The Impact of Quiet Quitting & Quiet Firing on Organizational Performance

According to a recent State of the Global Workplace Report - Gallup low employee engagement levels cost the global economy $8.8 trillion or 9% of the global GDP, and this is enough to make a difference between success or failure in humanity.

This is indeed a thought-provoking statement that is enough to make anyone who cares about humanity to sit up and notice, especially in light of the current economic challenges. The report also states that leaders can make a difference in turning this around and that the answer lies in how people are managed in organizations. Now, this is not something new. We have heard this so many times before. However, the million-dollar question is why does it seem to be such a challenge to see the change in organizations in how people are managed as indicated in the report?

We do not have to look far; we need the change in our own immediate environments, workplaces and neighbourhoods. Even though we are no longer in the midst of Covid-19, we are still feeling its impact in the changes that it has brought into our lives both personally and professionally. The management of employee mental health and wellbeing has become a part of the organizational culture that can no longer be ignored. Organizations have to continue focusing on the whole person to achieve business results. The engagement of employees must focus not only on the achievement of performance goals but also on their mental health and wellbeing.

Research has also shown that high employee engagement levels translate into high-productivity and retention rates, as well as low absenteeism. Employees who are engaged have an emotional commitment to their organization and are invested in the achievement of its goals and objectives. They are willing to go the extra mile for the customer. As such, customer net promoter scores improve, employees thrive and excel in their performance, which leads to career growth and advancement opportunities. This creates a win-win for both the organization and the employee. However, the reality is that research has also shown that in the workplace something completely different is happening.

We have quiet quitting invading the work environment where employees, according to Gallup are psychologically withdrawing from the workplace. They do not leave the organization, instead, they stay and only do the bare minimum in terms of their job responsibilities. They do just enough to stay below the radar and not raise any alarm bells of non-performance. Some examples of quiet quitting behaviour include not volunteering for any leadership roles, not responding to emails after hours, and only doing what is on their job description. They do not go above and beyond in their work performance.

Gallup has stated that some of the causes for this behaviour may include poor work and life balance, disengagement, stress, burn-out, lack of communication, feeling under-valued and unappreciated, and a lack of a sense of belonging. Statistics show that one in three employees has admitted to quiet quitting and three in four employees are quiet quitting. This is a reflection of the low productivity levels discussed in the Gallup report. This means employees are not performing at their full potential, which means organizations are not operating at their full potential. We then find ourselves with a myriad of missed opportunities that have a ripple effect starting with the individual, to the organizations, to the global economy.

When we look at quiet quitting and overlay it with quiet firing a picture begins to emerge. According to Gallup, quiet firing refers to when a manager fails to provide adequate coaching, training, guidance, career development, and support to an employee, which eventually pushes them out of the organization. The manager’s behavior results in a toxic and miserable work environment, which leads the employee with no other alternative than to resign from the organization. In South Africa, this is similar to what is also referred to as Constructive Dismissal, which is defined by the Labour Relations Act in Section 186 (1) (e) as ‘an employee terminated a contract of employment with or without notice because the employer made continued employment intolerable for the employee.’ In Constructive Dismissal, the employer makes the working experience so miserable and awful for the employee that they are left with no other alternative but to resign from the organization. It is important to note that there are other elements that go into Constructive Dismissal as well.

Quiet firing, can be intentional where the employer forces the employee out of the organization through the negative employee experience. However, quiet firing can also be unintentional in the sense that the manager may care about their direct reports but they are so overwhelmed and distracted by their role and responsibilities that they do not take the time to coach, train, guide, support and monitor the performance of their direct reports that they inadvertently neglect them. It can also be that the manager is also quiet quitting, which presents another set of challenges on its own.

One of the key responsibilities of a manager is to give performance feedback to their direct reports. This is not something extra that they have to do, it is a critical part of their role as a manager. However, this is the part that is often left as an afterthought. Manager performance feedback to their team is one of the key ingredients to driving a high-performance culture in the organization. Gallup research has also shown that one in three employees have stated that they have received feedback on their performance in the past six months. Employees want to get feedback on their performance at a minimum once a week. They want to know how their performance is tracking, what is going well and what they need to improve. It is the role of the manager to ensure that clear goals are set for the employee and that these are reviewed regularly and adjusted as they change or are attained.

In organizations where regular feedback is given to employees, productivity levels are ten percent higher on average compared to their counterparts where no feedback is given to employees. The management of employee performance is a joint responsibility between a manager and an employee. The manager's responsibility is to monitor employee performance and intervene when the performance drops below the required minimum levels. The employee’s responsibility is to ask for assistance when they are not coping with their work responsibilities or need additional training and/or support. The relationship between an employee and their line manager is key to driving performance in the organization. When employees do not have a good relationship with their line manager or do not receive regular feedback on their performance from their manager, this becomes one of the major contributors to quiet quitting. It is also a contributor to them looking for greener pastures. The adage that employees do not leave companies but leave managers still holds true.

Organizations that want to drive a high-performance culture to achieve organizational objectives that will lead to profitability have to ensure that they set clear goals for their employees, ensure that these goals are tracked and monitored regularly. Most importantly, they have to ensure that their managers are trained on how to effectively lead and manage their team. When this is properly executed, the numbers will follow.

If you would like support and assistance with driving a high-engagement and high-performance culture in your organization, contact us @Khocor Human Resources & Coaching and we will partner with you on your journey to unleashing your potential and achieving incredible results. We work with small, medium and large organizations assisting them to achieve their potential.

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