Your Work Friends
Edgy Work Talk. Fresh Insights. We Break It Down So You Stay Ahead.
Its not just you - work is bonkers. You get hit from all sides. Your boss. Your team. Your clients. Another org change. A layoff. Which makes you want to chuck it all and live off the grid.
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Your Work Friends
New Week, New Headlines: AI Is Making 71% of Workers Less Productive: The Truth About Tech Burnout + Why You Need $1.6M to Retire
AI Is Making 71% of Workers Less Productive: The Truth About Tech Burnout + Why You Need $1.6M to Retire
We're tackling tackle two major workplace challenges:
- AI & Burnout: We expose alarming new research that shows a massive disconnect between executives and workers when it comes to AI. While 96% of leaders are betting big on AI to boost productivity, 71% of employees report it's actually making them less productive and more stressed. We unpack five hidden digital stressors that are burning out today's workforce and share real solutions for managing the tech overwhelm. Plus, find out why Gen Z – our most tech-savvy generation – is actually the most anxious about AI's impact.
- The Retirement Crisis: Brace yourself: we reveal why the average American now needs $1.6M to retire comfortably – and that number keeps climbing for younger generations. We break down exactly how much each generation needs to save (Gen Z, you might want to sit down for this), and count down the surprising best states for retirement in 2024. Is traditional retirement even realistic anymore? We get honest about what retirement might actually look like for millennials and beyond, plus share practical strategies for planning your financial future - like moving to Delaware.
Whether you're drowning in AI tools or wondering if you'll ever be able to retire, we've got the data, the insights, and the real talk you need to hear.
Disclaimer: This podcast is for informational purposes only and should not be considered professional advice. We are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. The views expressed in this podcast may not be those of the host or the management.
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tech for everybody is a double-edged sword it's an enabler for all of us, but it's also it's an enabler of burnout for everybody, but it's also a solution to a lot of our workplace problems. According to the Calm app. You know the Calm app, the well-being app, calm C-A-L-M Calm Sorry for my new new accent to everybody. You need to calm down, calm what up?
Speaker 2:Well, it's the last week of October, I know, can you believe?
Speaker 1:it no, no, november 1st this Friday, yeah, yeah. How did that happen? I'm still in denial. I'm still going out without a coat.
Speaker 2:If you didn't look at a calendar, what month would you say it would be? August, august yeah, me too, I was calendar. What month would you say it would be?
Speaker 1:August, August. Yeah, me too. I'm like. I feel like we're still back in August. Yeah, I know my mental mindset is August, but I very much know we are on the cusp of November it will be February before you know it.
Speaker 2:It will be Just holidays yada election.
Speaker 1:Yeah, once November 1st happens, I feel like you find yourself January 1, like what just happened.
Speaker 2:Yeah, and especially this year with the election, it's going to be like Unbelievable. Anything fun this weekend. Anything fun, yes, okay.
Speaker 1:Fun fact for you. Fun fact what I get for living in an old place on the East Coast. Fun fact the first witch trials that happened in the US happened in Connecticut Before Salem. They happened in Old Wethersfield, connecticut, and the first witch hanging happened down the street from my house. Creepy, creepy fact. Yeah, I don't know if that's a fun fact, it's really a creepy fact. Fun fact A woman was hanging from my house. Creepy, creepy fact. Yeah, I don't know if that's a fun fact, it's really a creepy fact. A woman was hanging, no, spooky times yeah I only learned that be super nerdy.
Speaker 1:Uh, professor from yukon came to speak at our local library about the witch trials and what that was really about which, by the way, nothing's changed, folks. It was about women owning property and men wanting to obtain it to get ready for halloween, we watched halloween town.
Speaker 2:Have you ever watched this movie? Halloween town? Yes, but a long time ago. That movie is so bad it is, mel. You and I could literally recreate the whole movie and it would be better. It is so bad.
Speaker 1:It's like your productions that you do for your parents when you're like hey, look at our show.
Speaker 2:I want to go back and watch it again because I'm like this was beeping awful, like so bad. I don't understand and I feel like there was this time in the 90s where movies and television just sucked ass was so bad did wait.
Speaker 1:Do you have a favorite halloween movie?
