With the Great Resignation in the rearview mirror, the Great Apprehension highlights widespread feelings of job insecurity
ATLANTE, June 30, 2022 /PRNewswire/ — With many economists warning of an impending recession, coupled with inflation at its highest level in 40 years, it’s no surprise that three out of four American workers fear losing their jobs, according to a new survey from Insight Global, a national staffing services company. The survey, which was conducted in June 2022 among more than 1,000 U.S. workers, reveals growing concern among full-time employees at all levels about the job security, financial readiness, and transparency of corporate executive communications.
The Great Apprehension
“When you bounce back from a recession, you’ll need your employees more than ever,” said Bert BeanCEO of Insight Global.
While the first half of 2022 centers around The Great Resignation, the second half introduces The Great Apprehension where many working Americans hope for the best but plan for the worst. The results of the investigation revealed the following:
- 78% of employees expressed concern about losing their job in the event of a recession, and nearly a quarter (23%) of American workers said they were extremely worried about losing their job .
- Managers (49%) more often than non-managerial employees (34%) reported higher levels of anxiety about losing their jobs in a recession.
- 56% of working Americans say they don’t feel financially prepared for a recession or say they don’t know how they would prepare for a recession, with women feeling the least prepared at 64%.
For adults, especially older millennials who were working during the Great Recession of the mid-to-late 2000s, the thought of another recession triggers career fears.
- Among American workers who were working at the start of the Great Recession, more than half (53%) say they still feel worried about job security or say fear of being laid off is often on their minds . These fears are even more common among Millennials (60%), many of whom were early in their careers during the Great Recession.
- A quarter of American workers employed during the Great Recession (25%) say they have several contingency plans prepared in the event of layoff.
The tables have turned
The survey results signal that the ball could land in employers’ courts, with nearly nine in 10 managers in the United States saying they would be likely to lay off employees in a recession. And employees’ growing concern for their jobs is prompting them to take a pay cut to avoid possible layoff.
- 87% of managers say they would be likely to lay off employees in a recession.
- More than half (54%) of American workers would be willing to take a pay cut to avoid being laid off in a recession.
- In the United States, more men (63%) than women (46%) would take a pay cut to avoid being fired.
- More than half (52%) of American workers either don’t think their job is recession proof or say they don’t know if their job is recession proof.
“It is unfortunate that we are already seeing some companies turn to mass layoffs as I believe layoffs should be the absolute last resort,” said Bert Bean, CEO of Insight Global. “Instead, I encourage leaders to consider other solutions, such as developing a plan that avoids layoffs and helps you grow during a recession. Make your employee base perform this, because when you bounce back from a recession, you will need your people more than ever.”
When the COVID-19 pandemic began in 2020 and wreaked havoc on the global economy, Insight Global committed to a “no layoff” policy, which Bean says will continue in case of a new recession.
“I realize that not every leader has the will to do this, but if you do, you will be shocked and amazed at the performance of your people when they feel this kind of security and loyalty,” he said. said Bean.
Trust and Confidence
Workers are confident in their leadership’s ability to lead them through a recession; however, trust in communication is lacking.
- Nearly half of employees (47%) do not believe their employer would adequately communicate their plans in the event of a recession, and 66% of managers do not believe their senior management would adequately communicate their plans in the event of a recession.
- Two-thirds of managers are confident (67%) that their organization’s leadership could lead their organization through a recession, and 58% of employees in non-management positions indicate the same levels of confidence in leadership.
“As we see in the headlines, even large companies that have grown astronomically over the past few years are not immune to financial challenges,” Bean added. “If a recession hits, I’d hate to see that lead to more layoffs. If your company hasn’t made a recession plan yet, do it now, communicate it to your employees, and start acting on it.”
To read more about the survey results, visit www.insightglobal.com/blog/recession-anxieties.
Insight Global commissioned Atomik Research to conduct an online survey of 1,004 active adults in United States, including 503 full-time employees in management positions and 501 full-time employees in non-management positions. Survey participants worked in occupations within predominantly white-collar industries1
The margin of error was less than +/- 3 percentage points with a 95% confidence interval. Fieldwork for the online survey has taken place between June 10 and June 13 by 2022. Atomik Research is an independent creative market research agency.
About Insight Global
Insight Global is a national recruitment and services company dedicated to empowering people. We relentlessly seek out opportunities for others, because when we all work together, anything is possible. We specialize in sourcing IT, accounting, finance and engineering professionals, and providing service-based solutions to Fortune 1000 clients. Our team spans over of 64 regional offices across North America and is committed to placing more than 80,000 people in jobs by 2022. Insight Global’s services go far beyond simply filling positions. In addition to recruitment services, we provide culture advice, diversity, equity and inclusion advice, specialist healthcare staff and resources, and a range of managed services designed to meet individual business needs. To learn more about Insight Global, visit insightglobal.com.