> Stewart Butterfield, former CEO of Slack, recently described a dynamic within tech companies behind much of the over-hiring. He noted on Bloomberg’s Odd Lots podcast in late May that when there’s no real constraint on hiring, “you hire someone, and the first thing that person wants to do is hire other people.” The reason is that “the more people who report to you, the higher your prestige, the more your power in the organization…So every budgeting process is, ‘I really want to hire,’ and that to me is the root of all the excess.”
I’ve seen this first hand. One place where I worked HR even had a table of team size vs manager compensation. When I pointed out that it may not be the best idea to directly incentivize managers to hire more people they were less than understanding. Of course it went totally out of control.
But sadly there just is no counteracting force (except perhaps mr Musk). When you apply for your next job as a manager they will ask you “How big was your team?”, and they won’t be impressed when you say “I managed to keep it down to four people”. It’s just something that resonates very strongly with the primitive side of our brains (“You say you were the chief, how big was your tribe?”).
I’ve seen this first hand. One place where I worked HR even had a table of team size vs manager compensation. When I pointed out that it may not be the best idea to directly incentivize managers to hire more people they were less than understanding. Of course it went totally out of control.
But sadly there just is no counteracting force (except perhaps mr Musk). When you apply for your next job as a manager they will ask you “How big was your team?”, and they won’t be impressed when you say “I managed to keep it down to four people”. It’s just something that resonates very strongly with the primitive side of our brains (“You say you were the chief, how big was your tribe?”).