Quiet Hiring

What Is Quiet Hiring?

The new term “quiet hiring” refers to the age-old practice of addressing immediate business needs and future skills gaps by having existing employees take on new roles and develop additional skills. These expanded roles usually—but not always—come with a bump in compensation, either through higher pay or better benefits.

This is often done in lieu of acquiring new talent. However, in some cases, quiet hiring can include working with contractors, freelancers, or other contingent workers for the same reasons.

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What Drives the Quiet Hiring Trend?

The quiet hiring trend didn’t just emerge out of nowhere. In fact, it’s been around for a while. But several social and economic shifts have driven companies and HR leaders to return to this approach.

Fighting “Quiet Quitting”

Much of the recent quiet hiring trend has been driven by a need to combat the recent quiet quitting trend. “Quiet quitting” refers to dissatisfied employees quietly disengaging from their roles by opting not to take part in activities beyond the bare minimum needed to get the job done.

Unfortunately, the disengagement associated with quiet quitting can affect business productivity and outcomes. Research shows that it can lead to an 81% difference in absenteeism, up to a 43% difference in turnover, a 10% difference in customer loyalty, and a 23% difference in profitability. Some managers seek to combat these negative trends by adapting an employee’s workload, hoping to reinvigorate employees and encourage re-engagement in their work.

A Tough Talent Acquisition Landscape

Cyclical economic downturns and unpredictable economic crises regularly create conditions where businesses have to cut costs, and many businesses turn to quiet hiring when hiring new talent isn’t an option.

2024 data shows that there are about 83 potential employees available for every 100 open jobs in the US. Currently, 44% of US HR leaders say that talent acquisition is their most common challenge. Nearly a quarter say it’s their most difficult.

Things aren’t much better across the world, with 75% of global employers reporting having challenges filling critical roles. Since so many companies struggle to find talent, HR leaders have turned to their existing workforce or nontraditional workers for help.

Digital Transformation and the Need for New Skills

The emergence of new technologies like artificial intelligence and other digital transformations increase employers’ need for employees who have the skills to use these tools to stay competitive.

Instead of searching for outside talent, many focus on uncovering hidden talent in their existing workforce, upskilling employees where gaps have been identified, and using temporary solutions to solve the issues that can’t be addressed with current employees.

Quiet Hiring Examples

Quiet hiring is all about working with existing or temporary employees to fill immediate business needs. However, many HR leaders realize that there’s no one right way to go about this. Here are a few examples of different approaches to quiet hiring:

In some cases, companies may use more than one of these strategies to ensure all needs are met. What you choose will depend on your business needs, the skills present in your existing workforce, your budget and capacity for increased compensation or outsourcing, and your willingness to invest in learning and development opportunities.

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It’s not illegal to ask an employee to take on additional duties, but there are a few things to watch out for. Keep an eye on overtime, discrimination, and employee classification issues—they’re the kind of snags that can get you in a real bind.

Comply with Overtime Requirements

If an employee’s new job duties require them to work overtime and you don’t offer additional compensation, you could be in violation of the Fair Labor Standards Act (FSLA), which entitles certain employees to overtime wages.

Discrimination and Unfair Treatment

Employers also need to be mindful when selecting which employees will be reassigned to new roles or offered the opportunity to participate in training programs. It’s best to make these decisions based on demonstrated performance and skill sets. If employees feel they’re not fairly considered for these opportunities, you may find yourself in hot water over Title VII of the Civil Rights Act of 1964, which protects employees from discrimination based on race, color, religion, gender, and nationality.

Classify Employees Correctly

If you’re going to significantly adjust the scope of an employee’s role, be sure you’re complying with FLSA guidelines. Misclassifying independent contractors is a violation of FLSA regulations.

Pros and Cons of Quiet Hiring

The concept of quiet hiring is often painted as a plus for companies but a potential downside for talent. It can be a mixed bag for both sides. Let’s unpack some of the ways quiet hiring can either help or hurt businesses and the people who power them.

The Benefits of Quiet Hiring

The truth is that there are several advantages to this trend:

These benefits are often what push employees to agree to take on new roles and responsibilities to help the company grow.

What to Watch Out For

Though quiet hiring has many benefits, it’s important to be aware of these potential drawbacks:

Many of these issues can be mitigated with a thoughtful quiet hiring strategy that includes increased compensation, frequent recognition and rewards, and a focus on employee wellbeing.

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