Employment news roundup September 2025 issue IoIC, The Institute of Internal Communication

15 Sep 2025

Executive Summary

Post-pandemic, the global economy remains in turmoil. War, escalating geopolitical tensions, extreme weather events, supply chain shortages, rising inequality, unfettered capitalism, shifting attitudes towards work and more are reshaping the labour market.

While often hard to discern in the moment, these shifts and undercurrents nonetheless have a profound impact on how organisations hire and engage with people at work.

Internal communicators have a pivotal role to play in maintaining community and cohesion across increasingly diverse and transient workforces. In such changeable landscapes, communication is a meta-skill that underpins organisational success. Simply put, it is the heartbeat of culture.

Moving on from ‘quiet quitting’ to ‘quiet cracking’... And ‘quiet cutting’

A worrying new work trend called ‘quiet cracking’ is affecting over half of American employees. And since US trends often ultimately permeate UK workplaces, it's likely to already be playing out in British organisations, as well.

This new phenomenon involves persistent workplace unhappiness that leads to emotional detachment and declining performance. Yet it remains largely invisible to management.

The issue is compounded by the current challenging job market. During the ‘Great Resignation’ of 2021-2022, dissatisfied workers could easily find alternative opportunities. However, with fewer job postings and reduced recruitment activity, employees now feel disengaged but stuck in unsatisfying roles.

Experts stress that tackling quiet cracking requires employees to communicate their concerns to managers, whilst taking some ownership of their engagement levels. But other factors also contribute, including unclear objectives, excessive workloads and poor workplace relationships.

Meanwhile, on the employer side, rather than making redundancies, ‘quiet cutting’ involves reassigning staff to less significant roles. Whilst companies may frame this as cost-effective ‘redeployment’, the downside is the potential for significant damage to trust and morale.

A 2024 Monster survey revealed 80% of employees lost faith in their organisations after suspected quiet cutting. For many, the practice creates toxic environments (65%), harms leadership relationships (64%) and increases stress (62%). When you factor in the global impact of disengagement – this year, Gallup estimated it cost the world economy US$438 billion in lost productivity – it’s not hard to see the knock-on effect of quiet cutting on organisational sustainability.

Suffice to say, smart internal communication is crucial in addressing both these ‘quiet’ trends.

With ‘quiet cracking’, regular check-ins, transparent goal-setting and open feedback channels help colleagues feel heard and valued. This reduces the isolation that fuels workplace unhappiness and fosters more engaged, productive workforces.

Addressing the fallout of ‘quiet cutting’ may prove more challenging, of course. But when organisations are transparent about business challenges and restructuring needs, when they provide comprehensive support including training and mentoring, and address root causes such as poor workforce planning, colleagues are more likely to understand and accept changes.

The bottom line is that clear, honest communication builds trust, reduces speculation and helps maintain engagement, even during difficult transitions. This in turn creates healthier, more productive workplaces for everyone.

Time to acknowledge freelancing as a mainstream career choice

Contract work is on the rise as companies enforce stricter RTO mandates and implement redundancies. This is fundamentally reshaping how professionals approach their careers, with many abandoning conventional employment for freelance roles.

Driven by unsustainable or unpalatable commutes, reduced productivity in office environments and family responsibilities, the financial benefits of choosing this path are also compelling. In the US, for instance, research by global contractor platform Mellow found 68% of freelancers now earn more than they did in corporate positions. Multi-client freelancers earn 127% more than single-employer dependents.

Unsurprisingly, millennials and Gen Z lead this transformation, comprising 74% of multi-client freelancers. Nearly a quarter of 30–44-year-olds earn the equivalent of over £120,000 annually from freelance work.

While 36% initially turned to freelancing through necessity following redundancy, 73% cite flexibility as their primary motivation for remaining self-employed. The advantages extend beyond earnings to include career autonomy, skills development and improved work-life blend, with 88% reporting greater financial stability and job satisfaction.

