The “Strongest” Cultures May Actually Be The Weakest 

Bosses Are Finding Ways to Pay Workers Less

There’s a major shift happening in the job market, and it’s turning everything we thought we knew about wages upside down. For years, we’ve believed that wages only go one way—up. That belief has been shattered. We are witnessing what can only be described as The Great Pay Reset of worker wages, and it’s nothing short of unprecedented. Across industries, companies are lowering wages, not just for blue-collar roles but for white-collar ones too. It’s becoming painfully clear: the days of expecting higher pay with every job change are over. 

While the economic data shows a recovering economy, Americans aren’t buying it. As I told Newsweek recently, “The macro data does not represent the lived experiences of Americans on a day-to-day basis.” Promising economic indicators might make for great headlines, but they don’t erase the harsh reality that millions of families still feel the impact of recent economic struggles. Inflation continues to squeeze the average American, and now wage cuts are adding salt to the wound. The numbers don’t lie. In retail alone, wages for new hires have dropped a shocking 55.9% year over year. In agriculture, it’s down 24.5%. Manufacturing is down 17.3%. This isn’t just a downward trend; it’s a free-fall. 

If you’re feeling the pain of inflation, get ready to feel the pain of lower wages, too. This isn’t a temporary blip; this is the start of a new normal. 

Imagine this: you’re a frontline worker who saw wages rise during the pandemic because employers had no choice but to pay more to attract and retain staff. Now that the job market has cooled, those same companies are asking, “How low can we go?” They’re banking on fear, knowing people need jobs and will take lower pay just to survive. This is not just about survival; it’s about cutting costs at any expense. As John Frehse, Global Head of Labor Strategy at Ankura, recently pointed out, some hiring managers are aggressively testing how much they can reduce wages, both for hourly and salaried roles. 

The result? Stories are emerging of workers who initially expected $80,000 to $90,000 salaries being offered $50,000 to $60,000 instead, within just a few months. This level of wage deflation is unprecedented outside of a depression, marking new ground on what employers can do without any major repercussions. 

Here’s the harsh truth: companies are playing a dangerous game with workers’ livelihoods, and it’s time for a reality check. Some are even using fear to create a perpetually destabilized culture where employees are too scared to push back. Instead of pointing fingers, we need to turn inward and take accountability for our own careers and futures. It’s not about who’s to blame but about focusing on what we can control. Upskilling, negotiating, and knowing our worth have never been more important. The Great Pay Reset is here, and it’s going to take all of us standing up and demanding better to turn things around. 

The conversation also brings up the implications for automation. With wages coming down, the push for automation—like replacing cashiers with iPads—loses some of its appeal. This could mean fewer layoffs in favor of retaining cheaper human labor, but that’s small consolation when those wages are significantly lower than before. As Frehse noted, this situation could potentially offer a silver lining by slightly increasing job security, but only in the context of reduced automation costs. 

The takeaway? Workers need to be prepared. The days of blindly trusting that wages will keep climbing are gone. Now, more than ever, it’s about pushing back, staying vigilant, and ensuring we don’t let fear dictate our worth. And for companies, the time to act is now—before this “new normal” becomes just “normal.” 

Elsewhere In Culture

Red Lobster’s new leader is a millennial Wall Street fave who doesn’t believe in work-life balance

Damola Adamolekun’s unapologetic approach to leadership at Red Lobster, where he rejects the notion of work-life balance, underscores a growing debate in workplace culture today. As a millennial CEO with a background in both the culinary and finance sectors, Adamolekun embodies the hustle culture mindset, where work and life seamlessly blend into one. His approach—where a day begins with a 4:30 a.m. run and ends with a cigar after hours of meetings—may resonate with those who thrive in high-pressure environments, but it raises questions about sustainability and inclusivity in leadership. When leaders adopt an “all work, no play” philosophy, they risk setting expectations that can alienate employees who value balance or need downtime to recharge. This creates a cultural divide that can lead to burnout, lower engagement, and, ultimately, a lack of diverse thought and innovation. 

Organizations grappling with workplace culture transformation must consider the implications of such leadership philosophies. While Adamolekun’s intense work ethic may align with a turnaround strategy for a struggling company like Red Lobster, companies must be cautious not to create an environment where success is only measured by how much one is willing to sacrifice. Instead, a balanced culture that recognizes diverse work styles and personal boundaries can foster a more inclusive environment where all employees feel valued and motivated to contribute their best. Leaders who promote a culture of adaptability and empathy, recognizing both the benefits of hard work and the necessity of rest, are more likely to cultivate a resilient workforce prepared to navigate challenges together. As Red Lobster charts its path out of bankruptcy, it will be interesting to see how Adamolekun’s relentless drive intersects with creating a sustainable workplace culture for the future. 

Australia is the latest country to give workers the ‘right to disconnect’ after hours

Australia’s new law granting workers the “right to disconnect” after hours represents a significant shift in workplace culture, emphasizing the importance of work-life balance in an increasingly digital world. With the rise of remote work and digital communication tools, the boundary between professional and personal life has become increasingly blurred, leading to burnout and mental health challenges. By protecting workers from the expectation of being constantly available, Australia is addressing the growing crisis of unpaid overtime and its associated stressors. This law highlights a cultural shift towards valuing employees’ personal time, mental well-being, and overall job satisfaction—an essential consideration for modern workplaces aiming to foster a sustainable and productive environment. 

This movement toward defining clearer boundaries between work and personal life has profound implications for organizational culture globally. When companies adopt a more balanced approach, they are better positioned to create a more inclusive and supportive workplace. Employees who feel respected and free to disconnect after hours are likely to be more engaged, productive, and satisfied during work hours. It also encourages organizations to rethink their approach to employee management and communication, promoting a culture where outcomes and productivity are prioritized over constant availability. As countries like Australia lead the way in adopting such protections, businesses everywhere must consider how their own workplace cultures can evolve to support the well-being of their employees while still achieving business objectives.