Malicious Compliance

What Is Malicious Compliance?

Malicious compliance is when an employee follows the company's rules to the letter but undermines the intended purpose. In other words, the employee uses the company's own rules and regulations against them. This sneaky workplace behavior may seem like a minor annoyance, but some acts can have serious repercussions for the company.

Chaotic Working vs. Malicious Compliance

Chaotic working is a similar form of workplace rebellion. This corporate buzzword describes situations where dissatisfied or overworked employees extend excessive discounts, leniency, and benefits toward customers without worrying about the consequences.

Chaotic working is often positioned as an act of generosity, but it comes at the company's expense and is likely against policy. It's not as reliant on strict rule following as malicious compliance.

Quiet Quitting vs. Malicious Compliance

Quiet quitting is something many disengaged employees do right before they leave their company. They've essentially "checked out" of their role, performing only the bare minimum to keep their job, and have little motivation to put in any extra time or effort. While they're still following the rules, it's not as intentionally harmful or overt as malicious compliance.

Malicious Compliance Examples

Disciplining an employee for malicious compliance can be tricky because they're technically following the rules—they've just found a loophole they can leverage to show their dissatisfaction. In some cases, it happens when HR or a manager enforces problematic rules. Here are some examples of malicious compliance at work:

Exploiting Outdated Documentation

Sam, a newly promoted IT developer, is entitled to a $600 internet reimbursement as part of their total compensation. When they ask why their claim was denied at the end of the quarter, HR states that employees are only allowed to put in for reimbursements up to $50 and suggests submitting monthly claims instead. They also recommend that Sam reread the policy to avoid future mishaps in their new role.

After a thorough review, Sam notices a documentation error. It states that remote employees get reimbursed up to $600/year for three additional expenses (office supplies, mobile phone, and utility bills), and it appears to be per item—not $600 total. So, Sam submits itemized monthly claims, staying below the $50 limit for each, and quadruples their benefit until the company updates the max allowable reimbursement rate in their documents a year later.

Maximizing PTO After Unfair Denial

In September, Leslie puts in her PTO request for the holidays but realizes she still has two extra days to use. Since everyone else at her company is also putting in Q4 time-off requests, no one's available to cover her shifts for those remaining days and the company doesn't allow regular PTO to carry over into the new year.

So, Leslie asks her manager if he can make a one-time exception to the carryover rule or compensate her for those days. Her request is denied.

Between the comp time she'll earn while everyone else is out and her regular PTO renewal at the beginning of the year, Leslie realizes she can take six weeks off in January. She waits until December 23rd to put in her time-off request and gets approved. Per company policy, employees only need to submit PTO requests a week in advance, so her company has to scramble to find coverage for her extended leave time.

The Impact of Malicious Compliance on Businesses

Malicious compliance impacts every business differently and largely depends on the act itself. For instance, taking excessive PTO is different from denying customer service calls at 4:45 PM. Passive retaliation can affect the company's bottom line and inconvenience other teams, but it can also have very public consequences if an issue is shared outside of the company.

Other possible impacts of malicious compliance include:

• Productivity loss
• Employee turnover
• Reputation damage
• Lowered morale
• Missed deadlines
• Customer complaints
• Union involvement
• Fines and penalties
• Legal action

Your company culture may also suffer. Managers could lose trust in their employees just as quickly as employees lose trust in their employers. Plus, if one employee feels justified in their actions, more people might resort to the same behavior in response to a pervasive problem.

Why Does Malicious Compliance Happen in Companies?

Happy employees don't typically protest against their employer, especially if an infraction is appropriately resolved. It's often the result of a deeper issue, like poor leadership. A disengaged employee may resort to malicious compliance for things like:

• Overly restrictive work policies
• Unfair managerial orders
• Overbearing bosses
• Toxic work environments
• Strict micromanaging
• Communication failures
• Lack of employee advocacy
• Overworked teams
• Insufficient employee recognition

It can also happen if an employer changes a policy without considering the consequences. A disconnect between leadership and reports or different teams can create an environment where it's easy to exploit the system. Regardless of the reason, it's important to be prepared to navigate the difficult conversations that will inevitably follow.

Best Practices for Preventing Malicious Compliance

One of the best things you can do to prevent malicious compliance at work is to listen to your employees. Be sure to continually touch base with your teams, gather individual feedback, and use those insights to create a positive workplace. A continuous feedback loop lets your employees know you value their time and experience at work and strengthens managerial-employee relationships.

Since malicious compliance is based on policy exploitation, take the time to review your employee handbook periodically. Are the policies your company instituted last year still relevant today? Will any upcoming process changes require added documentation? When you make changes, don't forget to communicate them to your team and discuss how those updates are working later on.