By focusing on training for evolving roles, organizations can retain their existing workforce and avoid “quiet cutting.”
By Maggie Mancini
As economic uncertainty abounds, organizations are looking for ways to manage costs while maintaining operations and preparing for the future. For some companies, “quiet cutting”—in which businesses reshuffle talent into roles with less responsibility, fewer perks, and unclear development paths—has emerged as a potential solution to cutting costs while avoiding the trauma that comes with conducting outright layoffs, says Hannah Yardley, chief people and culture officer at Achievers.
According to Careerminds, a global outplacement and career management services provider, employers use quiet cutting as a strategy to avoid reputation damage from mass layoffs, shift the market power back to leadership in a weaker job market, and some employers may hope it will push employees to leave voluntarily. However, 56% of employees would rather be laid off than quietly cut, Yardley explains—likely because they had no say in the change and now feel undervalued or directionless.
It all comes down to trust and belonging, which are already low. Achievers Workforce Institute (AWI) finds that only 23% of employees say they trust their company’s leaders.
“While it may be a way to ease tensions around staff changes and budget cuts, quiet cutting can still have a significant impact on employee morale and potentially cause reputational damage for employers,” Yardley says. “That being said, some role changes are critical, and it’s problematic to classify good role restructuring as quiet cutting given this is necessary and prevalent in today’s changing skills landscape.”
In addition to quiet cutting, AI and other technologies are changing the way people work, Yardley adds, and creating new job positions and skills requirements. As this happens, employees’ roles need to change too.
“To build tomorrow’s workforce, defined by smaller teams and diverse skills, companies must focus on finding and training the right talent for key roles, and this could prompt HR leaders to initiate restructuring or role reassignments,” Yardley says. “Our research shows organizations should actively seek new roles and development opportunities for employees who are ready to uplevel their skills and progress in their career journey.”
Employees who believe their company has a strong internal mobility program, which is geared to help guide these transitions, are 26% more likely to stay, according to research from AWI. An effective internal mobility program could be the exact tool an organization needs to future-proof their top talent, Yardley adds.
“When career shifts happen without notice or transparency, employees may feel like they have been misled, demoted, and overall undervalued,” Yardley says. “As a result, employees may not feel connected to their work and stop going the extra mile.”
To combat this, HR leaders must be transparent and authentic when sharing changes in job roles and responsibilities, particularly if these changes are the result of legitimate role restructuring or skills development needed to support the future of work, she adds.
“HR leaders can also involve employees in redesigning their new roles, giving employees their voice back,” Yardley explains. “The voice of the employee is vital to improve trust between employees and employers, plus it fosters a sense of belonging at work. When employees see their feedback leading to real change, it can boost morale, employee productivity, and increase overall engagement.”
Recognition is a powerful tool to help improve engagement and morale, especially during uncertain times. Research from AWI reveals employees recognized at least monthly are 33% more likely to stay with their current employer, even if paid below the local market rate. Employees receiving monthly recognition from their managers report two times as much productivity and engagement and three times more trust in their managers.
“Clear recognition is a gateway to directing new behaviors and skills development as employees land in their new or revised role,” Yardley says. “It helps employees know that they are doing the new, right things in their role and reinforces whereas an organization or leaders you appreciate employees putting more of their discretionary time.”
Peer recognition can also be impactful in building workplace connections. Research from AWI finds that employees who receive at least monthly recognition from their peers are twice as likely to feel connected to their coworkers and to say they get along with most of the people they work with. For someone new to a team, that sense of connection is invaluable, Yardley adds.
When leaders lead with transparency, employees are more likely to respond in kind—especially when it comes to feedback, Yardley says. That feedback must be met with action. AWI data shows that acting on feedback increases trust in company leadership by 75% more than simply collecting it.
“Transparency should be centered around acknowledging employees’ contributions, rewarding their efforts, and giving employees a real say in shaping their roles within a company,” Yardley says. “Companies that are open and transparent about role changes, pay, and career growth tend to experience increased loyalty and engagement, fostering a culture that employees want to be a part of long-term.”
Recognition data can be an effective resource to help HR leaders move away from quiet cutting and, instead, build intentional internal mobility strategies, Yardley says. The impact is clear, as AWI research finds that organizations using recognition to track and validate skills are 38% more likely to quickly identify employees with high-priority skills.
“While few organizations have figured this out, they don’t need to start from scratch,” Yardley says. “With the right combination of recognition, feedback, and development tools, they can build internal mobility strategies that aren’t seen as quiet cutting, but as meaningful investment in people’s growth and potential.”
