For those of us who thought quiet quitting was a ‘last year’ phenomenon, it seems we were wrong. In an environment where unemployment is markedly low, just 3.6% in September according to the Australian Bureau of Statistics, employees should be thriving.

Traditionally, low unemployment provides employees with new job opportunities and options for advancement, along with bargaining power for work conditions and salary negotiation. Except we are living in unprecedented times and a workplace does not function in isolation. 

The last few years, months and weeks have taken a personal and professional toll on many leaders and employees. Physical and mental health concerns due to the pandemic, loss of loved ones or relationship breakdowns, isolation, redundancy or changing job roles and expectations, skill shortages, global conflicts, the rising cost of living and rapidly changing technology are just some of the many challenges employees have faced.   

Gallup’s State of the Global Workplace 2023 report indicated only 23 percent of Australians and New Zealanders are thriving, while the quiet quitting disengagement score increased to a high of 67 percent, eight percent greater than the global average. It begs the question, what is driving this trend and what can organisations do to reduce the negative impact on companies and employees?  

What are the key reasons for quiet quitting?  

When it comes to quiet quitting, there are often contributing factors that intersect, rather than just one thing. While it is important to acknowledge that personal reasons can be a key factor, the focus below is on factors in which organisations play a role.   

Working from home has been cited as a key reason behind quiet quitting, because it reduces casual interactions and dialogue, making it more difficult for managers to gauge employee morale, work habits and well-being. This also impacts on relationships and a feeling of connection and belonging. Connection with an organisation’s people and vision are critical to engagement and work performance. 

Burnout is another reason for the increase in employees quiet quitting. According to a report from the University of Melbourne Work Futures Hallmark Research Initiative, Australian workers are exhausted, unwell, at risk of quitting, and largely unprepared for future workplace challenges driven by automation and artificial intelligence. The report suggests Australians are cautious adopters of new technologies in the workplace, with only one-in-five claiming they only adopt new technologies at work when they are forced to!   

When employees feel overwhelmed and unsupported, they may choose to disengage rather than discussing their concerns. In fact, many aren’t comfortable voicing concerns because they fear consequences. Some professions are in demand and others like allied health and teaching face chronic skill shortages, yet vacancies in other fields are declining in Australia. Job insecurity can make employees stay in jobs for the wrong reasons.  

Differing values and expectations can also lead to quiet quitting, particularly as Gen Z enters the workplace and Gen Y progress, or alternatively feel they don’t have the opportunity for promotion. However, this is by no means limited to younger generations, as Gen X reevaluate priorities and many Boomers continue employment beyond government retirement age for financial reasons. The focus of research on quiet quitting at a generational level has been aimed at Gen Z. According to Forbes, Gen Z have growth mindsets and are incredibly agile, which is often hampered by organisations. When combined with less developed skills in managing stress and a more highly tuned avoidance of conflict, quiet quitting can be prevalent.   

What are the key challenges for employers?  

Perhaps the biggest challenge for employers is the complexity of quiet quitting. Each employee will therefore respond differently to how organisations manage quiet quitting. The prevalence of quiet quitting and the need for individualised approaches can be daunting for leaders faced with this silent withdrawal. It’s essential to acknowledge that while many people are trying to heal after the last few years, they continue to face new challenges. Over time this can have an impact on their resilience.   

The avoidance of conflict is also concerning for Australian employers, who have a Positive Duty under Respect@Work to ensure employers are not exposed to psychological health and safety risks. While a reduction in ‘loud quitting’, which according to the according to the State of the Global Workplace 2023 report is 7% lower than the global result of 18%, is technically a positive outcome, it is perhaps indicative of the underlying problem. When employees are in avoidance mode, it is challenging to unearth issues and resolve them. In the meantime, a lack of enthusiasm and productivity may have a negative impact on the team and organisation. In fact, quiet quitting can significantly affect an organisation’s ability to attract top talent, while reducing productivity and recruitment costs.  

To add to the difficulty, organisations are also facing rising costs and dealing with skill gaps and changing technology, all of which requires an engaged and productive team. This puts pressure on leaders to achieve more, which then can have adverse effects on their ability to lead people, and to drive organisational innovation and change.   

Despite concerns the market in Australia is softening, unemployment is still significantly low. The Gallop report states around 80% of employees feel like it is a good time to change jobs, and 43% are watching or actively looking to leave. This can often have an impact on the commitment and dissatisfaction of employees.  

What can employers do to reduce quiet quitting?  

While there are many options for organisations, the follow three reasons should be prioritised for the greatest impact.   

1.  Focus on health and wellbeing  

Improving the health and wellbeing of employees can make a significant difference to employee resilience and engagement in the workplace. In the State of the Global Workplace 2023 report, over 47% said they felt stressed in their job daily. For managers, this provides an opportunity to identify causes of stress and work with employees to minimise or eliminate them. However, effective health and wellbeing strategies are much broader than this, and every employee will have a different journey. Flexibility and agility are key, as is understanding what individuals need from their leaders.   

2.  Invest in your leaders  

Many of the reasons behind quiet quitting can be addressed through effective leadership. Investing in leaders can mean many things; attracting the best talent, training and development, restructuring roles to allow for more time leading rather than managing, being clear on expectations, providing tools to support leaders, and developing a culture that is truly people focused.  

3.  Be open and vulnerable 

Honest conversations can also be helpful, although leaders need to have the knowledge and skills to engage with employees effectively. Providing a space for openness and vulnerability in the workplace is essential when having conversations relating to engagement, and this starts with leaders.   

While we often focus on retaining staff, it is necessary to accept this isn’t always possible. If in discussions employee aspirations or expectations don’t align, it might be worth asking, “What can I do to help you feel more connected or get more enjoyment from this role?” Improving job satisfaction will help to reduce quiet quitting. However, if in the conversation an employee doesn’t think there is anything the company can do to improve their satisfaction, leaders can support them in moving on with one simple statement. “Talk to me if you are considering leaving. If we collectively cannot work through a way to improve your job satisfaction, I will help you to find the right job.” Assistance with a resume, interview skills and as a referee can assist employees to move on faster. This helps to strengthen relationships and facilitate a planned transition. More importantly, it provides a safe space for employees to have more open conversations.  

Bayside Group is an employment and workforce management specialist. If you are looking for talent or require workforce management assistance, contact us today.