By Louis Blangiardo

Quiet quitting is a new and somewhat controversial trend in the business world. While some news outlets have called it a fake trend, the widely-respected research company Gallup reports that it’s a legitimate phenomenon that’s now affecting up to 50% of the workforce.

A quiet quitter is someone who doesn’t outright quit their job but only does the bare minimum. Often, quiet quitters stay entirely silent in company meetings and don’t make an effort to learn new company policies. Their lack of attention to their work makes them difficult and risky to employ.

These workers are part of a nationwide wave of disengagement. During the COVID-19 pandemic, many employees began to feel less engaged and more burned out. Today, only 32% of employees are fully engaged and 17% are actively disengaged.

Top Warning Signs of Quiet Quitting

Does your company have employees who are starting to seem like quiet quitters? Here are the top warning signs.

  • Avoiding meetings and company events
  • Contributing less to team projects
  • Displaying low enthusiasm
  • Staying mostly silent, even during one-on-one conversations
  • Dropoffs in performance metrics

Quiet quitting is a serious issue that can impact your company’s stability. Your clients trust you to maintain the highest standards of ethics and integrity, so a disengaged employee is a risky employee.

The risk goes far beyond losing them to another employer. While they remain at your company, they could also cause serious harm to your business behind the scenes.

Employee satisfaction has a proven connection to corporate fraud and costly errors. When someone is feeling disengaged or dissatisfied, they’re more likely to be involved with workplace mistakes, breaches, instances of falsifying information, and fraudulent transactions.

Does Your Insurance Address the Effects of Quiet Quitting?

You might be surprised to learn that proper insurance can form a barrier of protection against people who quietly refuse to do their jobs properly. Certain forms of insurance address the effects of quiet quitting.

Property and Casualty Insurance

When employees are disengaged from their work and not paying attention to what’s going on around them, the risk of property damage rises. Look around your property and take note of anything that could be at increased risk due to inattentive employees.

Have you considered the impact of business interruption? Think about what would happen if one of your employees wasn’t taking proper care to protect your company and a crisis caused days or weeks of downtime.

Casualty insurance covers situations where the company is found legally responsible for damage to people and property. If an accident happened at your company because an employee wasn’t careful, are you fully covered? What about damage to someone else’s property, company, or brand?


List of coverages to check:

  • Property insurance for buildings and contents
  • Business interruption coverage
  • Crime Coverage (including Employee Fidelity)
  • General liability
  • Professional liability
  • Product(s) liability
  • Auto/fleet insurance and liability
  • Cyber liability
  • Management Liability – Director’s & Officer’s, Employment Practices Liability, Etc..
  • Worker’s Compensation Insurance

A Proactive Approach to Preventing Quiet Quitting

Although quiet quitting is a frustrating trend, it’s important to keep in mind that there are numerous reasons why employees decide to disengage. Some of these are preventable and can be minimized through careful planning on the company’s part.

Common reasons for quiet quitting include:

  • They feel under-compensated.
  • Long hours or unrealistic expectations are causing burnout.
  • There’s a lack of effective communication with colleagues/superiors.
  • They don’t feel that their employer is honest.
  • They feel ignored, undervalued, or let down.
  • They don’t fully understand their job description.
  • Their role has changed without adequate explanation.

How do you address these concerns? Communication can go a long way. For example, if someone is upset about their compensation, it could help to have an open and honest conversation about better goal-setting for the coming year. Explain what’s considered underperforming and give them a chance to correct their behavior to qualify for increased compensation.

It’s also essential to review your company’s job descriptions and ensure your expectations are clear from the outset of the recruitment and hiring process. After someone is hired, re-clarify their duties and make sure they understand exactly what’s expected of them.

Does your firm conduct performance reviews consistently? Performance reviews help employees feel heard and respected. Each review is an opportunity to re-engage them with the company and inspire them to continue feeling enthusiastic about their work.

Whenever the company experiences a major transition, like taking on a new geographic territory or merging with a new partner, hold one-on-one meetings. If necessary, share the updated employee handbook and explain any changes that will impact each person’s job.

Training and career development opportunities also keep employees more fully engaged with their employers. According to Zywave’s 2022 Attraction and Retention Benchmarking Overview, 29% of employers found career development opportunities to be a top priority for potential hires during the hiring process. 

Proper insurance is one of the best ways to protect your company. Whether you currently have quiet quitters in your ranks or not, review your property and casualty insurance to see if there are any gaps in coverage that could potentially expose your company to risks and liabilities.

The Takeaways

Here’s the bottom line. Quiet quitting is a new employee trend toward doing the bare minimum without trying to exceed expectations. It’s risky behavior that can lead to negative fallout.

To head off this trend, you can stay aware of your employees’ levels of engagement and maintain a consistent and positive flow of communication. Show that the company cares about them. Encourage them to share feedback about how they’re feeling and set clear performance expectations.

Are you properly insured? Check with your insurance provider and ask about any gaps in coverage. Also, always check with local, state, and federal employment laws before disciplining an employee or pursuing termination. For additional guidance, work with HR advisors and/or seek legal counsel.

Contact LG Planning Group for information about workplace trends, employee retention, and employment laws. LG Planning Group is a full-service insurance, financial planning, and wealth management agency specializing in helping businesses thrive through tailored solutions.