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Silent dismissal: An invisible risk for companies

14/08/2024 2024/08

Since August 2022, the term ‘silent resignation’ has repeatedly experienced a rocket-like rise in German search engines before it became a search trend. According to the EY Job Study, 37% of the 1,555 employees surveyed in Germany stated that they would look for a new position if something suitable came up. This figure represents one in three respondents. Two years previously, the figure was around 52%. In general, a rapid increase in these figures is clearly recognisable in recent years. Compared to 2017, for example, where a job change was not an issue for 82% of employees. So what is this rapidly increasing ‘trend’ all about?

What is a silent resignation?

The term ‘silent resignation’ is derived from the English word ‘quiet quitting’. It means that the employee mentally quits their job, although the actual employment relationship still exists. This form of dismissal is characterised by a significant reduction in commitment and motivation to work. The employee concerned only fulfils the minimum required tasks, no longer shows any interest in further development or teamwork and becomes increasingly isolated. This alienation can have various causes and can have serious consequences for the company.

Causes of silent cancellation

Personal reasons

Personal reasons include dissatisfaction with working conditions, such as an unsuitable working environment, a permanently excessive workload or an unbalanced work-life balance. In particular, the increasing importance of work-life balance and the growing desire of younger generations for a better work-life balance are fuelling the phenomenon of silent resignation. Millennials (born between 1981 and 1996) and Gen Z

(1997 - 2010) no longer see a lot of work as desirable and the meaning of their own existence. Today, people define themselves much less by their work than was the case in other generations. Employees go home after their contractually agreed working hours, work less (or no) overtime and limit themselves to the most urgent tasks.

A lack of recognition and appreciation are also frequent triggers. If employees do not receive positive feedback for their work or their successes and contributions are neglected, this leads to frustration. In this spiral, a silent resignation often turns into an internal resignation. By this point at the latest, the employee is ‘only’ doing their job according to the rules.

Other personal reasons that can lead to a silent resignation are excessive or insufficient demands. If tasks are too demanding or too easy and there are no challenges or development opportunities, work motivation decreases. Personal conflicts, such as difficulties in dealing with colleagues or superiors as well as a lack of support and understanding, also contribute to silent resignation.

Internal company factors

In addition to personal reasons, internal influences within the company play an important role. Poor leadership and management, characterised by a lack of communication and transparency, unclear or unrealistic expectations and a lack of support from superiors, can severely affect employee motivation. A negative corporate culture, characterised by an unhealthy competitive atmosphere, a lack of teamwork and the dominance of negativity and pessimism, also contributes to silent resignation. A lack of career opportunities and unclear promotion prospects as well as a lack of prospects for professional development are further internal factors.

Changes in the labour market

Changes in the labour market, such as new, more attractive job offers in other companies or changes in the industry that offer new opportunities, are also considered to be a further influencing factor. Economic uncertainties such as economic fluctuations and financial crises or uncertainties about the future of the company also contribute to this. Finally, technological developments also play a role. Changes due to automation and digitalisation as well as requirements for new qualifications and further training can lead to silent dismissal.

Prevention strategies: How to prevent a silent resignation

Employer branding plays a crucial role in preventing silent resignations. Strong employer branding promotes a positive and appealing corporate culture that not only attracts new talent, but also retains existing employees.

A key aspect of employer branding is the clear and consistent communication of the company's values, vision and mission. Employees who identify with their employer's values are generally more committed and less likely to quit. However, communicating values alone is not enough. Rather, they must also be lived. This means that they must be brought to life by all colleagues. Management and executives have a special role model function here.

Attractive working conditions such as flexible working hours, home office options and additional benefits are emphasised by employer branding and contribute to employee satisfaction and well-being. Which individual corporate benefits best suit the company and the needs of the employees can be determined through a targeted employee survey and implemented in the next step.

Regular employee appraisals provide a platform for open feedback and make it possible to recognise and address dissatisfaction or problems at an early stage. They promote a culture of communication and appreciation in which employees feel heard and supported. At the same time, conducting an appraisal interview is one of the most challenging tasks for a manager. Therefore, they should not be left out in the rain. A seminar on conducting appraisal interviews can be a useful measure as part of management development or management coaching. Through targeted HR training, HR managers can better respond to the needs and challenges of employees and take appropriate measures to increase employee satisfaction.

Strong partnerships

As a 360-degree HR agency, ARTS offers comprehensive support along the entire candidate and employee journey. Through our wide range of services and expertise, we are able to support companies in every phase of HR management. From the development of a unique employer brand, the selection of effective HR marketing measures, the recruitment and selection of highly qualified candidates to the induction and development of employees. We create customised solutions that are tailored to the individual needs of our clients. Our holistic approach enables us to understand the challenges and opportunities of the modern labour market and help our clients build and retain a strong and committed team. With our expertise in HR management and our passion for people and organisations, we are the ideal partner for companies seeking sustainable success through their employees.

About the Author
Susanne Ackermann | Recruitment Consultant
Susanne Ackermann
Senior Recruitment Consultant

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