Block Inc. CEO Jack Dorsey has appointed a new Chief Technology Officer and unveiled a revised performance management strategy. The company intends to get rid of performance improvement plans (PIPs) and annual performance reviews in a bid to transform the company culture. This means that the standard performance reviews that are done by other tech companies will stop.
According to Business Insider, he wanted to “build a culture of excellence”, in a note that was sent to employees on Tuesday morning. He also allows employees to “rest and vest” throughout the company, which means they are allowed to take time off while employees continue to vest their stock options or other equity grants. This way, they are able to retain their employees while allowing them to take a break from work.
“Should an employee be found to not be meeting expectations, they can be fired or let go immediately without having to wait for formal feedback during a review cycle or put on a performance improvement plan, commonly known as a PIP. Block will no longer put any workers in the US on a PIP,” the note said.
Block will begin using “meet, exceed, or fall below” performance ratings the next year, and each employee will have access to their rating. According to Dorsey, this will ensure “a just and mutual dialogue that holds each of us responsible for consistently raising the bar.”
The new approach comes when Block has been performing very well in the market. They saw a 37.5% growth in Bitcoin revenue from the previous year as well as a gross profit of $44 million derived from Bitcoin in Q3. The company’s share price saw a notable spike in response to this outstanding performance.
