‘Loud quitting’: What is it and how does it affect businesses?

First there was quiet quitting. Then there was quiet firing. In the last few months, loud quitting has made an appearance. Loud quitting, although not necessarily an actual resignation, happens when employees are actively and openly disengaged and dissatisfied with their jobs, often being very vocal about their issues.

This may lead to more complaints, a refusal to do certain tasks, joining forces with other co-workers to demand more changes or threatening to leave unless these happen. Not only that, several loud quitters may also try explicitly to undermine company or team goals, or “name and shame” companies to achieve the change they – the workers – want.

Often, this turns into employees actually leaving their jobs, usually in the noisiest and most dramatic ways they possibly can, by revealing their resignation on social media. In some cases, this is even done before letting the company know officially or having a conversation with HR personnel.

Along with sharing the actual resignation online, these employees also vent their frustrations about their current jobs on their social media platforms, airing everything from toxic bosses, difficult colleagues, dead-end projects and roles, and much more.

Niki Jorgensen, managing director, client implementation at Insperity was reported by Fox Business as saying: “Employees should begin having conversations with their managers when they feel they are becoming disengaged and take a more positive approach to make change in the workplace.

“When employees actively undermine the company, they are burning the proverbial bridge with the company and its leadership. The business world can be small, especially in niche sectors, and news of a less-than-ideal exit spreads quickly.

“The damage done by loud quitters can tarnish their professional reputation within the industry.”

How does loud quitting impact businesses?

The most significant way loud quitting can impact businesses is by eroding their public reputation. This is often due to the employee airing things such as company policies, internal politics, workplace management techniques, and much more, which most companies would rather keep under wraps.

In some cases, the employee may exaggerate situations, which could prove to be  difficult for the company to refute. Sometimes, even if these allegations have already been proved wrong, the damage is done.

The company could then see clients and suppliers moving away from their business and faith and trust are eroded, with investors also potentially pulling out. In some cases, if employees reveal discriminatory or other potentially illegal business activities, the company could face increased scrutiny from the authorities, as well as lawsuits and fines.

In worst-case scenarios, this could mean products being removed from shelves, thereby affecting sales and profit, as well as ongoing projects being halted or facing uncertain delays sometimes.

In today’s increasingly competitive business climate and as consumers become increasingly more aware and intolerant of questionable business practices, this could spell disaster for a company and might even end in its closure. 

Another way that loud quitting can significantly harm businesses is by loud quitters possibly demoralising other current staff, or encouraging them to leave their jobs as well. There have been mass walkouts in some cases, such as the ones seen by Amazon, Whole Foods and Walmart.

Loud quitting can also have far-reaching consequences for company hiring, with new recruits often being reluctant to join a company due to ex-employees’ publicly shared negative experiences at the same company.

How can businesses reduce loud quitting?

One of the key questions asked by businesses nowadays, in the age of social media, is how can they stop or reduce employees from loud quitting? How can they preserve their reputation online, while at the same time also retaining employees and improving employee satisfaction?

One of the most important ways companies can achieve this is by quickly and efficiently addressing employee complaints and grievances. These can be anything from more minor complaints such as lunches being stolen or “hot desk” issues where there is not enough workspace available for the number of people on shift, to bigger and more serious issues such as workplace sexual harassment.

Businesses may need to look at or re-examine their grievances and complaints’ redressal channels, ensuring that a truly two-way open communication channel is established.

If the issues brought up seem to be on a deeper level, companies may need to take more overarching action, such as reviewing policies, or organising more training for senior management. Inclusion and diversity activities and sensitivity training may also need to be improved upon, to ensure that all colleagues feel equally welcome and appreciated.

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Feedback channels without fear of reprisal are a necessity; several employees across industries report they still do not feel able to speak out freely in case they lose their jobs, are passed over for promotion or experience other similar retaliatory tactics. This can lead to frustration within the workforce, and that in itself can ultimately contribute to the loud quitting trend.

How to improve work life for the better

A positive work environment, based on collaboration, transparency, employee well-being and respect can go a long way to helping employees feel happier, safer and more engaged at work.

Being transparent about compensation, promotions, hierarchy, goals and company decisions is important to show employees where they stand. Employees also need to be supported and encouraged in finding how best to achieve their personal goals. This means rewarding employees with promotions and pay rises once they meet already decided-upon performance objectives.

That means companies need to work on their mentoring and support structures if they really want to retain employees Establish career plans, goals and milestones and incorporate regular feedback so employees feel supported and appreciated. 

When employees leave, a graceful and respectful exit plan can also help in preserving the relationship between both parties. This means documentation and other formalities, including compensation if that is part of the deal, should be processed and finalised swiftly. Employers should also, if one is needed, make sure they provide a fair and supportive reference for the departing employee so that both parties feel a “good ending” has been achieved.

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