Quiet hiring

What is quiet hiring?

Introduced early in 2023, the concept of quiet hiring isn't exactly new. It refers to the practice in which employers assign additional tasks – either temporarily or permanently – to avoid the time-consuming and costly process of hiring new employees. This transfer of responsibilities should not be viewed as a cost-cutting move, but rather as a strategic allocation of talent. Companies evaluate their current workforce and strategically relocate employees to areas where they are most needed, whether that means slowing down certain operations or reducing the workforce in other areas.

Quiet hiring also occurs when a company:

• Outsources specific functions, such as hiring freelancers or contractors;
• Hires part-time employees or short-term workers without offering full employee benefits.

Why do companies use quiet hiring?

Quiet hiring is a strategy for businesses aiming to thrive even under challenging conditions. The following points explain its growing popularity:

• The future is uncertain. Market fluctuations, political changes, and global conflicts all create instability, prompting companies to avoid investing in new full-time positions and long-term contracts. Many companies now prefer to operate on a project basis and use quiet hiring to temporarily fill gaps in their teams.
• Demographic changes and talent shortages encourage companies to first seek internal solutions before turning to temporary staff or new hires.
• Hiring new employees is expensive and time-consuming. Quiet hiring significantly reduces these costs, sometimes with just a small increase in current employees’ salaries for taking on new duties.

Benefits of quiet hiring

A survey from January 2023 reveals that:

• 19% of employees are willing to take on a new role temporarily;
• 39% would not leave their job, viewing quiet hiring as a growth opportunity;
• 63% see it as a chance to acquire new skills.

For companies, quiet hiring means:

• Greater flexibility in managing human and financial resources;
• Faster adaptation to changing market conditions;
• Skill development which can enhance job satisfaction and loyalty;
• Efficient use of resources, as employees familiar with the company culture and processes often perform better than new hires;
• Significant cost savings – there are no expenses related to recruiting, hiring, and onboarding a new employee.

Quiet hiring also benefits employees as they:

• Can develop new skills and gain valuable experiences, enhancing their career prospects;
• Are considered more valuable to the organization, which could lead to quicker promotions;
• Gain increased visibility within the company through involvement in various projects, potentially improving their future career opportunities.

Challenges of quiet hiring

While quiet hiring offers numerous benefits, it also presents several challenges that organizations must consider:

• Moving employees between projects and roles can cause unrest within the team and lower morale. For instance, 27% of employees might question if their company is shutting down if presented with a quiet hiring scenario. Additionally, 41% might view their organization as disorganized and lacking in direction.
• Employees might feel overwhelmed if required to take on new responsibilities without proper support and compensation. They also require adequate time to adjust to these new responsibilities – hastily assigning them without proper preparation is unwise, no matter how long they have been with the company.
• Freelancers and contractors may not have enough understanding of the company, which can affect the quality of their work.
• Taking on tasks that are not part of their original job contracts can blur professional roles and identities. 15% of employees may even reject the idea of quiet hiring, as it was not the role they signed up for.
• If employees feel unfairly burdened with additional tasks, it may increase their likelihood of leaving the job, thereby raising turnover rates.
• Quiet hiring can complicate performance assessments and fair treatment, as it blurs the lines between primary responsibilities and additional tasks.
• Poorly managed contracts or unclear expectations can lead to legal issues and HR policy violations.

Implementing quiet hiring in organizations

Quiet hiring can be an effective adaptive strategy under the right circumstances but requires careful planning and management to avoid potential pitfalls and maximize benefits. For instance:

• Employee mobility and the willingness to tackle new challenges should be properly compensated, whether through financial bonuses or new non-financial benefits.
• Upskilling should align somewhat with an employee’s current role and their career aspirations to ensure mutual benefits.
• Creating a network of past talents and freelancers can facilitate quick temporary hires. Rehiring former employees often costs less than recruiting new talent.

To minimize the negative effects of quiet hiring, organizations should:

• Regularly evaluate workload and provide support for stress management;
• Invest in training and development to enable employees to handle new tasks effectively;
• Clearly communicate expectations and any changes in responsibilities to ensure all employees are aware of their role requirements.

Quiet hiring requires a solid plan to be effective, and businesses interested in this approach should ensure they are well-prepared to implement it successfully.