"Quiet hiring" is when companies try to fill talent gaps by increasing the responsibilities of ... [+]
You’ve heard of Quiet Quitting — when an employee becomes so disenchanted with their job that they give as little effort as possible, radiate negativity, and collect a paycheck for as long as the company will endure it. But have you heard of Quiet Hiring?
Quiet Hiring is a troubling trend where companies try to fill talent gaps by discreetly increasing the responsibilities of existing employees without compensation. When an employee leaves a company, the way their responsibilities are distributed has significant consequences downstream. Having existing employees absorb additional duties might seem like an easy short-term solution, but it is actually a passive-aggressive approach that is detrimental to company culture and success.
One of my clients recently had a Quiet Hiring experience. She was the PR Manager of the Dallas branch of her company. The Regional PR Director overseeing Dallas, Houston, and Austin had left the firm, leaving the Dallas and Houston PR Managers to quietly absorb the Regional Director’s responsibilities for almost a year — without receiving any extra pay. Despite the added workload, both PR Managers were successful. Morale was high, teams were cohesive, and their results broke company records. Yet at the end of the year, the firm’s C-Suite chose to hire externally rather than formally promote (and compensate) their internal PR Managers. The external hire, unfortunately, ended up being the wrong fit. Both the Dallas and Houston PR Managers resigned within six months, while the company’s culture and bottom line suffered.
There is a lot to learn from this example. While absorbing the Regional PR Director responsibilities was initially positioned as a promotion, it was temporary and without additional compensation. The impressive accomplishments of the two managers who stepped up to the plate were gravely unappreciated — made glaringly evident as both were overlooked for the Regional Director role. The end result was resentment, burnout, and more turnover within the firm.
Heed the warning of this PR firm's mistakes. Instead of Quiet Hiring, follow these guidelines to keep your culture and bottom line, in tact.
Guide to Hiring Internally to Fill a Role
Hiring internally to fill a role is often a more strategic move, whether it's temporary or permanent. Studies show that internal hires are more loyal, have improved retention, and that 75% are successful in their new job role. Here are two best-practices to follow when hiring internally:
1. Set a time frame and provide an incentive
If you plan to temporarily fill a role internally, communicate the expected time frame to the employee and offer a financial incentive. For instance, a client in an administrative role was asked to fill a gap in the sales team. He wasn't interested in sales long term, but the company communicated that it would be for 2-5 months and there would be a $5K bonus at the end. This helped the employee accept the additional responsibilities without feeling overwhelmed or under-appreciated. A bonus for the extra responsibilities is typically a small percentage of the former employee's salary, which would have been a sunk cost anyway. Consider it as an investment in human capital and a sign of fair play. Clear communication and a clear incentive can turn an employee loss into a win for both the company and the interim replacement. Moreover, it can reduce burnout and increase retention.
2. Don’t pay the unknown more than the known
It’s no secret that you can make more money on the move. The average job change comes with a 10-20% salary increase, while loyalty at a company is mostly rewarded with an occasional cost of living adjustment. It's important to never pay an unknown (external hire) more than a known (internal hire). External hires cost 18% more than internal hires, and are 21% more likely to leave during the first year. Why make a gamble on an outside hire if you can promote a loyal and talented employee who already fits in your company’s culture? Search these employees out, and encourage them to apply for the position. Don’t insinuate (by omission), that the only way to get a promotion is to leave for a competitor. When you give employees a path to grow into new positions and higher salaries, they will likely reward you with more loyalty and higher performance than external hires.
Guide to Hiring Externally to Fill a Role
On average, it takes 25 days to fill a professional vacancy. Additionally, it's been observed that new employees perform at only 25% of their potential during their first few months in a new workplace. Yet, in certain situations external hiring remains the optimal choice. To maximize the success of external hiring, try implementing the following best practices:
1. Clarify Expectations
If someone below the former employee wants the open position but is not yet ready, give them a clear understanding of their growth path and what they need to learn to achieve it. Be honest and specific about the skills and experience they need to acquire. Avoid using vague language like "you're not quite ready" or dismissing them as too young or inexperienced. Hiring externally always carries the risk of cultural consequences. Mentoring and promoting good employees from within is a smoother path for maintaining company culture and building employee loyalty.
2. Select an Appropriate Interim
If you've determined that no one internally can replace the former employee, don't give their responsibilities to someone who will eventually report to the new outside hire. Instead, select an interim employee who is at a higher level. Temporarily giving responsibilities to a lower level internal employee conveys the message that they are trusted to do the job for now, but not trusted to do it when the right person is found. Few things will make an employee pack up faster than using them when you need them, and then communicating a patronizing lack of trust in their abilities soon after.
Wrap-Up
Dealing with employee turnover is challenging, and how you choose to fill vacancies has a significant impact on your organization. Avoid the practice of Quiet Hiring your employees, only to discard them shortly after. This kind of poor decision-making leads to missed opportunities, burnout, and more turnover.
Instead, when an employee resigns, consider it an opportunity to re-evaluate your current employees, help them to define their career paths, and restructure your organization in a more efficient way. If hiring an external candidate is necessary, approach the transition with transparency, communication, and respect.
Ultimately, investing in the development of your employees and promoting from within is often the best path — leading to improved morale, increased retention, and reduced costs associated with recruitment and training. So, take the time to evaluate your internal talent, give them opportunities to grow, and create a culture that values and rewards loyalty and hard work.
