When Employees Decide the Company Is Failing (Before It Actually Is)

Below is a real conversation I had with a salesperson.

I was asked by his manager to speak with him. The manager thought he might listen to me because I wasn’t part of the company. I wasn’t his boss. I didn’t control his compensation. I was just… outside the system.

I was hesitant.
Most people aren’t ready to hear hard things from someone they have just met.

But the conversation stuck with me.

The Sesh

Salesperson: I’m excited about the opportunity, but what do I do about the company going downhill?

Me: What do you mean?

Salesperson: People are saying things aren’t looking good.

Me: Every company has people saying that.

Every company also has people saying the opposite.

The question isn’t which one is right.

The question is which one you decide to listen to… and what you do next.

This is where things start to separate.

Because once someone decides the company is “going downhill,” something subtle happens.

They stop trying to reduce uncertainty…
and start trying to confirm it.

They listen differently.
They interpret differently.
They work differently.

And whether they realize it or not, that shift shows up.

The Two Conversations Happening in Every Company

There are always two conversations happening at the same time, in both good times and tight times. 

1. What’s happening to the company?
2. How do I feel about the company?

Most employees blend those into one.

Some employees are professional and continue to work. 

Some decide the company is struggling…
and then unconsciously adjust their behavior to match that belief.

• They hesitate
• They disengage
• They spend more time discussing risk than producing results

From their perspective, they’re being realistic.

From the company’s perspective, something else is happening.

How This Gets Interpreted Inside the Room

When leaders sit down to evaluate performance, they’re not just looking at outcomes.

They’re looking at signals under uncertainty.

They notice:

• Who is still moving deals forward
• Who is still engaging with customers
• Who is still producing when things feel unclear

And they also notice:

• Who is narrating the decline
• Who is pulling back
• Who is waiting for clarity before acting

No one writes in a performance review, “This person believed the company was going downhill.”

But they will say things like:

• “Lost momentum”
• “Less engaged”
• “Not as proactive as before.”
• “Development helpful.”

Different language. Same signal.

The Constraint Most People Miss

You can’t focus on everything at once.

If you spend your time reinforcing why things might fail,
you are not spending that time figuring out how to succeed.

Every second focused on one thing is one second less focused on another. 

That tradeoff is quiet, but it’s constant.

And over time, it compounds.

Sometimes the Concern Is Real

To be clear, sometimes employees are right.

Companies do struggle.
Markets change.
Layoffs happen.

This isn’t about pretending everything is fine.

It’s about understanding what actually creates options.

Because even in declining environments, patterns show up:

• The people who stay focused on execution tend to leave with leverage
• The people who spiral tend to leave with explanations

Both may be correct about what’s happening.

But they are not treated the same on the way out.

You’re Not Evaluated on What You Believe

You’re evaluated on the direction of your actions, while others are deciding what to believe.

That’s the part most people miss.

If You’re Managing Someone Who’s Losing Faith

You won’t pull someone out of this by arguing about whether the company is fine.

That debate goes nowhere. They aren’t ready. 

What tends to work better:

• Shift the focus to controllables
  “What’s in front of you right now?”
• Reconnect them to the output
  “What would progress look like this week?”
• Make the risk visible
  Not the company risk.
  Their personal signal risk.

Because once disengagement shows up, it gets noticed faster than any market trend.

Final Thought

Every company has doubters.

Every company has believers.

Most people think success comes from choosing the “right” side.

In practice, it comes from something simpler:

Staying focused on what moves you forward,
while others are deciding what story to tell themselves.

See you at the after party,

HRNasty

nasty: an unreal maneuver of incredible technique, something that is ridiculously good, tricky, and manipulative but with a result that can’t help but be admired, a phrase used to describe someone good at something. “He has a nasty forkball”.

Ongoing writing and context live on LinkedIn and Bluesky.

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Ringo Nishioka writes about how managers actually make career decisions inside organizations.