The trust gap at work

Nearly half of U.S. managers are planning layoffs in 2025, with salary cuts and hiring freezes also on the table. For HR leaders, this signals a critical need to balance cost-cutting with strategies to retain top talent and protect morale.

January 22, 2025

It’s Wednesday!

Big news: Nearly half of U.S. managers are planning layoffs in 2025, with salary cuts and hiring freezes also on the table. For HR leaders, this signals a critical need to balance cost-cutting with strategies to retain top talent and protect morale.

HR’s feedback blind spot is costing trust

Imagine trying to speak up, only to feel like no one’s listening. That’s the reality for many employees today—and it’s a quiet crisis brewing in the workplace. Nearly 40% of employees don’t feel comfortable sharing honest feedback, and almost half believe their input doesn’t matter anyway, according to a recent Survey Monkey report.

Why it matters: When feedback falls on deaf ears, employees don’t just get frustrated—they disengage. It sends a message that their voices, and by extension their contributions, aren’t valued. And when people don’t feel valued, productivity dips, resentment builds, and turnover becomes inevitable.

The bigger issue: Some companies make it worse by shutting down feedback altogether. Take JPMorgan and Meta, where comment sections were turned off after employees raised concerns. Leadership may see this as controlling chaos, but to employees, it’s a clear sign: “We don’t want to hear from you.”

This kind of move doesn’t just stifle communication—it creates a ripple effect. Employees who feel unheard often turn to other outlets, like speaking out publicly or considering unionization, just to feel seen.

What HR can do: It’s not just about opening a feedback channel—it’s about making employees feel like their input matters. That starts with intentional communication. Instead of silencing tough comments, HR leaders need to lean in and ask: Why are employees feeling this way, and what can we do about it?

Effective leaders go beyond guidelines—they make feedback part of the culture. That could mean spending time on the ground, asking questions, and truly listening to “the good, the bad, and the indifferent,” as John Frehse of Ankura suggests.

The takeaway? Feedback isn’t just about improving processes—it’s about building trust. Employees don’t need perfection from leadership, but they do need to feel heard. In the end, that’s what stabilizes culture and drives performance. And it starts with one simple step: listening.

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HR struggles to convince CEOs on childcare benefits

As companies push employees back to the office, working parents are left juggling unstable childcare. HR leaders see the solution—childcare benefits—but a staggering 78% struggle to get the C-suite to see its long-term value, according to a KinderCare and Harris Poll study.

Why it matters: Quality childcare isn’t just about supporting employees—it’s a business advantage. HR leaders agree it improves mental health (83%) and helps offset return-to-office challenges (82%). Yet budget constraints and a disconnect with leadership are holding progress back.

The gap:

  • 71% of HR leaders say executives don’t see how childcare boosts productivity.

  • 70% want to remind CEOs that employees have families to care for.

The case for childcare: Most executives (85%) recognize that childcare benefits reduce turnover, and 86% see it as a recruiting edge. Dan Figurski of KinderCare urges HR leaders to focus on what’s at stake—turnover and losing top talent—when making the pitch.

The takeaway: Childcare benefits aren’t just perks—they’re tools for attracting and retaining the best talent. For HR, the challenge is clear: show leaders that supporting families supports the business.

In other news

  • Only 1% of employees staying at the same company get a raise or promotion after three years—job hopping might be the only way up.

  • FTC warns businesses that sharing pay algorithms or wage data could lead to criminal charges under updated antitrust guidelines.

  • Trump repeals Biden's AI executive order, signaling a shift toward less restrictive policies and emphasizing AI innovation and national security.

  • Trump ends federal DEI programs, dismantling diversity roles and initiatives within 60 days, claiming a shift toward a "colorblind and merit-based" government.

What we’re reading

The HR Director → Human resources trends to watch in 2025.

Axios → Cisco CEO Chuck Robbins defends DEI.