On August 20, 2024, the American Chamber of Commerce (AmCham) of the Philippines hosted a forum addressing a significant challenge facing organizations today: quiet quitting. The event featured distinguished speakers, including Ernie Cecilia, Human Resource Committee Chair of AmCham Philippines, and Dr. Ramon Segismundo, DBA, CEO of One HRX, who provided invaluable insights into this topic. Panelists included Michael Panlaqui, Country Head of Human Resources at Bayer Philippines, and Grace Sorongon, Senior Vice President and Managing Director of John Clements Consultants, Inc., who shared their thoughts and strategies on how companies can turn disengaged employees into motivated contributors.
Understanding Quiet Quitting
“Quiet quitting” is a buzzword that has gained attention in recent years, particularly among Gen Z employees. Harvard Business Review describes it as a scenario where employees opt out of tasks beyond their assigned duties or become less psychologically invested in their roles. Unlike traditional quitting, where an employee leaves the company, quiet quitting occurs when an employee stays but disengages, doing only the bare minimum to get by.
This phenomenon is especially prevalent among Gen Z workers, who often reject the “hustle culture” that demands constant overachievement and sacrifices for career advancement. As noted by The Wall Street Journal, many Gen Z employees express sentiments like, “I’m not going to go the extra mile,” as a form of resistance against this relentless culture.
In the Philippine context, quiet quitting manifests in various forms, such as “switch-off” employees who appear disengaged and “ghost employees” who remain on the payroll without contributing meaningful work. These behaviors lead to competitive disadvantages for organizations. Whether employees are doing nothing or just enough to meet expectations, the impact on business performance is undeniable.
Strategies to Address Quiet Quitting
Leadership Involvement: Effective leadership is crucial in addressing quiet quitting. Leaders should redefine job roles, actively listen to employee concerns, and invest in their development. The focus should shift from promoting hustle culture to encouraging job crafting, where employees can tailor their roles to better fit their skills and interests.
Cultural Transformation: Companies need to foster a culture that celebrates diversity, encourages feedback, and supports coaching and mentoring. By embracing these values, organizations can create an environment where employees feel valued and engaged, reducing the likelihood of quiet quitting.
Introducing Quiet Hiring
Quiet hiring is a strategic response to quiet quitting. Rather than letting disengaged employees remain idle, organizations can reallocate these workers to roles that better match their skills or expand their responsibilities through upskilling and stretch opportunities. This approach allows companies to acquire new skills without the time and financial costs of hiring new full-time employees.
As noted by Gartner, quiet hiring involves assigning existing employees to new roles or expanding their responsibilities. Forbes adds that this practice helps employers avoid the expenses associated with recruiting new talent. Essentially, quiet hiring turns a potential liability—disengaged employees—into a valuable asset by investing in their development.
The Misconceptions and Reality of Quiet Hiring
A common misconception among employees is that “going the extra mile” equates to making unnecessary sacrifices. However, consistently going above and beyond is one of the best ways to build “career capital,” which includes the skills, knowledge, traits, and connections that give employees the freedom to shape their careers.
Quiet hiring is not merely about assigning more work to employees; it’s about investing in their development. In the Philippine context, this may mean taking on multiple roles within the same organization, having a clear career roadmap, and building a strong employer brand that attracts top talent.
Strategies to Drive Quiet Hiring
- Linking Rewards to Performance: Traditional methods of motivation, such as linking rewards and penalties to performance, are not always sufficient. Organizations should focus on articulating a clear purpose, enabling mastery of skills, and championing employee autonomy.
- 7S Model (McKinsey): This model provides a comprehensive approach to driving quiet hiring. It includes fostering belief in the company’s strategy, ensuring cultural alignment, building efficient processes, developing great leaders, and implementing upskilling programs.
- Creating a “Cool” Organization: Companies must strive to be appealing to all generations, from having an iconic CEO to creating a “sexy” workplace. This includes ensuring that the company narrative is inspiring and that the work environment attracts top talent.
The Risks of Quiet Firing
While quiet hiring offers advantages, speakers cautioned against “quiet firing,” which involves placing employees in an “organizational freezer” without opportunities for merit increases or career growth.
Unleashing Organizational Potential
Dr. Ramon Segismundo’s 9-point plan for unleashing organizational potential offers a roadmap for building a high-performance organization:
- Drive a culture of growth and development.
- Build leaders who act as coaches and mentors.
- Link initiatives to a “Big Hairy Audacious Goal.”
- Develop a powerful narrative relatable to all employees.
- Measure performance and development consistently.
