In the world of work, challenges are par for the course, and so are the workplace trends that emerge in response to issues. One such trend gaining momentum today is quiet cutting. A trend that has garnered attention, especially against the backdrop of economic uncertainty, has even been a subject of discussion on several global platforms, as companies seek alternatives to traditional layoffs.

It all began as a response to quiet quitting and the great resignation, which were seen as indications of a robust economy and a tight labour market where employees held the upper hand. Quiet cutting suggests that the balance is shifting, with employers regaining more control.

While quiet cutting may initially appear advantageous for companies, the reality is more nuanced. To delve into this trend, we sat down with Juan Felipe Velasco Sáenz, COO of the recruitment agency Remoti. In the interview, he delves into what quiet cutting entails, dispels common misconceptions, and explores viable alternatives. 

Understanding Quiet Cutting: The latest workforce trend

For those within the realm of Human Resources, the emerging workforce trend known as quiet cutting is likely not a foreign concept. This trend has been making waves recently as organisations across the globe increasingly adopt this strategy. In essence, quiet cutting entails organisations streamlining their workforce without resorting to the traditional method of layoffs. Instead of terminating employees, companies opt to reassign them to different roles or departments.

This trend has largely arisen in response to economic considerations. Many organisations have come to the realisation that they need to make cost-effective adjustments to ensure stability. Simultaneously, they are hesitant to resort to employee layoffs due to concerns about potential staffing shortages and the accompanying risks of increased unemployment insurance rates. Furthermore, companies aim to mitigate the adverse consequences associated with conventional layoffs, such as the loss of valuable talent and the cultivation of an atmosphere of fear and instability.

"While quiet cutting is a relatively new buzzword, the underlying strategy is not entirely novel. It primarily involves the redistribution of employees into different roles, which can sometimes be perceived as an indirect encouragement for them to seek employment elsewhere. However, this approach carries inherent risks for organisations. Employees who view their reassignment negatively are more likely to start exploring alternative job opportunities, ultimately leading to higher turnover rates," told Juan Felipe Velasco.

Myths and realities of Quiet Cutting

The Chief Operating Officer (COO) of Remoti addressed a prevalent misconception related to the ease of terminating employees and hiring new ones with the requisite skill set for alternative roles. This misconception hinges on the belief that skills are static and cannot be developed. In reality, skills are malleable and can be nurtured over time. To support this notion, organisations can invest in training and development programs aimed at equipping employees with the necessary skills for their new positions. This concept forms the core of the quiet cutting strategy.

A fundamental principle that underlies the adoption of quiet cutting by companies is the preservation of valuable employees. Top talents are valuable assets to an organisation, and the objective is to retain them rather than risk their departure through termination. Employee reassignment enables organisations to harness existing strengths possessed by their employees, such as their strong work ethic and interpersonal skills, in a new role where they can thrive.

"However, it's my belief that reassigning employees with the intention of making them uncomfortable or coercing them to leave is an unsound strategy. Such an approach can foster a hostile work environment, damage overall morale, and drive away or alienate talented employees. The termination of employment should be carried out professionally and with legal guidance to minimise any negative repercussions. It is of paramount importance to ensure a proper alignment of skills and expertise with the job role rather than attempting to force a fit through reassignment," emphasised Mr Velasco.

Enhancing collaboration in a quieter workplace

In a quieter work environment, effective communication and collaboration among team members become pivotal for success. Juan Felipe Velasco Sáenz, the Co-founder and COO of Remoti, highlighted the significance of these aspects for any organisation and shared some insights:

1. Values of communication:

• Honesty, directness, and transparent communication are fundamental in work and personal life.
• Lack of understanding within the organisation can lead to employee disengagement.

2. Prioritising communication:

• Companies and HR professionals must make enhancing communication a priority.
• Employees need to feel connected to the company's purpose, daily challenges, and specific roles.

3. Actions to enhance communication:

• Regularly conducting company-wide meetings to share numbers, strategies, and open the floor for questions.
• Implementing structured goal-setting programs, such as OKRs (Objectives and Key Results), to help employees understand their objectives and contributions to broader company goals.

4. Fostering an Open-Door culture:

• Encouraging employees to express concerns.
• Recognising employee contributions and fostering an environment where feedback is welcome at all levels of the organisation.
• Office spaces and designs can support this culture, but the essence lies in enabling feedback from everyone, regardless of their position.

