Want to read Slashdot from your mobile device? Point it at m.slashdot.org and keep reading!

 



Forgot your password?
typodupeerror
×
Businesses

Amazon Managers Say They 'Hire To Fire' To Meet Annual Turnover Goals (businessinsider.com) 289

A Slashdot reader shares a report: Amazon has a goal to get rid of a certain percentage of employees every year, and three managers told Insider they felt so much pressure to meet the goal that they hired people to fire them. "We might hire people that we know we're going to fire, just to protect the rest of the team," one manager told Insider. The practice is informally called "hire to fire," in which managers hire people, internally or externally, they intend to fire within a year, just to help meet their annual turnover target, called unregretted attrition (URA). A manager's URA target is the percentage of employees the company wouldn't regret seeing leave, one way or the other.
This discussion has been archived. No new comments can be posted.

Amazon Managers Say They 'Hire To Fire' To Meet Annual Turnover Goals

Comments Filter:
  • by Calydor ( 739835 ) on Wednesday May 12, 2021 @10:42AM (#61376634)

    There are so many things ethically wrong in just the summary that I'm lost for words.

    Managers are punished for NOT firing enough people, whether firing is in the company's best interest or not? WTF kind of psychopath came up with that?

    • by jythie ( 914043 ) on Wednesday May 12, 2021 @10:50AM (#61376658)
      This is one of the classic problems with tying rewards to metrics. The planning and budget people probably have a target number they use for their calculations, and that number filtered down to 'you should try to meet this metric', maybe even with rewards associated with it for being 'on target'.. and any time you have a metric that your personal career depends on, people will optimize for it rather than something holistic.
    • by cowdung ( 702933 )

      I guess it's one of those misguided policies where they are trying to only "keep the best" so they force managers to fire people.

      Dumb policies.

    • Rank and Yank. I Blame Jack Welch for making that practice popular.
      • It sounds like Amazon doesn't even rank, they just have a target for turnover. Not that it makes much of a difference, most companies are hilariously bad at spotting talent or assessing performance with a formal process.
    • by nucrash ( 549705 )

      Meanwhile I know other companies that are struggling to find employees only to see them leave in short order.

      The idiot that came up with this metric should be replaced. What happened to "Working together for the good of the company?" What about all of that team based nonsense that we used to strive so hard to get? Apparently their anti-union rhetoric is so strong that they are looking to destroy any semblance of team building.

      To be fair, I didn't read the article for paywalled reasons.

      • Working together for the good of the company implies that employees should be loyal to an entity that often regards them as a fungible resource to be exploited, used up and discarded. It's tough to find someone that stupid nowadays who is also smart enough to be competent at their jobs.
    • by MerlynEmrys67 ( 583469 ) on Wednesday May 12, 2021 @11:15AM (#61376762)

      So I had a simple metrics... % of time my support cases were in Service Level Agreement. If I had 10 cases and 1 was out - I met my SLA 90% of the time...

      There are always long standing bugs that take forever to fix so there is always something out of SLA - nothing can be done about it. What was perverse is my wallet was tied to this metric. If an easy fix came in that had a 2 week SLA - it was against my best interest to fix it immediately. I mean I have 10 cases with 1 bad - now I fix one I now have 9 cases with one bad... My metric went from 90% to 89%. I lose money. Tried to explain this to management - they didn't get it... so off I go to give customers fixes right on the due date, instead of when they are available to keep as many cases open as possible.

      Got to love simple metrics.

      • Re: (Score:2, Interesting)

        by Tablizer ( 95088 )

        Tried to explain this to management - they didn't get it

        They probably did get, but they are just kissing up to their own moron boss(es) who probably think they are a stable genius. Brownosing trumps logic in most orgs.

    • by mykepredko ( 40154 ) on Wednesday May 12, 2021 @11:38AM (#61376860) Homepage

      The interesting thing was, it was the right thing to do in the situation and there were certain controls in place.

      I became a manager in Toronto Manufacturing 1988 and there were a *lot* of workers on the line and in administrative/engineering positions that had been hired during and immediately following WWII who were struggling with changes to the manufacturing processes (going from being a primarily mechanical assembly factory to all electronics) as well as changes in business processes (ie email and automation). These guys (they were all men) had been excellent performers over their decades of service with deep networks within the organization but many didn't want to/were able to change with the times.

      There was an edict to remove the bottom 10% of the population from the business. Note I say "remove" as the first approach to deal with the older, lower performing employees was to encourage them to retire if they were eligible. When it came to firing people, the names came out of human resources based on their performance evaluations over the previous few years as well as their time of service and a general management perception of the employee.

