Quiet hiring is a strategic workforce practice where organizations acquire new skills and capabilities without adding full-time employees by reallocating internal talent or engaging temporary workers.
The practice emerged as a response to talent shortages and economic pressures facing organizations worldwide. Companies use this approach to fill critical skill gaps quickly while managing costs and maintaining operational flexibility.
According to SHRM’s 2024 Talent Trends report, “over 3 in 4 organizations” struggled to fill full-time positions in the last 12 months. Quiet hiring offers a practical solution to address immediate business needs without the lengthy traditional recruitment process. This approach allows companies to remain agile and responsive to market changes while developing their existing workforce.
The concept gained prominence following the recent global workforce shifts, though the practice itself has long existed under different names. Modern iterations of quiet hiring emphasize employee development and internal mobility as key components of a flexible talent strategy.
How quiet hiring works
Emily Rose McRae, Senior Director in the Gartner HR Practice, summarizes quiet hiring as when “an organization acquires new skills without actually hiring new full-time employees.” Organizations handle this by reassigning current employees from their standard roles to other positions that are essential to fulfill current business needs.
The process begins with thoroughly assessing organizational needs and existing talent pools to identify potential skill gaps.
Strategic assessment and planning
Companies first conduct comprehensive skills audits to map their current capabilities against future needs. This evaluation helps identify where internal talent can be redeployed effectively and where additional training might be necessary.
“If an organization is facing a six-month timeline to hire data scientists, they could choose to redeploy data analysts from marketing and HR to their IT and digital workplace teams. Rather than expect the marketing and HR analysts to be able to perform the same complex statistical programming as data scientists, the organization may focus the data science talent they do have on the complex programming tasks,” McRae illustrates at Gartner.
Implementation and communication
Clear communication is the foundation of successful quiet hiring initiatives. Organizations must explain the rationale behind role changes and new responsibilities to maintain employee engagement and trust. Regular check-ins and feedback sessions help ensure smooth transitions and address concerns promptly.
Training and development support
Companies provide targeted training programs and resources to support employees taking on new responsibilities. These programs may include online courses, workshops, and mentorship opportunities to upskill/reskill employees and prepare them for expanded roles.
Cross-departmental collaboration often serves as a practical training ground, allowing employees to develop new capabilities while contributing to different business areas.
Role definition and documentation
Organizations carefully document new responsibilities and expectations to ensure clarity for employees and managers, which may involve updating job descriptions, establishing clear performance metrics, and aligning compensation with expanded roles. The process often involves creating detailed procedural documents to guide transitions and maintain consistency.
Why is quiet hiring happening?
The persistent labor shortage continues to challenge organizations in 2025, with talent attraction and retention remaining critical concerns.
Employee engagement has reached a concerning 10-year low. Only 31% of employees are engaged in their work, and 17% are actively disengaged. This disengagement signals a significant shift in workplace dynamics and employee expectations.
CHROs are showing increased optimism about employee engagement moving into 2025, with 24% expecting engagement levels to decrease—an improvement from previous quarters. However, organizations face mounting pressure as the skills gap widens, particularly with the rise of AI implementation, where only 7% of CHROs report implementing reskilling strategies for roles affected by automation.
Types of quiet hiring
This strategy takes two primary forms: internal and external quiet hiring.
Internal quiet hiring
Internal quiet hiring occurs when organizations redeploy existing employees into different roles based on their transferable skills. For example, Qantas asked senior staff to work as bag handlers to address labor shortages during a pandemic-induced staffing crisis. This strategic move helped the airline address immediate operational needs while maintaining service levels.
External quiet hiring
External quiet hiring involves bringing in temporary workers or contractors to address specific business needs. A prime example is Materialise, a software company that needed specialized talent for its SaaS platform. The company identified qualified candidates in Spain and Germany and partnered with an employer of record (EOR) to quickly hire these professionals without establishing local entities.
Global hiring as an alternative
Beyond traditional quiet hiring, companies are increasingly turning to global talent pools as a sustainable solution. This approach expands the available talent pool beyond local boundaries, making it easier to find specialized skills within budget constraints.
As in the case of Materialise, organizations can leverage EOR services to streamline the hiring process across borders, ensuring compliance while accessing a broader range of expertise.
The benefits of quiet hiring
Quiet hiring allows businesses to quickly address skill gaps in their workforce by reassigning or encouraging current employees to take on new roles or by hiring short-term contractors to address the needs of the business.
With an average cost per hire of about US$4,700, quiet hiring is a cost-effective approach to filling skill gaps. Savvy recruiters and HR teams look internally to identify those skills and reallocate their existing talent to where it can have the most significant impact.
Quiet hiring also offers career development opportunities for current employees, which can help boost retention. According to a Monster survey, 63% of professionals view quiet hiring as an opportunity to learn new skills.
These benefits align with a workforce that demands advancement. When it comes to choosing which company to work for, 91% of millennial professionals view career progression as a top priority.
