Quiet quitting. It’s a term a career coach coined in 2022, and it has consistently gained traction since. Why? Around 64% of employees identify as quiet quitters.1
They’re not quitting their jobs in the traditional sense. Rather, they’re physically on the job, but mentally they’re chronically disengaged — performing to meet the bare minimum of their job requirements without taking on other assignments.
In the case of hybrid employees, disengagement can look like what’s come to be known as “coffee badging” — showing up on-site just long enough to swipe their badge to document attendance, grab a cup of coffee, interact with a few co-workers, and then return home to work. The goal is to spend minimal time in the office to meet any employer attendance requirements without committing to a full workday on-site.
Reasons behind quiet quitting vary, but the negative impact on productivity and morale is all too common for employers. Countering these destructive disruptions isn’t always easy, but it is possible with ESOPs.
Employee owners have a vested interest in the company’s success since job performance directly ties to results and, ultimately, their retirement funds. This future focus is motivational — especially when supported by an ownership culture that cultivates the value and pride in a job well done, and teamwork. The positive momentum generated by an ESOP can dissuade quiet quitting.
Let’s take a closer look at quiet quitting, its causes, and what you can do to empower employee owners.
Making noise about quiet quitting
Of employees who consider themselves quiet quitters, 40% cite not taking on work outside of their core responsibilities or work hours as the cause; the remaining 24% point to setting firmer boundaries around employee wellbeing and work-life balance.1
But quiet quitting stems from more than these two sources. Employee disengagement frequently results from:
- Burnout caused by poor work-life balance, chronic workplace stress, and often excessive workloads
- Lack of recognition and appreciation for achievements and contributions, be it acknowledgement in the workplace and/or in compensation
- “Busy” work consisting of tasks perceived as meaningless, or insufficient for skill level and job satisfaction
- Few career development and growth opportunities that lead to stagnation and frustration, often spurring a job change
- Ineffective leadership and management that fails to provide clear direction, expectations, feedback, and/or support
- Toxic work culture built on poor communication, micromanagement, favoritism, gossip, and negativity
- Misaligned values between the company’s mission and the employee’s personal values
5 signs of quiet quitting
No workplace is exempt from quiet quitting. Employees typically signal its presence and negative impact with these 5 telltale signs:
- Lack of initiative in approaching job responsibilities or pursuing career development opportunities
- Frequent absenteeism through PTO or sick time, and also commonly in late arrivals and early departures
- Less communication and social interaction with colleagues and supervisors, and avoiding meetings, emails, or coming into the office
- General disinterest in collaboration, results, and business growth that fosters ongoing lack of workplace connection and individual employee motivation
- Decline in performance and work quality that indicates corner-cutting, a lack of attention to detail, and waning enthusiasm for doing the best possible work for coworkers and clients
Quiet quitting and ownership culture
At its core, quiet quitting is about employees choosing to distance themselves from their jobs. This mindset is contrary to the employee-centric tenets of an ESOP company, and can substantially impact the three intertwined building blocks of employee ownership:
Productivity
Employee owners are the lifeblood of an ESOP. Without full buy-in and effort, there is the potential for a divided culture that diminishes the employees’ sense of ownership. In turn, the culture is often stripped of collaboration, commitment, and dedication to the common growth goal that underpin productivity and pride in employee ownership.
Performance
Quiet quitters can be pervasive in an organization or isolated to a few individuals. The level of disengagement may vary by degree, but either can skew ESOP performance. Disengaged employees can influence the amount and effectiveness of collaboration, innovation, and efficiencies — slowing progress and undermining an ownership culture of “all for one, one for all” ideals.
Valuation
ESOP valuation is usually inextricably linked to a company’s productivity and performance. Should quiet quitting cause one or both to be out of balance, chances are profitability and future-focused valuation are reduced — and that directly affects the financial benefits of an ESOP that employee owners depend on for additional security in retirement.
Take action against quiet quitting
Safeguarding an ESOP company and ownership culture against quiet quitting takes diligence. It also takes an employee ownership mindset that focuses on the greater good.
Rather than seeing underperforming employees as opening up opportunities for personal gain such as a promotion or other recognition, employee owners are empathetic to struggling team members. They work with potential or active quiet quitters to help overcome challenges, re-engage, and fully contribute to company success.
Tailor these steps to create an action plan that will empower employee owners:
- Encourage open communication to foster transparency and an honest dialogue wherein employees are comfortable and confident in providing feedback and input, and voicing any concerns. Keep communication and listening sessions at a regular cadence to help employee owners feel heard, and to keep a pulse on potential issues that need to be addressed.
- Promote work-life balance to reduce burnout, enhance productivity and job satisfaction, and acknowledge the need for giving equal measure to both professional and personal responsibilities. Be intentional. Try offering flexible working hours and remote work opportunities, and routinely evaluate employee satisfaction with these offerings and ask for input on other things employees value.
- Invest in employees with continuous learning through training programs, career tracks, mentorship, and individual study courses that help employee owners grow and stay motivated.
- Align company goals with employee values to provide purpose and commitment, and to demonstrate how their contributions to overall strategic initiatives are of mutual benefit.
- Recognize employees for outstanding work, special accomplishments, and other behaviors that cultivate engagement, and increase positivity and morale.
- Enhance management practices to include supervisor and leadership training on constructive feedback, authentic communication, and encouraging employee development — all of which reinforce employee value and their commitment to employee ownership.
- Proactively monitor employee engagement using tools such as surveys, feedback loops, and performance data to understand what’s working and what may need adjustment. Regularly act on those insights.
By tackling the underlying reasons for quiet quitting, ESOP companies can significantly influence their ownership culture and overall success.
Gain valuable insights and strategize how to consistently empower employee owners with the five focus areas for leaders found in our guide, Build Your Ownership Culture & Maximize the Business Benefit of Your ESOP. Download your copy below.
