Nik Storonsky, Revolut’s CEO, advises startups to address underperformance swiftly.
- He proposes a six-week improvement timeline or immediate exit for underperforming staff.
- Storonsky’s new playbook outlines strategies for tech startups to enhance efficiency.
- His recommendations include prioritising talent management directly under the CEO.
- Critics cite concerns about Revolut’s demanding work culture and high expectations.
Nik Storonsky, CEO of Revolut, has articulated a firm stance on addressing underperformance within startups, stating that underperforming employees should either be given a maximum of six weeks to improve or be asked to leave immediately. This approach, he argues, ensures that resources are efficiently directed towards retaining and promoting top talent, crucial for rapidly growing tech businesses.
Storonsky’s views are encapsulated in a new playbook released by Quantumlight, a venture investing firm he founded. This document serves as a guide for implementing efficient employment practices within tech startups, offering insights that Storonsky wished had been available during Revolut’s formative years. The report strives to condense years of experience into a practical resource for the future unicorn founders.
Within the playbook, there is an emphasis on maintaining a team of talented employees who report directly to the CEO, rather than through traditional HR channels. This structure is proposed to maximise talent as a company asset, underscoring its importance as a force multiplier in achieving business success. The playbook stresses that individual performance reviews should occur every six months, with promotions based on merit instead of tenure. Significant bonuses are recommended for staff who demonstrate the most impact.
Despite the constructive intentions, Revolut’s practices have faced scrutiny. Reports have indicated that some former employees experienced high pressure and unachievable targets, which led to burnout and resignations. Additionally, internal assessments were reported to be harshly honest, prioritising accuracy over kindness.
Revolut is actively working to address these criticisms by fostering a more approachable and respectful working environment as part of a broader cultural shift. This includes tracking employee interactions to ensure a more human approach. Meanwhile, Storonsky and his team are keen to highlight the necessity of a high-performance culture, despite the potential challenges such an environment may present.
Storonsky’s guidance offers a rigorous yet potentially contentious model for fostering efficiency in startups.
