Working Scared?

Managers describe their best employees as motivated by the work, engaged in team projects big and small, enthusiastic with coworkers, and efficient—all traits that fuel productivity and quality work. One trait they don’t want: scared. 

Yet that’s exactly what they’re encountering: A third of employees fear losing their job before finding a new one, up from 24% in spring 2023—and 28% in fall 2023—according to a new Harris Poll.  “Fear and ambiguity can be very destabilizing, and a huge distraction from the job,” says Tamara Rodman, senior client partner in the Culture, Change and Communications practice at Korn Ferry. 

Workers’ fears are not unfounded: 32% of unemployed people have been out of a job for two years or longer, according to the same survey. And this month’s economic indicators—a pessimistic US jobs report and downward-trending stock market—are leading executives to consider cost-cutting measures. Meanwhile, heavy spending on new AI tools raises the specter of more layoffs. 

Firms are currently weighing their options, well aware that layoffs can be costly—in terms not only of severance packages and legal fees, but also of lowered productivity: Distracted employees work less, and others depart voluntarily as the work of their laid-off coworkers lands on their desks. “In the layoff game, those are the two big concerns that employers grapple with,” says Deepali Vyas, global head of the FinTech, Payments, and Crypto practice at Korn Ferry. 

Though it may sound counterintuitive as a means of easing tension, experts say firms need to be forthright in acknowledging that layoffs could happen. All too often, companies pretend that business is just fine—and unleash whiplash when they announce layoffs. “That opens up a world of hurt,” says Rodman. She suggests full transparency on the state of the business, as well as setting an expectation of possible staffing changes in the future, so that workers can prepare themselves, both mentally and practically. Firms can also take the extra step of advising employees on what they can do to help drive business, she notes. 

Managers can also allay the layoff concerns—mostly by providing regular feedback—of employees whose performance is good. “Workers need to know if they’re one of the lower performers on the team,” says JP Sniffen, practice leader at the Military Center of Expertise at Korn Ferry, who recommends consistent, direct conversations about performance. This feedback gains import when layoffs loom, but should be a normal part of the week-to-week flow, he says. In times of layoffs, high performers will have the assurance of knowing they’re not going anywhere, while low performers won’t be surprised when the axe falls. 

There’s a Jedi-level move that managers can also take to further protect their teams. Rather than letting team members get pulled into volunteer side projects and new initiatives, managers can focus employee hours on performance-driven tasks that are likely to pay off inside the company. “As a manager, you have the ability to keep teams on task and shield them from problems coming downhill,” says culture and change expert Alma Derricks, senior client partner at Korn Ferry. “Deflect away from that cupcake-baking contest.” 

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