The downsides of quiet hiring
The vacancies created by internal quiet hiring can potentially affect productivity and cause stress for teams. This redistribution of resources can strain existing operations and impact overall efficiency.
Internal quiet hiring also risks making employees who pivot into new roles feel their previous positions weren’t “as valuable” as their new assignments. This perception can affect morale and organizational culture.
External quiet hiring allows organizations to source needed skills and labor. However, the long-term benefit to organizations is limited because contractors typically don’t remain for extended periods, preventing the natural professional growth that occurs with permanent employees.
Excessive reliance on contractors can expose organizations to significant risks. Contractor misclassification can result in fines, employee entitlement back pay, back taxes, and legal penalties—along with potential reputational damage.
The degree of risk and severity of penalties vary depending on the talent’s country of origin—a critical factor organizations must consider when engaging with international contractors.
How quiet hiring impacts employee engagement
The success of quiet hiring initiatives largely depends on how they affect workforce morale and productivity. Here’s how this recruitment strategy impacts employee engagement, both good and bad:
- Cross-functional growth. Professional skill development accelerates through cross-departmental exposure and a strong learning culture. This increases job satisfaction and creates a 30-50% boost in engagement rates among participating employees.
- Skills-role alignment. Role misalignment can create significant challenges, as research shows that over half of quietly hired employees report their new responsibilities didn’t match their capabilities.
- Workload balance. When organizations add responsibilities without proper support systems or compensation adjustments, employee burnout becomes a risk. This often results in decreased productivity and increased turnover.
- Clear communication. Communication transparency directly correlates with program success, with 41% of employees reporting negative perceptions when quiet hiring initiatives lack clear explanation and direction.
- Support systems. Structured training and mentorship programs prove essential for maintaining engagement, particularly when employees transition into roles requiring new skill sets.
- Fair compensation. Recognition and compensation adjustments are crucial in maintaining morale, as employees expect tangible benefits for increased responsibilities.
- Continuous feedback. Regular feedback mechanisms, including engagement surveys and one-on-one check-ins, help organizations identify and address concerns before they impact performance.
- Career mapping. Career development pathways become clearer when organizations align quiet hiring initiatives with long-term professional growth objectives and departmental needs.
How to handle quiet hiring compensation
Organizations must develop transparent compensation strategies that align with expanded responsibilities while maintaining internal equity. A formal compensation plan with regular reviews helps address pay compression and ensures fairness across roles.
Base pay adjustments
When employees take on substantial new responsibilities, organizations should conduct market analyses to determine appropriate compensation levels. Pay bands must be realistic and competitive, with clear criteria for increases based on expanded duties.
Performance-based incentives
One-off bonuses and performance incentives can effectively recognize temporary role expansions without permanently affecting payroll structures. Organizations should establish transparent criteria for these rewards and communicate them clearly to maintain employee trust.
Total rewards approach
Beyond salary adjustments, organizations should consider comprehensive compensation packages that include professional development opportunities, flexible work arrangements, and additional paid time off. These non-monetary benefits can help recognize increased responsibilities while managing budget constraints.
Compliance and equity
Regular pay equity analyses ensure fair compensation across similar roles and help organizations maintain legal compliance. This approach creates a good-faith defense while fostering an equitable environment that attracts and retains talent. Organizations should conduct routine reviews of their compensation structure to address any disparities that emerge during quiet hiring initiatives.
Dealing with the persisting labor shortage
Organizations are adopting more strategic approaches to address workforce challenges in 2025. According to a recent Mercer report, employers are expected to increase compensation budgets by 3.3% for merit increases and 3.7% for total salary increases for nonunion workers. Beyond compensation, companies are focusing on comprehensive benefits packages and workplace flexibility to attract and retain talent.
The U.S. Chamber of Commerce emphasizes that businesses can expand their hiring pools by removing traditional barriers to workforce entry. Such barriers include expanding childcare access, offering innovative benefits, participating in second-chance hiring, and providing upskilling opportunities. Companies are increasingly turning to skills-based hiring, with 81% of employers prioritizing capabilities over educational background.
To remain competitive, organizations must reevaluate their entire benefits structure, considering rising demands for inflation-adjusted pay and remote work flexibility. This strategic shift reflects a broader trend toward personalized benefits packages and enhanced employee experience initiatives, with 53% of employers focusing on improving overall employee experience.
Fill talent gaps with a strategic partner
Quiet hiring may be an effective short-term solution for some, but it leaves a vacancy in a company’s workforce and can make employees feel less valued, as well as cause stress and productivity disruptions.
Velocity Global’s EOR solutions give organizations a strategic advantage in today’s evolving workforce landscape. The company’s presence in over 185 countries enables businesses to quickly access global talent pools without establishing local entities. Velocity Global handles all legal requirements, global payroll management, and benefits administration while companies maintain operational control. Get in touch to learn more.