      Being a manager I was fairly close to the situation and there are a couple of things that stick in my mind. When the guidelines came out, I did have an older employee that was 63 (two years away from mandatory retirement) was an excellent performer as PCB board designer but was not well known by the management team at large, although very highly regarded by the rank and file engineers and had mentored many of them. I had a real fight in keeping him for the two years until his mandatory retirement to keep him on staff but I was able to by arguing that the morale of the department would be seriously damaged by his leaving.

      The second thing was that I saw a number of other managers taking on poor performers from other departments with the intention of firing the transfers and looking good to senior management. What amazed me was how quickly they were identified as "hatchet men" by everyone in the plant with employees refusing transfers into their departments (even long after the policy was stopped) and they got poor employee surveys. By doing what they thought would make them seen as being effective managers by the senior team ironically hurt their careers (you can't move up the ladder if people won't work for you).

      It doesn't seem like Amazon has the same situation or controls that IBM Canada had all those years ago and if it's happening, then they have a very poor HR department - it should be pretty easy for them to identify managers engaging in this behaviour and shutting them down. It seems like Amazon HR either doesn't agree with the edict (which means they are allowing managers to "hire to fire") or they are incompetent and not seeing what is happening the business.

    • Managers are punished for NOT firing enough people, whether firing is in the company's best interest or not? WTF kind of psychopath came up with that?

      This is how lots of institutions operate. In academia it's called "publish or perish". In the military it's called "up or out". In the private sector it's called "rank and yank". It's an antidote to the Peter Principle [wikipedia.org]. The point is let good people climb the promotion track by getting rid of the poor performers who clog up the system.

      The mangers in this article however are idiots, "hire to fire" completely defeats the purpose. You're supposed to shed the worst ~10% with the expectation that the average new

      • by sjames ( 1099 )

        Rank and yank doesn't solve the Peter Principle, it speeds it up. If you rank and yank the peter principled incompetents you make room for more good people to rise to their level of incompetence faster. If your organization somehow managed to have better than average employees, this policy will quickly regress it to the mean.

    • by GuB-42 ( 2483988 ) on Wednesday May 12, 2021 @12:32PM (#61377110)

      It is like the story of a tax investigator, he was so good and so ruthless that people simply paid their taxes, because they knew that otherwise the guy would find them and they would be in trouble.

      As a result, less and less people got caught, an indicator of poor performance, so our super tax investigator was let go, and people started cheating again, the number of cases increased and the higher up were happy despite a considerable increase in tax evasion.

    • WTF kind of psychopath came up with that?

      Jack Welch [wikipedia.org].

      It sounds bad, but it's worse than it sounds because it creates a culture of backstabbing, and people become emotionally scarred (a suggestion for improvement in a code review can give them nightmares, since that's one thing managers look at to see "bad" programmers).

      This kind of stack ranking has been studies, and has been known to be counter-productive for decades. The exception might be sales teams, where people don't need to cooperate at all.

    • by sjames ( 1099 ) on Wednesday May 12, 2021 @01:59PM (#61377536) Homepage Journal

      At least according to legend, in Japan firing an under-performer brings shame on the manager. A good manager should be able to identify and correct the reason the employee is under-performing.

    • This approach has been around for a long time. When I was managing a team at the former Motorola, there were a bunch of bins we had to rank employees into. There was the bottom 10%, and they were to be sacked. Each year. Of course, when you had a small team (I had a total of 35 or so, but those were subdivided into smaller teams, which just made it worse) that meant you HAD to get rid of a certain number of people each 12 months. It was a sucky barbaric way of running things, especially if you had in genera

  • Nice (Score:2, Interesting)

    by nospam007 ( 722110 ) *

    A bit like that sweater factory in Bangladesh that makes sweaters out of PET bottles, but since they are not collected there, they installed a used PET-bottle-factory right beside it, where they manufacture bottles and then immediately shred them to make sweaters out of them.

  • by RotateLeftByte ( 797477 ) on Wednesday May 12, 2021 @10:53AM (#61376670)

    That says to me that Bezos Inc considers everyone who is not a 'C suite' exec with stock options as totally expendable. Having goals wrt turnover and hiring people that you know that you are going to fire is totally crass IMHO. This is the final nail in their coffin as far as I'm concerned.
    Their behaviour towards workers needs to be exposed for everyone to see the reality of working for the richest man in the world.
    Too bad that the attempt to unionize in Alabama failed. Next time I hope it works.

