The latest ‘quiet’ workplace trend is ‘cutting’—diminishing someone’s role so they quit on their own—and 77% of employees say they’ve seen it

What exactly does quiet cutting mean? “It happens when employers cut back on an employee’s workload, responsibilities, role, or compensation,” Monster career expert Vicki Salemi told me. “It’s essentially pushing them out the door—their downgraded role prompts them to quit on their own.”

The job search website just released a survey that finds 77% of workers have witnessed quiet cutting, with 58% saying they’ve personally been affected by it. The findings are based on a nationwide survey of 2,869 U.S. Workers across industries.

A big reason for the surge in quiet cutting, Salemi explained, is that employees who quit, compared with those who are laid off, aren’t eligible for the same severance-related benefits.

So who makes the call on when to lean into quiet cutting—managers or bosses higher up the food chain? It probably varies firm to firm, Salemi told me. Also, quiet cutting may be less of a directive and more just a result of managers taking cues from “an already existing toxic environment that tends to operate in passive-aggressive ways.”

Employee performance issues should be addressed directly, and organizational goals and metrics should be made clear—even if certain workers need to be put on performance improvement plans, Salemi added. “Quiet cutting is just not the right thing to do, plain and simple.”

CFOs continue to tell me about concerns they have over attracting and retaining talent, as well as training current employees. Monster’s survey also showed that many employees have complaints about opportunities for growth—over the last year, for example, 59% of respondents reported a lack of opportunity for upward mobility, while about a third said they didn’t receive an expected bonus.

Quiet cutting could further upset employees already on edge, and it’s something CFOs should monitor closely. “Trust and morale can plummet, which can negatively impact employee engagement and productivity, which ultimately hits the company’s bottom line,” Salemi said. 

Monster’s data shows that 71% of workers who’ve witnessed or directly experienced quiet cutting indicated they no longer wanted a long-term role at their company, while 79% lost trust in the firm and 79% no longer felt company loyalty.

“When employees start leaving, it’s going to cost companies big bucks to replace those workers,” Salemi said. “And it can be even more challenging to recruit and hire when word gets out that this is not a great place to work and people keep leaving.”

Have a good weekend.

Sheryl Estrada
[email protected]

María Soledad Davila Calero curated the Leaderboard and Overheard sections of today’s newsletter.

Big deal

In the latest installment of a Wharton webinar series, scholars shared their research on how AI can enhance innovation and where limitations exist. Wharton professor of operations, information and decisions, and co-director of AI at Wharton Kartik Hosanagar served as moderator.

Leaderboard

Some notable moves this week:

Daniel Moore was promoted to principal financial officer at GameStop (NYSE: GME), effective March 25, according to a regulatory filing. Moore, who was serving as interim principal financial officer, will also continue to serve in his role as the principal accounting officer of the company.

Marjorie Hargrave was named CFO of Hallador Energy Company (Nasdaq: HNRG), effective April 10. Hargrave is replacing longtime CFO, Lawrence D. Martin, who has worked for the energy company since 2007 and will remain for a transition period. Hargrave has previously served as CFO at High Sierra Energy, CTAP, Enservco Corporation, and Leanin’ Tree, Inc. 

Patraic Reagan was named CFO of SharkNinja (NYSE: SN), the technology company with a wide variety of products from hair dryers and vacuums to kitchen appliances. Reagan spent 13 years at Nike where he held several key roles, including global VP of business planning, and most recently, CFO of Nike Inc.'s Asia, Pacific, and Latin America segment.

Aaron Ondrey  was named CFO of Rocket Pharmaceutical (Nasdaq: RCKT), a biotechnology company focused on genetic therapies. Ondrey has over 20 years of experience in the biotech industry as well as with capital allocation and mergers and acquisitions. Most recently, Ondrey served as CFO of Mirati Therapeutics.

Jeffrey DiGiovanni was named CFO at Innovative Solutions & Support (Nasdaq: ISSC), a flight guidance and cockpit display manufacturer. DiGiovanni's appointment is effective April 8, when he will replace interim CFO Relland M. Winand. Before ISSC, DiGiovanni served as CFO for StoneMor. 

Dava E. Ritchea  was appointed CFO at Affiliated Managers Group (NYSE: AMG), an assets management company, effective April 1. Ritchea previously served as the CFO for Sculptor Capital Management and Assured Investment Management. Her experience in private markets and liquid alternatives were key reasons for her appointment, according to the company.

Going deeper

Here are a few  Coins2Day  weekend reads:

"How a credit card’s ‘plunk factor’ became a millennial status symbol: ‘It feeds the ego’" by Alicia Adamczyk

"Exclusive: Carlyle Group adds 5th woman to C-suite as Lindsay LoBue reunites with CEO Harvey Schwartz" by Luisa Beltran

"How a 173-year-old law created for wooden ships could complicate rebuilding the Francis Scott Key Bridge in Baltimore" by María Soledad Davila Calero

"5 expert-backed ways to boost your memory and improve brain health at every age" by Jordyn Bradley

Overheard

“As sea levels continue to rise, we’re also seeing land areas sink, both due to the increased temperatures from human-caused climate change. This heavily impacts coastal areas, especially as they become either uninsurable or extremely expensive to insure.” 

— Kathleen Biggins, founder and president of non-partisan climate change education organization C-Change Conversations, told Coins2Day. Acceleration in erosion and other climate-related areas could spell financial problems for home sellers along the coastline, as Coins2Day highlights a Nantucket house that lost 74% of its value do to severe erosion.