With recent layoffs in the IT industry, the consequences of a bad company culture become even more pronounced.

Employee happiness in 2023 reached a new low, even lower than during the peak of the COVID-19 pandemic. The first half of 2024 hasn’t brought any relief, with morale continuing to decline.

The era of the Great Resignation has shifted to what could be called the “Great Gloom,” reflecting widespread dissatisfaction and disengagement in the workplace.

If you thought everyone who was not fired is happily working, you might be wrong. Every firing affects not only the fired person but also the whole team or department by bringing a sense of unsafety and discouragement.

Team by team, you have a whole company wondering if they are next on the list…

Identifying negative trends early is essential for preventing further damage.

Five Signs of the Great Gloom Inside a Company

High Turnover of New Hires

The first 45 days are critical for new hires. If they feel disconnected or unsupported, they are more likely to leave, which is costly and disruptive to the organization.

This signals a disconnect between the company’s image (so-called Employer Branding messages) and its actual culture. Perhaps the – once formed and still shared – image of the company is not true anymore.

High Absenteeism

Frequent absences may indicate deeper issues such as poor management, stressful working conditions, or lack of engagement, all of which erode trust and teamwork.

The leading cause of sudden high absenteeism is overloading employees with tasks of the fired ones (or the ones who left and were never replaced).

Even worse combination are employees overloaded with tasks that have no logical connection to their usual tasks which makes employees feel overwhelmed, unqualified for running those tasks, and scattered everywhere.

Gossiping About Crucial Pieces of Information

Clear and timely communication is crucial because when people are left without a complete picture, they often fill in the gaps themselves, leading to assumptions that may be inaccurate.

This can create confusion, mistrust, and unnecessary anxiety, which can be avoided by providing transparent and prompt updates.

If a company was affected by layoffs, the worst scenario would be not to communicate why it happened and what is being done to prevent further layoffs. It is important not only to give an explanation but also to show honest will to make things better.

Low Employee Net Promoter Scores (eNPS)

A low eNPS reflects widespread dissatisfaction, suggesting that many employees would not recommend the company as a great place to work. The average eNPS score varies across industries and benchmarks can be easily checked online.

If a company is below average, no additional explanation is needed. Some action plan has to be done.

What companies usually omit when making a conclusion about employees’ happiness based on the eNPS score is the percentage of the employees who participate in the survey. If more than half of the company refuses to invest 10 minutes in expressing their opinion, there is a great possibility they are already under the Great Gloom and unmotivated for their job.

High Turnover

High turnover, especially among top performers, can have a cascading effect on an organization. These individuals often hold critical knowledge, skills, and relationships that are difficult to replace.

When top talent exits, it can demoralize remaining employees, leading to a decline in overall engagement and productivity.

This can create a cycle of dissatisfaction, where others might also start considering leaving, further deepening the problem.

Five Strategies to Fight Back from Two Perspectives

Addressing High Turnover of New Hires

Employee Perspective – Engage Early and Often

As a new hire, it’s important to proactively seek out connections within the company. Engage with your team, ask for feedback, and participate in onboarding activities. Don’t hesitate to request additional resources or support if needed to help you integrate more effectively.

Company Perspective – Strengthen the Onboarding Process

The company should revamp its onboarding process to ensure it’s welcoming, thorough, and supportive. Assign mentors or buddies to new hires to help them navigate the company culture and build early connections. Provide clear expectations and regular check-ins during the first 45 days to address any concerns before they lead to disengagement or turnover.

Tackling High Absenteeism

Employee Perspective – Communicate Challenges

If you’re feeling overwhelmed or overloaded with tasks, it’s crucial to communicate this to your manager or HR. Suggest ways to redistribute work or request additional training for tasks that are outside your usual scope.

Company Perspective – Reevaluate Workloads and Roles

The company should assess whether employees are being overloaded with tasks, especially those unrelated to their core responsibilities. Reallocate resources, hire additional staff if necessary, and ensure roles are clearly defined to prevent burnout. Create a supportive environment where employees feel comfortable speaking up about their workload.

Reducing Gossiping About Crucial Information

Employee Perspective – Seek Clarification Directly

Rather than relying on the “info from the hall”, approach management directly with your questions. If you hear rumors, ask for confirmation from reliable sources to avoid contributing to misinformation. Advocate for transparency within your team.

Company Perspective – Improve Communication Transparency

To reduce gossip and speculation, the company should prioritize clear and frequent communication, especially during times of change or uncertainty. Regularly update employees on company performance, decisions, and future plans. Encourage an open-door policy where employees feel comfortable asking questions and raising concerns directly.

Enhancing Low Employee Net Promoter Scores (eNPS)

Employee Perspective – Participate and Provide Honest Feedback

Take the time to participate in eNPS surveys and other feedback mechanisms. Use these opportunities to voice your opinions constructively, suggesting specific areas for improvement. Your feedback can drive positive change if communicated effectively.

Company Perspective – Act on Feedback and Encourage Participation

The company must take eNPS scores seriously, analyzing both the results and the participation rate. Implement action plans based on feedback and communicate these actions back to employees. Show that employee opinions are valued by making visible changes and regularly checking in on progress. The worst-case scenario is to ask, get answers, and do nothing.

Actions for Reducing High Turnover

Employee Perspective – Identify and Pursue Growth Opportunities

If you’re considering leaving, first explore opportunities for growth within the company. Discuss your career aspirations with your manager and seek out professional development programs that align with your goals. Staying engaged and finding meaning in your work can reduce the desire to leave.

Company Perspective – Focus on Retention Strategies

The company should identify the root causes of turnover by conducting exit interviews and engaging with current employees. Develop retention strategies that include career development opportunities, competitive compensation, and a positive work environment. Recognize and reward top performers to keep them motivated and loyal to the company.

By addressing these five signs of the “Great Gloom” proactively, both employees and companies can work together to create a healthier and more productive work environment.

This article was written by: Suzana Špika