this post was submitted on 02 Apr 2024
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This is also known as "stack ranking" and "rank and yank".
It's a super-gross way to run a business. I can see how you might want to "cut the fat" when starting out or growing. But keeping a policy like that for the long haul means selecting for employees that are good at that surviving. And that may not require one to even be all that productive, just good at working the system.
Anecdotes: https://news.ycombinator.com/item?id=4195136
It's also a recipe for a toxic work environment:
https://www.cultureamp.com/blog/what-is-stack-ranking