Employees are worried and confidence is falling, hitting the lowest point since 2016, as per Glassdoor’s Employee Confidence Index released on March 4.
While other signs in the economy are getting better, workers still aren’t feeling good about their jobs. In February, only 45.1% of employees felt positive about how their company would do in the next six months, down from 45.7% in January.
One big reason for this is the fear of losing jobs, especially in the tech and media industries. In reviews on Glassdoor, people in tech mentioned layoffs 12% more than last year, and in media, it was up by 25%. Over the past two years, tech saw a 358% increase in layoff mentions, and media saw 214%.
Daniel Zhao, a lead economist at Glassdoor, talked about why this might be happening. People who were laid off before, and talk about it in their reviews, only feel good about their company's future 10% of the time. But those who didn’t get laid off but mention it in reviews feel positive about their company 20% of the time, down from 25% last year.
This shows that even people who didn’t lose their jobs are feeling worried about how their company will do in the future. It might be because they're worried about the economy or because they’re feeling stressed or unhappy after hearing about layoffs.
Even people who don’t mention layoffs are feeling less hopeful about the future of their company, Zhao said. So, it’s not just the people in a few companies or industries with layoffs who are worried. It’s a bigger problem.
A survey by Challenger, Gray & Christmas, Inc., found that employees aren’t trusting their leaders as much as before. They feel like leaders aren’t doing a good job and aren’t communicating well. This is making them feel more burned out.
Nick Bunker, head of economic research for Indeed Hiring Lab, thinks layoffs in 2024, especially in tech and transportation, show companies are still trying to figure out what comes after the pandemic. Even though it sounds bad, most industries are still doing okay.
To help workers who are staying, it’s important for companies to talk honestly with them about layoffs, says a report from McLean & Co. HR pros can help managers support workers emotionally and help them grow in their jobs.
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