how quiet quitting impacting businesses

DISCLAIMER: This article was written in 2022 and has not been updated. For more up to date information about small business funding products and options, please browse our recent articles.

Quiet Quitting amongst the newer generations is changing the workplace environment around the country. But what is Quiet Quitting, and how it’ll impact your small business?

Small business owners are facing a slew of challenges as of now. With the threat of a recession on the horizon, historic high inflation, and freshly out of the Covid 19 pandemic, these past few years are a complete test of strength to any small business owners’ resilience.

And now, another challenge comes their way, this time from their workforce. Quiet quitting is impacting many businesses in the United States, from the biggest to the smallest, and every business owner must take it into account.

There’s a reason why quiet quitting is happening throughout the American workforce. As you’ll see in this article, it’s not as straightforward as it seems. Here you’ll learn everything you need to face this problem, as well as:

And more. Get to know not only about this new challenge business faces and why the new generations in the workforce feel this way.

What is Quiet Quitting:

Quiet quitting is a term that can be somewhat misleading, as it means that workers are only doing their job and nothing more. While older generations saw the idea of going the extra mile for the company as desirable — with the ambition of career progression — new generations see it as not worth it in today’s professional market.

After the pandemic, as people started getting back to their respective workplaces, it would never be the same. Working from home has changed the scope of work in the world. For newer generations that grew up with technology, remote work might be all they know.

As for millennials, many got tired of their jobs which gave them little to no financial benefits. As such, millennials started a social media movement with disapproved employees working back to back during the pandemic — and the country would know it as the Great Resignation.

Putting it simply, quiet quitting means that first-time workers are tired of the norm of working hard and devoting too much of themselves to their company. They believe they’re getting the short end of the stick and want to change how they work and live.

Why Millennials and Gen Z are Quiet Quitting:

From a bird’s eye view of the problem, it might seem that Millennials and Gen Zers are doing the bare minimum out of laziness or bad work ethic. But that doesn’t quite reflect the meaning of great resignation, nor the younger people’s point of view of the workplace.

The fact is that most quiet quitters aren’t lazy but are more than likely dealing with burnout. Although corporate America might’ve passed the pandemic time and be back to business as usual, the fact is that the workplace has changed forever.

As remote work became the norm in many businesses, workers can’t differentiate between working and personal hours. With after-hours e-mails, they might be devoting more time without realizing it and don’t feel compensated for such. And now, with more technological innovations, we’re carrying around our office on our laptops or smartphones.

While it might seem like a lack of commitment not answering an e-mail Friday night, it could mean that workers are simply setting boundaries or might even be exhausted if they’re devoting too much of their time. Studies have shown that a healthy work-life balance is more important to Millennials and Gen Zers rather than climbing the corporate ladder.

Quiet Quitting on the Side of the Employer vs. the Side of the Employee:

As an employer, you can see how a worker’s lack of commitment can impact your business. As new employees seem to be very disengaged and disinterested in their responsibilities, it can lead to frustration on your part. Even when established employees that were once reliable seem to be dropping their efforts, the employer or the manager position gets that much more difficult.

American business owners want, understandably, the success of their business. And the idea of unreliable workers might seem like a nightmare that can crush the dream. And with the pressure adding up, productivity levels dropping, and the responsibilities of small business owners nowadays will also put the majority in a bad spot. That might lead to layoffs or put more pressure on the managing staff.

As an employee, with him seeing the quiet quitting trend on social media, being pushed by employers, seeing their own home transformed into a second office, and having their free time consistently chipped at will put a strain on their well-being. Workplace culture has shifted, and employees are tired of being fed the idea of a hustle culture. They value their healthcare even more — physical and mental health.

For the younger generations, working from home might be everything they know at the moment. With after-hours e-mails a consistent factor, free time dedicated to more work, and no remuneration to back it up, they will feel there’s too much work for too little reward.

For example, in the case of the restaurant industry, there was a spike in quitting rates during the Great Resignation. Young workers oftentimes felt overworked and underpaid, which led many young adults to burnout.

What Does Quiet Quitting Means for a Small Business:

Quiet Quitting impacts every business, but small businesses are prone to take the biggest hit — if they do not prepare for such, and you’ll get some tips for that in a moment. As you’ve seen, nobody is at fault on this subject. Employees want better conditions, and employers simply want their businesses to succeed.

At the moment, the U.S. faces a complicated moment in the professional market. Both employees and employers must deal with evermore financial difficulties and a continuous change in how we perform our jobs.

