Setting the scene
No one wants to go to work and be faced with a 'Hunger Games' style leader. Forcing people to duel with colleagues for credit. This is a very antiquated management theory. Centring around creating conflict to get the most out of performance! Thankfully, those days are coming to an end.
However, it has started to rear its ugly head again within certain industries.
When you hire strong people, they expect a level of professional respect. They expect to be allowed to get on with their role. Not to have people floating around second-guessing them. Talented people will build relationships with their peers and find their niche. They will have bad days, don't we all, but overall they have the skills and intelligence to pick up new things and be a huge asset to your business.
What they don't want is to feel is undermined. This can happen a few ways, but the one that I hear people complain about more and more is the 'shiny new penny' effect.
Sometimes it is OK not to pick up the penny
Some leaders will meet someone once and without any due diligence hire them or invite them to important meetings. One or two new pennies may happen, but when it turns into several people muscling into meeting. It can play havoc with team trust and motivation.
The value added by all these people is often negligible. The laws of diminishing marginal returns kick in. The other thing Hunger Games leaders do is waste time at a meeting raving about someone they meet not realising that the skills that you are raving about are already in the room. Be mindful of how you motivate people.
With the growing awareness of mental health and stress triggers - why do leaders do this? How can you make sure you do not fall into this trap as a leader?
Becoming more self-aware
You may not realise that you are doing it. You get excited by meeting new people. You want to create a hub of interesting people. But ask yourself - are you confusing people you want to be friends with, with future employees? Have you considered how other people will feel? Just because you are the founder, it is not school. You have to separate a 'cool kids club' mentality from professional relationships. Yes, you want people to share your vision, but they need to earn money. There is a contract you have entered into. No one goes to work to flatter your ego. Nor can you expect perfection from humans.
If you are doing things to undermine your team's ability to have a semblance of job security and career development, you are soon going to lose respect from these people. Even the shiny pennies will start to get annoyed as they recognise there is existing talent in place, what value do they add?
Unless the shiny penny is a narcissistic sociopath, they don't want to step on toes. They want to have their niche to feel they bring value to the table.
So remind yourself of the people you already have on board. Have you gotten to know your team's strengths? Are you aware of any new courses they are doing? If in doubt create a skills matrix. Review it regularly to pinpoint real gaps and to remind yourself of what you have. That way when you go to networking events you are focused more on what you need, versus getting googly-eyed over someone 'cool'. Learn to appreciate what you have.
Be a better manager
No one likes to let people go, but as your business grows don't think by bringing in some shiny pennies you can constructively get people to leave on their own accord. That is bullying. And you are being a coward - not a leadership trait that instils confidence. Oh, and Investors pick up on this as well. Trust me, they notice.
Instead, if you find you have skill gaps, why aren't you managing this with the team? Why not sit down one afternoon with the skills analysis, and ask people if they have something you have missed? Do you need a new employee when you could outsource to a service provider? Or is there new technology you are not taking advantage of?
If someone has skills that are no longer required, why aren't you just finding ways for them to exit fairly or find ways for them to upskill?
There is arrogance as a leader to ignore the technical skills of management. So follow your HR policy and if you do not have one, get one. It will become extremely expensive if you are creating a toxic environment and bullying starts to breed by not having clear procedures.
Communicate with your team. If you need a new person, involve the team early on, most people are self-aware that they cannot do everything. As long as you are not planning to reduce their salaries and opportunities, they are very welcoming of fresh blood. But bringing in a constant stream of shiny pennies gives the impression that you haven't a clue what you are doing. It lowers confidence in respect for your ability to lead. Can you not make a decision?
The end game
As a leader, you have to get used to people's failings. You have them. We all have them. There is a diversity of ways to get something done. Trying to fill tiny gaps can bring far more issues. You have added a completely new person to manage in the mix. They will have their unique motivations which could be mismatched with your wider mission. They may have failings which are far more divisive to your team dynamics.
There is a place for healthy competition. E.g. you announce a prize for the first person to hit x sales. You do an innovation hack day. But these forms of gamification set out clear parameters and no one fears the loss of their jobs. They are clear on the game afoot. Team building games can help to unlock skills you didn't know were there. It can empower people to seek out new knowledge and skills.
But setting people off against each other without setting boundaries is toxic. it just makes smart people look at the door and polish up their CVs. It is 2024, no one deserves to feel they have to fight for their place to survive every day.
