Quiet Hiring: What is this Workplace Trend?

In the aftermath of the COVID-19 pandemic, we’ve experienced what many refer to as the “Great Resignation.” This movement, defined by large numbers of workers voluntarily leaving their jobs, took the quit rate from 1.6 percent in April 2020 to 3.0 percent in November 2021, according to the Bureau of Labor Statistics (BLS). The BLS says that breaks down to roughly 4 million people (about twice the population of New Mexico) leaving their jobs voluntarily each month in 2021.

In contrast to 2021, in 2009, about 1.75 million people (about twice the population of Delaware) quit their jobs in the aftermath of the Great Recession. In 2019, the average was 3.5 million quits monthly—the previous high benchmark.

Since then, other buzzy terms related to staffing, jobs, and skilling trends have emerged in the news media and social media, (quiet quitting, labor hoarding, career cushioning), and the one we want to dig into now is what has been coined “quiet hiring.”

What is quiet hiring, and how does it help with retaining your workforce, building internal talent pools, and succession planning? Let’s explore.

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RELATED: Infographic: Employee Retention & Culture of Connection

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What Does “Quiet Hiring” Mean?

Quiet hiring is being seen by some as a direct response to quiet quitting. When employees “quiet quit,” it’s said they are only offering the bare minimum when it comes to performance—doing their job responsibilities but putting in no more effort than necessary for task completion.

In contrast, “quiet hiring” is said to happen when an employee takes on new responsibilities (or even a new role within their same company), either temporarily or permanently, because of needs in the business. It may or may not come with corresponding compensation and title change to reflect those responsibilities. While it’s not a new practice to fill in skills gaps or support a vacant role with existing talent or contractors, the trending term has sparked a conversation about the practice.

The “quiet” part of the buzz phrase is supposed to imply that this effort is being made by employers without being clear about the intention. It can be seen as a negative way for employers to give more work to high-performing employees without a promotion or pay raise to match so they can reduce or avoid costs.

But for other companies, the idea is designed to train or upskill employees who are ready to do more or as a way to reward those who have already gone above and beyond in their job functions. Think of leveling up opportunities like stretch assignments—taking the lead with a project, owning a new sales segment, or handling a vendor relationship to illustrate how the employee handles themselves in a more visible or demanding role that could lead to leadership.

The key to success really appears to be in having transparent conversations about expectations for the employee in the assignment or role—and what it could lead to.  Simply giving a staffer more to do without an understanding of the larger reasoning, career path, or business impact can lead to frustration for everyone. And don’t forget to be prepared to talk about any additional perks, benefits, or compensation that could go with those expectations!

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The Foundation for Quiet Hiring

Recruiting and onboarding talent comes with a price tag. Society for Human Resource Management (SHRM) confirms the average cost per new hire was $4,700, with the potential to be up to three to four times the position’s salary. If the average weekly paycheck for a U.S. worker is $1,070, that cost of replacing a worker is going to add up fast.

When a valued team member leaves, their absence can disrupt workflows in both obvious and unexpected ways like the loss of institutional knowledge or those key collaborators who bring cross-functional teams together. These individuals have immeasurable impact that is difficult to transfer to new hires—and sometimes only comes with time.

Leveraging or building the skills of your employees can help organizations counter these challenges while drawing on talent that’s already available within their organization.

How can this approach benefit an organization?

• Taps Into Employee Talents: According to a 2023 Workplace Learning Report from LinkedIn, skill sets for jobs have changed 25% since 2015, and 89% of learning and development experts agree that proactively building employee skills today will help the future of work. Organizations that hone their employees’ talents are helping to future-proof themselves for an ever-changing world.
• Shows An Organization’s Vested Interest: Giving employees additional opportunities can make clear how much they are valued by your organization, are invested in their professional development, and want to find ways to build their skills to help them grow. It also underscores that the company is interested in the employee’s long-term growth.
• Fosters a Growth Mindset: Quiet hiring encourages employees to upskill or broaden their work scope, which encourages them to be creative with their role and explore internal opportunities to align with their growing skills and talents.
• Multi-Skilled Workforces are Stronger: Skills-based workforce management means that backfilling roles can happen from your existing team. It may also help with retention and attrition if employees see more opportunities on the horizon. Internal workers can be deployed quickly based on their skills and the skill-based work that needs to be done, irrespective of their job title. It can also be a key part of successful succession planning.
• Better Opportunities for Employees: Training, developing, and promoting employees based on skills vs. tenure or job title can help to democratize access to opportunities for employees, especially those with less traditional education or training backgrounds.

Deloitte’s 2023 Global Human Capital Trends survey revealed that the larger trends of shifting from job titles to skills-based employment will likely become a trend in the future. In fact, according to the study, “organizations currently using a skills-based approach were 98% more likely to retain high performers and 107% more likely to place their top talent effectively.”

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Is Quiet Hiring a Win-Win?

Quiet hiring is part of a larger trend that encourages employers to leverage talent and restructure mobility around employee skills. When it can take months to source new hires that fit the description of a job perfectly, organizations may find this approach a more efficient and effective way to utilize their current workforce.

And the employees can see the benefits from this practice. When managers take time to define work based on the skills required and delegate tasks based on employees’ skill-fit, it can be empowering for the organization and employees alike.