With the new year underway, the outlook for the workplace remains mixed. Unemployment overall continues to be low, and quit rates are declining. However, with global economic uncertainties, workplace challenges continue. Employee engagement rates are trending in the wrong direction, and overall wellness feedback is not positive either.
As more employees feel disconnected from their employer, executive teams are challenged to examine their culture and find ways to reconnect with employees. Gallup recently addressed this issue and identified seven areas that must be considered if organizations want to improve employee satisfaction.
The Great Detachment Threatens Performance
Last year, employee engagement for US workers was at an eleven-year low, while employee satisfaction was at an all-time low. Unsurprisingly, the number of people looking for new jobs is at its highest level in a decade. With quit rates low, more people are staying put while they look. Gallup has coined this as “the Great Detachment.”
Poor Job Markets Lead to More Disgruntled Workers
According to Gallup’s 2024 State of the Global Workplace report, when job searching is more difficult, those looking tend to be more actively disengaged. This is likely due to their level of unhappiness in their current position. The study also found that as job market conditions improve, people may move from unhappy to indifferent but not to inspired.
U.S. Employee Life Evaluation Hits Record Low
Only half of employees in the US say they are thriving, the lowest level ever. This number is a leading indicator of missed work time due to health issues and turnover rates. Compounding this is the low level of employees who believe their company cares about their well-being. This continues to be below pre-pandemic levels.
AI Stalls in the Workplace
For all the AI hype over the past couple of years, workplace adoption has not followed suit. Roughly two-thirds of employees say they never use AI, and just 10% say they use it weekly. And the number of employees who feel prepared to use AI is falling. Until the right use cases can be identified and implemented, employees will continue to be uncomfortable with AI.
Childcare remains a Major Career Roadblock for Working Mothers
Childcare has long been an issue for US workers. The rising cost of it is forcing working mothers to reconsider advancement opportunities, reduce their hours, or leave their jobs. To address this issue, companies need to assess role expectations and find ways to support working mothers throughout their careers.
Feedback and Recognition: Biggest Manager Blind Spots
The Gallup study found a gap between how managers think they are doing with their teams and how their teams believe they are doing. Half of managers think they give weekly feedback, while just 20% of employees say they receive weekly feedback. Working with managers to develop a system to deliver feedback continuously can help remedy this challenge.
Productive Hybrid Work Requires Better Team Collaboration
With the pandemic almost five years behind us, remote work challenges are becoming more visible. One of the most significant issues is collaboration. According to the study, “the best teams create a team charter, distinct from corporate policy, that defines how members best work together. They maximize the quality of their on-site time with collaboration and team-building activities. And they regularly evaluate their hybrid work experience as a team to adapt and improve.”
For more information on these challenges, we recommend reading the full article. For more information on employment trends, visit our blog.