Revolut’s co-founder Nik Storonsky proposes a stringent policy for managing underperformers in startups.
- Employees not meeting expectations could be given a six-week period to improve or face immediate termination with an enhanced separation package.
- Storonsky’s new playbook advises that talent management should be under the CEO’s purview, not HR.
- The approach has attracted criticism for high pressure and potentially unachievable targets at Revolut.
- Quantumlight’s report outlines best practices for fostering a high-performance startup environment.
In a decisive move, Revolut’s co-founder Nik Storonsky introduces a policy requiring startups to either dismiss underperformers immediately or provide them with a six-week improvement window. Storony’s strategy, outlined in his new playbook, emphasises the importance of swift action in managing performance issues, asserting that maintaining a high-performance environment is critical for tech startups looking to grow rapidly.
Storonsky highlights the necessity to direct resources towards retaining and promoting top talent while swiftly exiting those who do not meet performance benchmarks. He argues that historically, employees failing to perform adequately are unlikely to improve on their own. This strategy is intended to ensure that startups can focus their efforts on scaling effectively, without the hindrance of persistent underperformance.
The newly released playbook by Quantumlight, a venture investing firm founded by Storonsky, serves as a comprehensive guide for startup founders. It aims to distil years of operational learnings into a practical resource for effectively managing human resources within the tech industry. Storonsky expressed that these are the strategies he wished were available during the formative years of Revolut.
However, Revolut’s methods have not been without controversy. Reports from previous employees suggest that the high standards and expectations set by the company can lead to undue pressure, with some alleging unachievable targets and unpaid work were part of their experience. In response, Revolut has made efforts to monitor employee treatment, ensuring a supportive and respectful workplace.
Further recommendations from the Quantumlight report include having a team of skilled personnel report directly to the CEO regarding staff performance. This approach separates talent management from traditional HR roles, suggesting performance reviews every six months and advocating for promotions based on merit rather than tenure. Exceptional contributors are deemed eligible for significant bonuses, reinforcing the idea of reward linked directly to performance.
CEO of QuantumLight, Ilya Kondrashov, notes the complexities of building a high-performance environment in a startup, underscoring the value of guidance from seasoned founders. The report positions itself as an invaluable tool for emerging tech leaders, crafted from first-hand experience in building globally recognised tech enterprises.
Storonsky’s strategies reflect a focused and pragmatic approach to talent management, albeit one that invites both admiration and criticism.
