‘Silent firing’ on a rise with rapid technological advancement: Report

PTI, Dec 30, 2024, 5:55 PM IST

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Mumbai:  With rapid technological advancement, silent firing — a strategy by companies to indirectly push employees to leave their roles — has picked up pace, with 10 per cent of employers preferring layoffs for redundant positions, a report said on Monday.

The report by staffing solutions and HR services provider Genius Consultants said that silent firing is often intertwined with technological advancements, with employers adopting varied strategies to navigate the evolving workplace landscape.

While 79 per cent of employers interviewed said they prioritise upskilling their current workforce to adapt to technological changes, 10 per cent prefer layoffs for redundant positions, the report said.

While 6 per cent resort to assigning excessive workloads to underperforming employees as a subtle means of attrition, it added.

The report by Genius Consultants is based on a survey that analysed feedback from 1,223 employers and 1,069 employees, exploring ‘silent firing’s implications against the backdrop of rapid technological adoption and evolving workforce dynamics.

According to the report, 39 per cent of employers anticipate complete reliance on advanced technologies to minimise manual intervention five years ahead, however, 31 per cent emphasised the importance of balancing technological growth with human resource development.

Nearly half of the respondents (48 per cent) opposed replacing human employees with AI, emphasising the importance of a human-centric approach to workforce management.

On the other hand, 36 per cent of employers support the complete adoption of AI, reflecting a growing inclination toward automation and technological advancement, it stated.

This split highlights the contrasting strategies organizations are considering as they navigate the balance between innovation and human capital, added the report.

Despite advancements, 52 per cent of employers believe manual intervention remains indispensable, underscoring the enduring importance of human contributions in the workplace, it said.

Silent firing remains contentious, with 34 per cent rejecting it entirely, while 28 per cent use it frequently and 29 per cent occasionally, citing improved efficiency and professional growth opportunities as justifications, it added.

Meanwhile, from the employees’ perspective, the rise of ‘silent firing’ and the implementation of advanced technologies have profoundly impacted their workplace experiences.

When asked if they have faced sudden side-lining, exclusion, or isolation from critical projects and decision-making processes, 55 per cent of respondents confirmed that they have experienced this issue.

A substantial 68 per cent of employees have experienced undue pressure from management, often citing AI and technology as benchmarks for performance, leading to workplace tension.

Over 32 per cent believe their roles are becoming redundant due to technological advancements, causing delays in promotions or acknowledgement, and prompting resignation considerations, said the report.

The report also found the impact of technology on employee retention, with 41 per cent of respondents admitting they are feeling compelled to quit their jobs due to automation replacing manual roles.

While 52 per cent disagreed, indicating that their roles are unaffected or that they have adapted to the technological changes. This data underscores the varied employee experiences in the face of automation, reflecting both the challenges and opportunities posed by the integration of advanced technologies in the workplace.

Nearly 32 per cent of respondents have felt that their positions are becoming increasingly irrelevant due to the rising influence of artificial intelligence, and a reassuring 61 per cent have expressed confidence in the continued value and significance of their roles.

“Silent firing is an emerging phenomenon that organisations must approach cautiously. While it may appear as a quick fix for managing underperformance, it risks undermining employee morale and trust.

“Our survey underscores the importance of open communication, skill development, and empathy to foster a balanced workplace where both technology and human potential can coexist,” Genius Consultants Chairman and Managing Director R P Yadav added.