Hired as a program manager at Microsoft, Elon Lee was failing. His boss recognized his design aptitude and moved him to a new role, stating, "You're one of the worst program managers I've ever seen, but I think you might be a good designer." This highlights the value of seeing potential beyond a current job description to retain talent.
Employees who strictly adhere to their job description are likely to remain in the same role for years. Going above and beyond, such as cleaning a boss's station to simply be in their orbit, builds a reputation and relationships that lead to unexpected opportunities.
Jensen Huang rarely fires employees for mistakes, viewing the error as an expensive but valuable lesson the company has already paid for. Firing them would be discarding that investment, as the employee who made the mistake is now the least likely person to repeat it.
Terminating an employee shouldn't be viewed solely as a negative outcome. Often, a lack of success is due to a mismatch in chemistry, timing, or culture. Parting ways can be a necessary catalyst that enables the individual to find a different environment where their skills allow them to thrive, benefiting both parties in the long run.
The most promising hires are often high-agency individuals constrained by their current environment—'caged animals' who need to be unleashed. Look for candidates who could achieve significantly more if not for their team or organization's limitations. This is a powerful signal of untapped potential and resourcefulness.
To clarify difficult talent decisions, ask yourself: "Would I enthusiastically rehire this person for this same role today?" This binary question, used at Stripe, bypasses emotional ambiguity and provides a clear signal. A "no" doesn't mean immediate termination, but it mandates that some corrective action must be taken.
Hiring managers often dismiss strong candidates by making snap judgments based on a resume. Focusing on the person behind the paper—their drive, skills, and potential—frequently reveals that the initially overlooked individual is the perfect fit for the role, according to executive search partner Mitch McDermott.
A manager's highest duty is to an employee's fulfillment, not just their performance. When a top performer is not personally aligned with their role, a leader should actively help them find a better fit—even if it means using their own social capital to place them at another organization.
Firing someone feels adversarial until you reframe it as a win-win. The employee wants to be successful and valued; if your team isn't the right place for that, helping them move on is a service to their career, not a disservice. This mindset changes the entire dynamic.
Employee retention now requires a customized approach beyond generic financial incentives. Effective managers must identify whether an individual is driven by work-life balance, ego-gratifying titles, or money, and then transparently tailor their role and its associated trade-offs to that primary motivator.
Top performers' primary need is opportunities for growth, not necessarily promotion. Delegating significant responsibilities forces them to develop new skills and fosters a sense of ownership, which is more valuable than simply clearing your own plate.