Speaker 2:I always like the charlie browns, although even the charlie brown one I'm like yeah what's your favorite halloween?
Speaker 1:I have the most obscure halloween movie that no one ever knows what the hell I'm talking about. What is it? It's from the 80s. Did you ever see the movie the monster?
Speaker 2:squad no one's seen that movie. Mel no one's seen that movie how has nobody seen this movie?
Speaker 1:I swear it is so funny. Do yourself a favor if you want to laugh. It's like goonies meets halloween the monster. Search for it. You will not regret it. It's bad, but it's funny.
Speaker 2:We're back with new headlines, Mel. What are you talking about?
Speaker 1:today. I am talking about an article out of the BBC that asks the question will AI make burnout?
Speaker 2:Yes, Okay, I don't have any idea what the answer to that is. That's awesome, okay. And I'm talking about the cost of retirement. The American dream now costs a hefty $4.4 million. Retirement is the biggest chunk of that. So I want to talk about retirement, and I want to talk about some of the best states to retire in and some things that every generation needs to think about as it relates to retirement.
Speaker 1:It sounds like none of us are retiring with that number. But okay, Okie dokie, All right. So this headline came out of the BBC by tech reporter Mary Lou Costa, and my personal thoughts here to this question in the headline is it depends folks. So, just like with all tech right. So here's the what the article is starting to highlight some of the pain points that companies, both small and large, are experiencing while they're testing the use of AI for efficiencies. It's also highlighting the absolute explosion of tools in the marketplace right now, leading with AI in all of their products leaving most feeling absolutely overwhelmed by the number of options and how to keep up, and research was conducted by Upwork.
Speaker 1:They surveyed 2,500 knowledge workers in the US, uk, australia, canada, and it showed that 96% of top executives expect the use of AI tools to increase their company's overall productivity. 81% of those execs say they have increased demands on their workers to use AI over this past year. Have increased demands on their workers to use AI over this past year. Yet 71% of employees are saying that AI tools have actually decreased their productivity and added to their workload. 47% of employees using AI say they have no idea how to achieve the productivity gains their employers are even expecting of them. What do you think about that? This is like a bad marriage.
Speaker 2:He just doesn't understand. I just need a gift once in a while. That's what this is like a bad marriage. Anyway, yes, go ahead.
Speaker 1:Newsflash. This is a communication problem.
Speaker 2:Your employer is from Mars, you are from Venus.
Speaker 1:As a result, 61% of people believe that using AI will increase their chances of experiencing burnout, and this number rose to 87% of people when they polled those under 25 years old. That's the young and that's your group of people who are like quick to adopt right. So when you think, when you take the difference there and the 87% of that audience is nervous and seeing that they think it's going to cause more burnout for them, there's a problem. We have a problem, and that survey was conducted by Resume. Now they did a study of Americans and they pulled that number for the under 25 group of Americans and they pulled that number for the under 25 group. They also referenced a study conducted by Asana, the platform Asana, the workload management platform. They did a survey for 9,615 knowledge workers in Australia, france, germany, japan, uk and the US and they found that employees use today, some employees use six to 15 different applications in the workplace alone.
Speaker 2:Just applications, not even AI applications, just applications in general. Yeah, that seems like they're normal.
Speaker 1:Yes, absolutely. That seems about average, right, like when you think about I was like counting all of the apps I use, I'm like, yeah, probably yeah.
Speaker 2:Like you think about your internet, your benefits, Word, Tableau, whatever.
Speaker 1:All the stuff you're doing. 15% of people that use the number of apps within that range say, of course they're missing messages, notifications, because of the sheer number of tools they're using to manage their workload.
Speaker 1:And then for the workers who are using 16 or more applications in the day to day, 23% of them say as a result, they're less efficient and their retention span is drastically reduced because of it. I believe it because you're like where the hell did I put this? What's going on? How do I use this? What am I using it for? And I worked in digital when I did digital and we're talking about tech stack and we always have the message that it's less about the technology that you use, what are you using it for? You don't have to adopt every shiny new tool, including AI, folks, right? Let's be thoughtful about it. So why does this matter? Workers are overwhelmed.
