I’ve previously written about what quiet quitting is and its causes. Now, let’s delve into the consequences for companies where there are many “quiet quitters.”

On one hand, employees aren’t actually leaving. They stay at work and, in principle, get the job done one way or another. So, the company doesn’t incur the expenses of hiring new people (which can be quite significant!). But new hidden costs arise.

People seem like they would like to leave, but decide to stay, and how they work affects attendance, productivity, innovation, and overall well-being, as well as the mood of other colleagues. They usually stay mainly for financial reasons, trying to maintain some stability.

However, when people don’t feel capable of leaving a job that no longer suits them, it can have negative consequences for both the organization and the individual. McKinsey research shows that the costs of quiet quitting can be almost as high as those of actual employee turnover.

Statistics and expenses are difficult to calculate 100% accurately, but according to recent studies, quiet quitters make up between a fifth and two fifths of the workforce in organizations. Of course, this figure depends on the specific organization and its culture. Missed revenues have been estimated in various studies to range from 20% to 30%.

Researchers at Yale University conducted a study that found that a team member who is not sufficiently engaged in their work significantly affects the overall performance of the entire team: the result was 40% worse than in teams where all participants were engaged and motivated. Negativity spreads faster than satisfaction, and denying problems with employee motivation will clearly have a negative impact on all company results.

Imagine a situation where employees, such as those in customer service or sales, aren’t very interested in doing a good job. What will happen if a waiter at a good restaurant doesn’t provide good service? The customer won’t come back, and what’s more, they’ll tell all their friends about their experience, and it’s good if they don’t write about it on social media. And so, where a restaurant could earn new customers with excellent service, it will lose out with poor service. That’s how lost profits look in organizations where employee engagement is low.

Gallup calculated that the damage from disengaged employees to the global economy in 2023 was $8.8 trillion, which is 9% of the global GDP. Honestly, there are many studies, and I haven’t personally verified them, but I’m convinced of the serious impact of a positive organizational culture on a company’s net profit.

If you’re interested in learning more, read my previous posts on this topic on the blog.