The Shifting Landscape of Work: From Care to Control and its Consequences

A recent reversion to productivity-focused, control-heavy practices—such as mandated return-to-office (RTO) policies, widespread layoffs, and de-investment in people programs like DEI—has raised concerns about long-term consequences for both employee and business outcomes.

Crystal Wiedemann, PhD

5/6/20254 min read

The post-pandemic workplace has undergone a dramatic transformation. During Covid, employee perceptions of leadership and organizational care significantly improved, with Gallup reporting record-high engagement levels in the U.S. and Canada. However, a recent reversal to productivity-focused, control-heavy practices—such as mandated return-to-office (RTO) policies, widespread layoffs, and de-investment in people programs like DEI—has raised concerns about long-term consequences for both employee and business outcomes.

Employee Outcomes in the

New Era of Control

Declining Engagement and Morale
Both Gallup and the World Economic Forum warn of a steady drop in employee engagement and well-being in the US workforce, particularly among younger, remote-capable workers and mid-level managers, who often face heightened pressure without increased support. Overall, the percentage of employees who strongly agree that their employer cares about their well-being has fallen from 49% in May 2020 to 24% in 2025.

Loss of Trust and Increased Turnover
Research from the University of Chicago Harris School of Public Policy finds that RTO mandates have driven senior and high-performing employees to resign, often moving to competitors with more flexible work arrangements. Companies with RTO mandates have seen increased voluntary turnover (14%) and longer times to fill roles (23%).

DEI Fatigue and Reduced Inclusion
A widespread pullback from DEI initiatives—driven by economic pressure and political backlash—has diminished psychological safety and engagement. HRO Today notes that non-inclusive behaviors are on the rise, and 1 in 3 employees considering leaving their job cite the absence of inclusion as a core reason.

Business Impacts of Prioritizing

Control Over Care

Talent Loss and Innovation Decline
When high-performing, experienced employees leave due to rigid workplace policies, organizations suffer from lost institutional knowledge and slower innovation cycles. These effects compound over time, weakening competitiveness.

Negative Brand and Customer Perception
Companies scaling back people-focused initiatives like DEI risk reputational damage. Reports from the Washington Post and Business Insider highlight consumer and investor skepticism toward companies perceived to be regressing on social commitments.

Reduced Productivity and Performance
Workplaces prioritizing control over employee autonomy have seen declines in discretionary effort, creativity, and collaboration. The World Economic Forum’s 2025 Future of Jobs Report warns that global worker well-being and reduced performance is now threatening innovation and adaptability at a systemic level—impacting both small teams and global supply chains. The economic toll is massive—estimated by Gallup at $8.9 trillion in lost productivity annually due to low well-being and engagement.

The Case for Reinvestment

in People Programs

Healthy Culture Drives Performance
A healthy culture is the infrastructure needed for high performance. It sets the conditions for psychological safety, discretionary effort, and organizational commitment. A strong, inclusive culture accelerates decision-making, fosters cross-functional collaboration, and builds a sense of shared purpose that energizes teams and drives innovation. Recent research shows that companies with active culture strategies are 2.5x more likely to report high employee engagement and 3x more likely to meet or exceed revenue goals (Diversio, 2024).

Human-Centered Leadership Builds Resilience
Organizations that maintained a focus on well-being and flexibility during and after the pandemic report stronger resilience and agility in adapting to market changes. By fostering psychological safety, listening deeply, and enabling autonomy, human-centered leadership equips teams to navigate ambiguity with confidence and cohesion. The result is a workforce that can pivot faster, recover quicker, and sustain performance under pressure.

Rebalancing Purpose, People, and Profit
Leaders face a pivotal opportunity to move beyond the fear-based control paradigm that has taken hold and return to one of trust and community. Decades of research have shown that the most successful organizations are the ones that lead from a sense of purpose, foster collaboration, and prioritize employee well-being (e.g. Firms of Endearment, 2007). The reinvestment in culture, leadership development, and inclusive practices is not just a moral necessity—it’s an urgent business imperative.

The current reversal to pre-pandemic norms has had measurable costs to culture, engagement, and business performance. A more sustainable path forward is urgently needed—one that integrates operational excellence with human-centered design—treating people not as costs to control but as potential to be realized.

______________________________________________________________

This article used OpenAI’s ChatGPT to support early-stage research synthesis and idea development.

Sources

Image Credit: www.freepik.com

Perception of care for employee well-being has fallen from 49% to 24%
Productivity, efficiency, and brand image declining
Reinvestment in people is critical for sustainable business performance
ADDRESS

17 Timbercrest Circle
Hilton Head, SC 29926

CONTACT

crystal@ignitepotentialconsulting.com
(864) 624-2218

FOLLOW


in

Images provided by FreePik.com