Speaker 1:So I know the title of the article was Will AI Cause Burnout? But it's not just about AI, right, it's about all of tech, and AI is just piling on to the existing tech stack. This is a challenge, because tech for everybody is a double-edged sword it's an enabler for all of us, but it's also it's an enabler of burnout for everybody, but it's also a solution to a lot of our workplace problems, according to the Calm app. You know the Calm app, the well-being app, calm C-A-L-M Calm Sorry for my new.
Speaker 1:English accent to everybody. You need to calm down, calm Calm. It's up there with idea. Sorry, idea, the R.
Speaker 2:Idea.
Speaker 1:Oh, my God, no R that I add every single time. So, according to Calm and their 2024 Voice of the Workplace report, technology is contributing to employee burnout, and AI is only part of the story. They surveyed 4,000 workers in the US, uk, germany and India and they found that nearly half of employees feel threatened by the emergence of AI, especially with many companies announcing the replacement of roles with AI-driven opportunities. We've seen that in the headlines recently. 45% of survey respondents worry AI is going to take over their jobs and 53% have experienced anxiousness or nervousness by the rapid pace of tech developments within their workplace and we talked about this with Ashley Goodall. Like this whole blender life in the blender so AI is just like adding more to life in the blender. Gen Z are the most anxious about.
Speaker 1:AI them, saying it makes them anxious. Frequently, everyday, workplace productivity technologies are contributing to stress and burnout. Employees recognize the benefits of these tools, but they're also noting that, as a result, they feel more pressure to be quote unquote on. So this is with all of tech. 58% of respondents noted they're always connected or available for work. Now, 46% are often working outside of working hours and one out of three workers are often interrupted by devices and apps while they're trying to work. So there's this constant interruption and there's no flow state happening and innovation and work good work happens when you have a flow state. We've talked about this.
Speaker 2:Yeah, the other thing that I get nervous about, because what you're talking about, too, is a very typical work environment where you're always on, where people might be pinging you after hours. On the weekends, people might be rewarded for going the extra mile or burning the midnight oil to get something done. And I just read a study coming out of Australia talking about work addiction, and there are certain people that are literally addicted to work, and they get addicted to work because of the culture that they're in.
Speaker 1:They're rewarded for it.
Speaker 2:They're rewarded for it. If you are in a culture that rewards the always on that's the key thing your people will become work addicted, ie, and then get burnout. It's not good.
Speaker 1:It's not good, and you and I talked about burnout.
Speaker 2:We can't get away from it.
Speaker 1:All the time we can't get away from it.
Speaker 2:It keeps getting worse. What did they say that?
Speaker 1:everyone is operating at least like a level five of burnout at all times at this point. So it's just getting worse and I think something to me that's really poignant here is people are looking at AI. It's going to solve all their problems, and I just remember working in when I focus solely on HR tech and the purpose of the technology we bring in. There's this impatience as if folks are going to miss out on something if they don't immediately act. And I think there's some value in slowing down and being really thoughtful about how you implement the technology, but it feels like right now it's nope, just throw AI at it, it's going to fix all our problems and you're going to wake up with a massive, a bigger problem in a few years by taking that approach.
Speaker 2:So it's I think one of the reasons why some of us, who are either elder millennials or Gen X boomers, aren't as freaked out about AI also is because we've seen so many fricking implementations of the latest and greatest thing of everything and to your very good point, when you are very clear about what do you really want to accomplish. What do you need to do here? What do you really need to do? What is the process that is most simple? What is the great data in, great data out? Have you cleaned up your house before the technology even goes in? I think so much of the time it's all the same shit. Different day we experienced this with HCMs coming in. I can't tell you the amount of times I've been on a call about yeah, like LXPs, lmss, workday, sap, oracle, where they're like oh, yeah, it's going to solve everything.
Speaker 1:You have a data hygiene issue. Garbage in, garbage out yeah, huge data hygiene issues. Also, a change management component they're not thinking about the impacts to people, the training that's needed. There's so many elements that need to go into it and we talked about this with one of our guests, dwayne Blomstrom. If you're not following her on LinkedIn, folks, you absolutely should. She's just the smartest person and she talks about the concept of human debt and the rise of human debt in the workplace. That continues to happen and if for folks who may have missed that episode, please go back and check it but the high level gist of it here is, human debt is when we ignore people needs, when we're creating system, process and policies in the workplace and we're not thinking about them at all during the implementation of these things.
