If you thought employee rebellion was ending with the Great Resignation, think again. Quiet quitting is trending among workers today, as our economy and workforce continue to transform following the Covid-19 pandemic. What does it all mean for your business?
What is Quiet Quitting?
Starting from a group of Gen Z workers who were seemingly fed up with the hustle and bustle of work culture, a social media video streamed by a young engineer kickstarted a movement. “Quiet Quitting” is a philosophy for employees who decidedly do the bare minimum for their job and often less. They no longer want to climb the corporate ladder or be defined by their work. They claim capitalism has failed them and they feel undervalued.
Now, whether this is just a trend, an idea, or actually happening in the workplace, there are a few facts that are undeniable.
- The economy is struggling to recover
- Inflation is high and living costs are high
- The pandemic has transformed the work-life culture
- Workplace productivity is down
- Business is driven, recovered, and scaled by the work of employees
It could be argued that Quiet Quitting is worse than quitting itself. Instead of hiring new, motivated employees, the employer is stuck with those who have one foot out the door. We all know that hits your bottom line. Productivity equals profits, in many cases.
How Do You Combat Quiet Quitting with a 401(k) Plan?
Quiet quitting has been around for a long time: It just didn’t have a trending name. In the 401(k) world, we know the value of attracting the best employees and keeping them. The reality is this trend was started by college-educated people who are skilled in a variety of industries but feel like their work is going unrewarded.
1. Invest in your employees’ future with a retirement plan.
Aside from positive team spirit and a decent paycheck, to expect more from your workers you must do more for them. If you haven’t started a well-executed 401(k) for your business, this is the first step. In a survey done by the American Institute of CPAs (AICPA), Americans are four times as likely to choose a job with benefits over an identical job that offered 30 percent more salary but no benefits. Start considering the needs they have outside of their 9-5 hours and show that you are invested in their personal growth.
2. Keep employees educated and informed.
Make sure to stay updated on regulations and what your plan offers. Recurring meetings for employees on investment options, financial planning, and how to access their retirement accounts can make a huge difference in how much and how often they participate. Bonus: It shows that you care.
3. Benchmark your 401(k) annually.
Most important, benchmark your 401(k) annually to keep the most competitive plan. If your workforce is full of “quiet quitters” or actual quitters, look to other 401(k) plans and businesses in your industry. Chances are, you might not be offering the best plan out there. Perhaps your investment selections are poor, or your 401(k) advisor put you in a cookie-cutter plan that isn’t quite right for your business.
We Can Help
As you can see, companies can reduce employee turnover and combat quiet quitting by understanding and adapting to the needs of their workforce and the economy. A little empathy and creativity can go a long way toward boosting employee morale, retention rates, and productivity.
Get started with a Prosperity 401(k) today to see the difference.