Employers have a new morale problem called ‘quiet cracking’ to watch out for, which appears to be steadily creeping into corporate workplaces and experts warn that the current labor market is only making matters worse.
Alarming Rise Of ‘Quiet Cracking’ And How It Got Here
Frank Giampietro, EY Americas' chief wellbeing officer, describes it to Business Insider as when workers "show up, they do their job, but they struggle in silence while they do it."
In today's cooler labor market, "a lot of folks are actually staying with their current employers, but they're not actually thriving at work," he said. Many "feel stuck… they don't have other choices available to them that are better."
The backdrop matters. Hiring has slowed and the long-standing pay edge for job-switchers has faded or flipped. In February, job stayers' median wage growth of 4.4% edged past switchers' 4.2%, according to the Atlanta Fed's tracker, a pattern that has persisted into summer.
Analysts say a softer job market and rising unemployment have made employers more hesitant to hire, undercutting the "switch for a raise" playbook that defined the post-pandemic boom.
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Are Employers Ignoring Subtle Signs Of Discontent?
The engagement damage is showing up in the data. Global employee engagement fell from 23% to 21% in 2024, only the second drop in 12 years, costing an estimated $438 billion in lost productivity, Gallup reports.
That slippage, combined with tighter performance reviews, return-to-office mandates and periodic layoffs, has left "a large group of people… stressed most of the time," Giampietro said.
Giampietro and other experts say the warning signs can be subtle. Physical cues could include more frequent illness, fatigue, or headaches, but performance shifts can be the tell. "You might have a strong performer who's not delivering in the same way that you're used to seeing them deliver," he said.
The Warning Can Be Subtle, Warn Experts
Leaders should look for "changes in what you would see as a typical behavior pattern" and avoid leaping to discipline: "Hey, I've noticed a change in your behavior. Can we talk about it? I just want to make sure you're OK."
Market watchers note the trend coincides with a broader downshift. Wage gains for the lowest-paid have cooled to multi-year lows and some indicators point to a declining hiring rate. The latest wage-growth data highlights how a tougher job market can sap motivation and output even when quits are subdued.
Photo Courtesy: Viktoriia Hnatiuk on Shutterstock.com
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