Employee confidence hits an all-time low. Will corporate reputation follow?

The recent Glassdoor Employee confidence report – which showed employee confidence in their employers falling to the lowest ever recorded by the survey – is noteworthy, but not necessarily surprising.? ????

First: Remember that people are more likely to take the time to leave a negative review than a positive one, regardless of the platform. Glassdoor is no different.? Second: We are living in a world of extreme, unprecedented uncertainty about everything. The rapid pace of big company layoffs is bound to exacerbate this crisis of confidence.??

My question:? What are the longer-term implications of this confidence gap for employers???

For the past several years, trust and confidence in corporations has been rising as our faith in pretty much every other institution declines. People have looked to their employers to solve societal problems, protect our health in the face of a global pandemic, and to be the source of truth in an environment riddled with mis- and dis-information. Employer brand has become a big driver of corporate reputation. And for great employers, it has been the rising tide lifting everyone’s boat.

But while it takes years to build reputation, it can be destroyed it in an instant. And these well-earned positive reputations may now be at risk. Other recent data confirm this. In addition to Glassdoor, Gallup reports that employee engagement is at a ten year low. ?Gen Z is more labor curious than any other generation in the workforce.?

Is this an issue of generalized anxiety manifesting in employee sentiment?? Or does it point to something more serious – a fundamental erosion of trust between employees and leadership?? Do people no longer believe that their employers will put people and purpose before profits, if they ever truly believed it at all?

One thing is certain: It will take more than communications to reverse these trends.? Policy is your PR, and if your messaging doesn’t match your policies, priorities and behaviors – then it’s simply talk. Has your company been consistent about what is important?? Have you made changes to policies, or introduced new ones, that send mixed signals to your employees? Does your leadership team spend time really listening to people at every level of the organization?? The answers to these kinds of questions will reveal the state of trust at your organization.

If you detect an erosion of employee engagement and confidence, here are three things to consider before you start crafting communications:

• Are you walking your talk?? Now more than ever it is critical to show, not just tell.??? Demonstrating your commitment should precede its discussion.
• Are your leaders personally invested in and connected to your employees?? If you rely primarily on “roll down” communications you are missing the boat. Employees know that middle managers are just messengers – they don’t make the decisions that matter the most.? Leadership begins with showing up, answering the hard questions, and making direct commitments to your people.?
• Do your people understand your business and your plan?? Are they invested in it?? Do they know how they contribute to the company’s performance and success??? Personalizing your business plan to the most basic levels gives people a sense of contribution and control – but only if they “get it.”

Confidence does not hinge on any single tactical execution – it’s built over time, together, with leaders who demonstrate the sacrifices they will make in the face of uncertainty.??

Corporations have rightly earned a position of trust in the face of significant challenges over the past five years.? How companies respond to the sharp decline in employee confidence will play a significant role in what happens next.? Only time will tell what they choose.?

?

?