Giri (not her real name), a product manager at a startup for six years, has been looking for a new job for six months but hasn't found one. “The organizational culture doesn't seem healthy to me. We have about 150 employees, but the atmosphere feels like a large company. There are too many managers and too little understanding of the details and business. “Additionally, there is no investment in the workforce or employees. I don't feel the level of personal professional development or administrative support that I would like,” she says. But Giri is staying in her current job because her job market is so bad right now.
The job market in 2020 was favorable for job seekers, but now it is favorable for employers. This is due to a combination of the global economic crisis, Israel's domestic political crisis, and now Israel's war in Gaza, all of which have led to reduced funding, mass layoffs, and hiring freezes. The number of employees in tech industries fell last year to average levels for 2022, and fell further in January due to a new wave of global layoffs. Thousands of industry workers were sent home. Even companies that are actively recruiting are not hiring, and while the number of job openings is still small, the number of applicants for each job is steadily increasing.
“Jobs are very scarce. The requirements for a product manager are usually very specific and there are few options, so it's hard to find a company that will hire you.” says Giri, who is looking for management. Above all, we encourage the growth of our employees. “It's very difficult to find high-quality direct managers. Not everyone can truly manage people. Understand that you exist primarily to help employees grow.” I hope that somewhere there will be a manager who can do that.”
Like Giri, the tech industry is full of dissatisfied employees who stay in their jobs. Previously, it was easy to find another job with a similar or higher salary, but now there is uncertainty and less chance of a raise, so more employees stay. I'm getting frustrated.
In fact, in Israel, only 19% of employees feel connected to their workplace, a 1% decrease in 2023 compared to the previous year, according to a Gallup poll. At a global level, only 23% of employees are satisfied with their jobs, but most employees (59%) have fallen into a phenomenon known as 'quiet quitting'. That is, meet the minimum requirements of the job and do not strive for more. More effort and enthusiasm than necessary.
“A new generation is joining the workforce who didn't grow up with the concept that you should have one job for the rest of your life. Everything that's going on in the world today is having an impact, and few organizations are able to address it. ,” says Jonathan Pietra, founder of Great Places to Work Israel. “During this period, there is much more resentment, and there is much less engagement and ability to be effective. We will survive the crisis better. We will recover faster.”
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Jonathan Pietra.
(Credit: Kindly)
According to data from Great Places to Work, more than 55% of Israeli employees want to quit their current job, 30% feel a lack of belonging, and 25% feel lonely. “These numbers are getting worse every year, especially in the past two years since COVID-19, as the world has become an increasingly difficult and uncertain place,” Pietra said. Still, the tech industry ranks well compared to other industries in the company's TRUST index, which examines the level of trust between employees and employers, including the level of fairness, trust, and respect in the workplace. It seems so.
“A year or two ago, companies were hiring recklessly, but now it seems irresponsible. Once you join a company at a higher level, the drop-off can be very severe. In the past, if you were even slightly dissatisfied, you could get a job offer from somewhere else. Nowadays, people use LinkedIn and job offers. They're on message boards, but there's no work. This makes them stay and get resentful. It's not just about the money,” says Daniel Cohen, Employer Branding Manager at AppsFlyer.
“In today's industry, there are people who are promoted to management positions for no reason. If you threaten to quit, you get promoted, so employees can't handle being told no. Additionally, organizational changes occur frequently. .More and more companies are changing managers every month because everyone is focused on efficiency.Performance reviews are now in place and many employees are upset about not getting a pay rise. Therefore, those who are dissatisfied with the organization either do the minimum amount of work or…
The phenomenon of silent quitting has intensified during the COVID-19 pandemic and continues today. As mentioned earlier, most employees around the world are participating in this. What is different now is that Israel's economic, political and security situation means that companies are under more pressure and have higher performance expectations for their employees. “And that just doesn't happen,” Cohen says. A period of unemployment is the exact opposite of what businesses want. ”
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Daniel Cohen.
(Credit: Netanel Tobias)
Mol (pseudonym), another product manager who has been working for a year and a half at a startup company that employs about 100 people, describes the harsh atmosphere at the company. “Everything is difficult, including sales and financing.Even the most successful companies have layoffs.The atmosphere is tough, starting with judicial reform and now with the war situation at home.It feels pretty tough. “There is no light at the end of the tunnel,” she says. However, Mol believes that management teams across the company are doing their best to read the market and make necessary changes as needed.
Strong leadership + trust in the organization = lower turnover rate
“The main reason employees are demoralized is because they don't get answers to what they need, and they don't get empathy. These are very tough times. People are anxious and facing financial hardship. However, “if leadership is strong and there is trust in the organization, employees will not quit. It's about the ability to see people first and foremost as people,” says Pietra.
The cost of demoralized employees is very high. According to Gallup, in 2023, lost employee productivity due to silent retirements amounted to $1.9 billion for U.S. employers. When it comes to employee replacement, the cost of hiring a new employee is approximately $4,700. According to a report from Great Places to Work, for an organization with 1,000 employees, costs can reach $178,600 per year. By comparison, the data shows that publicly traded companies whose employees are engaged but not demoralized have lower stock price performance (return on equity) than companies with demoralized employees. has been shown to be 3.36 times higher.
“Israeli employers face unique challenges in keeping their employees employed, especially when many employees are required to join the armed forces or are directly or indirectly affected by circumstances. With this understanding, employers need to act in several ways to foster employee engagement.'' Sharona Mizrahi, Human Resources and Recruitment Specialist at Blumberg Capital He said:
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Sharona Mizrahi.
(Credit: Blumberg Capital)
To that end, she suggests starting with thoughtful communication. “Employers should prioritize clear and considerate communication with employees. Managers should be approachable and available at all times to listen to employee concerns and provide reassurance whenever possible.” Additionally, we recognize that employees may have commitments outside of work and are implementing remote work, schedule adjustments to accommodate their needs during this period. , advises employers to allow flexible working arrangements, such as extended leave policies.
She also suggests investing in identifying weak points and demoralized employees. “This period is an opportunity to pay more attention to each employee within the organization, identify depressed employees, find their pain points and address them individually.” This includes special financial support. This may also include financial assistance if you have employees who need it.
Finally, she recommends that managers emphasize their company's “long-term commitment to employees and their well-being, ensuring that work and life are safe despite difficult circumstances.” “Transparency about resilience and contingency planning can help alleviate concerns about organizational resilience and contingency planning.” Job stability. ”
