Employee happiness and engagement has declined increasingly since the beginning of the COVID-19 pandemic, being referred to as the “Great Gloom” by some HR experts. This trend indicates a strong link between employee engagement and economic and societal conditions. Furthermore, high inflation has caused organizations to implement cost-cutting measures, such as layoffs and heavier workloads for employees, which in turn increase stress, decrease morale, and contribute to a negative workplace environment.
Employers should recognize that employees’ needs and expectations shift with the economic climate and will adjust to meet evolving employee demands. These strategies include a renewed focus on honest and transparent communication, psychological safety, fairness, and belonging.