good luck Reporter Natalie McCormick fills in for Burt Morris, here.
In his 17 years running Airbnb, CEO and cofounder Brian Chesky says he’s ignored the leader’s popular advice that he’s a fool. Within this category is the belief that leaders should not play favorites.
He admits that the idea of heralding certain employees has negative connotations. “In most companies, if the CEO makes a choice, there will be protests. [favorites]Chesky said in a recent interview good luck. “It would be considered unfair and unorganized.”
But Chesky argues that when done well, employee favoritism allows leaders to perform at higher levels, use their skill sets and knowledge for strategic planning efforts, and other employees. The front allows them to show who they should emulate.
Certainly, so-called likes should be chosen based on fair criteria and solid metrics of success, rather than outright malice. “You can make sure there’s no unconscious bias, people keep you honest, look for different influences within the organization. You can do a lot of surveys, and you can use it to reinforce your assumptions. can use for,” Chesky said. “If you can’t have favorites, if you can’t say this is a top performer, and that’s perfection, then you’re in big, big trouble. It’s just not good leadership,” he added. “
As a tech founder, Chesky said he looks to Apple founder Steve Jobs for leadership inspiration. Jobs was known to gather 100 of his top employees annually for a secret three-day meeting to strategize the company’s future.
Chesky calls Airbnb’s version of this group a “roadmap review.” It is a two-year strategic plan that is updated every six months by 80 to 100 hand-picked employees, most of whom are senior leaders. Together, they then spend a week finalizing the budget. At most companies, Chesky said, the CEO and CFO put their heads together to develop an annual plan and then ask about 20 different teams to circle back on their strategy and budget for the next year. They say “Everybody’s going to ask for the world, and then you say no, and you’re going to have this negotiation, and it’s crazy,” Chesky said.
Chesky declined to name his favorite employee at Airbnb, cheerfully replying that he has “many.” But he said his favorites are the ones he texts with on a regular basis.
Much of the research on employee favoritism highlights its disadvantages. An Ohio State University study suggests that CEO favoritism can undermine workplace culture and racial divisions. Conversely, a study published in the Journal of Organizational Behavior found that when a boss showed favoritism to one employee, he set a high bar that motivated other employees to learn and improve.
As for Chesky, he believes that as long as there is an equitable and transparent process for how he selects his first string, favoritism is fair game, adding that the notion is false. That the CEO should not have discretion over who is in the room with them. . “American presidents will choose. We should too,” he said.
Natalie McCormick
natalie.mccormick@fortune.com
Today’s edition was prepared by Bert Morris.
Around the table
A roundup of the most important HR headlines.
Over the past five months, conservative activist Robbie Starbuck has pressured several major companies to end various diversity, equity and inclusion initiatives. Trump’s recent election victory may add to his momentum. The Washington Post
As part of its plan to cut $2 billion in costs by the end of the year, automotive giant GM has laid off another 1,000 workers. The Wall Street Journal
In an effort to help more Americans save for retirement, more states are allowing more companies to allow employees to enroll in “auto-IRAs.” The New York Times
Water cooler
Everything you need to know. good luck.
Hiring the DOGE Elon Musk’s new Department of Government Efficiency Task Force has opened its doors to recruiting, but there’s a catch. Employees must be willing to work at least 80 hours per week. –Christian Hetzner
Workplace stereotypes. The researchers created a personality quiz in which consumers were asked to rate statements about their characteristics. It turns out that workers may exhibit certain traits depending on their job. – Come on Berger
Expenditure limit. Companies are cracking down on employees misusing company credit cards to buy things like household items. –Eleanor Pringle
