Latest news with #GreatResignation
Forbes
6 days ago
- Business
- Forbes
How Leaders Can Use Synergistic Alignment To Grow Their Companies
Jerry Cahn, PhD., JD., CEO & CLO of Age helps people & businesses achieve more fulfillment & success in our changing world. Are you prepared for major transformations in the workforce? In working with various business leaders, I've observed three converging forces that are changing the nature of work: a shift in workers' expectations, demographic shifts and the acceleration of automation. Together, these converging forces provide businesses committed to exponential growth with an opportunity to achieve significant goals (such as increased profits and marketplace impacts) and better engage their employees (who want to elevate their skills and find more professional fulfillment). Three Converging Forces: An Overview But first, let's take a step back and examine the three converging forces. First, recent years have indicated that workers' expectations have changed. The Great Resignation, which I like to refer to as The Great Exploration, showed that people were willing to quit their jobs, often without having other opportunities lined up. This was a sign of how frustrated many workers were with the status quo at many workplaces, which arguably traces back to the scientific management approach. The scientific management approach is rooted in "improving efficiency through systematic study of tasks." Workers who participated in The Great Resignation had various motivations. For instance, a Pew Research survey revealed that the top five reasons U.S. workers quit a job in 2021 were inadequate compensation, limited career progression prospects, disrespectful workplace treatment, challenges with childcare and limited ability to determine their work hours. The findings of this survey don't surprise me. I've observed that many people nowadays want flexibility to integrate the many facets of their lives and responsibilities; they don't want to work at the expense of their other priorities, such as ongoing learning and health. Demographic changes are the second converging factor. Many adults today realize that they don't want to retire and disengage with the outside world completely. According to AARP, a survey the organization conducted in 2023 revelead that 82% of "nonretired adults view retirement as a time to work in some form at least for a while." In the words of Dr. Howard Tucker, a neurologist who is over 100 years old, "retirement is the enemy of longevity." Additionally, research by Yale University professor Becca Levy has found that positive attitudes toward aging "lead to better health and even longer life — 7.5 years on average." Simultaneously, birth rates are dropping, meaning that fewer young people will be entering the workforce in the coming years if the trend doesn't reverse. Future workplaces are likely to have a higher proportion of older workers. However, those older workers might still have managers who are much younger, which can lead to challenges. Then there's the third converging factor, the acceleration of automation, which encompasses generative AI and robotic process automation (RPA). The results of a McKinsey study conducted in July 2024 show an increase in companies' use of AI. In that survey, 78% of participants indicated that "their organizations use AI in at least one business function." By contrast, 72% said the same in "early 2024." A year prior, the statistic was 55%. With time, I believe that AI will become more widespread, and in turn will impact the workforce in three main ways—changing some jobs, eliminating others and creating new ones altogether. The Value Of Synergistic Alignment The convergence of these three forces creates an opportunity for forward-thinking businesses. Through synergistic alignment, business leaders can fuse all three forces to meet both their long-term growth goals and the preferences of their workers. Let's define the terms. Synergy results when, as the popular saying that originates from Aristotle goes, "the whole is greater than the sum of the parts." For people, it means they are collaborating, mutually reinforcing one another to create greater fulfillment. Alignment takes place when all the elements (e.g., goals, values and actions) are in harmony. Synergistic Alignment describes the intentional, longer-term process of harmonizing values, actions and strategies in a way that compounds impact over time. For individuals, this means aligning purpose, passion, career, relationships, and time efficiency in a way that continuously reinforces personal growth and fulfillment. For businesses, this means integrating vision, mission, strategy, culture, etc., in ways that collectively create sustained innovation, success and societal impact. By adopting Synergistic Alignment mindsets, policies and programs, business leaders can unlock greater engagement, retention, resilience and fulfillment on their teams. When Opportunity Knocks, Open The Door Many leaders, I've observed, focus on these forces separately, rather than all together at once. However, I believe now is the time for leaders to strategically approach all three forces at once. An effective way to do so? Updating their talent management strategies. As noted earlier, many workers