You are seeing and feeling it happen. Instead of the new year ushering in enthusiasm, Americans were met with a steady stream of layoff announcements made by an array of companies in various sectors.
Companies, including Citigroup and Google, announced that there will be staggered job cuts within their organizations. To workers, it feels as if they are being pressured to work harder and longer hours to show loyalty and dedication, and avoid getting the ax. They are left feeling stressed, anxious and worried about the safety of their current jobs, while also concerned about the ability to find another opportunity if something goes wrong.
The balance of power between workers and bosses has shifted over the past few years. During the pandemic, workers largely had the upper hand due to a favorable job market and the ability to work remotely. The Great Resignation had companies scrambling to hire workers to keep up with demand. However, with regards to white-collar professionals, as the economy weakened and the labor market cooled, employers began to regain the upper hand.
The Inherent Power Dynamics
In an employer’s job market, companies don’t have to cater to the needs of workers and can conduct widespread job cuts, as they view employees as easily replaceable. In 2023, over 1,100 tech companies laid off roughly 263,000 workers. This year, over 120 companies have let go of more than 31,000 employees, according to Layoffs.fyi.
Employers even reduced headcount around the holidays, with little regard or empathy for workers and their families during what is usually a merry time of year. This past holiday season, several companies enacted layoffs, including Spotify, Twilio, Citigroup, Amazon, Hasbro and more.
Many bosses never fully embraced the work-from-home culture. Now that they have the upper hand, companies are ordering staff to return to the office, even if employees have moved out of state and don’t currently reside near headquarters. It’s been a resounding, “Come back, or else!”
When it comes to layoffs, executives and managers are not typically held accountable for the poor decisions that got the company into its financial predicament. Instead, it’s the rank-and-file workers who are adversely impacted by job losses. The executives who made the policies are magnanimously largely exempt from getting the ax.
The remaining workers are pressured to put in longer hours without any additional compensation or benefits. If it’s not a buoyant job market, employees will not give much pushback. They do the extra work to remain employed.
Without a union or collective bargaining, workers have less leverage in negotiating for higher wages or better conditions, as they’re afraid of losing their jobs.
Job insecurity is a pervasive feeling for the workforce, especially with the ascendancy of artificial intelligence. If generative AI lives up to its hype, the workforce in the United States and Europe will be upended, according to Goldman Sachs. The investment bank estimates 300 million jobs could be lost or diminished by this fast-growing technology.
In a survey by UKG, a human resources and workforce technology company, 78% of C-suite leaders reported that their company actively uses generative AI today. Forty-nine percent of the executives admit that their organizations disproportionately reaped the benefits of AI over employees.
As another sign of dominating employer power, a 2023 study by the Economic Policy Institute found that the amount of company profits flowing to employees has been declining for decades.
The Job Interview
During the job interview process, candidates are not in positions of power due to the inherent power dynamics of asking for a job. The employer requires candidates to submit detailed job applications that include employment history and personal information. However, applicants are left without vital information.
The interview process would be more balanced if candidates were provided with full disclosures. What is the company’s financial situation? Is it planning layoffs in the near term? Why is the job open? Why does the company have continual turnover? What is the boss’ management style? Has the prospective manager had allegations made against them for harassment or misconduct? How long does the company plan to maintain a hybrid or remote work style?
Job interviews are taking longer, as hiring managers slow-walk the hiring process. They will have a candidate interview for over six months, meeting with several members of the team, only to give no feedback and ghost them.
Source: Forbes
