Meta takes a more proactive approach to employee management. This change marks a departure from Silicon Valley’s traditional talent retention strategy. Technology companies are now prioritizing lean teams over talent retention to prevent competitive advantage.
Meta takes a more performance-oriented approach to employee management. This is something Amazon used a few years ago to systematically weed out ineffective people and maintain lean, high-performing teams.
Meta will this week become the first social media giant to cut 5% of its worst-performing employees as part of its “Raise the Bar” border strategy, according to a memo from CEO Mark. This was announced internally as a plan. Zuckerberg.
This stance reflects Amazon’s long-standing philosophy of maintaining strict annual sales targets, known as no-regret attrition (URA). Amazon managers are required to periodically lay off a certain percentage of employees deemed essential. Even the company’s CEO, Andy Jassy, has in the past set a URA goal of replacing 6% of his team every year, Business Insider previously reported.
Laszlo Bock, who oversaw significant growth in Google’s workforce as head of human resources from 2006 to 2016, said, “The overall trend is that companies are finding they have more power over their employees.” I feel that I have it,” he told BI. “The current political environment is emboldening these CEOs to take drastic action.”
Although Donald Trump was re-elected as U.S. president in November, Bock said tech companies that supported progressive workplace policies and employee-friendly initiatives in 2016 are now taking a markedly different approach. He said that
Meta’s changes in the way it manages its employees mark a major departure from Silicon Valley’s traditional talent strategies. For years, big tech companies have been notorious for overpaying their talent, even under-productive workers, in order to distance themselves from competitors.
“Their business model was so successful with huge profit margins that they were free to hire employees, knowing that even if some of them were underperforming, at least they weren’t promoting competition.” said Bock.
It seems that way of thinking has changed.
Elimination of underperforming companies
According to a memo from Hilary Champion, Meta’s director of talent development and growth programs, reviewed by BI, Meta’s managers have been directed to identify underperformers through a tiered evaluation system.
BI reported last week that Microsoft also plans performance-based job cuts.
“At Microsoft, we are focused on high-performing people,” a spokesperson said at the time. “We are always committed to helping people learn and grow. When people are not performing, we take appropriate action.”
Google also conducted its own performance screening under Bock’s leadership, which the company kept secret.
Bock told BI that on a quarterly basis, the company identifies the bottom 5% of employees in groups (such as departments) of at least 200 people and combines them with smaller teams until that threshold is reached. This process was separate from regular performance reviews.
Some of those people still perform well, he said. “If your worst person is better than my best person, you’ll still be in the bottom 5%,” he said. Google then coached, transferred, or fired these employees. Google and Meta declined to comment on the report.
But today’s technology CEOs are taking a more direct approach.
“Employees at these companies are still being evaluated and taking action,” Bock said, “but CEOs are seeing opportunities in the market and political environment and saying, ‘We’re going to pull the band.’ I think that’s what he’s saying.” Aid has been discontinued. ” They feel that employees have rights. ”
The message is clear. If we don’t build the future, we may just remain in history.
If you are a current or former Meta employee, contact this reporter securely from your non-work device on Signal (+1-408-905-9124) or email pranavdixit@protonmail.com please.