today want careers that enable them to live fulfilling, integrated lives. By expanding their views of time to recognize each person's limited weekly time and potential multi-decade career, leaders can generate synergistic alignments for their workers, enabling them to develop new skills and innovate. Ultimately, this will help businesses grow. For instance, consider an assembly-line worker who spends weekends raising millions of dollars to build schools in other countries to educate children. When that worker was hired, the executive team wasn't aware of those sales and finance skills. However, by having frequent one-on-one conversations and implementing a talent management system where employees can share professional and personal updates, executives can learn how multifaceted employees (like that hypothetical assembly line worker) are. Bringing automation into the mix can eliminate the need for workers to do menial, time-consuming work, freeing them to pursue more meaningful opportunities at work. This can increase worker loyalty and retention, propelling employees to move up within organizations. Ultimately, synergistic alignment enables companies to adapt to the changing workplace. If you're a business leader, take the time to learn what other companies in your industry and adjacent industries are doing, so you can identify their best practices and apply them to your situation. If you start now, exponential growth in the next few decades can be well within reach. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Yahoo
20-07-2025
- Business
- Yahoo
'Quiet cracking' is affecting millions of workers — why it's dangerous and how to spot it
From The Great Resignation to quiet quitting, there's been no shortage of trends over the past few years that reflect growing dissatisfaction and disengagement in the workplace. The latest is quiet cracking, a phrase coined by TalentLMS, a learning management system company. The term describes a persistent sense of burnout and stagnation that leads to disengagement, poor performance, and a quiet urge to quit. Research from TalentLMS found that one in five employees (20%) are experiencing this phenomena on a frequent or constant basis, while another 34% say they experience it occasionally. 'Unlike quiet quitting, it doesn't show up in performance metrics immediately. But it is just as dangerous,' according to TalentLMS's report. And there's a tangible cost to this: Each year, disengaged employees cost the global economy $8.8 trillion, according to Gallup. Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it What is quiet cracking? While quiet quitting refers to workers who purposely slack off at a job they no longer want, quiet cracking refers to those who 'gradually become mired in feeling both unappreciated by managers and closed off from career advancement while doing work they otherwise like,' according to an article in Inc. Or, as TalentLMS puts it, people who feel 'some kind of workplace funk.' It goes beyond employee disengagement. Rather, 'it's something deeper and harder to detect,' according to TalentLMS. Employees are 'silently cracking under persistent pressure.' Those who frequently or constantly experience quiet cracking are '68% less likely to feel valued and recognized at work' compared to their peers, while only 62% feel 'secure and confident' in their future with the company. But this trend is also hard for employers to pinpoint. And even employees don't always recognize the warning signs until they're 'spinning their wheels doing jobs they're losing interest in yet stick with, fearing it will be too difficult to find a new one,' according to Inc. The TalentLMS survey of 1,000 U.S. employees found that their top concerns include: Economic uncertainty Workload and job expectations Poor leadership or uncertain company direction Layoffs or restructuring Lack of career advancement opportunities Read more: Americans are 'revenge saving' to survive — but millions only get a measly 1% on their savings. The trends impacting quiet cracking, and how to mitigate them The TalentLMS survey of 1,000 U.S. employees found that top concerns include: Economic uncertainty Workload and job expectations Poor leadership or uncertain company direction Layoffs or restructuring Lack of career advancement opportunities If so many employees are quietly cracking, what can employers and employees do about it? Recognizing what causes this condition is the first step toward finding solutions. The solution to this isn't actually that complicated, according to Nikhil Arora, CEO of Epignosis, the parent company of TalentLMS. 'When people feel stuck, unheard or unsure about their future, that's when disengagement creeps in. Giving employees space to grow — through learning, skilling and real conversations — is one of the most powerful ways to turn things around,' he said in a release. 