    • That says to me that Bezos Inc considers everyone who is not a 'C suite' exec with stock options as totally expendable

      You appear to think this is unique to Amazon.

      I'm trying to think of any American company that does not have the same attitude.

    • by Merk42 ( 1906718 )

      This is the final nail in their coffin as far as I'm concerned.

      Right, surely this will get them to change. Face it, Amazon could fire their employees out of a canon and people would still shop there, hand over fist.

    • by Logger ( 9214 )

      Right. Funny how there isn't a goal to turn over 10% of the C-suite every year.

  • Neutron Jack (Score:3, Insightful)

    by tomhath ( 637240 ) on Wednesday May 12, 2021 @10:53AM (#61376674)
    When Jack Welch was CEO of General Electric he told his managers that cutting 10% of staff every years and hiring replacements did everyone a favor. Poor performers were stuck in a job they couldn't do, it forced them to find something different. And it opened opportunities for new people to be hired or promoted. There is some truth to that philosophy, brutal as it seems.
    • Admittedly, this is 20 years ago now, but I spent a number of years at Trane Co / American Standard. At the time, there was a lot of praise for the Jack Welch model, and there were rumors of the same thing occurring.

      We regularly saw significant layoffs around the holiday season, and while a decent chunk of that was in the production facilities (associated with cyclical production), that was also the time you'd see cuts in the offices.

      The terminology used that I heard was not "hire-to-fire", it was "sacrifi

      • Re:Neutron Jack (Score:5, Interesting)

        by Anonymous Coward on Wednesday May 12, 2021 @11:16AM (#61376766)
        When I earned my MBA ten years ago, Jack was worshiped as a God. The more I heard about how he raised "stockholder value", the more I insisted he did long term damage to the company for short term reward. Selling off profitable pieces of the company for mindbogglingly increasing market cap seemed foolish to me. You might have thought I was guilty of heresy. Sooner or later a company has to create something of value to continue to collect income.

        GE stock was $59 in 2000 and it was less than $6 last September. It has rebounded to $13 today. Hmmnmm....
        • by Dareth ( 47614 )

          I read his book about how he reduced failure rates for GE light bulbs. I then got an entire year worth of "failed light bulbs" if you believe their failure rate all in the same box.

        • by ranton ( 36917 )

          I would have assumed that ten years ago the faults in Jack Welch's management would already be part of an MBA curriculum. The house of cards he built went crashing down just before he left. He wasn't a horrible CEO or anything but he certainly shouldn't be regarded as a God like he was in the late 90s.

    • Re:Neutron Jack (Score:4, Insightful)

      by Tablizer ( 95088 ) on Wednesday May 12, 2021 @11:13AM (#61376754) Journal

      Jack Welch ruined GE. He milked the co's brand for short-term profits and tried to turn it into a financial institution instead of manufacturing.

      • Re: (Score:3, Interesting)

        Agreed, and amen. I would argue that GE is just one of many: The entire manufacturing sector has been gutted in my lifetime, (and coincidentally the middle class), and replaced with this kind of thinking. The trouble is that these types of "leaders" know how to suck blood from a rock (extractive value) but no idea about actual wealth creation (production value) by using ones own labor. And of course they own all the politicians. Ross Perot with his "giant sucking sound" was doom for millions, myself include

    • Re:Neutron Jack (Score:5, Interesting)

      by jeff4747 ( 256583 ) on Wednesday May 12, 2021 @11:35AM (#61376840)

      The problem with this philosophy is it is incredibly short-sighted. Much like Jack Welch.

      You have 100 employees. 10% are bad at their jobs. You fire them, and hire 10 new people. Well, 9 of those 10 are good at their jobs. You should only fire 1 person, and something like 1-3 people that survived the first cut. Yet you are still required to fire 10%.

      The result is an incredibly hostile environment where sabotaging your co-workers is the route to job security. Which is extremely bad for the company, since the company is going to do far, far better with employees that work together.

    • Re:Neutron Jack (Score:5, Insightful)

      by gillbates ( 106458 ) on Wednesday May 12, 2021 @11:36AM (#61376850) Homepage Journal

      It may be a brutal policy, but it doesn't even achieve its purported goals.

      The ramp up time for productivity for software engineers is often 6 months to a year for modestly complex systems. For systems with more than 250kloc, the process can take years, and even then, the productivity improvements may extend well beyond the 5 year mark.

