Managing factors that reduce employees’ self-esteem in conditions of uncertainty

The article analyses a common issue in the business world at the present time: the decline in employees’ selfesteem in various business organisations. Most executives emphasise the implicit cause of uncertainty in both external and internal organisational environments. However, it is not clear what initiates a decline in an employee’s confidence in a particular organization, or how to manage it. The aim of the paper is to provide management with recommendations, after identifying factors that reduce employee confidence in conditions of uncertainty. First of all, the concept of an individual’s confidence is explained. It is emphasised that an individual’s ability to adapt to changed circumstances depends on his or her ability to represent himself or herself. This is revealed through personal experiences that depend on individual intensity, anticipation, self-reflection and self-reaction. These components of self-representation show how a person is able to make plans for the future and be active in implementing them; how employees motivate and monitor themselves, evaluate their progress, and learn from their mistakes. It all starts with personal confidence, or self-esteem. A confident employee represents himself or herself in the first place, and only then joins the team and effectively represents the company. It is emphasised that the organisation is the ‘home’ of an employee’s development. If all the conditions for the employee’s skills, competencies and potential are not only revealed but also developed, then the employee will ideally satisfy the need for self-realisation, by representing himself or herself in the organisation as such. The study included three business organisations that operate in different markets. The management of all three organisations confirmed that the protracted Covid-19 pandemic, global economic changes, and various social challenges in communication, have had a major impact on their employees’ confidence. Anonymous questionnaires confirmed that employees feel anxiety, fear, burn-out, frustration, and other expressions of emotion, which indicate a decline in confidence. The main factors behind the decline in self-esteem are identified: uncertainty about the future, a lack of understanding of the organisation’s vision, an inability to adapt to the changed environment, difficulties in motivating and monitoring oneself, misunderstanding duties and responsibilities, and confusion between actions and thoughts. The vast majority of employees stressed the need for support from the organisation. By interviewing each company’s management, the main sources of influence that fuel employees’ distrust in a particular organisation were revealed. In organisations whose performance had declined or fluctuated significantly due to uncertainty, employees lacked a clear vision of their operations, a stress-reducing communicational culture, examples of leadership and motivation, and additional motivational measures in addition to their salary. In organisations that faced an economic upswing initiated by the uncertainty, employees lacked additional motivational measures, and more effective control and evaluation methods. Managers of all three companies were given recommendations on measures to manage the factors that reduce employee confidence in an environment of uncertainty, depending on the circumstances of the particular organisation