Quiet cutting. A new trend?

Increasing uncertainty in the workplace has led to some organisations to look at different ways of reducing costs. One of the ideas that has increased in recognition is ‘Quiet Cutting’, a way to restructure an organisation by reassigning staff so they remain employed but are moved to new roles that can be less prestigious, have lower pay, and more demanding.
 
Currently, some employers are looking at this as a strategy that can play a significant role in the workplace dynamic because it offers a way of stopping talent loss by leveraging existing staff to meet immediate requirements and maintain stability. Other organisations though can see it as a passive but hostile way to lose workers.

It’s a situation that can be difficult for employees to deal with. Whilst they might feel some initial relief that they are still in a job and may even be retrained, it could also be seen as a demotion and a way of making them quit so their employer can avoid paying redundancy. However, its seen though, it can have a significant effect on an employee’s wellbeing. Employees start to question their abilities, their value, the way the organisation works and its culture. Feelings of confusion, fear, anger, self-doubt, diminished confidence, and anxiety come to the fore, which can also impact on other employees. Even those who aren’t at risk of reassignment see a situation that’s out of their control and may start to look at alternative employment options.

Despite the potential cost benefits, quiet cutting can have a detrimental effect on organisational culture, employee wellbeing, and productivity as employees become disengaged, uncertain about their future and unhappy in a role they didn’t ask for or want. However, the situation can be managed in a more positive way. If the purpose of the changes and future plans are effectively communicated, a reorganisation can increase understanding, reduce uncertainty, and solidify employee commitment. Involving employees in the process and providing support services can also contribute to building a better outcome for both the organisation and employees.