Companies looking to cut costs to offset the pain of high inflation are quietly paring back the non-cash benefits they offer to employees – and the problem may soon get worse.
That is according to a new analysis by Glassdoor, which found that a growing number of employees lost access to 401(k) retirement plans, dental insurance, vision insurance, tuition assistance, and other benefits this year.
With the economy slowing and demand for workers cooling, companies are looking to reduce the total compensation they offer to workers. However, wages and salaries almost never decline in real dollar value for individuals who stay in the same job at the same company because "most people have such a strong aversion to seeing smaller paychecks hit their bank accounts," the report said.
WORKERS NOW DEMANDING NEARLY $80K TO START NEW JOB
Couples should come together to review finances and craft budgets if they are planning to stay together long-term. (iStock / iStock)
In fact, Glassdoor data suggests that only about 8% of workers who remain in the same job typically see their salary decline on an annual basis. The figure is slightly higher in 2023, coming in at around 10%.
However, many companies instead look to cut costs by using levers beyond salary.
"During soft labor markets, there are other dimensions of total compensation that commonly decline," the report said. "These include hours worked (for non-salaried workers), equity and incentive-based compensation, and the company contribution to the cost burden of benefits like health insurance or retirement plans."
The compensation reduction has so far been most pronounced in industries that experienced turmoil this year, including tech and finance. However, Glassdoor predicted that more companies will start scaling back benefits in 2024 amid the increasingly uncertain economic outlook.
Signage for a job fair is seen on 5th Ave. in New York City on Sept. 3, 2021. (Reuters/Andrew Kelly / Reuters Photos)
"There is some evidence that benefits access has started to erode, a trend that could accelerate in 2024," they wrote.
Despite the efforts to reduce compensation, many companies are leaving certain benefits untouched, including fertility assistance, adoption assistance, parental leave, and mental health care. However, Glassdoor economists noted that the "tide could even, or even turn" in 2024 if companies scrutinize the costs and determine that the benefits are not important or necessary to retain workers.
The extremely tight labor market over the past year allowed workers to quit their jobs in favor of better wages, working conditions, and hours – a trend dubbed the "Great Resignation."
However, there are growing signs the once hyper-competitive job market is starting to soften.
The government reported earlier this month that job growth slowed more than expected in October, a sign that hiring is finally slowing in the face of higher interest rates and stubborn inflation. Employers added just 150,000 jobs last month, while the unemployment rate ticked up 3.9% – the highest level in two years.
Although the holiday season seems like a time of fun and frolicking, for many working Americans, the end of the year can bring on stress, deadlines, and worry — which can lead to career burnout.
"Burnout is really a year-round issue, but especially during the holidays, as employees can feel additional stress as their personal lives ramp up," Jessica Larson, senior human resources specialist with Insperity in Orlando, Florida told FOX Business.
"At the same time, many businesses pick up speed before year’s end to prepare for the year ahead," she said.
And "when work duties and family commitments come into conflict, employees can feel caught in the middle."
Work-life balance techniques are important to manage these stressors and prevent burnout.
Though workers sometimes worry that asking for help will set back their careers, the reality is that managers appreciate it when employees are honest about their bandwidth, said one human resources professional. (iStock / iStock)
Here are a few of the best strategies to manage work around the holidays, according to experts.
Engage in open communication
An effective way to combat burnout during any season, and as the end of the year approaches, is having open communication.
"Employees should talk to their managers when they struggle with work-life balance and ask for support in prioritizing their assignments," Larson told FOX Business.
Though workers sometimes worry that asking for help will set back their careers, the reality is that managers appreciate it when employees are honest about their bandwidth, Larson said.
"If employees are not open about burnout, then their managers may not realize they are struggling, or even mistake their burnout for a lack of interest in work," she said.
Communicating openly can also avoid a scenario in which an employee misses a deadline or performs poorly because he or she didn't request the resources they needed to succeed, Larson noted.
Try setting some boundaries
Both employees and employers should set boundaries around the holidays so that expectations are crystal-clear for everyone, said Larson.
"It is always best for employees to involve their managers in discussions about how to balance their workloads." (iStock / iStock)
"Deadlines around the holidays should be communicated as early as possible so that employees can schedule their family commitments and travel plans around workplace demands," continued Larson.
Communication is key for employees to prioritize their assignments before the end of the year, and some priorities might be obvious.
"For instance, an end-of-year report that must be reviewed by senior leadership would typically take priority over an internal presentation with no set date," said Larson.
"It is always best for employees to involve their managers in discussions about how to balance their workloads."
Become a work ‘grinch’
You may have to go into "grinch" mode to stay focused on your work, said Emily Ballesteros, founder of Burnout Management, LLC, in Seattle, Washington, and author of the upcoming book "The Cure for Burnout: How to Find Balance and Reclaim Your Life" (Feb. 2024).
"If you have double your usual workload and you know you do your best work in a quiet space with no distractions, do everything in your power to lock yourself in a quiet space with no distractions," Ballesteros told FOX Business.
You might tell others in your circle, "I’m going to need to be a bit of a hermit to get my to-do list done for the next few weeks," experts suggest. (iStock / iStock)
Fielding unexpected calls, encountering household distractions, or getting stuck in meetings you don’t really need to be a part of are examples of ways our productivity can be derailed during the day, said Ballesteros.
If possible, she recommended telling others in your circle, "I’m going to need to be a bit of a hermit to get my to-do list done for the next few weeks. If I seem anti-social, it’s not you. It’s just what I have to do to wrap my work up on time."
Keep an eye on the calendar
As the end of the year approaches, spend a short period of time each morning looking at your calendar and creating a must-do list for the day to determine how you will tackle your priorities, Ballesteros suggested.
"You are in control of your time," she said. "Having a short meeting with yourself to set your priorities before diving into your day can save you from turning around at night and thinking, ‘I was busy all day and didn’t do anything I needed to do.’"
Know the signs of burnout
Larson with Insperity told FOX Business that signs of burnout include increased stress, constant anxiety about work, and low energy or irritability.
"Burnout can also lead to chronic tardiness or absenteeism and reduced performance," she said.
"Having a short meeting with yourself to set your priorities before diving into your day can save you from turning around at night and thinking, ‘I was busy all day and didn’t do anything I needed to do.’" (iStock / iStock)
"It is important for employees to self-reflect on their internal stress levels and equally important for employers to notice the external signs of burnout on their teams."
Address productivity
The more satisfied and engaged employees feel at work, the more productive they can be, experts say.
"Employees need support from their leaders to do their best work," Larson told FOX Business.
"When management comes together to plan for the holiday season, they will see employees better able to do their jobs, while also enjoying time with their loved ones."
Ballesteros with Burnout Management agreed it’s in a company’s best interest not to have a building full of burned-out employees — not just for the sake of employee retention and reputation, but because satisfied employees are productive employees.
"Having a game plan that supports employees, especially during a busy season, demonstrates that a company cares about their employees’ day-to-day experience and well-being," Ballesteros said.
"Satisfied employees who feel that they are treated fairly and that leadership wants to see them succeed, are incentivized to work hard and be loyal to their organization," she added.