- Leverage technology and data for decision-making.
- Fuel innovation through creative thinking.
- Empower and delegate responsibilities.
- Instill accountability throughout the organization.
Insights from the Discussion
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Shifts in Workplace Dynamics
During the forum, Grace Sorongon addressed younger HR professionals and students, highlighting the significant shifts in workplace dynamics, particularly since the pandemic. She emphasized how trends like quiet quitting and quiet hiring are becoming increasingly relevant.
Ernie Cecilia echoed this sentiment, noting that many millennials and Gen Z employees now prioritize work-life balance and exhibit lower tolerance for demanding work environments. He pointed out that this shift is often influenced by the stability their current circumstances provide.
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The Role of Purpose in Combating Quiet Quitting
Panelist Michael Panlaqui shared valuable insights from Bayer Philippines, where a strong company purpose—”health for all, hunger for none”—plays a crucial role in combating quiet quitting. He illustrated the importance of focusing on outcomes rather than just outputs by using the analogy of preparing a meal. He explained that the goal is not merely to cook but to create memorable experiences with loved ones, emphasizing the value of meaningful contributions.
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The Necessity of Employee Engagement
Ernie Cecilia reinforced the necessity of employee engagement, cautioning that many employees may appear engaged on the surface while feeling disengaged underneath. This conversation revealed that the current generation is more inclined to prioritize mental health, work flexibility, and meaningful contributions, which can lead to a lower tolerance for traditional corporate structures.
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Survey Findings on Quiet Quitting
Ernie also shared survey findings that identified the top reasons behind quiet quitting. These included low pay, a lack of career development opportunities, and burnout stemming from mental health challenges and the pressures of digital transformation. These factors highlight financial constraints and limited growth prospects as significant contributors to employee disengagement.
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Shifts in Employee Motivations
Grace Sorongon noted a shift in employee motivations over time. In the past, many sought career opportunities outside their current organizations, often referred to as “greener pastures.” However, today’s workforce places a greater emphasis on work arrangements and flexibility, particularly remote work options. Factors such as traffic congestion and location now play critical roles in employees’ decisions to leave their jobs, reflecting the changing dynamics of the modern workplace.
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Audience Contributions: Generational Perspectives on Work
The audience contributed to the discussion, with one HR member emphasizing that burnout has become a primary concern, particularly among millennials. Many express mental health challenges when presented with a cause letter for their actions, showcasing a generational shift in how mental well-being is viewed. The current generation appears less tolerant of stressful work environments, often prioritizing mental health over traditional career expectations.
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Millennial and Gen Z Attitudes
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A millennial participant challenged the notion of low tolerance among younger workers, suggesting that millennials and Gen Z individuals are more attuned to their capabilities and entitlements compared to older generations. While older generations are accustomed to hierarchical structures and have been shaped by post-war hardships, millennials and Gen Z are more willing to explore their potential and advocate for a better work-life balance.
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The Impact of Technology on Gen Z
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One Gen Z student added that while mental health remains a significant challenge, advancements in technology provide opportunities for acquiring knowledge and developing original ideas. This creates a paradox, as technology facilitates access to information but also exposes them to criticism regarding the originality of their work.
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Instant Gratification and Its Effects
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Additionally, another student observed that Gen Z individuals have grown accustomed to instant gratification, given that much of what they seek is available at their fingertips. While this shift may contribute to a lower tolerance for frustration, it also fosters a broader perspective on their potential achievements.
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Generational Differences and Work Ethic
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The panelists agreed that the differing attitudes of millennials and Gen Z are not inherently wrong; they reflect generational experiences. Older generations, shaped by a history of hardship and a strong work ethic, often value perseverance and dedication. In contrast, millennials and Gen Z, who have different life experiences, may feel less inclined to endure similar struggles and are more focused on achieving fulfillment in their careers.
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Valuing Contributions and Growth
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Another student shared her perspective, emphasizing the importance of acknowledging millennials’ and Gen Z’s motivations for leaving jobs. This is not merely a question of winning attitudes but rather a desire for validation and meaningful contributions. She recounted her personal experience of choosing a startup with a slightly lower salary, valuing the direct impact of her work over being part of a lengthy corporate process. This signifies a merging of understanding their potential contributions to organizations while also seeking opportunities for personal growth and development.
Addressing Quiet Quitting and Boosting Team Engagement
Are you looking for effective ways to handle quiet quitting and enhance team engagement? Our blog offers practical advice and actionable strategies to help you address these challenges. Explore our latest insights and start implementing solutions today. Start reading now!
