Nik Storonsky, Revolut’s CEO, has issued a directive for handling underperforming staff at startups.
- Employees deemed underperforming should either leave immediately or improve within six weeks.
- Storonsky’s guidance is part of a playbook for building high-performance tech businesses.
- The practices highlighted have drawn both praise for their efficiency and criticism for potential harshness.
- The playbook includes strategies for talent management and compensation based on performance, not tenure.
Nik Storonsky, CEO of Revolut, has presented a decisive approach to managing underperforming employees within startups. In his view, staff showing unsatisfactory performance should be given an ultimatum: either accept an enhanced separation package and leave immediately or exhibit substantial improvement within a six-week period. This strategy reflects Storonsky’s commitment to maintaining a high-performance culture within growing tech companies.
This directive is part of a broader set of recommendations found in a new playbook published by Quantumlight, the venture investing business Storonsky founded. The playbook serves as a guide for startup founders, offering insights from Storonsky’s experiences in building Revolut into a formidable fintech enterprise valued at $45 billion.
Storonsky emphasises that retaining top talent while swiftly managing underperformers is crucial to a company’s success. He argues that the likelihood of consistently underperforming employees naturally returning to satisfactory levels is minimal.
The employment practices at Revolut, however, have come under scrutiny. Reports have surfaced from former employees alleging unrealistic performance targets and demanding working conditions, sometimes leading to resignations due to stress. In response, Revolut has initiated measures to ensure a more supportive and respectful work environment.
The Quantumlight playbook further suggests forming a direct line of talented employees reporting to the CEO, separate from the HR function. Storonsky argues that talent should be a central focus of the CEO’s agenda, underscoring its importance as a force multiplier for business success.
Performance reviews, according to Storonsky, should occur every six months with opportunities for promotion based on merit rather than tenure. Major bonuses are to be awarded to those making significant contributions, reinforcing the notion that ‘A-players’ drive the company’s success.
Despite the criticisms, Ilya Kondrashov of Quantumlight stresses the importance of cultivating a high-performance environment, especially in tech startups, where advice from experienced founders is invaluable.
Storonsky’s strategies aim to revolutionise startup culture, blending rigorous performance expectations with opportunities for substantial reward.