Speaker 2:I will tell you happening right now. In my entire career and I've done a ton of implementations as part of whatever work right there was only one time, one time in one company that we were really thoughtful about. What is the employee experience going from this tech to this tech One time. Most time it's just people don't care, we're just going to add another one and they're going to have to throw it on all these disparate systems.
Speaker 1:Yeah, and then you have what I used to call the Franken tool.
Speaker 1:We just have one massive Franken tool now. Yeah, fascinating Implementation of tech is a major contributor to human debt in the workplace because they're doing it without people in mind. We see it in the headlines right now. We hear it anecdotally from people talking about it, and I love to. I am a huge proponent of tech, but thoughtful tech and let's be thoughtful, jason. I did a little more research on this.
Speaker 1:Jason Thatcher, who's a professor of org leadership and information analytics at Leeds School of Business. He co-authored a study that was published in June of 2024. And I have links to that study that we can share in the show notes, which examined the impact of digital stressors in the workplace and how they compound and escalate over time. He was interviewed by Katie Marquardt Hill at the University of Colorado, boulder, and he shared five ways digital stress leads to burnout in the workplace and how it impacts employees' mental health and their productivity. Do you want to hear the five? Yes, I do. Techno overload, which is the piling on of stress due to constant emails, notifications and alerts. Techno, really Techno.
Speaker 2:Everything's techno.
Speaker 1:I know Techno invasion. This is the pressure to always be on and available, so never detaching from work, the work addiction you just referenced.
Speaker 1:Yeah, techno complexity, so difficulty mastering software and information systems at work, making employees feel inadequate and stressed. So, when you think of something like AI and folks not feeling prepared and they're not getting the training that they need to understand not just how to use it, but how to use it for your workplace, what's okay, what's not okay, all of the things, that's it. Or feeling like, oh, now I'm inadequate, can't, I can't perform because there's this productivity expectation that no one's communicated to me. Techno insecurity employees fearing that their job is going to be made redundant or they'll be replaced by a colleague with better tech skills. Job is going to be made redundant or they'll be replaced by a colleague with better tech skills. And then the last is techno uncertainty. So the constant change that we talked about with Ashley right, constant state of change. The problem with change due to technological advancement means employees feel stress and pressure to continually adapt to new systems and tools. They don't have the time, they're just constantly just learn it, just figure it out. Yeah, so these are the five big digital stressors happening for folks.
Speaker 1:A company called Flare HR pulled together a list of some burnout statistics from several surveys. Consolidated. They scraped the internet for all the big stats and we'll link to that. And here were some sobering findings as it relates to the impact of burnout, which we've talked about before. But just reminding folks, your digital impacts are causing burnout and here's why you need to be concerned if you're an organization leader or exec making decisions. 77% of people are experiencing some level of burnout at their current job. I'm sure that number is higher. That's just who's been surveyed. Job turnover due to burnout affects 40% of employees, greatly impacting retention 40%.
Speaker 2:That's expensive, yep.
Speaker 1:I'm getting to the money. Getting to the money Workplace stress inflicts, on average, an annual cost of $300 billion to the US economy. So if you think throwing a little AI into the mix isn't having an impact, it likely is, and those are some real numbers folks.
Speaker 1:So what can you do? Professor Thatcher noted there's no one-size-fits-all solution here. He said you have to look at every technology as a bundle. A tool may be designed to help the company address one problem, but think about the other unintended problems you might be creating. Cheers to that.
Speaker 1:He recommended a few approaches here. One conduct regular assessments around digital stressors so you understand, identify and manage those stressors for your people. So surveys, one-on-ones. Have the conversations. Focus on implementing policies and boundaries around after-hours communications or expectations on responsiveness during the workday. Hello, we are all used to the Teams pings from hell that happen. Hello, we are all used to the team's pings from hell that happen.
