The question managers should ask to see whether to ‘take action’ on an employee, according to a former Stripe HR leader
In a recent episode of “Lenny’s Podcast,” Rachel Lockett, a former HR leader at tech giants Stripe and Pinterest, shared a powerful strategy for evaluating employee performance that can help managers navigate challenging conversations about talent. Lockett’s key question, “Would you enthusiastically rehire this person for the same role?” serves as a straightforward litmus test for assessing an employee’s fit within the organization. According to Lockett, this binary question elicits an immediate and honest response, providing managers with the clarity needed to make informed decisions about their teams. If the answer is “no,” she argues, it is unlikely that any amount of difficult conversation will change the situation, emphasizing the importance of confronting performance issues head-on.
Lockett’s approach resonates with broader trends in the tech industry, where companies are increasingly focused on “talent density”—the idea that having high-performing individuals on a team leads to greater overall success. This philosophy is echoed by practices at companies like Netflix, which employs a “keeper test” to evaluate whether managers would fight to retain an employee. Similarly, organizations like Meta and Microsoft have undertaken layoffs targeting low performers to ensure that only the best talent remains. However, Lockett and podcast host Lenny Rachitsky caution that a negative response to her question does not necessitate immediate termination. Instead, it opens the door for alternative paths, such as performance improvement plans or role adjustments, especially in rapidly growing companies where leadership dynamics frequently shift.
The clarity and directness of Lockett’s question can be particularly valuable in today’s fast-paced work environment, where performance management is often fraught with ambiguity. While performance improvement plans (PIPs) have become a dreaded term in the industry, sometimes referred to as “quiet layoffs,” Lockett suggests that engaging in honest dialogue can lead to constructive solutions. Ultimately, her insights encourage managers to take a proactive stance on talent management, ensuring that teams are composed of individuals who not only meet performance expectations but also contribute positively to the company’s culture and goals. By fostering these hard conversations, organizations can cultivate a more effective and engaged workforce.
HR pro Rachel Lockett said that “engaging in the hard conversation” about employee performance can “lead you to the clarity that you need to take action.”
vittaya pinpan/Getty Images
Former
Stripe
and Pinterest HR leader Rachel Lockett said there’s a key question managers should ask about employees.
Lockett’s question: “Would you enthusiastically rehire this person for the same role?”
“You have an immediate reaction that is honest to that question that provides clarity,” she said on “Lenny’s Podcast.”
Did you hire the right talent? For HR pro Rachel Lockett, it comes down to one question.
Lockett worked as an HR leader at major tech companies, including Stripe and Pinterest, before founding her own executive coaching consultancy. On a recent episode of ”
Lenny’s Podcast
,” Lockett gave a peek behind the curtain for her talent strategy.
It’s difficult for managers to accept that their talent is underperforming, Lockett said. She suggests asking: “Would you enthusiastically rehire this person for the same role?”
Lockett always asked that question at Stripe, she said.
“When the answer is no to that, no matter how many difficult conversations you have, this is not going to work,” she said.
The question is clarifying, she said, because it is a binary choice.
“Even engaging in the hard conversation and seeing what happens can lead you to the clarity that you need to take action on talent that’s not working,” Lockett said.
As tech companies strive for ”
talent density
,” they can employ various methods to determine whether their teams have the desired makeup — and whether talent should stay.
Lockett’s question is reminiscent of Netflix’s famous ”
keeper test
.” It’s evolved over the years, but it asks Netflix managers to consistently ask themselves: “If X wanted to leave, would I fight to keep them?” or, “Knowing everything I know today, would I hire X again?” If the answer is no, the employee is given “generous severance” and cut so that a stronger replacement could be found.
Meta looked for so-called “low performers.” Mark Zuckerberg laid off some 4,000 employees
in February
to “make sure we have the best people on our teams.” Microsoft took a similar strategy, cutting nearly 2,000 employees who were
deemed low performers
.
Host Lenny Rachitsky chimed in to say that a “no” to Lockett’s question doesn’t always mean employees should be exited on the spot. There are other methods to address performance, he said.
“It could be, talk to them about it, put them on a performance plan, put them in a different role,” Rachitsky said. “It doesn’t mean you have to fire them immediately.”
Lockett responded by saying that the size of the business mattered, too. “In quickly scaling businesses, it’s natural that the leadership team’s job will change, and that you’ll have to make some evolution over time,” she said.
While a performance improvement plan may be preferable to termination, employees have come to dread them. In Big Tech, PIPs took on a new name: ”
quiet layoffs
.”
Part of the question’s appeal is its directness, Lockett said.
“You have an immediate reaction that is honest to that question that provides clarity,” she said.
Read the original article on
Business Insider