1. Uncertainty and overload It's important to set expectations and balance workloads, since 29% of employees say their workload is unmanageable. This can be done by auditing workload distribution and providing stress management tools to employees. This can help them 'rediscover a sense of purpose and forward momentum, something we all seek at work and in life.' 2. Lack of recognition and growth Respondents who experienced quiet cracking are also 152% more likely to say they don't feel valued and recognized for the contributions at work. One of the simplest ways to combat this, according to TalentLMS, is to regularly recognize employees for their contributions. It's also important to set expectations and balance workloads, since 29% of employees say their workload is unmanageable. This can be done by auditing workload distribution and providing stress management tools to employees. 3. Few learning or career advancement opportunities The survey found that employees who received training in the past 12 months are 140% more likely to feel secure in their jobs — and TalentLMS advises employers to 'double down on learning and development' with 'structured, ongoing learning paths.' When it comes to combatting doubts about career advancement, 'employers must show belief in their employees' potential, which includes supporting growth, even when resources are tight,' according to an article in HR Executive. That could include mentorship and training opportunities, as well as clear communication about future paths. What employees and employers can do Employees who recognize the symptoms of quiet cracking can talk to their manager about managing their workload or clarifying job expectations. They could also provide suggestions to improve morale (such as peer-to-peer recognition) and ask about training and development opportunities. If these efforts turn out to be fruitless, it may be time to look for another job. Employers who want to tackle this form of disengagement can get started by auditing their current engagement efforts, identifying 'gaps in managerial support and recognition,' and starting small 'with consistent feedback and learning programs,' according to TalentLMS. As the report points out, quiet cracking isn't a well-being issue. Rather, it's a business issue: 'When employees quietly crack, they take productivity, creativity and loyalty with them.' Because when employees quietly crack, companies loudly pay the price. What to read next Robert Kiyosaki warns of 'massive unemployment' in the US due to the 'biggest change' in history — and says this 1 group of 'smart' Americans will get hit extra hard. Are you one of them? How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you'll need a substantial stash of savings in retirement Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Solve the daily Crossword
Business Insider
17-07-2025
- Business
- Business Insider
Zoomers can't get in and boomers can't get out: The job market pressures by generation
America may be divided over millennials spending too much on avocado toast, Gen Zers staring into the void, and boomers hoarding their wealth, but there's one thing that every generation can agree on: career prospects are feeling extra miserable lately. One Gen Xer told Business Insider of when she learned she was laid off, "The day that I got that news, it was like going to the worst surprise party I've ever been to." "My dream job might exist," a frustrated Gen Z job seeker said. "But I'm one of 400 people applying for it." "I keep hearing employers talk about no one wanting to work, and I desperately want to work," said a millennial who struggled to find work for four years. "I can't get someone to ever sit down and talk to me." It all stems from the current economic moment in which companies are hiring at nearly the lowest rate in a decade and are looking to cut costs where they can, but it feels different depending on your career stage and employment situation. In recent months, BI has interviewed fed-up job seekers, laid-off managers, and people working past retirement age to pay the bills. Here's how each generation is experiencing the job market in 2025 — and what they're doing to cope. Gen Z's entry-level opportunities are drying up The job market for 22- to 27-year-olds with a bachelor's degree or higher " deteriorated noticeably" in the first quarter of this year, the New York Federal Reserve reported. That doesn't come as a surprise to many Gen Z job seekers. "I was applying and I felt like, 'This is so stupid because I know I'm going to get rejected,'" said 21-year-old Bella Babbitt, a 2024 grad. She told BI that after completing her bachelor's in just three years, it took her hundreds of applications and months of waiting tables, but she finally landed a role in media strategy by networking with a family friend. "My parents have such a different mindset, where they can't comprehend how we've applied to all these jobs and we're not getting anything," she added. For many of Babbitt's generation, it feels like their traditional pathways to success — a résumé of internships, rigorous classes, and a college degree — aren't translating to stable job offers. Cost-cutting from the White House DOGE office has slashed funding for jobs that ambitious young graduates of earlier generations used to vie for at government agencies, nonprofits, science labs, and public health centers. AI could make it harder to find entry-level options in tech, and law school demand is rising beyond what the industry can support. White-collar roles at many major corporations have been hit by layoffs or hiring freezes. Early 2020s graduates may have fallen into a hot Great Resignation market, but recent