Speaker 1:Three training to help employees with their digital literacy, but also training around setting boundaries with work and your personal life. And I'm covering things for all digital because I think, to answer the question to this article, ai is just compounding on top of all the other tech. So this is just a reminder. Leadership modeling so for every leader, exec, people, manager, model the way. Establish psychological safety here around expectations and practices to put people at ease, to reduce some of the stressors that they're feeling. Attentiveness you need to be even more attentive right now as a leader and checking in with your team and understanding the signs of stress and burnout, especially if you're implementing AI initiatives and it's unclear what that means for your people.
Speaker 1:And the last is around flexibility, which this aligns with recommendations from the Calm app as well. They were more specific about a recommendation with AI. They noted with the add-on of AI. Transparency is critical here making sure leaders and orgs that you're communicating proactively about AI and the why, the when and the how the org intends to adopt it, along with the impact it's going to have and the opportunities that it will present for your employees so they can make their own informed decisions. And we talk about this all the time transparency and empowerment. So double down on that right now, especially if you're trying to implement AI and you don't want it to impact your org. I'm going to close it with Professor Thatcher's last quote, which was focus on the whole person, the whole job and the set of stressors that technologies introduce, and work with your employees to find ways to manage that. That's the key word folks, the with that.
Speaker 2:That's the key word, folks the with, let's talk, retirement. So I was just farting around on the internet and Visual Capitalist came out with how much the American dream costs right now and I was shocked. When you think about the American dream, what is the American dream? What is it? It's like the house right.
Speaker 1:The house. Okay, what we've been told.
Speaker 2:What we've been told.
Speaker 1:That you have job security. You have a house, the white picket fence, the 2.5 kids and a dog.
Speaker 2:Yeah, they're looking at a couple of things too. If you had to pay for college tuition, if you had to pay for retirement, that kind of stuff. But 4.4 million is the average, which is a big enough number and I'll link to that in the show notes. It's big 4.4, like you need to have that 4.4, as in by the time it's all said and done, you will have spent $4.4 million over the course of your lifetime.
Speaker 2:Okay, I can see that Okay, it's still a hefty chunk of change. The biggest number in that is retirement. Right now, if you're set to retire, you're going to need to have almost $1.6 million. $1.6 million, I'm thinking that most people don't have $1.6 million to retire on. For instance, you are Gen X, ie you are currently somewhere between 44 to 59. You're going to need about $2 million and you're probably going to need anywhere from 20 to 30 years of savings.
Speaker 2:Millennials again, you're 28 to 43 year olds $2.5 million because you're going to need probably closer to 30 plus years because people are living longer. Gen Z is almost going to need about $3 million and they need to be looking at 35 plus years of retirement. I share that, because retirement is one of these things. A lot of people don't start really thinking about it until they're like, oh shit, I need to start thinking about it. But right now, if you're set to retire, in order to retire decently, that's on average you're going to need that one six. Where you live has a pretty distinct advantage, or not, on your retirement. So, mel, where do you think are the best states to retire?
Speaker 1:I am going to assume Delaware, texas, new Hampshire. I don't know why New Hampshire always gets thrown in there. Maybe down South I used to think Florida but their property insurance is like through the roof now. What are they? I'm curious If you did.
Speaker 2:I think it's fascinating what you chose when people actually retire Florida. A huge percent go to Florida. Your Arizonas were snowboarding. South Carolina, texas and North Carolina, and you're totally right. Right after that it's all the nice warm weather. It's Georgia, alabama, tennessee, nevada, kentucky. Okay, those are the top 10. The best states to retire, though, it's not just about weather. It shouldn't be just about weather. So Bankrate did this study and they looked at all 50 states and they were judging it by five key metrics Affordability, which again when you're living off of a fixed income is a big deal. Affordability being 40% of their waiting. Wellbeing being 25%, healthcare, access to hospitals and all that good jazz. 20%. Weather only being 10%. And crime being 5%. Their top pick, mel, you hit the nail on the head it's Delaware.
Speaker 1:Yeah, I like I know it's a small state, so don't everyone move there at once.
Speaker 2:Yeah, massive tax advantage as well. Somewhat moderate climate. Proximity to great healthcare systems Close to DC. Baltimore, like you're close that to a lot, yeah yeah, delaware, right after that West Virginia, which I was kind of surprised by actually, um, interesting, yeah, you don't really hear about, especially like a tax advantage state. You don't really hear about it. But it's the cost of living factor with West Virginia yeah.
