Quiet cutting

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Quiet cutting is a strategy from employers where employees are reassigned to a different role rather than being laid off. [1] [2] The term arose in 2023 to describe a phenomenon seen in the American labor market. [2] Although the nation had a strong job market during this time, quiet cutting was being adopted by companies due to economic worries of the future. [2] Companies were observed to use this approach to fulfill crucial roles while simultaneously reducing costs. [1] According to the financial research platform AlphaSense, conversations about reassignments during corporate earnings calls more than tripled between August 2022 and August 2023. [1] [3] Although the term "quiet quitting" was invented in 2023, the strategy had been seen before. [3]

The term "quiet cutting" alludes to the term "quiet quitting" that was observed in the few years prior where employees would do minimal effort to meet expectations. [1] Where quiet quitting reflected that the balance of workplace power was more favorable for employees, the rise in quiet cutting suggests that the balance may be shifting in favor of employers. [2] The Great Resignation showed a strong demand for workers, job openings and wage growth decreased in 2023. [4] Quiet quitting can be considered a subset of "quiet firing". [2]

Employees may experience a range of emotions, from relief at retaining their jobs to fear of the uncertainty of their career paths following reassignments. [1] It may potentially have a negative impact on morale and employee retention. [3] [5] The practice of reassignment often involves a waiting game, subtly encouraging employees to voluntarily leave to avoid costly severance packages. [1] [2] Workers may sometimes be deliberately placed in ill-fitting roles, prompting them to resign. [1] The roles may be less prestigious, lower paying, and more demanding. [6] Indicators such as reduced pay or unwanted relocation may suggest such underlying motives. [1] Experts recommend that employees seek clarity from management regarding the specifics behind their reassignments to gain a better understanding of their career trajectory. [1] Transparency on the part of the employer is a key factor in maintaining a respectable relationship with employees. [3] [4] In situations involving reassignment, legal options for employees are limited, except in cases of retaliatory or discriminatory treatment. [1] It may be more practical and effective for the employer to directly terminate the employee rather than engaging in quiet cutting. [7]

Between 2022 and 2023, large corporations like Adidas, Adobe, IBM and Salesforce have restructured their workforce. [1] [6]

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The Great Resignation, also known as the Big Quit and the Great Reshuffle, was a mainly American economic trend in which employees voluntarily resigned from their jobs en masse, beginning in early 2021 during the COVID-19 pandemic. Among the most cited reasons for resigning included wage stagnation amid rising cost of living, limited opportunities for career advancement, hostile work environments, lack of benefits, inflexible remote-work policies, and long-lasting job dissatisfaction. Most likely to quit were workers in hospitality, healthcare, and education. In addition, many of the resigning workers were retiring Baby Boomers, who are one of the largest demographic cohorts in the United States.

In human resources, resenteeism refers to a form of professional dissatisfaction wherein individuals choose to remain in unfulfilling jobs breeding resentment and a sense of entrapment. This is because they either unable to find a more applicable position, or are concerned about the perceived risks associated with changing employment. Individuals experiencing resenteeism will have poor employee engagement and may appear disillusioned, embittered, miserable, and unhappy. Resenteeism arose following the COVID-19 pandemic and the Great resignation where people reevaluated their work-life balance in the face of cost-of-living increases and is an extension of quiet quitting. Resenteeism is a form of occupational burnout.

Loud quitting refers to a type of employee disengagement in which individuals openly share their discontent, desire for change, and intention to leave. These individuals may refuse to do tasks that they deem unnecessary and by sharing their contempt with colleagues, may spread their disenchantment and disengagement. Loud quitting may arise from perceived workplace inequities, subpar compensation, and an unresponsive employer.

In human resources, quiet hiring refers to the practice of having an employee take on a new responsibilities or a role within their company due to need. The role may be temporary or permanent, and the reassignment may not align with employee interests. Quiet hiring often occurs during economic slowdowns as a cost-saving measure.

In human resources, rage applying refers to the application to a large number of jobs, typically online, when an employee is fed up with their current role. An individual may be prompted to begin rage applying after they've been denied a promotion or raise, feeling unrecognized, or under appreciated. Rage applying is a response to quiet quitting and may be felt as a form of empowerment or revenge against an employer. Rage applying can also allow an individual to understand their current market value.

References

  1. 1 2 3 4 5 6 7 8 9 10 11 Smith, Ray A. (August 28, 2023). "You've Heard of Quiet Quitting. Now Companies Are Quiet Cutting". WSJ. Retrieved October 14, 2023.
  2. 1 2 3 4 5 6 Thapa, Anuz (October 13, 2023). "Quiet cutting: How power in U.S. offices may be shifting back to bosses". CNBC. Retrieved October 14, 2023.
  3. 1 2 3 4 Navarra, Katie (September 12, 2023). "Beware the Silence: 'Quiet Cutting' Is Not the Best HR Strategy". SHRM. Retrieved October 14, 2023.
  4. 1 2 Mensik, Hailey (September 8, 2023). "WTF is quiet cutting?". WorkLife. Retrieved October 14, 2023.
  5. ↑ Mearian, Lucas (September 19, 2023). "Experts: 'Quiet cutting' employees makes no sense, and it's costly". Computerworld. Retrieved October 14, 2023.
  6. 1 2 Cerullo, Megan (August 29, 2023). "Companies are now "quiet cutting" workers. Here's what that means". CBS News. Retrieved October 14, 2023.
  7. ↑ Lucas, Suzanne (August 16, 2023). "What 'Quiet Cutting' Really Is and What It Looks Like Behind the Scenes" . Retrieved October 14, 2023.
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