have that runway,” said Ridgway, adding that the notice is helping him as he hands off responsibilities to co-workers.
Ridgway, a communications manager, is still looking for another full-time job. Because his colleagues know he is job-hunting, ducking out for interviews is less awkward than feigning doctors’ appointments, he said.
Wade Rogers, Huntsman’s senior vice president of global human resources, said giving laid-off employees months of notice shows remaining and prospective workers that the company treats its people well. That approach, he said, could help the company recruit and retain good hires in the future.
“How we handle ourselves and how we handle our relationships with our associates matters,” he said.
‘Take every advantage’
Not all workers want to stick around after a layoff. A Wells Fargo employee said staying motivated after being terminated was tough. She was told months ago that her job would be eliminated. No precise date was given, making it hard to plan her job search.
“Every day, you go in, and you’re like, is it going to be today?” she said.
Wells Fargo said it periodically needs to adjust its staffing levels according to business needs. During layoffs, “We always treat our employees respectfully, including giving them reasonable time to prepare,” the bank said.
At Disney, a former corporate employee who was given several months’ notice this past spring said she was annoyed that she was expected to keep doing her job even though it was ending, until her manager said she could stay home and stop working. Two other Disney employees said they weren’t asked to work during their advance-notice period; they used the time to consider next career steps.
Earlier this year, a laid-off Disney marketing executive was given two months’ notice of his layoff. While he collected paychecks, he used the time to job-hunt and made use of his employee benefits. He took his children to Disneyland free several times.
“I am going to take every advantage of this as possible,” the former executive recalled thinking.
Disney declined to comment.
Some companies simply can’t give employees much warning, but some of those are trying to soften the blow.
“If you’re dealing in an environment where you have confidential patents or access to business plans, you just want to protect your company assets,” said Tashia Mallette, a longtime human-resources executive who conducted layoffs last year at Therabody, a wellness-technology company.
Mallette said that workers were notified on the day they had to leave but that Therabody encouraged managers to check on them and created an alumni Slack channel so people didn’t feel abruptly cut off. Mallette herself has left the company.
Companies don’t want workers to feel burned during a layoff. If anything, they want workers to feel that they would rejoin the company if given the chance.
Jennifer Bender managed layoffs of hundreds of people during her years at Change Healthcare, where until this past spring she was a senior vice president of human resources. The company had to trim staff during acquisitions and project and client fluctuations, and it also had to fill hundreds of openings a month, she said.
The company decided to tell people two to four weeks ahead of their layoff dates, she said. It felt more compassionate to workers, and it also made it easier to redeploy some people into other roles the company needed to fill, which was a benefit to the company and employees who were interested in staying on.
While longer notice periods involve risks, including security issues or unmotivated people who don’t want to work during that time, Bender said the company let employees know that performance issues could still result in corrective action, including termination for cause. That meant, she added, that it wasn’t much of an issue.
“It’s really a best practice at this point,” Bender said.