grads aren't so lucky. Solomon Jones, 26, said he's been unable to land a sports communications role after graduating in May. With $25,000 in student loan debt, he's moved back in with his parents while he continues the job hunt. He's trying to cobble together some freelance writing work — at least until full-time hiring picks up. "The goal is to obviously get a job in the sports industry, but realistically, I know that life isn't fair," he told BI. "So at this point, I'm just trying to find a job, period." Zoomers have a rising unemployment rate and are losing confidence in the payoff of a college education, with some pivoting to blue-collar work. The 22-to-27 recent grad group has had a higher unemployment rate than the overall American labor force since 2021 — reversing the typical trend of young grads outperforming the broader labor market that has persisted through past recessions. "Young people are obviously not one monolithic group. Some are going to college, some started college and didn't finish," Elise Gould, senior economist at the Economic Policy Institute, previously told BI, adding, "But I don't think people always understand that this is what happens, the sort of 'first hired, first fired' phenomenon." Millennial and Gen X managers are caught in the Great Flattening Olivia Cole, 39, feels stuck after getting laid off from her product support role last October. "As most people can probably relate, it's been difficult finding something that either is an equivalent level or a step up," Cole said. Cole has done everything that she says she's supposed to do: Polishing her résumé and LinkedIn profile, and building out her network. Even so, she's still looking — something she sees across her cohort. "It does really seem like people are looking for those with a high level of experience or absolute newcomers," Cole said. "And as somebody in the middle, it's been a little difficult, because there's a million of us." Many millennials looking for mid-career opportunities like Cole could be in trouble: A growing strategy of reducing middle management at Big Tech and small businesses alike is aimed at cutting bureaucracy and costs. As most managers today are millennials or Gen Xers, per a recent Glassdoor analysis, they're potentially on the layoff chopping block. The managers who remain are left with a heavier workload, including a rising number of direct reports. Gusto, a small and midsize payroll and benefits platform, found that involuntary manager terminations — firings and layoffs — have greatly affected those ages 35 to 44, rising over 400% between January 2022 and September 2024. Job postings for management roles on the job-search platform Indeed are also trending downward. Some millennials are finding solace in seeking out others in the same boat: After Giovanna Ventola, 35, was laid off three times in three years, she founded a support group for fellow job seekers called Rhize. She said that the majority of group members are over 35; many in that cohort had previously held roles like director or VP, and were six-figure earners, she said. "They're applying for entry-level jobs because they're at the point where they're like, 'I need to do something," she said. For Gen X, the financial disruption of an unexpected layoff or career pivot can be especially dire: AARP reported in 2024 that a fifth of not-yet-retired Americans 50 and older had no retirement savings. After her second layoff in two years, 53-year-old Hilary Nordland is struggling to pay bills and feels like she will be "working forever." "I should be retiring in 12 years, and there's no way that's going to happen," she said. "I have no retirement savings." Baby boomers increasingly need jobs past retirement age For the last decade, the number of older Americans working full-time has been trending upward. BI has heard from thousands of older Americans struggling to afford necessities with limited savings and Social Security. Hundreds said they are still working full-time, have picked up part-time shifts to supplement their income, or are actively looking for work. Herb Osborne, 71, works full-time for a small business that makes olive oil and charcuterie accessories and reads financial documents as a hotel auditor on weekends. He said he has to continue working two jobs to afford the Bay Area's cost of living. "Financially, for me, it is really almost imperative that I work," he said. "I do work every day in order just to survive. And it's scary now at the age I'm at, because Social Security doesn't cover anything." A survey published by Harris Poll and the American Staffing Association in 2024 found that 78% of baby boomers believe their age would be a contributing factor when being considered for a new position, and 53% think their age limits their career opportunities. At the same time, LinkedIn reported that about 13% of previously retired baby boomers on the platform listed, then ended, a retirement on their profile in 2023. Bonnie Cote, 75, is a substitute teacher near Washington, DC. She has decades of education experience and loves the work, but said it's hard to keep finding a gig that pays enough money to supplement her Social Security, especially in her 70s. "It doesn't matter what age you are," Cote told BI. "You should be able to get a job."
