2021 an economic downturn began which led to numerous layoffs. Before this downturn, there was a common trend of job hopping within certain industries. In some cases, employees would stay at a company for about six months to a year before moving to another company for a salary increase. This cycle of moving from one company to another was typical before the pandemic.

From 2021 to 2024, there were multiple layoffs. These layoffs caused loyal employees to feel angry and those who frequently changed jobs to lose income. The situation has triggered a wide range of emotions. During this period, many companies let people go in dehumanizing ways. Some were dismissed via Zoom calls, while others found themselves locked out of their work emails. There are still on-going issues with the economy which has caused more layoffs and hiring freezes across many industries.

This situation won’t last forever and there will be economic improvements with that will come a new set of challenges. These challenges will consist of rebuilding employee trust and loyalty once the economy begins to improve. Companies need to consider how they will retain talent moving forward. Before the pandemic, large salaries and sign-on bonuses were common, but these alone will no longer suffice.

Many people now lack trust in companies and feel no loyalty in return, especially considering how they were treated. Companies may need to introduce new incentives to rebuild trust and loyalty. For instance, I foresee benefits such as companies offering to pay off student loans if an employee stays for a designated number of years. They might also assist with home down payments or contribute to mortgage payments to encourage longer tenures.

Another potential incentive could involve investment opportunities beyond standard 401k matching, such as significant contributions to help employees build their wealth. Given the depth of betrayal felt by many who have experienced layoffs, substantial incentives will be necessary to encourage employees to stay long enough to work on important projects and advance within the company.