- Quiet layoffs and firings appear to be on the rise.
- This trend aims to minimise the negative impact on businesses but runs the risk of undermining employee trust.
- Experts warn that quietly firing employees could be a PR disaster and damage morale at a company.
The “quietly quitting” pattern came and went, and then the “remaining in a sulky mood” pattern came.
But the latest workplace trend, the “silent layoff” or “quiet dismissal,” may be the most harmful yet.
A silent layoff occurs when a company offers an employee severance pay but asks them to keep quiet about the details of their departure.
On the other hand, a quiet firing or quiet resignation is a subtle move by a boss to make the role less attractive and motivate the worker to quit rather than forcing them to leave. Dismissal.
Experts warn that either move could be a PR disaster and damage morale at the company.
A cautionary tale
The most recent high-profile example of a silent layoff is UK-based accounting firm PwC, which launched a voluntary redundancy scheme earlier this year.
According to the Financial Times, PwC has asked staff not to reveal that they had received the settlement money and has given them advice on what to write in farewell emails to colleagues.
A PwC spokesman told the FT that the voluntary redundancies were being made “in response to changing client demands, staff turnover and new opportunities”.
“Through limited, targeted voluntary attrition, we will be able to continue hiring at entry level and in areas requiring different skill sets,” the statement said.
PwC declined to comment when contacted by Business Insider.
Amit Rawal, a management lecturer at Bayes Business School, City University of London, told BI that silent layoffs are “becoming increasingly common among large companies”.
The aim of a silent layoff is to minimise any negative impact it has on the company, and Eloise Skinner, a psychotherapist who focuses on workplace wellbeing, told BI the tactic could be successful for businesses if kept unobtrusive.
“In theory, keeping layoffs relatively low profile allows a company to maintain trust with stakeholders and existing employees and allows the restructuring to be carried out without undue external analysis,” Skinner said.
However, if the news leaks, as happened with PwC, trust is lost with both current employees and the general public.
Silent Shooting
Silent layoffs became illegal across the United States in February 2023 as part of the National Labor Relations Act. According to CNN, the ruling was enforced by the National Labor Relations Board, an independent federal agency that sets regulations that most companies, except railroads and airlines, must comply with.
Lukas Botzen, HR expert and CEO of Rivermate, told BI that the ruling means companies will be prohibited from entering into non-disclosure agreements or other agreements that prevent employees and employers from enjoying certain rights granted by law, such as speaking out against illegal activity or discrimination.
But American companies still find ways to quietly cut staff by making employee roles less attractive.
As BI previously reported, technology company Dell announced it would switch to a hybrid workforce in February. Back to the office Three days a week, regardless of where you live. Workers who choose to work fully remotely will find their career advancement limited, the anonymous sources said. Registry.
In November, Amazon announced that its employees Promotion blocked If you don't come to the office three days a week.
“Discreetly encouraging resignation is seen as the easier option,” Suzanne Horne, employment law partner at law firm Paul Hastings, told the BBC in 2022. “If the employee ultimately resigns, it's a 'no-fault approach', meaning no severance pay has to be paid, disputes are avoided and both parties are ultimately satisfied.”
“It's a PR disaster waiting to happen.”
Experts told BI that quietly firing an employee could easily backfire if they fight back and speak up.
Such tactics “create distrust, damage a company's reputation and can lead to the unbridled leakage of confidential information,” said Evan Nearman, founder of the public relations firm Red Bunyan and author of “The Curse of Cancel Culture.”
“When transparency is sacrificed, rumours spread and narratives of fear and insecurity are created,” he said.
Dan Buckley is an HR expert and CEO of Cognexo, an AI-driven platform that helps companies improve employee experience. Speaking to BI via email, Buckley said silent layoffs are “usually a futile attempt to maintain morale among remaining employees and manage the brand.”
“Open communication is crucial, and a lack of it invites doubt and undermines the credibility of your brand,” said Neerman.
“Ultimately, the costs of trying to silence former employees may outweigh the short-term benefits of secrecy.”
As for quiet firings, Horn told the BBC that it can create an “us versus them” mentality. “You have employees who work hard and then you have other employees who are quietly let go, sometimes without them even knowing,” he said. “That doesn't create an inclusive, high-performing work culture.”
