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😶‍🌫️ The New Way Workplaces Say “You’re Not Welcome”

Inside: The Reality of Being Interviewed by AI

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Good Morning!

Whether it's AI interview bots confusing candidates, managers using “quiet firing” to subtly push employees out, or remote-first companies like Dropbox designing flexibility into every workflow, one thread connects it all: trust.

From hiring to retention, how we build (or break) trust through tech, transparency, or culture is emerging as the defining challenge of today’s HR leaders.

The question isn’t just what tools we use, but how we use them. Let’s dive into what has been going on in the HR world the past week.

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 📰 Latest in HR News

🤖 The Reality of Being Interviewed by AI

As employers lean harder into artificial intelligence, especially in recruiting, a growing wave of backlash is forcing companies to reckon with the limits of tech-led hiring.

And with HR teams racing to adopt AI solutions, often without fully grasping their impact, the hiring process is starting to feel like a science experiment, minus the ethics review.

Even the applicants themselves are asking: if the first impression is this robotic, what's working there really like?

Would you trust an AI to run first-round interviews for your open roles?

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Key Insights 🧠

  • 😬 Job seekers feel disrespected: Viral TikTok video showed a bot glitching mid-question — resonating with thousands who’d faced similar AI interviews.

  • 📉 AI regret is real: Over half of companies that replaced workers with AI now regret it; 25% don’t know which roles AI suits best.

  • 🚨 Employers lack clear AI strategy: Psychologists describe hiring as a “wild west” scenario, with companies blindly adopting tools without considering empathy or ethics.

  • 🧑‍💼 Human touch still matters: Despite the bot mishap, the applicant said he’d re-interview — but only “100% with a human being.”

😶‍🌫️ Quiet Firing: The New Way Workplaces Say “You’re Not Welcome”

Not every exit comes with a pink slip. Sometimes, it’s fewer responsibilities, no raises, and an unspoken message that it’s time to go.

That’s what’s happening in workplaces across the U.S. in 2025, where employers are leaning on a subtler method of attrition known as quiet firing.

Rather than directly laying off workers, companies are tightening return-to-office rules, slashing benefits, and quietly undermining morale to get employees to quit on their own.

Key Insights

  • 📊 Over 50% of companies are on board: A May 2025 study found 53% of U.S. employers are currently using or planning to use quiet firing tactics.

  • 🏢 RTO mandates as pressure points: One in four execs hope stricter in-office policies will trigger resignations, avoiding the PR fallout of layoffs.

  • 💸 Benefits cuts are top strategy: Perks like retirement matches and learning stipends are being scaled back to push employees out the door.

  • 🧠 Quiet firing creates brain drain: While underperformers may leave, top talent often exits too — leaving companies with morale crashes and lost expertise.

🤖 When Using AI at Work Costs You Trust

In a series of 13 experiments involving over 5,000 professionals, researchers found that people trust their colleagues less when they openly admit to using AI on work tasks.

Even tech-savvy, pro-AI participants were more skeptical of coworkers who disclosed their use of artificial intelligence.

And hiding it doesn’t help: when people find out someone secretly used AI, trust drops even further.

Key Insights 💡

  • 📉 Honesty about AI use backfires: Across diverse roles, disclosure of AI involvement consistently led to lower trust in the person using it.

  • 🧠 “Real” effort still matters: Coworkers expect genuine human thinking, so AI-assisted work is often seen as lazy or inauthentic.

  • ⚠️ Concealing AI use is worse: When people discover someone used AI without saying so, it causes the steepest drop in trust.

  • 🏛️ A policy shift is needed: Researchers suggest workplaces create a stigma-free culture and flexible policies around AI transparency.

🌐 Case Study | How Dropbox Turned Remote-First into a Retention Power Move

At Dropbox, remote-first has evolved into a full organizational philosophy, with cloud tools and asynchronous workflows redefining how teams connect, innovate, and stay productive.

Rather than forcing a return to the office, the company doubled down on flexibility, designing internal systems that match how people actually want to work.

Key Insights 🚀

  • 💼 70% of applicants are drawn in by remote-first: Dropbox’s internal data shows flexible work is a top attraction for new talent.

  • 📉 Lowest attrition in company history: Since shifting to a virtual-first model, employee retention has hit unprecedented highs.

  • 🛠️ Dropbox Dash boosts async productivity: The AI-powered search tool helps remote teams cut through noise and find what they need fast.

  • 📚 Virtual First Toolkit leads cultural shift: From team rituals to async comms, Dropbox’s toolkit reshapes how employees work and collaborate.

PS - Do check out SSR's free HR software matching service. As you know, buying HR software can be stressful and time-consuming. SSR helps you find the right HR software at the right price, saving you both time and money!

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Sophia Bennett
Editor-in-Chief
HR Insights Today