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Ask YC: What kind of corporate structure would never fire people?

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Ask YC: What kind of corporate structure would never fire people?

#1

Post by andreyf »

The company I work for fired some people today:

http://andreyf.tumblr.com/post/69289027/shitty-day

Everyone was bummed out (especially those who had to make the decision). I've never really been fired from a job, but I imagine it must be soul-crushing, maybe because it feels like such a "judgment from above". From a management perspective, it puts a spotlight on the shittiest part of companies, also - it destroys the "we're in this together" spirit, and draws a strong distinction between "management" and "workers".

What kind of corporate structure would let people decide to leave on their own, not have someone force them out?

Re: Ask YC: What kind of corporate structure would never fire people?

#5

Post by gcheong »

A University with tenured professors is the closest real-life example I can think of. It would seem to me that if nobody was ever fired, just allowed to leave when they were ready that there would be such high barriers to entry into any company that on the whole we would be worse off. I do think we could do without all the corporate rah rah crap that companies put down their employees throats. As you say, it make the sting of firings that much worse when they are so obviously two-faced.

Re: Ask YC: What kind of corporate structure would never fire people?

#8

Post by azanar »

Maybe you didn't mean to phrase this as you did, but at-will employment, which is what most corporations adhere to now, allows people to leave on their own at any time. Most people don't though, unless they are forced out, because of fear of the unknown or lack of a motivating factor.

Also, the distinction doesn't always have to be between management and workers. I would worry about the forward-looking health of the company if that dichotomy became a topic of conversation anywhere within. Employees are not stupid, and will realize when something besides the best future prospects of the company are motivating the cuts being made. Odds are there is a comparable amount of potential pruning to be done in the management ranks -- some people I've have read have argued even more potential. Not saying that is what is happening here, but it was just a thought that popped into my head while reading yours.

On the other hand, there is the perspective that, if cuts aren't made, the spirit of "we're in this together" doesn't matter so much anymore, because there is no more "this". It can be soul-crushing, but not as soul-crushing as shutting the whole company down instead.

Re: Ask YC: What kind of corporate structure would never fire people?

#9

Post by jws »

I would think you'd have to be doing "piece work" to not have to fire people, that is an employee's compensation would have to be a direct result of their accomplishments, otherwise you won't have a way to deal with the slackers and "in cube retirements".

You will eventually have people who choose to produce less work than their benefits cost, much less salary.

[long grisly example of a firing deleted. short version, guy joined company, got extraordinairly expensive medical work taken care of, took the telecommuter version of "in cube retirement" until we fired him so he could take unemployment while ramping back up his previous independent contracting customers. Left us to pay back his probably fictitious hours billed to customers, health care costs, and unemployment insurance. See, the short version is even long and grisly.]

Re: Ask YC: What kind of corporate structure would never fire people?

#10

Post by noonespecial »

You could just ask the French. The harder it is to fire employees, the harder it is to find a job in the first place.

At the limit, you would just reach a no hiring, no firing steady-state with a minimally functioning economy.

The only activity would be new companies hiring until they were overwhelmed by dead weight and companies going bust. (Wouldn't that be a little like firing everyone?) Strange and ponderous unintended consequences lie here!

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