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Can Quiet Hiring Reduce Layoffs?

By SONICA ARON
Last updated on: September 03, 2024 16:31 IST
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Quiet hiring allows employees to expand their skill sets, making them more versatile and valuable to the organisation, says Sonica Aron, founder of the HR consultancy firm, Marching Sheep.

  • How to upskill in your career? Ask rediffGURUS HERE.

what is quiet hiring? will quiet hiring reduce layoffs

Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy RDNE/Pexels.com

Today's organisations are faced with a challenging hiring environment due to rising competition, the need to manage recruitment costs and the limited talent pool, particularly when it comes to certain niche roles.

The challenge is two-fold -- attracting new talent in the organisation while also retaining top performers who possess in-demand skills.

This has made organisations to think outside the box and find solutions to address their needs internally while minimising the risks.

This is how the concept of Quiet Hiring came into existence.

What is Quiet Hiring?

Quiet Hiring is an evolving trend in the workplace that allows organisations to fill skill gaps by reallocating existing employees to new and wider roles rather than recruiting new talent.

Some companies do this by assigning new roles to certain employees to better utilise their skills.

Some help employees to expand their capabilities through training, upskilling, reskilling and increased assignments.

Quiet Hiring is actually very beneficial for both employers and employees. Some clear outcomes include:

Reduction in recruitment cost

Different channels of recruitment, whether through hiring agencies, online portals or employee referrals all include a cost.

With Quiet Hiring, companies can save on hiring costs and associated expenses like job advertisements, travel and infrastructure cost, onboarding new hires and training new employees for the role.

Faster talent acquisition

Recruitment is a long process which involves job posting, interviews, onboarding and training.

Organisations also need to prepare for the time it will take for a new employee to settle in and become productive.

By leveraging an existing talent who is well settled in the company's culture, organisations can quickly fill skill and knowledge gaps as well as available roles with agility.

Enhanced employee retention

Internal promotions and movements and skill development opportunities lead to higher employee satisfaction, engagement, loyalty and retention.

Employees see this as an opportunity to increase their skills and competencies within the organisation.

LinkedIn's 2023 Workplace Learning Report highlights that internal promotions significantly increase the likelihood of employees remaining with their organisation.

Skill development

Quiet Hiring allows employees to expand their skill sets, making them more versatile and valuable to the organisation.

This can foster a culture of continuous learning and development which is an important need for today's workforce.

Career growth

Employees who take on new or expanded responsibilities find growth opportunities in the same organisation.

Quiet Hiring can serve as a pathway for their career growth and allow them to showcase their capabilities.

Increased job satisfaction

Engaging in new roles can lead to higher job satisfaction as employees feel their contributions are recognised and valued.

According to psychologist Frederick Herzberg, true motivation comes from achievement and recognition. When individuals are given the opportunity to take on new responsibilities, it not only boosts their confidence but also reinforces their sense of purpose within the organisation.

 

While Quiet Hiring can offer substantial benefits, it's not without risks. It also presents some potential drawbacks that organisations and employees should be aware of.

Potential for burnout

When organisations reallocate responsibilities without considering the existing workload of their employees, it can lead to an overwhelming increase in tasks and expectations.

Employees who feel consistently overworked may ultimately seek opportunities elsewhere, prompting organisations to lose valuable talent.

Lack of diversity

By primarily relying on internal talent to fill roles, organisations may inadvertently limit the influx of new perspectives and ideas that external candidates can bring.

A homogeneous workforce can lead to organisational stagnation, as diverse viewpoints are essential for innovation, problem-solving and adaptability in a rapidly changing market.

Communication challenges

If Quiet Hiring practices are not managed transparently through a merit-based process, they can lead to misunderstandings and mistrust among employees and team members.

When employees are unaware of the criteria used for reallocating roles or feel overlooked for new opportunities, it can create feelings of resentment and disengagement.

Uncertain career paths

Frequent shifts in roles can create uncertainty about growth prospects, leaving employees anxious about their future within the organisation.

When employees are constantly moving between different positions or taking on new responsibilities, it can be challenging for them to envision a clear path for advancement.

 

This is where HR plays a critical role in the successful implementation of Quiet Hiring strategies.

Transparent process and effective communication

Hiring managers must ensure a structured process when it comes to selecting people, ensuring the transition and necessary upskilling.

There needs to be transparent communication around the process. Moreover, the frequency should be managed so as to not lead to uncertainty.

Assessing skills and interests

Hiring leaders should conduct assessments of the current talent pool to identify existing skills and competencies.

Understanding an employee's career goals and interests is essential for matching them with appropriate opportunities.

This, followed by a comprehensive learning plan, will include creating a robust skills and competencies framework required for success and mapping people to roles.

Providing support and resources

To facilitate a smooth transition, HR should offer training programmes and resources that equip employees with the skills needed for their new roles.

This support can help employees transition to new roles seamlessly.

Monitoring workloads

Recruiters should keep an eye on employee workloads to prevent burnout.

Overloading employees can lead to dissatisfaction and decreased productivity, which ultimately undermines the benefits of Quiet Hiring.

Evaluating and adjusting strategy

Hiring managers should regularly evaluate the effectiveness of quiet hiring initiatives by gathering feedback from employees and assessing performance metrics.

Stay interviews play a critical role here. Ongoing conversations with employees allow organisations to make necessary adjustments and improve the process over time.

 

To assess the effectiveness of Quiet Hiring, companies can implement several key metrics and strategies:

Performance metrics: Monitor the performance of employees who have taken on new roles, focusing on productivity and goal achievement.

Retention rates: Track turnover rates before and after implementing Quiet Hiring initiatives to evaluate their impact on employee retention.

Skill development assessments: Evaluate the skills acquired by employees through Quiet Hiring to ensure that the initiative is fostering professional growth.

Feedback mechanisms: Create channels for employees to provide feedback about their experiences with Quiet Hiring, allowing for continuous improvement.

Workload analysis: Assess the distribution of workloads to ensure that employees are not overwhelmed, which can help mitigate burnout.

 

While Quiet Hiring may have its share of drawbacks, it is true that this new trend presents a unique opportunity for organisations to optimise their existing workforce while fostering employee growth and satisfaction.

If we also look at the big picture, Quiet Hiring will reduce the unsavoury news of layoffs that one gets to read every other day, which in the long run can negatively impact the overall economy.

However, it requires careful management and clear communication to avoid potential pitfalls.

By understanding the benefits and challenges associated with Quiet Hiring and implementing effective measurement strategies, companies can create a positive environment that supports both organisational goals and employee development.

  • How to upskill in your career? Ask rediffGURUS HERE.

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