Despite challenges like time management and irregular payments, 82% wouldn't return to office-based employment, even for salary increases.

Freelancing has evolved into a mainstream career choice that businesses can no longer ignore. Organisations must recognise and adapt to this fundamental shift in workforce preferences and professional priorities.

Key Data Points

68% of freelancers in the US now earn more than they did in corporate positions (Mellow research).
127% more earnings for multi-client freelancers compared to single-employer dependents.
74% of multi-client freelancers are millennials and Gen Z.
Nearly 25% of 30–44-year-olds earn the equivalent of over £120,000 annually from freelance work.
36% initially turned to freelancing out of necessity following redundancy.
73% cite flexibility as their primary reason for staying self-employed.
88% report greater financial stability and job satisfaction.
82% say they would not return to office-based employment, even with a salary increase.

If people with sought-after skills and capabilities increasingly choose to work flexibly to gain variety and freedom, it behoves all ambitious organisations to build and nurture full-spectrum talent ecosystems.

Shared understanding is, of course, an elemental component of high-performing teams. As work becomes increasingly distributed, asynchronous and on-demand, these new ecosystems will require internal communicators to extend their remit beyond traditional definition of employment, to engage with all colleagues, regardless of employment type and length of tenure.

Their uniquely neutral position means internal communicators are perfectly positioned to help build cross-functional community across diverse employment types, creating the cohesion that’s essential in today's increasingly fluid talent ecosystems.

The best RTO strategies focus on culture, not policy

HSBC has joined the growing list of City firms rejecting flexible working arrangements. It now requires its senior executives to 'lead by example' and maintain a minimum office presence of four days weekly.

Yet there's no going back to the old playbook.

Recent McKinsey research reveals a crucial shift in thinking about RTO policies. Whilst many Fortune 500 companies mandated at least four days in-office during 2024, with mostly in-person workers doubling from 34% to 68%, the working model itself isn't the key to success.

The findings surfaced that, regardless of whether people work in-person, hybrid or remotely, satisfaction levels with working arrangements remained high, but overall workplace experience still needed improvement across the board. Critically, intention to leave was at pandemic highs of 39% across all working models, whilst roughly one-third of workers reported burnout, regardless of arrangements.

It’s also nuanced by different cohorts, reminding us that there’s no one-size-fits-all. A 2025 BUPA survey of 8,000 workers, for instance, found 45% of Gen Z respondents to be considering looking for jobs with more social interaction.

The real issue lies in five core practices that drive organisational sustainability: collaboration, connectivity, innovation, mentorship and skills development. Many rate their employers poorly across these practices – roughly half or fewer rate them as effective. Even more tellingly, there's a significant disconnect between leaders' optimistic views and employees' experiences of these practices.

The McKinsey survey showed each practice has specific enablers – behaviours, policies, and norms – that contribute to effectiveness regardless of working model.

Stat/Insight	Highlight
In-person workers (2024)	Doubled from 34% → 68%
Intention to leave	39% - pandemic highs, across all models
Burnout	1 in 3 workers (regardless of arrangements)
Gen Z preferences (BUPA 2025)	45% want more social interaction
Employer effectiveness	<50% rate employers effective at collaboration, connectivity, innovation, mentorship & skills development

For collaboration, goal alignment matters most. Connectivity requires transparent communication and leadership visibility. Innovation needs psychological safety, whilst mentorship benefits from both formal programmes and informal peer coaching.

As leaders recalibrate their RTO mandates, the most effective strategies focus less on rigid policies and more on cultivating the cultural practices that drive genuine performance and engagement – regardless of where work happens. How people communicate and convene remains integral to ongoing success.

‘Dopamine dressing’ and ‘thin-slicing’ joy – is making work fun the secret to workplace success?

Our recently published IoIC Future of IC Profession Survey reveals a sector increasingly overwhelmed. Respondents rated their job satisfaction as critically low, with fewer than half feeling happy or fulfilled in their roles and 80% expressing negative sentiments about their work.

