In the years since the Covid pandemic, there has been a lot of talk about “quiet quitting” - when employees disengage and do the bare minimum without actually leaving their job.
But there's a lesser-known sibling making its way into conversations: silent firing (or quiet firing).
This is when employers subtly push employees out, avoiding direct terminations but creating an environment so uncomfortable or unsupportive that staff are left with little choice but to resign.
So, what exactly is silent firing, and what does it mean for businesses?
What is silent firing?
Silent firing happens when employers or managers gradually withdraw support from an employee.
It can involve reducing their responsibilities, cutting them out of key projects, withholding pay increases, or failing to provide opportunities for career growth. The goal, whether intentional or not, is to make the employee feel disengaged, unmotivated, and ultimately, to resign.
While the term “silent firing” is new, it has a formal counterpart: constructive dismissal. This is when an employee feels they have no choice but to resign because of an employer’s actions (or inaction), and can result in personal grievance claims for unjustified dismissal.
Actions or behaviour that contribute to silent firing or constructive dismissal can be overt or they can happen in the background over a period of time, often going unnoticed until the employee decides to hand in their notice.
Why does it happen?
Silent firing often stems from an employer’s or manager’s reluctance to engage in difficult conversations with an employee about substandard performance, poor conduct, or a bad fit within the team.
Instead of addressing the issues directly, silent firing is a passive approach, hoping that the employee will eventually decide to quit. This might seem like an easier path in the short-term, avoiding confrontation or the complexities of formal disciplinary or termination processes, but it has far-reaching consequences.
The impacts of silent firing
Legal risks
Silent firing can backfire if the employee feels they're being mistreated or discriminated against and has no choice but to hand in their resignation (constructive dismissal).
This could lead to a personal grievance claim, exposing the business to potential legal action and financial penalties.
Constructive dismissal (or forced resignation) has been well established in New Zealand case law. The employer doesn’t necessarily have to intend or want the employee to resign. The main legal test is whether their actions or inactions caused the employee to resign and whether they could have reasonably foreseen the resignation.
The onus is on the employee to prove their resignation was caused by the employer’s actions (or lack of action).
If the employee can establish this, the onus shifts to the employer, who must prove that its actions were justified or reasonable.
Loss of trust and morale
Employees who feel unsupported or undervalued often lose trust in management. This can have a ripple effect across the organisation, leading to reduced engagement and low morale in other members of the team.
No successful enterprise can afford to have workers who are unmotivated and untrusting, as they won’t put in the effort required for the organisation to achieve its goals.
Higher turnover
Obviously, having employees resign because of their treatment by management can lead to higher turnover rates.
This can be expensive for the business in terms of lost productivity, increased recruitment and training costs, and difficulty finding new workers.
Damage to company culture
A workplace that subtly pushes employees out sends a clear message to the rest of the staff - you're not valued. This can erode a positive company culture and create a toxic work environment.
How employers can avoid silent firing
It may be tempting to resort to silent firing if you have an employee who is uncooperative, irritating, or who repeatedly performs below expectations.
But it’s much better for everyone in the organisation (and the organisation itself) to adopt proactive, transparent people practices that deal with issues, build relationships, and encourage open communication.
Here are a few steps employers can take:
Clear performance management
Avoid ignoring issues in the hope they resolve themselves. Spoiler alert - they won’t!
If an employee isn’t meeting performance expectations, it’s important to address this directly. Meet with the person to set clear goals and establish a plan for improvement. Then continue to provide support so they meet these targets.
Similarly, if you need to take disciplinary action, make sure you notify the person, give them a chance to respond, and an opportunity to improve. Consider their feedback once they’ve provided it to you, and if you do decide to issue them with a warning, make sure you also put a performance improvement plan (PIP) in place to support their improvement.
Handling issues with fair and appropriate performance management or disciplinary action will protect you from an employee claiming they were constructively dismissed.
Learn more about the disciplinary process.
Regular feedback and reviews
Frequent, constructive feedback helps employees understand where they stand and what they need to do to meet expectations.
This can prevent misunderstandings and disengagement, fostering a culture of growth and development.
Provide development opportunities
Employees who feel their career is at a standstill are more likely to disengage. Offering training, upskilling, and mentoring opportunities can motivate staff and demonstrate the company’s commitment to their success.
Foster open communication
Encourage employees to voice their concerns and feedback. Having an open-door policy ensures that issues can be identified and addressed before they escalate, and helps to create a supportive work environment built on collaboration and mutual trust.