CNBC
16-07-2025
- Business
- CNBC
These are the best states for workers in America in 2025
For all its perils, artificial intelligence appears to have helped alleviate a longstanding problem in American business. Since around 2017, other than the brief spike in unemployment during the pandemic, there were far too few workers to fill the available jobs in the U.S. But in April, according to the U.S. Chamber of Commerce, the nationwide labor shortage pretty much ended. Thanks to the combination of a cooling job market, people finally returning to work following the pandemic, and AI taking over an increasing number of human tasks, the skills gap "has largely closed," the Chamber says. As of May, there were 7.2 million workers available to fill 7.4 million jobs. While that still represents a modest shortage, it is a far cry from 2021 and 2022, during the so-called "Great Resignation," when the shortages routinely totaled in the millions. That is not to say that the U.S. does not still have a people problem. Worker shortages are still severe in some states, and economic development experts say the workforce is still a key consideration when companies make decisions about where to locate. "The base of employment here is just not sufficient in the U.S.," said Tom Stringer, a principal and leader of the site selection and incentive practice at Grassi Advisors in New York. "We need a whole of government approach to start getting folks technical skills and trained and out into the workforce, and that's in every location." Some states are meeting the challenge, according to CNBC's annual study, America's Top States for Business. Workforce is one of ten categories of competitiveness on which we rank every state, worth about 13% of a state's total score under this year's methodology. We consider the educational attainment of each state's workforce, and the concentration of science, technology, engineering and math (STEM) workers in each state. We also look at the career education pipeline, state workforce training programs, and workers with industry-recognized certificates. We look at each state's right-to-work laws. We consider which states are most successful in attracting skilled workers, and we measure the productivity of each state's labor force. While most did not make this year's list of the nation's best for all-around quality of life, these ten states are winning the talent war in 2025. The Volunteer State is a leader in helping its workers find gainful employment. According to data reported by the state to the U.S. Department of Labor, more than 82% of participants completing the state's worker training programs found employment within six months in 2023, the most recent data available. That is one of the best success rates in the nation. The Governor's Investment in Vocational Education (GIVE) program invests $25 million to help fund partnerships between industry and the state's high schools and vocational schools. 2025 Workforce Score: 214 out of 335 points (Top States Grade: B) Net Migration Rank: No. 14 Adults with Bachelor's Degree or Higher: 30.4% Career Education Credential: 35.4% of degrees or certificates awarded STEM Workers: 5.3% Right to Work State? Yes The Beehive State gets its nickname from the industriousness of its workers, and those workers are functioning at a high level. Utah has among the highest concentrations of STEM workers of any state, many of them working in the fast-growing Silicon Slopes region near Salt Lake City. Since its creation in 2019, the state's Utah Works program says it has provided 200,000 hours of specialized training to prepare workers for advanced industries. 2025 Workforce Score: 215 out of 335 points (Top States Grade: B) Net Migration Rank: No. 48 Adults with Bachelor's Degree or Higher: 36.9% Career Education Credential: 30.3% of degrees or certificates awarded STEM Workers: 7.9% Right to Work State? Yes Workers in the Constitution State are consistently among the most productive in the nation, accounting for more than $171,000 in economic output per job last year, according to CNBC's analysis of U.S. Labor Department and Commerce Department data. Connecticut also boasts one of America's most educated workforces, according to Census data. 2025 Workforce Score: 216 out of 335 points (Top States Grade: B) Net Migration Rank: No. 33 Adults with Bachelor's Degree or Higher: 41.9% Career Education Credential: 22.4% of degrees or certificates awarded STEM Workers: 6.9% Right to Work State? No The Centennial State's workforce is the second most educated in America, after Massachusetts. A report issued in January by Colorado's Workforce Development Council warned that the state still faces worker shortages, which demographics could make worse as more baby boomers retire. So, the state is working on increasing access to education and training. Last year, the state passed Colorado Promise, a tax credit covering the first two years of Colorado public postsecondary institution tuition and fees for students with family incomes of $90,000 or less. 2025 Workforce Score: 222 out of 335 points (Top States Grade: B) Net Migration Rank: No. 18 Adults with Bachelor's Degree or Higher: 44.7% Career Education Credential: 39.6% of degrees or certificates awarded STEM Workers: 9.3% Right to Work State? While not considered a right to work law, the Colorado Labor Peace Act limits unions' ability to require a "closed shop." In May, Gov. Jared Polis, a Democrat, vetoed an attempt to repeal the law and give unions more power to organize. Educated workers are flocking to the Grand Canyon State. The Census Bureau estimates nearly 92,000 adults with bachelor's degrees or higher moved to the state in 2023, while only about 52,000 left for greener pastures. Arizona has a healthy balance of tech and skilled trade workers. But the state's workforce development programs could use some development. More than a quarter of workers completing state-sponsored training were unable to find a job within six months. 