There are deep fears that the current record rates of inflation will lead to a recession. The likelihood of a recession occurring is being discussed by leading analysts. Another sign is that tech companies have begun off-loading staff.
This situation has, unsurprisingly, planted the seeds of fear in employees.
At least this is what has been found in a new survey from recruitment company Insight Global. The survey spoke to 1,000 US workers to better understand their concerns going forward.
Why employees are afraid
The study found widespread concerns in organizations: 78% of employees said that they were worried about losing their job if a recession does occur. In addition, 23% were extremely worried about losing their position.
Managers were also fearful with 49% claiming that they were unsure about their future in their role if a recession hits.
Perhaps the most concerning statistic was that 56% of respondents said they don’t feel prepared for a recession. This statistic rises to 64% in female workers.
The responses from managers also indicate that employees and candidates may no longer have sway in their organization. 87% of managers claimed that they would likely cut staff if a recession did occur.
On top of that, 63% of women and 46% of men would take a pay cut to keep their role in a recession. Over half of the respondents felt that their role was not recession-proof.
Bert Bean, CEO of Insight Global, offered his thoughts on the findings: “It’s unfortunate we’re already seeing some companies turn to mass layoffs because I believe layoffs should be the absolute last resort.
“Instead, I encourage leaders to consider other solutions, such as building a plan that avoids layoffs and helps you grow through a recession. Get your employee base executing on that, because when you bounce back from a recession, you’ll need your people more than ever.”
Of course, for those who want to keep their staff, it is vital to build trust in this time of uncertainty.
Almost half of employees (47%) don’t trust managers to communicate the challenges of a recession and their plans to overcome it effectively. This distrust increases between managers and senior leaders with 66% of managers believing senior leadership would not discuss their plan openly.
In uncertain times, trust needs to be built so that talent can be properly managed. Most importantly, a clear action plan can help keep employees from leaving because of unsubstantiated fears.
Bean noted: “As we’re seeing in the headlines, even major companies that have experienced astronomical growth over the last several years are not immune to financial challenges.
“If a recession strikes, I’d hate to see that result in more layoffs. If your company hasn’t established a recession plan yet, do it now, communicate it with your employees, and start acting on it.”