Why ‘Doing More With Less’ Is Quietly Killing Employee Morale

We’re not “doing more with less.” We’re doing different work with the same people, and employee morale is paying the price.

Over the last year, I’ve listened to my friends and colleagues describe their hiring plans, reviewed countless job descriptions, and layoff announcements … all with a knot in my stomach. Not because change is new, but because the pattern is.

Here’s what I’m seeing (and what it’s doing to teams:

1) The “no backfill” strategy is quietly becoming the default

A growing number of companies are cutting roles and simply not replacing them. One 2025 survey found 44.3% of employers didn’t backfill a position that year.

On paper, that looks like “efficiency.” In reality, it’s often work redistribution, and the redistribution usually lands on the people who are still standing.

This shows up as:

• overloaded calendars

• slower execution

• more mistakes

• less creativity

• and a lot more “I can’t keep up” energy

  
  

It’s not surprising (or mysterious) that employee engagement hit a 10-year low in 2024.

2) Marketing job descriptions are starting to read like a whole department

I keep seeing marketing roles that ask for brand + content + SEO + paid + lifecycle + analytics + events + video editing — often bundled into one person.

That’s not a “rockstar” role. That’s a company trying to buy a team with one salary.

And yes, job volumes have been uneven and cautious, which partly explains why companies try to consolidate responsibilities.

But the tradeoff is real: breadth without depth creates fragile growth engines.

3) Senior talent gets cut… and the scope stays

Another trend I’ve noticed is laying off senior marketers and filling with more junior hires, while leaving the expectations intact.

The problem isn’t junior talent. (We all started somewhere).

The problem is expecting entry-level hires to perform senior-level work without mentorship, time, or proper resourcing — then blaming them (or marketing) when outcomes slip.

4) Pay compression is a retention grenade

This one hurts: offering better compensation to new hires than to loyal, high-performing employees.

HBR has called out how pay disparities can push top performers out first once pay becomes visible. And pay fairness continues to be a major driver of attrition in compensation research.

If you want morale to crater, this is a fast path:

• “We value you” messaging

• paired with, “We’ll pay more to replace you than to keep you.”

5) AI is being treated like a miracle, not a capability

The most common leadership assumption I’m hearing is, “We’ll get the same output with fewer people with AI.”

But many companies don’t have the basics in place:

• clear policies

• role-based training

• real workflow redesign

• governance + quality standards

Gallup found a gap between AI integration and guardrails with 44% of employees said their org was integrating AI, but only 30% said their org had AI guidelines/policies. ISACA found only 31% of orgs had a formal, comprehensive AI policy.

Tools don’t create time. Systems do. Training does. Leadership does.

The morale impact is predictable

When you combine:

• layoffs + no backfill

• “do-it-all” job scopes

• pay compression

• and AI magical thinking
  

…you don’t get a more efficient company.

You get burnout, slower decision-making, cautious risk-taking, and teams that stop believing leadership is telling the truth.

A final thought for leaders (and for my fellow marketers):

If you nodded along to these trends — heavy job scopes, pay inequities, no backfills, and “AI will save us” thinking — but don’t have the headcount authorization to hire full-time help right now, you are not alone.

You can still move forward.

There are ways to partner smarter — to get strategic capacity, clarity, and momentum without adding another full-time seat. I wrote about this in a recent post: 5 Reasons to Partner With a Growth Marketing Consultant Instead of Hiring Full-Time