What if you can’t fire anyone? The ability to fire people is a cheap and easy solution; and it actually disincentivises employers from doing the hard work necessary to truly manage and develop talent
not a sign of incompetence, but possibly an organisational mistake. One ten-year Prior to the pandemic, Gallup study of 2,600 executives reported that the quit rate is found that of those who were at an all-time high: 67% of fired, 91% found a job as employees are disengaged at good or better than the one work; and more than half say they lost, and 78% eventuthey are actively looking for ally rose to become CEO. The a new job. Second, HR lacks idea that the solution to poor a commitment to evidenceperformance is termination based people management produces numerous unpro(evaluating a decision or ductive approaches to managpolicy with evidence such as ing people. data and peer-reviewed scienResearch has consistently tific research to ensure the shown the benefits of adoptdesired result is achieved). ing a growth mindset over The HR practices that an evaluating one. An evalremain in use, notwithstanduating mindset implies that ing the evidence against if a salesperson is not meetthem like the forced curve ing his/her target, the diagperformance evaluations, nosis is that person can’t sell stem from one root cause: – is not a natural – and should the ability to fire employbe either fired or moved into ees even if the laws are not a different job. A growth in favour. Because of this, mindset, on the other hand, workplaces are prone to use implies that if a salesperson counterproductive manageis currently not effective, that ment approaches that evaluindividual might benefit from ate rather than invest in and training in sales techniques develop employees. and coaching from mentors on what they are doing. A Adopting a growth mindset growth mindset implies that Each year a substantial not only should individuals number of employees lose play to their strengths but their jobs everywhere. also that many people, with The last two years accelerthe right information, develated this trend because of opment, and mindfulness, can the pandemic. And there is in fact develop new strengths. evidence that being fired is Implementing a growth
By Jeffrey Pfeffer & M Muneer
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oes ease of doing business hinge on, among other things, at-will employment policies? Did India modify its strong labour laws that protect employee interest for improving its ranking in the World Bank’s ease of doing business report? Thankfully, the bank has paused the reporting for now on allegations of data manipulation, and to refresh the methodology. The only country in the world practising at-will employment is the USA, where anyone can be fired without a reason – and the number of cases suing for wrongful termination is also the highest there. While the rest of the world has labour laws that are supposed to safeguard societal interests, employers there find ways to fire people at-will, either by building a case or by creating hostile environment forcing them to quit at their will. The authors Buckingham and Goodall of the book, Nine Lies About Work, brought home some painful facts about people management. First, the state of people management remains poor.
| January 2022
