Uncertainty reigns in the workplace as employees resign and companies freeze hiring and rescind offers
Today’s workplace is, to say the least, uncomfortable. The unstable economy and momentum emerging in the wake of Covid-19 have forced HR departments to juggle the often conflicting needs of workforce and C-suite.
According to performance management platform provider 15Five, a third of workers plan to quit their jobs despite the potential economic downturn. At the same time, almost one in five employers are planning layoffs, while more than a third have canceled job offers.
A third of workers plan to quit their jobs despite an impending economic downturn, while nearly one in five employers anticipate layoffs. More than a third have canceled job offers. #HFR #RHTech @15Five Click to tweet
“We are seeing economic shifts that are causing some companies to downsize, particularly in the tech sector, while other companies are still facing high attrition and difficult hiring in a labor market. competitive,” said Jennie Yang, vice president of People & Culture at 15Five. .
In the survey, employees said work-life balance was a top concern, ranking behind only wages and benefits. For their part, HR leaders said balance was the most important concern for their workforce, followed by health benefits and opportunities for growth.
HR and employees agreed that they wanted the downtime to be honored. When asked if they could change one thing in today’s work environment, the #1 answer for both groups (21.9% of employees and 20.8% of HR professionals ) was to enforce personal downtime.
HR is actively exploring creative options to solve the conundrum of work-life balance and disappearing downtime, the survey finds. One option that is gaining momentum in organizations with more than 500 employees is the idea of a four-day work week. Nearly 60% of HR leaders say they expect to move to shorter weeks.
Attrition slows but continues
In the event of an economic downturn, expect attrition rates to slow but not stop, according to the survey. While most employees (56%) said economic factors would influence their decision to leave, almost a third still plan or consider quitting in the next six to 12 months. The risk that fewer jobs will be available has not changed their minds.
In the first half of 2022, 44% of HR leaders said more employees left their companies compared to the first half of 2021. They want flexible work options.
Meanwhile, nearly one in five HR managers said they planned to implement layoffs, with strong majorities acknowledging that the economic downturn had a significant impact on revenue (59.8%) and their ability to hire (68%). More than a third (35.8%) said unexpected hiring freezes led to job offers being cancelled. (Most of the companies reporting that they have canceled their offers have 500 or more employees.)
The hiring freeze has intensified HR efforts to upskill workers, with almost half (49.6%) planning to introduce manager training and performance management software (46.4%) over the course of from the second half of 2022 and after.
HR managers feel the pressure
HR managers say they are under pressure from all sides: leadership imposes financial constraints even if the organization still has to replace departures. This puts HR in the position of juggling the conflicting realities of the Great Resignation and a possible downturn and resulting layoffs.
Unsurprisingly, HR is usually placed in the position of notifying workers of staff cuts. This led to 42.2% of HR professionals reporting being anxious, while 30.2% suffered from burnout and 16.8% quit their job.