Employee confidence has plummeted to its lowest level since 2016, as highlighted in a recent report from Glassdoor’s Employee Confidence Index. Despite an overall improvement in economic indicators, the optimism among workers regarding their employers’ future has diminished, with only 45.1% of employees feeling positive about their company’s outlook over the next six months as of February, a slight decrease from January’s 45.7%.
The concern over layoffs is particularly pronounced in the technology and media sectors. Glassdoor reviews show a 12% increase in mentions of layoffs for tech employees and a 25% increase for those in media, compared to last year. Over the past two years, these mentions have surged by 358% in tech and 214% in media. Interestingly, the discussion around layoffs in the tech sector was even more prevalent in February 2024 than at the peak of the pandemic, raising questions about the widespread nature of these concerns despite the lesser severity of layoffs compared to the pandemic period.
Daniel Zhao, Glassdoor’s lead economist, notes a marked difference in outlook between former employees laid off (who show only 10% positivity in business outlook) and current employees who survived layoffs (showing around 20% positivity, down from 25% a year earlier). This trend indicates a growing pessimism not only among those directly affected by layoffs but also among those who remain, possibly due to anxiety, lower morale, or burnout.
The decline in employee confidence isn’t confined to those discussing layoffs; it reflects a broader trend of dwindling optimism about business prospects. This shift suggests a more widespread concern among workers beyond specific companies or industries facing layoffs.
Employee trust in leadership has seen a dramatic decline, impacted by perceptions of inefficacy, inconsistency, and poor communication. This sentiment is further corroborated by ongoing layoffs in 2024, especially in the tech and transportation sectors, which suggest adjustments to a post-pandemic business environment. Yet, despite these challenges, the job market across most industries remains relatively stable.
For employers, maintaining open and transparent communication is crucial in navigating these turbulent times. HR professionals are encouraged to equip managers with the necessary training and support to offer emotional support, promote professional development, and address skill gaps among employees, fostering a more resilient and confident workforce.
