According to this accumulated data, Millennials and Gen X are feeling the most financial pressure. Payday loan assistance has increased among this group, signaling potential credit problems, as well as auto repossessions and billing disputes.  

This CSLI data is in sharp contrast to economic indicators that show strong GDP growth and record holiday spending, but the growing economic pressures that Americans report feeling is not expected to decline in the coming months as bankruptcies and foreclosures predict instability for consumers nationwide. 

“Despite rosy macroeconomic signs, our data reveals a concerning rise in consumer debt struggles–from bankruptcies to car repossessions,” said Warren Schlichting, LegalShield CEO. “With rising inquiries about foreclosures and missed bill payments, we’re monitoring this retail-level financial stress. People may not be able to cover costs despite positive jobs reports and interest rates.” 

The post Consumer Financial Stress Reaches Three-Year High  first appeared on Direct Selling News.

To determine this economic reality, the new rule considers six factors: 

• The worker’s opportunity for profit and loss. Does the worker have the option to negotiate prices for work or decline assignments and projects? Is the worker engaging in activities to expand their business or find more work? Does the worker make their own decisions about hiring, workspace rentals, etc.? Independent contractors have more freedom and responsibilities for their own income and growth. 
• Investments made by both worker and potential employer. Workers making similar investments as their employer—even if on a much smaller scale—to grow their own business suggests independent operations. 
• Work relationship permanence. Work that is indefinite, continuous or exclusive signals an employee relationship. Independent contractor work is definite in duration, non-exclusive and project-based or sporadic. 
• The nature and degree of control. Who controls the work schedule and rates for services? If there is performance supervision or a limitation on whether or not the worker can pursue other clients, independent contractor status is in question. 
• The importance of the work for the business. This does not analyze how integral an individual is to the operations, but rather how integral their function is to the overall business. If the work is central or critical to the success of the operation, the worker would be considered an employee.  
• Specialized skills and initiative. It is not specialized skills that are the determining factor, but whether or not a worker using specialized skills does so “in connection with business-like initiative” indicative of an independent contractor.  

This final rule provides additional context beyond the previous Independent Contractor Rule from 2021, particularly further insight and analysis of the “control factor”, which encompasses scheduling, price-setting, supervision and the freedom to work for others. 

The Direct Selling Association (DSA) released a statement strongly opposing the final rule, stating that it “dismisses valid criticisms raised in the Notice of Proposed Rulemaking by DSA and could require high investments to start a business, limits the use of technology, diminishes high self-regulatory standards and disregards conflicting federal statutes defining direct sellers as independent contractors.” 

Further, the DSA announced it will “support efforts to ensure the rule does not take effect and continue to support more statutory clarity including H.R. 5419, bi-partisan legislation that clearly defines direct sellers as independent contractors.” 

The post US Department of Labor Issues Final Rule Restricting Independent Contractor Status  first appeared on Direct Selling News.

Gallup’s State of the Global Workplace: 2023 Report revealed that 23% of employees were engaged at work in 2022—the highest level since 2009. The flip side is that more than half (59%) of employees are quiet quitting, meaning they put in the minimum effort required and feel disconnected from their work.  

This report also revealed a new trend: 18% of employees are now loud quitting. These workers are so frustrated with the expectations or culture at their workplace—a disenchantment often derived from broken trust between employee and employer—that their actions actually harm the organization.  

There are a number of factors creating this employee dissatisfaction, including record-high stress (44%), but for employers that don’t make an effort to improve their workplace environment or managing styles, they may soon be sent back to the starting line where they’ll have to replace talent. More than half (51%) of workers said they are actively seeking a new job. 

According to the poll, however, most disgruntled employees know what needs to change in their workplace, and 85% of those changes were related to culture, pay and benefits, and wellbeing. Employees reported that they wanted management changes like more autonomy, greater respect, clarity around goals and stronger guidance. 

The Gallup poll results stress that there are easy productivity gains for employers who are willing to make even small adjustments to their leadership style. In fact, it reported that 70% of team engagement is attributable to the manager. 

If your company’s profitability or team morale is suffering, Gallup says there is one clear strategy: “Change the way your people are managed.” 

The post Gallup Poll Emphasizes Importance of Changing the Way People Are Managed  first appeared on Direct Selling News.

In spite of this finding, however, almost half (41%) of survey participants admitted to allowing their healthy self-care habits to dissipate in the last year. 

These numbers point to a growing need among consumers for products and services that meet their self-care needs and make healthy habit creation simpler and more effective. Long-term wellbeing depends on continuity of self-care instead of temporary fixes, making the community that direct selling can provide a powerful benefit for consumers looking for support and accountability. 

“We are living in a world where the quest for optimal health and wellbeing is often a difficult, solitary and overwhelming journey for most people,” said Dan Chard, Medifast Chairman and CEO. “Lack of time coupled with an abundance of information and products that promise quick fixes adds to the challenges of getting healthy. These findings reaffirm consumers’ desire to achieve optimal health and wellbeing and highlight their need for simple yet effective approaches that allow them to create daily habits–from incorporating more movement to getting quality sleep.” 

The post New Survey Finds 80% of U.S. Adults Say Self-Care Is a Priority  first appeared on Direct Selling News.

This agreement will combine Shein’s online-based shopping model with Forever 21’s brick-and-mortar retail stores, giving Shein a larger presence in the U.S. and more exposure to its target demographic of customers.  