As a profession, internal communication is far from alone in this sense of disengagement, however. Gallup recently found only one in ten UK workers feels truly engaged – amongst the lowest rate in developed economies.

But without intending to be glib or overly simplistic in the face of what is clearly a massive challenge for organisations, might a key to transformative workplace culture be fun, instead of a myopic focus on productivity?

Workplace consultant Bree Groff certainly believes so. Having worked with C-suites at Google, Microsoft and other household brands, her book Today Was Fun presents a compelling case for tipping our relationship with work on its head.

Following personal loss and the pandemic's wake-up call, Groff recognised that work had become weighed down by unnecessary baggage: endless meetings, rigid professionalism and the toxic expectation that careers should define our identities.

Groff's solution isn't frivolous perks or corporate bribes designed to keep employees grinding away at their desks. Instead, she advocates for authentic workplace joy: allowing your personality to shine through ‘dopamine dressing’ (wearing clothes that more closely reflect you as a person), fostering genuine colleague relationships through daily check-ins, and ‘thin-slicing’ joy by finding small moments of happiness even during the most challenging periods.

The evidence certainly backs up her theory. German research by Gallup shows 81% of engaged workers report having fun at work, compared to just 10% of the disengaged. Fun isn't just a ‘nice-to-have’ – it's measurable, difficult to fake and increasingly seen as crucial for both wellbeing and performance.

So ultimately, might the true measure of a successful workplace be not how many hours employees clock up or how much they sacrifice for the company – but how much genuine enjoyment they experience?

Key Data Points

Fewer than half of internal comms professionals feel happy or fulfilled in their roles.
80% of respondents expressed negative sentiments about their work (IoIC survey).
Only 1 in 10 UK workers feels truly engaged (Gallup) – one of the lowest rates in developed economies.
81% of engaged workers report having fun at work vs. just 10% of disengaged workers (Gallup, Germany).
Fun at work is not a ‘nice-to-have’ – it’s a measurable driver of wellbeing and performance.

As we grapple with post-COVID burnout and widespread disengagement, we could argue perhaps that prioritising workplace fun isn't revolutionary thinking – it's simply common sense that’s somehow got lost along the way. But if most of us still spend five days of every seven at work, shouldn't we actually enjoy them as much as humanly possible?

Consumer boycotts impacting recruitment and talent churn

Emerging research from Raconteur and Attest reveals consumer boycotts pose significant challenge for UK businesses, extending far beyond an immediate impact on sales to affect hiring activity and talent retention.

The study found over half of UK consumers have boycotted a company at least once, primarily motivated by unethical practices and poor staff treatment. Nearly a quarter would boycott businesses over their CEO's political views, whilst almost 20% avoid companies doing business with countries they disapprove of.

More concerning for employers, however, might be the implications for attracting and keeping talent. More than half of respondents wouldn't apply for jobs at boycotted companies, while a third of current workers claim they would quit if their employer faced boycotts.

This all suggests that, beyond the bottom line, boycotts create lasting reputational damage that hampers recruitment and increases colleague turnover.

High-profile cases like Starbucks and McDonald's demonstrate the real-world impact, with some brands forced to close regional operations. Target's share value dropped 40% year-on-year after ditching its DEI programme (though other factors contributed to this decline). Even consumers not actively boycotting often think twice before purchasing from targeted companies.

1 in 3 employees would quit if their employer faced a boycott.

Whether an organisation faces boycotts or not, effective internal communication helps maintain colleague confidence and loyalty. By transparently explaining company values, listening to colleagues’ concerns and demonstrating genuine commitment to ethical practices, organisations can reassure staff and keep hold of talent.

Regular updates, town halls and clear messaging about the company's stance prevents uncertainty – or outright misunderstanding – from driving valuable people away during more turbulent periods.

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