2025 Workforce Score: 228 out of 335 points (Top States Grade: B+) Net Migration Rank: No. 5 Adults with Bachelor's Degree or Higher: 32.6% Career Education Credential: 37.8% of degrees or certificates awarded STEM Workers: 6.6% Right to Work State? Yes Workers in the Evergreen State are the nation's most productive by far, accounting for more than $191,000 in economic activity per job last year. Washington also boasts America's highest concentration of STEM jobs. Washington STEM, a statewide non-profit organization now in its 25th year, aims to get kids started early in the STEM fields. The group said that in 2024, its early education STEM grants impacted some 10,000 students statewide. 2025 Workforce Score: 229 out of 335 points (Top States Grade: B+) Net Migration Rank: No. 9 Adults with Bachelor's Degree or Higher: 38.8% Career Education Credential: 43.8% of degrees or certificates awarded STEM Workers: 10.5% Right to Work State? No Educated workers vote with their feet, and they've made the Tar Heel State their third-most popular destination. In 2023, North Carolina tied with Texas for net migration, just behind Florida and Maine. The state Department of Commerce predicts there will be plenty of opportunity to go around, with North Carolina employers projected to add 500,000 jobs between 2022 and 2032. 2025 Workforce Score: 243 out of 335 points (Top States Grade: A–) Net Migration Rank: No. 3 Adults with Bachelor's Degree or Higher: 34.7% Career Education Credential: 41.9% of degrees or certificates awarded STEM Workers: 7.3% Right to Work State? Yes The Peach State is a leader in career education, with associate's degrees and industry-recognized certificates comprising nearly 43% of all post-secondary credentials awarded statewide, according to Advance CTE, a national non-profit advocating for career education. Nearly one-quarter of high school students are focused on vocational fields. At the same time, Georgia ranks in the top half of states for the percentage of adults with bachelor's degrees or higher. 2025 Workforce Score: 250 out of 335 points (Top States Grade: A–) Net Migration Rank: No. 7 Adults with Bachelor's Degree or Higher: 34.2% Career Education Credential: 42.6% of degrees or certificates awarded STEM Workers: 5.9% Right to Work State? Yes The Sunshine State remains a magnet for talent, leading the nation in net migration. But Florida also pays attention to its workers after they arrive. The state's worker training programs are among the most effective in the nation, according to data the state reported to the U.S. Department of Labor. Eighty-six percent of participants in the state's worker training program found a job within six months. That is the fifth-best record of any state. 2025 Workforce Score: 255 out of 335 points (Top States Grade: A) Net Migration Rank: No. 1 Adults with Bachelor's Degree or Higher: 33.2% Career Education Credential: 49.3% of degrees or certificates awarded STEM Workers: 5.4% Right to Work State? Yes The Lone Star State's workforce is the state's biggest bright spot when it comes to business competitiveness. In fact, it is the best all-around workforce in the country. Despite quality of life issues, people just keep pouring into Texas to take advantage of the many opportunities there. But the state also has a rich pipeline of homegrown talent. More than 70% of Texas high school students are concentrating in career-related fields — by far the highest percentage in the nation. But Texas also has a large contingent of STEM workers — the 13th highest concentration in the country. The Texas workforce finishes in the top ten for productivity, with the average worker responsible for more than $153,000 in economic output last year. Texas could do better with its worker training programs, a difficult task to manage in a state with more than 14 million workers. Still, for companies looking for a large pool of talent, everything is indeed bigger in Texas. 2025 Workforce Score: 272 out of 335 points (Top States Grade: A+) Net Migration Rank: No. 3 Adults with Bachelor's Degree or Higher: 33.1% Career Education Credential: 43.4% of degrees or certificates awarded STEM Workers: 7.1% Right to Work State? Yes
Indianapolis Star
16-07-2025
- Business
- Indianapolis Star
Hoosiers might have thousands of dollars in unclaimed 401(k) accounts. How you can easily check
Some Hoosiers might have an unexpected payday in their future. At least $1.7 trillion languishes in lost or forgotten 401(k) accounts, money that's just sitting around collecting interest. With an average unclaimed balance of $56,616, it might behoove some Indiana residents to find out how much, if any, belongs to them. Here's what Hoosiers should know. Story continues after photo gallery. Short answer? A lot. There are roughly 29 million idle accounts representing one quarter of all assets held in 401(k) retirement plans, according to figures from a 2023 report from Capitalize, a financial services firm. 'That's a heck of a lot of money,' said James Royal, an investing analyst at Bankrate. 'You could really have tens of thousands of dollars out there.' It's hard to fathom how anyone could lose track of $56,000, until you stop to consider the circumstances behind the typical lost 401(k) account. 