Why quiet quitting is a golden opportunity for employers

Quiet quitting gained mainstream attention in 2022 when the hashtag went viral on social media.

While there are various definitions of quiet quitting, in the simplest terms, a quiet quitter is an employee who is not engaged.

According to Gallup’s State of the Global Workplace: 2023 Report, they “are filling a seat and watching the clock” by investing just enough effort into work to maintain their employment – but no more.

The report also shows that 59 per cent of employees across the globe are quiet quitting, while in Australia and New Zealand, that figure is higher, at 67 per cent.

Why quiet quitting?

The World Economic Forum has argued that quiet quitting is evidence of the changing employee–employer power dynamic, a trend hastened by the upheaval of the pandemic. Suddenly, employees began to prioritise wellbeing over work.

“People are reassessing their work–life integration,” says Dr Amanda Ferguson, organisational psychologist and host of the Psych for Life podcast.

Talent management firm Randstad says the phenomenon signals a worrying increase in disengagement, particularly among younger employees.

However, as global analytics and advisory firm Gallup adds, quiet quitters also present organisations with their greatest opportunity for growth.

The challenge for employers is to learn how to identify and re-engage the quiet quitters in their teams. The Gallup report offers clues on where to start, as 85 per cent of quiet quitters say they are disengaged due to three broader issues:

• engagement or culture
• pay and benefits
• wellbeing and work–life balance.

The manager factor

An engaged workforce is characterised by vigour, absorption and dedication, where employees are willing to go above and beyond the scope of their role, Ferguson says.

“It is basically loving and liking your work,” she explains.

Managers play a crucial role in this, with Gallup’s research indicating that 70 per cent of team engagement is attributable to managers.

A 2022 report from US business consultancy Zenger Folkman found that the highest-performing managers had an average rate of quiet quitting among their direct reports of just 3 per cent. However, for the lowest-performing managers, the quiet quitting rate was 14 per cent.

 

"In a safe culture, employees feel valued and capable of taking risks, admitting mistakes and reporting problems they see."

 

The pandemic put undue stress on managers, many of whom were not equipped to manage newly remote teams, Ferguson adds. She recommends training managers in a nuanced style of management that considers individual differences and acknowledges that what motivates one employee might overwhelm another.

“It is an extra skill set where management is tailored for each team member, rather than using the same approach for every employee,” she says.

Drivers of engagement

At audit, tax and advisory firm Grant Thornton Australia, an annual national survey measures employee engagement and its drivers across the business, says chief people and culture officer Kate Lindwall.

“With this data, we can drill down at a micro-level to assess specific teams that may require additional support or attention,” Lindwall says.

“The results of our annual national engagement surveys have shown year-on-year improvements with high engagement scores and an uplift in our people experience, which has, in turn, led to better client service and growth across all parts of the firm.”

Trust and communication are key drivers across the firm, Lindwall adds, which also means listening to employees. “We are willing to try new things, such as the launch of our nine-day fortnight trial.”

Lindwall also highlights Grant Thornton Australia’s Diversity, Equity and Inclusion strategy. The strategy has helped the firm gain certification as a Family Inclusive Workplace™ and to win the Diversity and Inclusion Program/Initiative of the Year at the Australian Accounting Awards 2023.

Top tips to re-engage employees

Organisations seeking to improve employee wellbeing and engagement should focus on creating a culture of psychological safety. If employees do not feel safe in their workplace, Ferguson says, they are not going to feel engaged.

“In a safe culture, employees feel valued and capable of taking risks, admitting mistakes and reporting problems they see.”

Ensuring that resourcing is sufficient for teams to achieve goals and KPIs is also vital. Ferguson recommends asking employees if they have what they need to do their work. It is also important to give credit where it is due, because constructive feedback boosts engagement. “You cannot ‘overpraise’,” Ferguson says.

“Connect the dots,” she adds. “Show the worker where their role makes the difference and why it makes a difference, in case they have lost the sense of meaning about their work. Show them how they are making a positive impact.”