Earlier quoted context omitted.
>Eventually you will end up firing them without much warning when a cut actually has to be made. Think Amazon PIP. I would bet managers on the east coast keep under performers around just to have people to cut also, doesn’t take a genius to figure out the strategy. You invest in people you think can improve and help you, you get rid of the ones that hurt you, and you keep the so so ones for when you need to sacrifice…
Most companies don't run an Amazon style PIP program where you HAVE to cut X% annually on every team. Therefore, keeping around people who genuinely deserve firing is a drag on delivering. As a result it is always in your interest to get improvements out of your team members, whether by upskilling, role changing, hoping they leave on their own or worst case actually laying them off. I've worked in financial service t…
I cannot comment on pervasiveness, but I thought the "fire bottom x%" (or stack ranking or yank and rank) strategy started on the east coast, with businesses like GE, hence it would not be a trait isolated to either coast.
https://en.wikipedia.org/wiki/Vitality_curve
>The people in the middle aren't just "for when you need to sacrifice".. they are simply the middle 50%. You obviously want to see them improve as well.
Everyone wants to see everyone improve, but time and energy are a scarce resource, so it is just a matter of how much you want to bet on each person.