Speaker 2:Georgia and South Carolina. They share the list of where people are already going, and the fifth, missouri, again, cost of living. Interesting, yeah, yeah, kind of fascinating. A couple things I want people to keep in mind when they think about retirement. I talk about retirement a lot with do you guys have these conversations about retirement we do now. Yeah, we talk about it. Do you guys have? Yeah, before we had endo, jeff and I were talking with our financial planner and we try to live pretty conservatively. We try to live on one of our salaries. That's one. So not living above our means or below. We're living below our means. That's one. We've been maxing out our 401ks and saving and doing all the things you should be doing. We meet with our financial planner and I'm getting super cocky. I want to know when we can retire and I'm thinking he's going to be like 55. Like we cause we've done everything right. We get on the phone with him. He's 72.
Speaker 1:What? Yes, listen, life's too short folks. I'm not doing that. I actually don't think retirement's in the cards for anybody who isn't a boomer. I don't think it's realistic for anyone anymore. Because when you think about the high stress situations in work today and all the things we hear, are you willing to I don't know be in that environment until you're in your 70s, and what's your quality of life? Is that when you want to start really living? I don't know. Be in that environment until you're in your seventies, and what's your quality of life? Is that when you want to start really living? I don't know. I just think it's now. It's like you have to build your own story.
Speaker 2:I think you're absolutely right. I think retirement is going to look a little different. It might be that you are working through my retirement light.
Speaker 1:I think it's retirement light. I think it's retirement light, or what.
Speaker 2:Or what they call multi-phase retirement, where you're either phasing out, you're going part-time, you're doing something that looks more portfolio, yeah, all things my dad's still teaching and everything else.
Speaker 1:Yeah, I mean it's enriching to do some kinds of work. I think, though, where things that break my heart when you see somebody who's working a really physical job and they're in their 80s and 90s, and you're just like what, the hell man? Can we support our elderly better than this? Yes, so they don't have to do this, yeah.
Speaker 2:There are some considerations, though, to think about retirement. Again, they're trends going up. We know millennials, gen Z, gen Alpha they are going to live longer. Right now, the adjusted lifespan is probably going to be to 120. So when you think about that from a retirement perspective, if you retire at 75 and the average life that's like 40 years.
Speaker 2:Think about that, though. So the idea that everybody's going to retire at 55 and then drop dead at 75 is no longer the case. You have to be able to prepare for longer lifespans personally, and also organizations need to start preparing for this as well, and we're already starting to see this. People being able to take on part-time or gigs and portfolio all this good jazz, but thinking about that, you probably will be living longer. Prepare for that. That's number one. Two, obviously, is the tax diversification as well.
Speaker 2:There's a whole host of other ways that you can manage your retirement. I would look into it, just because stuff might happen. Not official advice, but you want to diversify your portfolio is the name of the game. The last one here is healthcare planning. Healthcare costs are going to continue to go up, and thinking about where you're going to live, how you're going to live and what kind of preventative things you can be doing now, like, for instance. This is the stupidest thing on the face of the planet, but listening to the Huberman podcast which I know he's kind of I'm so bummed, but it was a good episode.
Speaker 1:it was a good episode you need to find a new expert.
Speaker 2:He's canceled there are two things that came up around longevity, and one of the things they were talking about is really heavy weight lifting, but also jumping like jumping rope, jumping up and down, you jump up on things. All that is part of health care planning. Honestly, what you want to do is be able to protect your brain and protect your body from a fall. Those are your two biggest issues. Protect yourself. What can you be doing now to make sure that your last quarter of life, you're having a good time and think about moving to Delaware, friends?
Speaker 1:Hey friends, this episode of your Work Friends was hosted by Francesca Ranieri and myself, mel Plett this episode was produced and edited by Mel Plett and myself, Francesca Ranieri.
Speaker 1:Our theme music is by Pink Zebra and you can follow us over on all of our social media platforms Instagram, tiktok, youtube and, if you're so inclined, join us over on LinkedIn in our large and growing community, and you can email us at friendatyourworkfriendscom or visit us on yourworkfriendscom Also. Folks, please like, subscribe and leave a review. If you enjoyed this episode, and if you really enjoyed it, please share with a work friend or two.