There’s yet another new term for what’s happening in the workplace: “quiet cutting.” This practice sounds similar to “quiet quitting” but is very different. Where quiet quitting is employee disengagement, quiet cutting describes the practice of reassigning an employee to an undesirable role in the hopes the employee will quit. Furthermore, some businesses may choose a quiet cutting strategy so they can avoid paying severance.
Quiet cutting is a high-risk cost-cutting tactic. The approach could be seen as discriminatory if, for example, the employee believes the reassignment relates to a protected category under Title VII of the Civil Rights Act of 1964, such as sex, race, or religion. Additional consequences of quiet cutting could include negative impacts on employee morale, high performers becoming dissatisfied, and the employer brand being tarnished.
If employers are reassigning employees to avoid paying severance, they need to first understand their obligations. Employers aren’t legally required to pay severance unless a contract requires it. But in some states, employers may be required to pay out unused vacation days.
If employers need to reduce budgets, leaders should consider alternative cost-saving measures, not quiet cutting. Fortunately, there are several reliable ways to avoid quiet cutting.
Reassign Employees with Care
Quiet cutting uses reassignment to pressure employees to quit. However, reassigning employees isn’t an inherently risky move. Businesses may reassign employees for many reasons, including budget cuts, performance management, and business restructuring. What’s most important when reassigning roles is the how and why of the reassignment.
When reassigning employees, businesses should approach their strategy like they would layoffs to make sure they aren’t targeting certain categories of workers. The reassignment also can’t be viewed as a retaliation against or a focus on a protected class. Apply the same strict criteria to reassignments as you would to layoffs.
If possible, involve employees in reassignment decisions by asking for their input. Consider collaborating with frontline managers to reassign employees in a way that gives them the opportunity to succeed. Connect them with mentors within their new department so they can learn and thrive in their new position, and after the reassignments take place, check in often to assess effectiveness.
Communicate Clearly
If a business must cut costs but wants to retain high performers, it’s essential to communicate with the entire organization—those impacted by a reassignment and those staying in the same role—so everyone understands the strategy behind the budget cuts. Otherwise, employees may develop misconceptions about the motivations behind the cuts to the detriment of staff morale.
For example, if employees must be reassigned to another role, explain how this will cut costs, but emphasize any further reasons the assignments will benefit the organization. Training employees in new tech like artificial intelligence (AI) can also be a motivating factor for reassignment; a PwC survey found in August 2023 that over 6 in 10 leaders say they have plans to train employees in new technology.
Acknowledge that budget cuts aren’t ideal, but highlight the positive. Reassure employees, but don’t make promises you can’t keep. When budget cuts are made for the right reasons and communicated well, they can rally employee morale, increase engagement, and solidify employee commitment to the organization.
Show Empathy During Layoffs
Should layoffs become necessary, leaders need to show empathy and compassion. Employees are often aware layoffs are a possibility. According to LinkedIn data, almost a third of Americans were concerned about budget cuts and layoffs in late 2022. When layoffs occur, workers again want to understand the why and how. Employees who remain in the organization post-layoffs will also pass judgment on how their leaders implemented layoffs, so organizations need to act wisely to keep their trust.
No matter how empathetically management communicates layoffs, employees may still feel upset. However, the relationship will end on a far more positive note if employers make the effort to develop layoff packets, offer resources for their job search, and communicate promptly and transparently.
Prioritize face-to-face communication during layoff conversations, as this can support a stronger human connection. Keep in mind, however, that in remote work environments, it may be necessary to share the news via a private video call. While managers in some cases may need to inform several employees at once, try to avoid group calls announcing layoffs, as these can feel insensitive and impersonal for workers.
Quiet cutting isn’t a wise business strategy. However, when reassignments or workforce reductions must be made, it’s possible for employers to do so in a manner that sets the employees and the organization on a positive path forward.
Fernanda Anzek is a managing director of HR operations with Insperity, a provider of human resources offering the most comprehensive suite of scalable HR solutions available in the marketplace. For more information about Insperity, visit www.insperity.com.