There is a disconnect between what the CEO thinks is happening and what is really going on within an organization. Corporate leadership may boast about their high employee retention rate. The C-suite executives pat themselves on their backs, as fewer workers voluntarily separate from the payroll, contending that they’re doing a great job and their workers are happy.
However, hidden downsides are lurking beneath the calm exterior that leadership overlooks. Employees don’t necessarily stay with a company because they love their job.
With over 225,000 tech professionals downsized in 2023, workers may feel that a job switch is too risky at this point. Americans are experiencing a white-collar, upper-class recession that disproportionately impacts college-educated, well-compensated office workers, especially in management and executive-level positions. In the latest jobs report, the number of people working part-time in the United States has soared, eating into the full-time permanent roles.
Companies are hoarding talent, and hiring firms are demanding candidates possess hyper-specialized skills. In light of the slow-walking hiring trend, people are choosing to hunker down in their current roles, waiting out the storm and hoping for the labor market to turn back in their favor—even if they are unhappy.
In May, the ADP Research Institute reported that fewer people were quitting their jobs in 2023, compared to a year ago. No one wants to be the last one hired and the first one fired after joining a new company. The adage “the devil they know is better than the devil they don’t know” rings true.
Why Do People Put Up With It?
Workers may feel miserable, overwhelmed, burned out and overlooked by their boss, and are just trying to keep their heads slightly above water, hoping things will change. In a challenging fiscal environment, people prize the security of a steady paycheck more than braving the unknown with a new company.
The disillusioned employee will convince themself that it is not worth the stress, aggravation and uncertainty to seek a new employment opportunity that may or may not pan out well for them for just a tiny bump in pay.
Additionally, there are times when you should exercise extreme caution in resigning from your position and engaging in a job search. The current job market is not as accommodating as it was during the Great Resignation. During that time, white-collar workers held all the bargaining power, and a new role was just around the corner, as companies fought in a war for talent to keep up with out-of-control hiring and business demands.
Ugly Truths
Management must acknowledge that while retaining their workers, it doesn’t ensure the company has built a positive employee experience. Workers could be staying put due to a lack of other alternatives. The company could have a large number of disengaged employees who are not passionate about their jobs and are actively participating in the quiet quitting, acting your wage and bare minimum Monday trends. This negative mindset leads to a dearth of fresh ideas and a lack of productivity, which will only harm the business over time.
Additionally, when senior-level people stay in their seats, everyone else will have no path forward. The workers will be stuck in place. With little room for growth, employees will become dispirited. They’ll think, “Why should I work hard when there is no way to get promoted, learn new skills and earn more money?” Now, the business has created a large class of resentful and apathetic workers bereft of hope for career advancement.
What Leadership Should Do Now
Management should take swift action before more time elapses and the mood continues to sour. Although it’s estimated that around six in 10 employees are quietly quitting, there is still time to turn things around in the workplace.
Instead of blissfully overlooking this development, leadership should regularly take the pulse of its workers via conversations and microsurveys. If the employees answer honestly, the bosses will realize they misunderstood what’s happening at the company. It will be a cold shock; however, the new insights can help them turn things around.
By ascertaining why the employees are disconnected, they can work to improve the organization’s morale. The result will be cultivating an engaged, productive and motivated workforce that is better equipped to meet future challenges.
The company should train its line managers to become better at their jobs. They should be more empathetic to their staff’s work lives. Provide coaches, mentors and sponsors to help advise employees on their mindset and offer them a path within the organization to succeed.
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