‘Quiet Cutting’ is the newest workplace fad, and just like those that came before it – ‘The Great Resignation’, ‘Quiet Quitting’, and more – it serves a specific purpose but also causes a lasting and often deeply damaging ripple effect. Quiet cutting is the act of employers trying to get workers to resign by diminishing their responsibilities or changing or demoting their roles. And this phenomenon is on the rise. A whopping 77% of workers have witnessed quiet cutting at their workplace, according to a recent Monster survey.
This leaves a lingering feeling of uncertainty across teams for human resources (HR) and talent development (TD) teams to address. Not only do you have employees working in roles they are unfamiliar and potentially unprepared for, but you have a general feeling of confusion, misdirection, and in the worst case, a total lack of trust in leadership. After all, when the trust in leadership is gone, employees are less likely to listen, be engaged, or think creatively. And this all impacts the bottom line.
Let’s explore the why behind quiet cutting, where this leaves your workplace, and what you as HR and TD leaders can do about it.
Consider its Far-Reaching Impacts
Leaders may decide to utilize quiet cutting for several reasons: budget cuts, operational changes, or a desire to reduce resources without incurring severance or unemployment costs. However, for the employees that choose to stay despite impacts to their role, and for those who may not directly experience quiet cutting but see it among their peers, the impacts are detrimental. The same Monster survey shows that employees at companies experiencing quiet cutting have 80% less trust or loyalty to their employer; 65% report that it contributes to a toxic work environment; and 64% say it has a negative impact on their relationship with leadership.
When employees don’t trust leadership or the organization, it can quickly result in harm to the bottom line. Without this trust, turnover rates are higher, amassing significant costs in hiring. The greatest risk is not that employees leave, according to a PwC survey. Instead, it’s that other employees stay and work tepidly, amassing more sick days, dragging innovation, and weighing down growth over time.
Don’t Overlook the Value of Trust
HR and TD leaders face a major challenge amid the quiet cutting phenomenon: to rebuild trust among the employees that remain to prevent a total loss of productivity and engagement. Luckily, there are practical ways to approach this even if quiet cutting is out of their control.
Prioritize two-way engagement. Organizational leadership should explain to employees why certain choices were made over others, rather than simply stating what decision was made. It is also important to make sure that the leadership team has dedicated time to receive and answer questions from the rest of the team. When employees feel that their opinions are not only heard, but valued, they are more likely to trust their organization. When employees begin asking questions about quiet cutting, make sure to listen actively and provide direct answers to their questions.
Ask thoughtful questions. In many cases, employees may not feel that their questions will be received well by leadership. This may leave them feeling stuck between a rock and a hard place: go on with a lack of understanding or risk ruining their reputation among the higher-ups. As the HR and TD teams, use your role to ask the team questions about how they’re feeling, what they need to be most engaged and productive, and what would provide the clarity they’re looking for. Not only does this make the team feel valued but it gives you clear guidance to take to the leadership team to help them begin rebuilding trust from the top down.
Emphasize a coach approach to leadership. By applying coaching skills, leadership can foster an approach that cultivates trust among all levels of the team. Some coach approach skills include leading with curiosity, valuing the input of all members of the team, empowering employees to feel trusted to make their own decisions, and connecting the role of team members to larger organizational goals. As HR and TD leaders, you can communicate the value of this approach to leadership and provide them access to the training needed to do it effectively.
Trust Conquers All
In today’s workplace, quiet cutting is happening in more ways than one. Even if your company isn’t proactively demoting people or drastically changing roles, employees are witnessing a rise in layoffs and quiet cutting in the broader workplace. This is resulting in a significant decline in trust.
With only 21% of U.S. employees agreeing that they trust the leadership of their organization according to Gallup, HR leaders must take steps now to build and cultivate trust in their company’s leadership team. When HR and TD teams encourage leadership to foster a coach approach – including effective communication that clarifies future goals and alleviates challenges associated with change management – trust in leadership can skyrocket to upwards of 95%.
Quiet cutting or not, the time is now to rebuild trust among your teams. It will pay in the future.