      To hire and fire every year means that you always end up with at least one underperformer, and relative to the more experienced peers, the performance gap only grows. Constant turnover destroys the productivity of even the more experienced engineers, because they are constantly mentoring the new guy, rather than concentrating on getting work done.

      The Army takes a different approach: the mission is critical, and if there is a team member who is underperforming, they undertake training to improve them. When it comes to productivity, the Army achieves more each day before most civilians start work, and in conditions far more hazardous. It is through teamwork they are able to achieve far more than just the sum of their individual efforts, a lesson seemingly lost on Amazon.

  • Maybe not the most ethical, but it's certainly rational if managers are forced to fire some % on an annual basis.

    • Welcome to the gig economy. At least contractors and consultants make enough to deal with the treatment.

    • We save money by firing people, then we spend that savings to hire contractors to do the work that the fired people used to do.

  • What is the point? (Score:5, Interesting)

    by smooth wombat ( 796938 ) on Wednesday May 12, 2021 @10:56AM (#61376692) Journal

    Every article on worker retention makes the point that hiring people takes a lot of time, effort and money. Companies should be carefully considering who they hire because of the costs involved.

    Now we have a company which is deliberately incurring costs to hire then fire people because of some policy from on high. What is the end game?

    The only one I can see is to keep incurring these costs against revenue to show a smaller profit which in turn means paying less taxes (not that Amazon pays taxes to begin with).

    Obviously I'm missing something because I don't see the benefit for this churn.

    P.S. Another example of people getting up in arms about this policy but who will continue to buy from Amazon.

    • by jeff4747 ( 256583 ) on Wednesday May 12, 2021 @11:25AM (#61376800)

      The theory is that if you fire the poor-performers regularly, you're only left with high-performing employees.

      It makes some degree of sociopathic sense when you're first building your company and teams - if 10% of all people are going to be bad at the job, firing 10%/year lets you get rid of them.

      But you'll reach a point where you don't have poor-performers to fire. You have 100 employees and fire 10. You replace them with 10 new employees, but 9 of those 10 are good at the job. Now that?

      Well, you keep firing because a famous CEO in the 80s said it was a good idea. You try to justify it as providing incentive for workers to not become complacent, trying to ignore that you're creating an environment where sabotaging your co-workers is required for job security.

    • This is common practice in the USA for any company that has actual HR practicioners.

      I've seen this done in companies as small as 25 people.

    • Every article on worker retention makes the point that hiring people takes a lot of time, effort and money. Companies should be carefully considering who they hire because of the costs involved.

      Now we have a company which is deliberately incurring costs to hire then fire people because of some policy from on high. What is the end game?

      The only one I can see is to keep incurring these costs against revenue to show a smaller profit which in turn means paying less taxes (not that Amazon pays taxes to begin with).

      Obviously I'm missing something because I don't see the benefit for this churn.

      P.S. Another example of people getting up in arms about this policy but who will continue to buy from Amazon.

      One of the big costs of hiring people is that firing them is difficult. Not just the paperwork but on a personal level it really sucks and it can be hard on everyone's morale.

      This means that you can end up with poorly performing or problematic employees who stick around for years because no one wants to actually tear off the band-aid and fire them.

      As others mentioned the old GE model was fire ~10% every year, to force managers to make those decisions. Similarly, I've seen companies benefit from cash crunche

  • `there actually isn't any real supporting evidence for anything they say.
    • by MobyDisk ( 75490 )

      Unfortunately the article is paywalled so all anybody sees is the headline.

      • A site full of "tech people" who can't figure out how to bypass a paywall.

        https://archive.is/dI92l [archive.is]

        Amazon has a goal to get rid of a certain percentage of employees every year, and three managers told Insider they felt so much pressure to meet the goal that they hired people to fire them.
        "We might hire people that we know we're going to fire, just to protect the rest of the team," one manager told Insider.
        The practice is informally called "hire to fire," in which managers hire people, internally or externall

  • Comment removed (Score:4, Insightful)

    by account_deleted ( 4530225 ) on Wednesday May 12, 2021 @11:06AM (#61376732)
    Comment removed based on user account deletion
    • by Tablizer ( 95088 )

      Microsoft got rid of stack-ranking because it turned employees into paranoid back-stabbers.

  • by CQDX ( 2720013 ) on Wednesday May 12, 2021 @11:14AM (#61376758)

    The goal of low level managers should be to find, hire, and retain the best employees for the team. The incentive, especially at the staff level, is to make poor hires so that the new guy will be on the chopping block. This policy fosters back stabbing and poor morale.

