Why Quiet Hiring Is Bad for Your Business and How to Avoid It
Quiet hiring is a term that has gained popularity in recent months, especially after the Great Resignation of 2022. It refers to a practice where employers assign new roles and responsibilities to existing employees without formally changing their titles, salaries or benefits. This can happen due to a hiring freeze, a sudden increase in workload or a lack of qualified candidates.
While quiet hiring may seem like a quick and easy solution to fill talent gaps, it can have negative consequences for both employees and employers. Here are some of the reasons why quiet hiring is bad for your business and how to avoid it.
Quiet hiring can lead to employee burnout and dissatisfaction.
According to a survey by Monster, 80% of workers have been quite hired, and half of them say their new role was not aligned with their skill set. This means that many employees are taking on tasks that they are not trained or interested in, which can lower their motivation and performance. Moreover, quiet hiring can increase the workload and stress levels of employees who have to juggle multiple roles without adequate compensation or recognition. This can result in lower productivity, higher turnover and lower morale.
Quiet hiring can damage your employer brand and reputation.
Quiet hiring can be seen as a sign of poor management and lack of transparency by both current and potential employees. It can create a perception that your company does not value its workers or invest in their development. This can hurt your ability to attract and retain top talent, especially in a competitive labor market where workers have more options than ever. Furthermore, quiet hiring can also affect your customer satisfaction and loyalty if your employees are unable to deliver quality service due to being overworked or underqualified.
Quiet hiring can hinder your business growth and innovation.
Quiet hiring can limit your company's potential by relying on existing skills rather than acquiring new ones. It can prevent you from tapping into new markets, opportunities or technologies that require specialized expertise or experience. It can also stifle your creativity and innovation by discouraging employees from learning new things or taking risks. Additionally, quiet hiring can expose you to legal risks if you violate labor laws or regulations by misclassifying workers or failing to pay them fairly.
So how can you avoid quiet hiring? Here are some tips:
Plan ahead for your talent needs.
Instead of reacting to urgent situations with quick fixes, try to anticipate your future workforce requirements based on your business goals and strategies. Conduct regular skills audits and gap analyses to identify where you need more talent or training. Create succession plans and career paths for your key roles and high-potential employees.
Communicate clearly with your employees.
If you need to assign new responsibilities to an employee temporarily or permanently, make sure you explain why it is necessary, what it entails and how long it will last. Provide feedback on their performance and acknowledge their contributions². Discuss their career aspirations and development opportunities regularly. Offer them fair compensation and benefits that reflect their value.
Leverage external sources of talent when needed.
Sometimes you may need additional help from outside your organization due to special projects, seasonal demands or unexpected events. In such cases, consider using freelancers, contractors, consultants or temporary workers who have the skills you need at the moment. You can also partner with other companies, educational institutions or professional associations who can provide you with access to qualified candidates.
Quiet hiring is not a sustainable practice for any business that wants to succeed in today's dynamic world. By avoiding it and adopting better talent management practices instead, you will be able to improve your employee engagement, employer brand and business performance.