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.
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:
- Learning and development: Incentivize employees to pursue additional education or attend training workshops to acquire new skills.
- Reassign employees: Encourage an employee to embrace a fresh challenge, even if it means changing departments or taking on a role that demands new skills.
- Expand duties: Ask your team to tackle additional tasks in their current role.
- Outsource tasks: Need a particular skill set but don’t have a full-time person for the job? Bring on freelancers or other contract workers.
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.
Is Quiet Hiring Legal?
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:
- Employees get to participate in new learning and development opportunities, which 63% of Gen Z employees say is critical to career success.
- Employees can demonstrate the value of their skills, which can lead to more compensation, better benefits, and a more attractive resume.
- Employers can raise employee morale and engagement as employees take on new and interesting work they’ve expressed interest in.
- Employers can save on hiring costs by decreasing turnover and leveraging internal talent and skill sets.
- Employers may be able to avoid laying off employees by reassigning them to a different role or department.
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:
- If poorly managed, employees may experience unsustainable workloads, which can lead to burnout.
- Employees may become resentful or feel taken advantage of, especially if there’s no additional compensation for the extra work or a clear explanation of how the additional duties will benefit their career.
- People can feel out of place and lose motivation if they’re suddenly shifted to a role that’s not what they signed up for or that they’re not intersted in.
- Employers who aren’t careful may end up spending more than intended on employee overtime wages.
- Employers may lose out on the opportunity to build a more diverse workforce since they are no longer looking for new talent outside of the business.
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.