  • Reminds me a bit of (Score:4, Informative)

    by IWantMoreSpamPlease ( 571972 ) on Wednesday May 12, 2021 @11:15AM (#61376760) Homepage Journal

    Microsoft's "lost decade"
    https://www.vanityfair.com/new... [vanityfair.com]

    Where managers were required to fire 10% of their staff, regardless of the reason.

  • If it's paywalled, it's not real.
  • by DeplorableCodeMonkey ( 4828467 ) on Wednesday May 12, 2021 @11:31AM (#61376818)

    That allows people to say "I have a fiduciary responsibility to my shareholders to outsource 5k jobs to Mexico/China to make them more money" and other practices.

    My great grandfather ran a very successful business during the depression. Capitalism worked back then because a huge percentage of top men were like my great grandfather: men who feared God and went to church. When the depression hit in earnest, he and the other executives cut their salaries down to the point they could buy food, pay utilities and make mortgage payments and that was about it. They decimated their incomes to free up cash to keep the company going. It never occurred to them to make the bottom pay dearly for it today.

    Cynical fools love to poke at this era and those who came before, but for whatever problems they had naked greed was widely reviled from the bottom to the upper ends of society. The influence of religion on the marketplace was largely very positive because it made the haves more humble and much more prone to living by noblesse oblige.

    I once asked a rabid libertarian a question they couldn't coherently answer about all of this and proves why modern capitalists are as retarded as socialists:

    "Say I am a worker at a factory that got shot down so some big investment fund can optimize their efficiencies at my expense and exploit arbitrage to make more bank. Then I see the owner of the fund lying in a ditch needing help. Why am I obligated to call help for him so he can survive if he said it's not his obligation to take reasonable measures to protect me as an employee and part of society working for him?"

    If you say "common decency," then you're a myopic idiot who can't grasp the fact that a man who can't even be bothered to sacrifice some wealth so his employees can eat and keep their home does not deserve the greater decency of one of those people saving his life.

  • This link provides what seems to be an outline of the paywalled story:

    https://outline.com/JTrxEk [outline.com]

    It's light on detail, but it fleshes out TFS a bit.

  • Stupid Company Rules Result in Stupid Workarounds

  • Need an union there!

  • If you know 10% of the team will be fired, you try to work harder to stay out of that 10%. You don't have to run faster than the bear, you have to run faster than the people with you. It makes you more cut-throat. It provides turn over to the ones that don't KISS ASS to their managers. Have a round where the criteria is "Fire the highest paid" and you get people not asking for raises. You lose your best producers, but you cut costs even more.
  • They are dumping a load on the unemployment insurance system. Make them pay.
  • by nealric ( 3647765 ) on Wednesday May 12, 2021 @12:27PM (#61377086)

    It sounds like either explicitly or implicitly, Amazon is practicing a form of stack ranking. That sort of strategy rests on a few fallacies that shouldn't be hard to grasp:

    1) Proponents of stack ranking think they are only getting rid of the people they want to get rid of. In practice, firing people often causes the employees you want to keep to look for a new job. This is because they may not trust the review process or not like the environment of constant churn.

    2) Proponents of stack ranking think that you can correctly identify who the low performers are. The actual low performer could be the one tasked with identifying the "low performer" who is unable to correctly do so. They may try to mitigate this by using committees for performance reviews, but there is typically only one manager who actually knows the employee well enough to have a meaningful take on their work.

    3) Proponents of stack ranking think that you can rank completely different roles against each other in a meaningful way. You may only have one employee benefits attorney at your company. How are you going to meaningfully compare that person to your mergers and acquisitions attorney? They do completely different things even if they may work in the same department and may have the same boss.

    4) Proponents of stack ranking fall for the "grass is always greener" fallacy- that outside hires are less likely to be low performers than current employees. In a tight labor market, the reverse could actually be true. High performers who are valued by their companies and are being promoted tend not to want to leave their companies.

    5) Proponents of stack ranking typically ignore the productivity costs associated with this practice. It requires: 1) the overhead of identifying the "low performers" (high stakes performance reviews tend to become huge time sucks), 2) the overhead of having to hire large numbers of new employees every year, 3) the overhead of training and ramp up time, 4) the need to pay the opportunity cost for the incoming employee (switching employers is a risk, so people thinking of switching jobs tend to demand higher wages than their old job to compensate them for that risk).