'People who are leaving a job, and especially if they're moving to another one, usually have a bunch of things going on,' said David John, a senior strategic policy adviser at the AARP Public Policy Institute. The average American born between 1957 and 1964 has changed jobs about a dozen times, AARP reports. A record 47 million Americans quit their jobs in 2021 alone, amid the Great Resignation. A worker who leaves a job after a year or two might have only a few thousand dollars saved in a retirement account. In the stress of a job change, it's easy to lose track of those funds. Workers might struggle with how to 'roll over' the savings into a new account. The balance might not seem to justify the effort. Wait a decade or two, however, and the balance in a forgotten account can balloon into a tidy sum. The reason: Most 401(k) funds tend to be invested in stocks, and the market has made enormous gains in recent decades. 'Even 10 or 15 years ago, if you put in $5…, $6…, $7,000, that could be worth three, four, or five times as much today,' Royal said. Tracking down lost 401(k) accounts has never been easier, according to Royal and other retirement-plan experts. A curious consumer with an hour to spare can go a long way toward rooting out lost savings. Here are some tips, starting with the easy stuff: There are three easy websites you can use to discover if you have missing 401(k) funds. They are: Here's a quick breakdown of each service. Yes, visit the National Registry of Unclaimed Retirement Benefits. As the name suggests, it's a national database of unclaimed retirement accounts. Enter your Social Security Number, run a quick search and see if any idle accounts come back. The Retirement Savings Lost and Found Database is a new site launched by the U.S. Department of Labor to help workers locate unclaimed benefits. The lost and found site is 'still trying to reach scale with a lot of providers' and not yet comprehensive, said Rita Assaf, vice president of retirement savings at Fidelity. But it's another convenient, one-stop destination for finding retirement funds in your name. Missing Money, according to its website, is a clearinghouse of unclaimed property held by U.S. states and Canadian provinces and is endorsed by the National Association of State Treasurers. Another one-stop site, Missing Money can direct users to all sorts of unclaimed property, including retirement accounts. 'It's been around for a few years, but it's not as widely known as it should be,' said John of AARP. You can also check for unclaimed property through the National Association of Unclaimed Property Administrators website: The steps above should provide a good sense of potential unclaimed retirement funds in your name. The next moves might take a bit more time. Search your employment records. Look for old retirement plan statements, in electronic or paper form. Alternately, seek out old pay stubs and W-2 forms, and look for contributions to retirement plans. Contact old employers, if you can find them. Start with the human resources department. Someone there might know if you participated in a 401(k) or, at a minimum, which company administered the plan. If you think you know which plan administrator held your account, contact that company directly. 'There are not that many 401(k) plan administrators out there,' said Kate Ashford, a retirement expert at NerdWallet. 'You could take an afternoon and call them all.' Ask to speak to the 401(k) department. A representative will typically ask for your Social Security Number and other identifying information, which can help the administrator find any old retirement accounts under your name. If a lost retirement plan is 'from many years ago,' Assaf said, 'that plan may not still be available at Fidelity. It could be somewhere else.' For retirement accounts with a balance under $1,000, a plan administrator may have liquidated the account and cut a check, which might have gone 'to your last-known address,' Ashford said. For balances in the low thousands, the administrator may have rolled the account into an IRA at another financial institution. Several other sites can help consumers search for clues about abandoned retirement accounts. The Department of Labor's abandoned plan database can help an ex-worker locate a terminated plan. More about money: Inflation accelerated in June. Is the 'tariff shock' finally here? The same agency allows users to search a database of Form 5500, which is filed annually for 401(k) plans and can help users identify and contact both former employers and plan administrators. But records only go back to 2010. Don't want to search for lost 401(k) funds yourself? At least two private companies, Capitalize and Beagle, operate concierge services that can do it for you. Fewer 401(k)s will go missing in the future, experts say, thanks to the evolving concept of "auto-portability" in retirement plans. A new initiative in the retirement-savings industry encourages workers to roll over a 401(k) account into an IRA when they leave a job, whereupon the money can automatically transfer to a retirement plan at a new employer. The auto-portability program applies to accounts valued at $7,000 or less. Research shows low-value accounts are more likely to be cashed out or forgotten, potentially losing thousands of dollars of compounded interest over time. In 2022, a consortium of private retirement-plan providers announced a collaboration to boost the portability of small retirement accounts. When someone leaves a job, the network of providers will make sure that any retirement funds 'move seamlessly from one job to another,' said John of AARP. Daniel de Visé covers personal finance for USA Today.