Having part ownership in SPARC will also give Shein data about merchandising strategies and insights that could help the company launch its own physical footprint, although a company spokesperson said the brand has no plans for its own retail stores. Shein has already announced plans to test a number of programs to attract new customers, including allowing customers to make returns in stores and marketing through pop-up shops. 

The post Shein and Forever 21 Expand Customer Reach in Joint Venture  first appeared on Direct Selling News.

For many years, the American Dream included owning a home, starting a family and having stable employment, whether as an employee or entrepreneur. Today, that perception is changing. Younger generations, potentially discouraged by inflation and the increasingly out-of-reach real estate market, were less likely to include owning a home as an indicator of achieving the American Dream. Instead, when considering responses across generations, from Gen Z to Baby Boomers, small business owners reported that “living a comfortable lifestyle” (56%) and “feeling happy with my life” (54%) were the key indicators of having achieved the American Dream. 

Even as it becomes less of a priority, 45% of small business owners say home ownership is still a symbol of the American Dream. This is more important to men (49%) than women (43%), and holds more significance for Baby Boomers (50%) than Gen Z (40%). 

There are substantial challenges for entrepreneurs, including inflation, which 80% of small business owners described as a barrier to their American Dream, the lack of access to free or affordable healthcare (32%) and discrimination (28%), including a lack of financial backing and support for women. 

In spite of these challenges, American microentrepreneurs hold a strong belief that the American Dream is well within reach. Survey participants reported feeling very confident (62%) that they would achieve their American Dream, with men (71%) feeling more self-assured than women (55%), and Millennials (66%) feeling most confident of all generations. 

The post Comfort and Joy: The New American Dream   first appeared on Direct Selling News.

After a rapid switch to remote college courses during the pandemic and then a hybrid return to classes, this generation has experienced a deficiency in soft skills that were previously learned by simply being in proximity to mentors and colleagues on campus and on the job. 

Surprisingly, this age group overwhelmingly says it wants to work in-person, rather than remote. The Wall Street Journal reported that 53% of 2023 graduates prefer this work structure, citing a TimelyCare study. To be successful once on staff, however, companies will need to lead the way in retraining this new influx of employees to help them regain ground.  

These soft skill-based retraining programs do not have to be hard-to-replicate, intricate sessions. Instead, they simply need to focus on office basics and how-to’s: talking to people face-to-face, making eye contact, how to introduce yourself, what proper email replies consist of and how to identify body language cues that signal a conversation is over. This generation also benefits when employers overcommunicate the details of what to expect, explaining everything from what the first day will look like to what their coworkers like to do for lunch.  

Onboarding doesn’t end once an employee is hired. As the youngest members of the team work to integrate into staff culture, companies would be wise to choose a mindset that makes room for them to practice, learn and improve the skills that make everyday office life more meaningful and effective. 

The post Gen Z Needs Soft Skill Support from their Employers  first appeared on Direct Selling News.

The UK DSA estimates that 500,000 people in the UK work within the direct selling industry as independent salespeople, with almost two-thirds (64%) turning to the opportunity as a side hustle. On average, direct sellers in the UK earn $605 a month. 

“Direct selling is a retail channel that traditionally performs well in challenging economic times–not least because people look for flexible ways to boost household income without incurring additional costs, such as commuting or childcare,” said Susannah Schofield OBE, Direct Selling Association Director General. “This, combined with people choosing to treat themselves to lower cost luxuries during times of financial uncertainty–the Lipstick Effect–is expected to drive sales in the sector in 2023.” 

The post UK DSA Study Shows 36% Increase in People Joining Direct Selling in Q1 2023  first appeared on Direct Selling News.

Users can select channels to follow through the app’s searchable directory and also find new ones to follow through invite links posted in chats, email and online. Unlike traditional social media, WhatsApp Channels will keep the phone numbers of admins and users private and invisible to each other, and followers won’t be able to see the information of other followers. While the broadcast messages are not currently encrypted end-to-end, the company said it is exploring this as a future option. 

For companies, particularly those with an international presence where WhatsApp has an even stronger market share, this new Channels feature is an opportunity to reach untapped audiences and connect with customers in a fresh way. Additionally, WhatsApp is intentionally designing Channels for businesses and entrepreneurs, saying: “We also believe there is an opportunity to support admins with a way for them to build a business around their channel using our expanding payment services as well as the ability to promote certain channels in the directory to help increase awareness.” 

Channels is currently available for select organizations in Colombia and Singapore, while the company tests the functionality and user experience of the new feature. As it expands to additional markets in the coming months, WhatsApp Channels could be a powerful resource for direct sellers to consider as they seek to expand product awareness, grow their organizations and strengthen customer relationships. 

The post WhatsApp Launches Channels, its New One-Way Broadcasting Feature  first appeared on Direct Selling News.

Gen Z and Millennials are also dealing with inflation and a higher cost of living which has led more than half of both age groups, 51% and 52% respectively, to live paycheck to paycheck, and 46% of Gen Z and 37% of Millennials have taken on a paying side job to help make ends meet—even though both desire better work-life balance and the option to reduce working hours.  

These generations are also facing persistent stress and potential burnout, as 46% of Gen Z and 39% of Millennials said they feel stressed all or most of the time, and 23% and 30% respectively are struggling to disconnect from work, answering emails outside of normal working hours at least five days a week.  

The post Deloitte’s 2023 Study Shows Stress and Burnout Plagues Gen Z and Millennial Workers    first appeared on Direct Selling News.