Quiet quitting and the impact on voluntary benefits

You may have heard the term “quiet quitting” more and more lately. But what is it? Quiet quitting describes workers who are scaling back their work efforts, “checking out” and not going the extra mile on the job without some type of recognition or compensation.

Since the pandemic, quiet quitting has become more common as many people place a larger emphasis on mental health and work-life balance. On top of that, according to a 2022 survey conducted by McKinsey & Company, nearly 4 million employees are leaving their jobs each month amid clashes over flexibility and work-life balance. Clearly, employers need new ways to make employees feel valued and engaged with their work.



Quiet quitting's impact on employers

Quiet quitting impacts employers because their workforce is disengaged and less productive. These dissatisfied employees can create an underperforming workforce. Employees who are quiet quitting may miss more days of work and, clearly, are not putting their all into the work they’re doing while in the office.

So, what can employers do? Some experts say that employers need to recognize and reward the team members who are making an impact, while others believe that changing the traditional employee performance review process could help.

What does it mean for the voluntary benefits market?

There are various opinions on how to curb quiet quitting, but how does quiet quitting affect voluntary benefits? An uninspired workforce could lead to an increase in turnover, which could potentially affect the overall market for voluntary benefit sales. Employees who aren’t at work or aren’t engaged aren’t going to be enrolling in voluntary benefits.

Voluntary benefits can help curb quiet quitting

 While quiet quitting may be a problem for the voluntary benefits market, voluntary benefits can also be a part of the solution. A recent study from insurancenews.net also found that 49% of people believe it’s a workplace’s responsibility to improve employees’ sense of financial well-being. This is where voluntary benefits come into play.

• Health products - Offering benefits such as critical illness, accident, or hospital insurance (along with wellness benefits) are all ways to help reduce financial burden on employees should they ever need to use these benefits. Employers are also incentivizing positive lifestyle choices using insurance products can give their workforce a variety of tools to better manage their financial and physical wellbeing.
• Financial products - On top of that, financial products such as disability insurance and life insurance with long-term care can provide an added layer of financial security. This helps lessen financial worry and shows the employer appreciates their employees by offering valuable benefits that employees desperately need.
• A platform for communication – Enrollment in voluntary benefits can provide a platform to engage with employees. It’s a great opportunity for employers to educate their employees on their benefits and engage with them to make sure they see the value of those benefits. This can directly influence how an employee sees their benefits. Seventy-three percent of employees who are offered voluntary benefits along with sufficient communication are “likely” or “very likely” to recommend their employer. On top of that, it’s an important opportunity to galvanize the workforce on other important company initiatives or drive participation in other important employer-sponsored programs.

Voluntary benefits create the opportunities for employers to build a workforce with reduced stress and burnout, lower absenteeism, and higher overall engagement.

Voluntary benefits > quiet quitting

As quiet quitting becomes more of a hot topic, employers may want to recognize the need to offer benefits that creates a workplace culture where employees can feel valued, secure in their work and able to achieve their financial and wellness goals. Creating an overall healthier workplace, including financial, physical, and mental, can help employers retain and engage employees.

Sources: 
McKinsey & Co., “The Great Attrition is making hiring harder. Are you searching the right talent pools?” 2022.
Trustmark and Customer Benefits Analytics, “Who Buys Voluntary and Why: 2017 Enrollment Study”
Benefits Pro, “How employers can address quiet quitting: Fix the performance review”. 2022.