A few years ago, Tara Turk-Haynes, an HR specialist in Los Angeles, regularly hired yoga instructors and meditation experts to help employees relieve stress in the office. However, she has stopped all of it now. "Mental health benefits are no longer a priority when retaining talent is no longer a challenge for businesses," Turk-Haynes stated.
The office environment for U.S. knowledge workers is losing its sweetness. Implicit agreements between businesses and employees are being redefined towards a more pragmatic approach. Pandemic-era perks are disappearing, in-office work policies are being tightened, and layoffs continue despite stable company profits.
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Many U.S. businesses are eliminating mental health benefits, prioritizing work performance in the new phase due to AI development and a large workforce. Illustrative photo: Businessleadership |
Many U.S. businesses are eliminating mental health benefits, prioritizing work performance in the new phase due to AI development and a large workforce. Illustrative photo: Businessleadership
The power balance shifts
Amidst the high cost of living and the threat artificial intelligence (AI) poses to many positions, companies are tightening career advancement paths. Jessica Kriegel, chief strategy officer at Culture Partners, observed: "After the pandemic, the power balance is shifting back towards employers."
The clearest evidence is that Meta recently launched a new evaluation program, tying promotions to quantifiable results. Similarly, Citi CEO Jane Fraser announced the elimination of old mechanisms to optimize performance. Telecom giant AT&T also abandoned seniority-based bonuses, shifting to a performance-based bonus model.
Professor Peter Cappelli at the Wharton School, University of Pennsylvania, noted the market is witnessing a paradox: "The stock market is setting records, businesses are making huge profits, yet they are still tightening their grip on employees."
The rise of AI creates an existential threat for office workers. Many CEOs, such as Tobi Lütke of Shopify, require middle managers to justify 'why not use AI' before proposing new hires.
A defensive 'hold on' mindset
In fact, labor and health insurance costs in the U.S. are projected to rise sharply this year. This, coupled with the pressure to invest hundreds of billions of USD in AI, compels business leaders to be cautious.
The job market is in a contradictory state of 'low hiring, low firing'. According to Lars Schmidt, a recruitment expert in Washington D.C., employees are experiencing significant psychological distress, unable to predict how long it would take to find a new job if they were laid off.
A survey by the Yale School of Management shows that nearly two-thirds of U.S. CEOs do not intend to increase their workforce in 2026. Stagnant wages have driven American personal financial pessimism to its highest level since 2018.
As a result, current employees are hesitant to change jobs, accepting stringent rules such as mandatory five-day in-office workweeks. "There are no longer any rebellions or demands, because everyone is too exhausted and fearful," Jeff LeBlanc, a lecturer at Bentley University, remarked.
Although the overall picture is quite bleak, experts advise employees to find ways to adapt. "Hold on to your current position if you don't have a definite new opportunity, while quietly preparing an exit strategy for yourself," consultant John Ferguson suggested.
Additionally, employees should thoroughly implement strategies to prove their value in the AI era:
Transform AI into a colleague: Instead of rejecting it, proactively master AI tools to handle repetitive tasks, proving your ability to leverage technology to double productivity.
Optimize 'human skills': Focus on developing emotional intelligence (EQ), negotiation skills, and strategic critical thinking – these 'forbidden zones' that machines cannot yet replace.
Data-driven work: Proactively quantify your contributions with specific numbers (revenue, costs saved) to prove you are a profitable investment, not a cost burden.
Minh Phuong (According to Insider)