A small business’s team is its backbone and makes the small business live and thrive, even through hardships. A small business owner might have the best in mind for their staff, but the fact is that the labor market has changed. While you might be passionate about your small business, some of your staff might not be.

As such, small business owners can see a significant drop in productivity and staff engagement with work if they don’t take care of their team’s wants and needs. You might find your staff members taking more days off or simply not showing the productivity numbers they once showed.

With morale levels dropping, productivity levels also drop, and that leads business owners and human resource teams to be more involved in the business’s daily activities. It might lead to a drop in productivity, sales, profits, and customer satisfaction, putting your small business at risk.

A risk you can’t afford to take, especially with a recession on the horizon. During a recession, more troubles await you, like acquiring business funding. Financial institutions and credit unions will tighten their belts during these times, and you can’t afford to be distracted by every problem. Biz2Credit can help you remove the business funding concern from your mind! Contact our team today.

Steps a Small Business Owner Can Take to Prevent Quiet Quitting:

As a response to this new trend, business owners around the country started introducing another new idea called quiet firing. In this trend, employers tend to make life hard for employees in the hopes that they’ll quit their current position on their terms.

Making an employee leave on their own terms might look appealing as outright firing might be too costly for business owners. But by no means that solves the problem in question, as another applicant might just do the same if business owners didn’t deal with the root of the problem.

As a business owner, it’s your responsibility to ensure your small business thrives, and for that to happen, you need a professional and dedicated team. Let’s look at a few steps small business owners can take to improve their team engagement and morale:

  • Talk to your team regularly: Although this might seem a basic step, it’s still an essential part, especially now. If you conduct weekly meetings or talk to your staff personally, keep doing it, and incentivize them to do the same amongst themselves and the managing team. One of the major reasons behind the quiet quitting trend was a lack of communication between all the parties involved. Make sure that doesn’t happen in your small business and make communication a priority between all parties.
  • Put more effort into employee engagement: Sometimes, a team member is unengaged because he might feel that their well-being isn’t a concern. If you believe that team members feel that way, then hearing their concerns and acting on them can produce a feeling of reciprocity. To do so, you must know their pain points and adapt your workplace culture around helping each other. Don’t be afraid to include new terms and philosophies, or even opt for a workplace wellness program for your small business.
  • Invest in your team: Another big reason behind Quiet Quitting was the feeling that employees didn’t feel valued enough. Some employees want to move forward professionally, and career stagnation won’t do for them. A good idea for your small business could be investing in your team with team lectures, professional coaching, new work opportunities, and even offering opportunities to learn, not out of need, but genuine care for your employees.
  • Be mindful of their personal time and space: As an employer, your small business might be one of your top priorities, but for an employee, it might not be as such. That fact doesn’t make them lazy or unreliable, but they only have different priorities in their personal life or time off. Be mindful of such the next time you think about sending an e-mail on Saturday morning with an urgent subject line. They might be dealing with urgent matters themselves, and not having that thought crossing your mind can paint you as selfish and insensitive to them.
  • Offer them incentives: As a small business owner with a successful small business, you know from experience that hard work pays off. So why shouldn’t that be the norm for your employees as well? Many quit due to the lack of compensation for their work and sacrifice, especially during the Covid pandemic. If you want your small business team to perform at their best, then offering them extra compensation, benefits, prizes, etc., might make them adopt a more active role in your small business.
  • Respect their work-life balance: Similarly to the step previously discussed above, take some time to discuss the work-life balance situation with your employees. Millennials and Gen Zers value a much more relaxed position when it comes to working, and they’ll make it known even when applying for a new job. If you want a dedicated team for your small business, you must also dedicate yourself to their needs. Respect their boundaries and requests, especially if you perform remote work. Do this, and you’ll see a much more inspired team.

Do What You Must to Secure Your Business From Quiet Quitting:

With the quiet quitting trend going through much of last year and this one, it seems that’s not going away anytime soon, and it also appeared at a sensitive time for small business owners. After a pandemic, with inflation and supply chain issues straining their cash flow, and a recession on the horizon.

While Biz2Credit might not be able to help you secure your workforce, it can help you to offer the means to do so. While you’re concerned about maintaining your staff happy and engaged, you might not have the flexibility to look for business funding at such a crucial time.

With Biz2Credit, you don’t need to! You can apply with just 4 minutes of your time and see your loan request approved within as little as 24 hours. Like Munna Ali, owner of Ali Realty, with little time to get funding, applied to Biz2Credit and got funded in three days. Do the same as Munna, and apply today or reach out to our team with any questions you might have!

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