Research from 15Five, a holistic performance management company, reveals the modern workplace is in a state of upheaval, with one-third of workers intending to quit their jobs despite the potential economic downturn. In addition, nearly one in five organizations plan on layoffs, and more than one-third of HR leaders have rescinded job offers.
“We are seeing economic shifts driving some companies to downsize their workforces, especially in the tech sector, while other businesses are still dealing with high attrition and difficulty hiring in a competitive labor market,” said Jennie Yang, VP of People & Culture at 15Five. “But no matter the state of the economy or talent market, it’s vital to first gather data on employee sentiment and performance and then take action. Tech solutions can help HR leaders to identify top performers and then equip managers to bolster employee engagement, productivity and morale.”
15Five surveyed 1,000 U.S. adults employed full-time and 500 HR leaders about work-life balance, their preferred work environment, the likelihood of quitting and layoffs and other concerns about the economic climate.
Work-life balance a top priority
The survey reveals that work-life balance is a top concern for employees, behind only pay and health benefits. When HR leaders were asked what was most important to their employees, work-life balance jumped to the No. 1 spot (64.6 percent), followed by health benefits (62.8 percent) and growth opportunities (54.6 percent).
HR and employees agree they want downtime to be honored. Asked if they could change one thing about today’s work environment, the No. 1 response for both groups (21.9 percent of employees; 20.8 percent of HR pros) was to have personal downtime respected.
Attrition rates slow down but continue
Attrition rates likely will slow but not stop due to the potential downturn. While most employees (56 percent) said economic factors would influence their decision to leave, nearly one-third of employees still plan or are considering quitting in the next six to 12 months.
Forty-four percent of HR leaders report that more employees have left in the first half of 2022 compared to the first half of 2021. Our survey confirms the top reasons employees leave is for better pay, because they feel stressed and burnt out and want flexible work options.
Meanwhile, nearly one in five HR leaders report planning on implementing layoffs, with solid majorities acknowledging the economic downturn has affected revenue (59.8 percent) and their ability to hire (68 percent). Over one-third (35.8 percent) said unexpected hiring freezes led to rescinded offers.
The hiring freeze has heightened HR’s efforts to upskill workers. Nearly half (49.6 percent) plan to introduce manager training and add performance management software (46.4 percent) in the second half of 2022 and beyond.
Read the full report here. For more information, visit www.15five.com.