Elon Musk went from being heralded as one of the best entrepreneurs of his generation to creating a ... [+]
The belief that a company is a family has irrevocably been busted. When times were good, tech companies offered top talent substantial pay packages, perks and amenities. Now that the economy has shifted, around 119,155 people have been laid off from startups and tech companies just this year, with more losses projected.
Families Don’t Fire Their Kids
When things go wrong, a family does not fire its kids. However, this is what is happening now. CEOs offer yoga and meditation studios and free laundry services and meals, blurring the lines between work and home life.
Once leaders like Meta CEO Mark Zuckerberg and self-appointed chief twit Elon Musk made business decisions harming the financial standings of their respective organizations, large layoffs were ordered.
Zuckerberg announced that 11,000 workers would lose their jobs. Meta has had to contend with its disastrous foray into the metaverse, privacy issues and the ascendancy of TikTok stealing its thunder and market share.
As things turned terrible, instead of cutting his own compensation, Zuckerberg’s knee-jerk reaction was to downsize hardworking employees and contractors. He’s one of the wealthiest people in the world. If the company was truly a family, the patriarch would have accepted blame and taken other cost measures instead of letting so many people go.
Musk went from being heralded as one of the best entrepreneurs of his generation to creating a dysfunctional family at Twitter. There was no love when, upon his arrival, he ousted top executives “for cause” to allegedly avoid paying their multimillion-dollar severance packages.
Musk’s predecessor, Jack Dorsey, promised at the beginning of the pandemic that his tweeps could work remotely forever. That promise was dashed as Musk called for everyone to return to the office. There was little to no consideration that workers moved outside of their San Francisco headquarters and were unable to commute or changed their lifestyle based upon Dorsey’s message. His management style seems familiar to some family members who are stuck in one-sided toxic relationships. A steady stream of management and workers are divorcing themselves from the chaotic so-called family.
Sam Bankman-Fried, the CEO of the FTX crypto exchange, was believed to be a boy genius. He was thought to be worth more than $16 billion. He had naming rights at a stadium, Tom Brady and other stars shilling for him and was the second largest donor to President Joe Biden.
Within 48 hours, Bankman-Fried’s empire and reputation crashed. There are allegations that he ran his Bermuda-based digital-assets platform as an alleged Ponzi-type scheme. He was accused of using customers’ assets to fuel high-risk trading and other questionable activities.
FTX filed for Chapter 11 bankruptcy on Friday and Bankman-Fried, in a statement, announced that he will be stepping down as CEO of the company.
Although the trading was conducted by a bunch of “kids” in a penthouse apartment shared with Bankman-Fried, the head of the family wouldn’t place his workers and customers in such a precarious position. Investors may end up losing all their money. Not only will workers lose their jobs, they’ll be investigated by several regulatory organizations and likely sued by innocent investors to get their money back from the alleged fraud that was perpetrated.
It’s Not A Family; It’s Just Business
For decades, corporations have branded themselves as a big, happy family. It's not just a job you’re accepting, it's entree to a new family. Self-serving makes it feel as if the employee is valued and will be taken care of and appreciated.
The reality is completely different. It's transactional. You’re hired for a specific role and offered pay for your time and services. If you exceed expectations and are highly productive, you’ll be rewarded with more money, bonuses and promotion.
If you don’t meet expectations, you’ll be placed on a performance improvement plan and scrutinized by human resources, your immediate boss and senior-level executives. If you don't improve, according to the company’s assessment, you’ll be shown the door. This is not what being part of a family is all about. In a family, you love and support everyone unconditionally.
The family mantra is insidious. It makes you feel that you need to work hard and put in long hours and weekends to please your bosses, as you want mommy and daddy’s approval. If you don't work hard enough, there is the pressure that you’re letting down your brothers and sisters.
To be generous, perhaps some C-suite executives do feel that the workers are part of a big, happy family. That mindset was a vestige to the 1950s when a person didn't have to go into debt with college loans, would take a job with a local company and stay there for most, if not the entire duration, of their career. It was a more paternalistic period. This is not the case anymore.
Your Company Is More Like A Sports Team
The workplace is more like a sports team. The franchise owner seeks out the best players and offers them huge compensation packages. The big payouts are designed to motivate the players to win. Winning games brings in attendance at the stadium, lucrative television and online contracts, selling more merchandising and other revenue flows.
The owner and managers love their star athletes. However, once their talents start fading, the owner will trade a beloved player to another team for a better, younger rising star. It's the same at companies. If you do well, you’ll be rewarded. When you don't produce, you’re gone.
