Quiet hiring has been a norm in companies in recent years and is shaping workforces across the corporate world. Some employers see it as a way to relieve hiring burdens, and some employees see it as a skill improvement move. However, the overwhelming consensus is that it can potentially cause more trouble than create benefits for the company and business—particularly when it comes to diversity, equity, and inclusivity (DEI).

What is quiet hiring?

First, let’s clarify what quiet hiring actually refers to. It’s when an organization asks staff to take on new job responsibilities to address urgent needs. Sometimes, companies also hire temporary workers to take on jobs. It could be a temporary or permanent solution to the lack of workforce.

This practice differs from promotions because it usually doesn’t come with pay increases. (Although there are companies that provide monetary compensation, or benefits like additional time off and bonuses.)

Quiet hiring helps a company fill a position promptly, saving money and time. Many employees welcome the opportunity to expand their skills, but some are not on board with the idea. In a 2023 report by Monster where 80% of workers surveyed were quiet-hired, 63% said they were optimistic about the idea, while 27% said they would consider resigning if they were quiet-hired.

Common reasons for quiet hiring

There are many reasons as to why companies choose to quiet-hire. For many companies, it’s an easy way to save money. They don’t need to spend time on job portals to hire new staff and pay for the extra responsibilities. According to 2019 research by Glassdoor, employers spend on average $4,000 and 24 days to bring a single new hire into a company. Quiet hiring also saves this time and money that hiring managers would typically spend on interviews and onboarding.

Another common reason is to fill positional gaps. For time-sensitive projects, companies sometimes tag in the help of employees with the skills closest to the ones needed for the job. For example, copywriters could be asked to write business proposals or reports. This kind of work would likely be out of scope for copywriters who mostly focus on marketing materials, but it would allow the company to fill the skill gap promptly.

Companies also do it to adapt to business changes. Most companies make many business-altering transitions over their lifetime—whether that be leadership changes or mass layoffs. Transitional periods in acquisitions or layoff deployment can lead to shifts in company strategy and priorities, during which a leader might resort to quiet hiring to quickly adapt to new directives.

Last but not least, it’s a way to expand staff skills. Quiet hiring helps companies improve staff skills without the need for constant training and courses. Following the copywriter example above, the staff gets on-the-job training and expands their skill set across the field.

Despite this, quiet hiring can hurt a business and its employee retention. When companies don’t do it correctly, it can cause a skill gap and employee burnout, leaving them to feel unappreciated and unmotivated to continue working in the company.

How quiet hiring impacts DEI and the business as a whole

Beyond employee retention, quiet hiring can significantly impact the DEI of an organization. Here are the ways that quiet hiring can affect DEI goals:

Quiet hiring can be problematic when it hinders workplace culture diversity. When a company doesn’t hire from the outside, it doesn’t leave a door open for people of different backgrounds. A company that prioritizes temporary workers or freelancers also misses out on opportunities for proper DEI training. These trainings are usually only provided to full-time staff, which could delay and make the company’s diversity and inclusivity goals unclear.

When companies quiet-hire, it typically contributes to a widened pay gap. Many businesses opt for quiet hiring in response to increased wage demand. When they can’t afford to hire new staff, they look for alternatives like freelancers or temporary workers. This can inevitably broaden the gap between the job’s pay value and what the staff are paid and cause a rift between the employer and employee. This could also lead to high turnover rates and make it harder to attract new talents in the future.

Quiet hiring, if not done intentionally, can cause various problems for employers, employees, and the overall business. At the end of the day, compensating staff fairly and ensuring equal treatment of all employees is what will result in a more motivated workforce. And that’s good for business.