The impact of workplace silence

Juan Felipe Velasco emphasised that an open-door policy shouldn't be misconstrued as a free pass for employees to voice grievances without accountability. He underscored the importance of a key distinction. To him, an open-door policy implies that individuals bear responsibility for their communication, feedback, and the ensuing outcomes.

This policy centres on receptivity to constructive feedback, innovative proposals, and transparent exchanges. Many have likely encountered comments from employees expressing dissatisfaction without offering actionable solutions, and this is precisely what leaders aim to address with an open-door approach. Employees are encouraged to take ownership of their statements, queries, or suggestions. The focus isn't solely on identifying issues but also on presenting viable resolutions.

Mr Velasco further acknowledged that the effectiveness of an open-door policy can vary depending on leadership styles and industry-specific dynamics. For instance, the technology sector and traditional financial institutions exhibit contrasting approaches when it comes to engaging with superiors. However, regardless of one's role or responsibilities, he stresses that individuals possess the capacity to infuse excitement and significance into their positions.

He elaborated, stating, "Whether one feels undervalued or unheard, a share of the responsibility rests with the individual. When a sense of undervaluation arises, it becomes imperative to proactively address the matter. If encountered with roadblocks or unresponsive management, it might be an opportune moment to explore alternative prospects. Ultimately, individuals wield the potential to instigate positive transformations in their workplace and act as catalysts for a more favourable work environment. It's about taking initiative rather than awaiting passive change."

Quiet Cutting: Effects on HR professionals' mental health 

While the task of potentially reassigning employees can be challenging for HR professionals and organisational leaders, the ultimate focus should always be on employee mental health and well-being, as these are pivotal for a successful organisation.

“In today's workplace, a notable trend is emerging with young managers and leaders taking on significant responsibilities relatively early in their careers. This transition can present challenges, as they may lack the experience and a well-established career trajectory. As an HR leader, I emphasise the importance of addressing these issues from the outset,” stated the COO of Remoti.

It is imperative to dispel the misconception that leaders must be flawless and devoid of emotions. In reality, leaders are human beings with their own emotions. They should feel comfortable expressing their feelings to their teams. Acknowledging when one is upset or not at their best can actually foster more respect and cultivate a supportive team environment. The belief that leaders must always exhibit unshakable composure and perfection is a counterproductive one.

“Trends like quiet cutting can have an impact on mental health by causing affected employees to feel stuck, unchallenged, and undervalued. Leaders and HR professionals should acknowledge their own humanity and proactively address these issues to prevent them from escalating and affecting employee well-being. This entails creating an environment where emotions can be openly discussed and where personal growth and development are encouraged for everyone,” emphasised the COO of Remoti.

The path forward: Alternatives to Quiet Cutting

Instead of turning to approaches like quiet cutting, organisations can opt for several viable alternatives to handle workforce changes more efficiently and transparently. 

• Organisations should prioritise open and clear communication regarding the reasons for any organisational adjustments and should articulate the underlying goals. This approach builds trust and comprehension among employees, enabling them to understand the rationale behind the transformations.
• Moreover, it's essential to conduct a thorough evaluation of employees' skills to ensure they align effectively with their new roles. By establishing explicit criteria based on skills, experience, and potential, organisations can make well-informed decisions concerning potential reassignments.
• Employee input holds immense value in this context. Encouraging employees to share their preferences and career aspirations ensures that their voices are acknowledged and respected. Their feedback should be taken into account during the decision-making process. 
• Lastly, organisations should underscore their dedication to employee well-being during the transition. By highlighting how reassignments contribute to career growth and demonstrating that employees' welfare is a priority, organisations can navigate workforce changes more seamlessly.

"For employees who find themselves in new positions due to these changes, it's crucial to take proactive measures. This involves becoming thoroughly acquainted with their new responsibilities and expectations. Engaging in open and constructive dialogues with their managers is equally vital to address any questions, concerns, or necessary adjustments for a successful transition. Striving to comprehend the reasons behind the role change can offer clarity and a broader perspective. Maintaining a polite and professional demeanour during these conversations is essential, ensuring a positive and constructive approach to change, potentially benefiting the employee's career progression," emphasised Juan Felipe Velasco, Co-founder and COO of Remoti.