From The Hard Thing About Hard Things by Ben Horowitz
This passage really resonated with me. There are a lot of crappy companies and a lot of disloyal employees. If a CEO cares about keeping a great team, he needs to make his company a great place to work. Things always go bad, and if your company is a crappy place to work, when things get hard, people will leave. Do yourself a favour and make your company a good place to work. Reward your employees, give promotions before they are asked for, and give visibility to people who have made huge achievements. Don’t let people get bored. And help them see the big picture that is how their job at your company fits into their career.
In Ben’s words:
- Being a good company doesn’t matter when things go well, but it can be the difference between life and death when things go wrong.
- Things always go wrong.
- Being a good company is an end in itself.
When things go well, the reasons to stay at the company are many:
- Your career path is wide open because as the company grows lots of interesting jobs naturally open up.
- Your friends and family think you are a genius for choosing to work at the “it” company before anyone else knew it was “it”.
- Your résumé gets stronger by working at a blue-chip company in its heyday.
- Oh and hey you’re getting rich.
Things Always Go Wrong
There has never been a company in the history of the world that had a monotonically increasing stock price. In bad companies, when the economics disappear, so do the employees, the spiral begins: The company declines in value, the best employees leave, the company declines in value, the best employees leave. Spirals are extremely difficult to reverse.