Employees who show up but mentally check out can silently sabotage a business. Known as “quiet quitting,” this growing trend reduces productivity, lowers morale, and can cost companies thousands of dollars in lost revenue. Joining us on the latest episode of Lessons in Leadership, Dave Anderson, founder of LearnToLead, warns managers that ignoring the issue is not an option, but addressing disengagement directly is the key to turning it around.
Understanding quiet quitting
According to Anderson, quiet quitting occurs when employees stop fully engaging at work. Even a team member who normally produces at a solid level can see productivity drop dramatically when they mentally check out. Anderson also notes that the reduction in output can have a significant financial impact, especially if multiple employees disengage simultaneously, creating a cumulative effect on revenue and profitability.
Additionally, Anderson advises managers to address quiet quitting with direct, structured conversations. He recommends the “X to Y by when or else” technique. This technique clearly explains where the employee is, where they need to be, and the timeline to get there, including consequences if improvement does not occur. “Either way, either scenario, either they step up or they tend to fire themselves,” Anderson said.
"You have to have a culture that basically says if you're going to mentally and emotionally check out on us and quit, you've got to take your body with you."
Organizations must foster a culture where disengagement is not accepted. Anderson notes that leaders should continually monitor performance, clearly communicate expectations, and hold employees responsible for their actions. This approach helps prevent disengagement from spreading and keeps team members aligned with organizational goals.
The bottom line
Quiet quitting is a hidden cost that can quietly drain profits and morale. Anderson’s advice remains that dealers should confront disengagement early, provide structured support, and enforce accountability. Companies that act decisively can turn potentially costly situations into opportunities for growth and renewed engagement.