    To be fair, sometimes you do need to fire low performing employees. It can drag down both productivity and morale if other employees have to do the work of the underperformers who aren't doing their jobs. But even then, low performance is often a fixable problem. And there is never going to be a fixed number of people who need remediation. I've worked in environments when a full quarter to of employees are total dead weight, and I've worked in environments where there is absolutely none.

    • by Joey Vegetables ( 686525 ) on Wednesday May 12, 2021 @12:53PM (#61377224) Journal

      Exactly my experience on several of my previous jobs.

      Mostly, the good performers left because they knew that objectively measuring developer performance is at best difficult, and, hence, no one was safe, no matter how much value they added to the company.

      Leaving behind mostly dead weight. Those who knew they weren't safe either, but didn't have any better options.

  • by hey! ( 33014 ) on Wednesday May 12, 2021 @01:19PM (#61377372) Homepage Journal
    Campbell's Law:
    The more any quantitative social indicator is used for social decision-making, the more subject it will be to corruption pressures and the more apt it will be to distort and corrupt the social processes it is intended to monitor.

    This holds across a wide array of fields. Management by numbers schemes are always gamed by subordinate managers; high stakes testing inevitably encourage schools to focus too much on test preparation.

    It's not that metrics are bad. What's bad is the uncritical acceptance of *any* piece of evidence, especially in isolation from other evidence that might validate it or put it in context.

    The problem with metrics is that they're particularly prone to being accepted uncritically. A single number on a spreadsheet hits the sweet spot in our cognitive biases, particularly for smart people. It doesn't make things *so* simple you're obviously making shit up, but it doesn't require very much critical thought and investigation to come up with a decision. Sure, that decision may be supported by evidence, but how good is that evidence? If you aren't regularly checking and critiquing that evidence, it *won't* be any good.

  • by Salgak1 ( 20136 ) <salgak@speakea s y .net> on Wednesday May 12, 2021 @01:24PM (#61377392) Homepage

    . . . .both of my daughters, who were approaching their third year at an Amazon Distribution facility, just got let go. In fact, about 40% of the Year Two Cohort were let go in the last month. The thing about three years at Amazon, is it automatically pushes you into a higher wage and better benefits package. Meanwhile, the Distribution Center is on Mandatory Overtime (~50 hours/week) despite volume being way down.

    Not sure what's going on, but the Firing Impulse appears strong. . . .

  • by bobcat7677 ( 561727 ) on Wednesday May 12, 2021 @01:25PM (#61377398) Homepage
    "getting rid of the bottom 10% every year" is a corporate buzz these days. The idea is that you continuously improve the org by always trimming the bottom 10% of performers. While it sounds good in a CEO seminar, this strategy seriously falls down at multiple levels in practice. I watched it unfold in a company I worked for and it was painful to watch. Eventually I quit, which further upset their strategy since I was one of their top performers. Lets hit the high points...

    1. Replacements are many times worse. The strategy assumes that you will end up hiring new people with better skills than the "bottom 10%" you laid off. Finding good talent is difficult and expensive and often the replacements are worse performers than the people you arbitrarily laid off.
    2. Continuity problems are rife. While the people you laid off might not be as performant as many of their peers, at least they knew their job. By firing them, you throw away their business knowledge and now have to train new people who will inevitably have to "reinvent the wheel" in many areas where knowledge was lost with the outgoing crew. Beyond that, everyone has to learn to work with the new people.
    3. Churn is very expensive. It costs money to lay people off. It costs money to recruit new talent. Once you get the new talent, it costs money to train them. Most successful businesses have programs to reduce churn, not encourage it, for this reason alone.
    4. Arbitrarily firing people is bad for team morale. Ultimately, many of the "good" employees (including myself) chose to voluntarily find other employment because we didn't want to work in that kind of environment.

    In the end, instead of building the "best possible team", you find yourself mired in mediocrity. Your best talent leaves because they can easily find a different job with an employer that values their employees. You fired the bottom 10%. So all that is left is the people in the middle...good enough to not get cut, but not good enough to readily get a job elsewhere.
  • Counterproductive (Score:4, Insightful)

    by xlsior ( 524145 ) on Wednesday May 12, 2021 @01:37PM (#61377446) Homepage
    Firing the bottom 10% just means that the bulk of your employees will become afraid to share any of their knowledge with co-workers, lest they make themselves expendable. "If I help you succeed it could end up costing me my own job." You'll end up with a thousand little islands instead of an well-oiled team who is willing to help one another out.

New York... when civilization falls apart, remember, we were way ahead of you. - David Letterman

Working...