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> Eric said when asked about it that it was a mistake. He had the benefit of hindsight. In 2008 noone could predict if the GFC would last for one year or three

> Eric said when asked about it that it was a mistake. He had the benefit of hindsight. In 2008 noone could predict if the GFC would last for one year or three years and how deep it would be.

Jtsummers 7y ago
The problem with hiring freezes (or reduced hiring) is that it creates a bathtub curve in your company. You'll end up with a lot of senior people, a lot of junior people, and a gap in the middle. This is a problem (somewhat recovered by this last decade of hiring) in the US DoD, primarily on the civilian side but also the military side. In the 90s through the 00s there was a massive reduction in hiring for civil servants. So you had a lot of people who were there from the 80s and early 90s, and then a massive drop. Around 2010 or so they started ramping up hiring again, because they finally acknowledged the need (they had a huge percentage of civil servants who could literally retire at any point). So you ended up with (in some orgs) 30-40% of the staff being able to retire, 30-40% under 28, and the rest spread randomly from the age of about 28-55. As people retired (biggest loss of personnel before other kinds of attrition), teams were literally losing centuries of experience in a year. The mid-career people were moving into leadership roles, and leaving the junior people to learn the processes and technical work largely on their own. I saw something similar in private industry as well, but that was due to a preference to hire junior people over experienced people (either the manager wanted people who could be molded or cost). Sometimes hiring freezes/slowdowns are important. But if your business is healthy, it'll end up backfiring on you more often than not. Even a year or two of this can create problems, though not as dramatic as what the DoD experienced.
- nostrademons 7y ago
  It also introduces cultural problems. In a healthy organizational culture, the org grows steadily at a pace that's not too quickly, and more senior members acculturate new recruits into the organization. Acculturation can't be rushed; it's the process of transferring all the unconscious, tacit knowledge about how and why things are done the way they are, and because it's unconscious, it happens only through long exposure. When you have a hiring freeze, the existing culture ossifies and becomes more insular without any new blood. And then when the hiring freeze lifts, you usually need to "catch up" on hiring, which means that you have a sudden rush of new recruits and relatively few senior people. The new people don't have enough old hands to acculturate them, which means that they end up forming their own culture that may be entirely divorced from the existing org culture. Because the new culture outnumbers the old, eventually the old hands leave (taking their institutional knowledge with them), and the dominant org culture reflects that which the newbies brought with them. Google's culture changed dramatically from 2011-2013, driven by the combination of rapid hiring, a new CEO (this may've been deliberate: if you want to change the culture, one way to do it is bring on a lot of people who agree with you), and the departure of key early employees like Craig Silverstein, Amit Patel, Marissa Mayer, et al. Come to think of it, the U.S's culture wars are largely a result of the "birth dearth" of Gen X. Instead of a continuous shift in culture, you have two "big" generations of Boomers and Millenials and the latter developed a distinctive culture amongst themselves without regards to existing American culture.

> Eric said when asked about it that it was a mistake. He had the benefit of hindsight. In 2008 noone could predict if the GFC would last for one year or three years and how deep it would be.

Jtsummers 7y ago

The problem with hiring freezes (or reduced hiring) is that it creates a bathtub curve in your company. You'll end up with a lot of senior people, a lot of junior people, and a gap in the middle. This is a problem (somewhat recovered by this last decade of hiring) in the US DoD, primarily on the civilian side but also the military side. In the 90s through the 00s there was a massive reduction in hiring for civil servants. So you had a lot of people who were there from the 80s and early 90s, and then a massive drop. Around 2010 or so they started ramping up hiring again, because they finally acknowledged the need (they had a huge percentage of civil servants who could literally retire at any point). So you ended up with (in some orgs) 30-40% of the staff being able to retire, 30-40% under 28, and the rest spread randomly from the age of about 28-55. As people retired (biggest loss of personnel before other kinds of attrition), teams were literally losing centuries of experience in a year. The mid-career people were moving into leadership roles, and leaving the junior people to learn the processes and technical work largely on their own. I saw something similar in private industry as well, but that was due to a preference to hire junior people over experienced people (either the manager wanted people who could be molded or cost). Sometimes hiring freezes/slowdowns are important. But if your business is healthy, it'll end up backfiring on you more often than not. Even a year or two of this can create problems, though not as dramatic as what the DoD experienced.

nostrademons 7y ago
It also introduces cultural problems. In a healthy organizational culture, the org grows steadily at a pace that's not too quickly, and more senior members acculturate new recruits into the organization. Acculturation can't be rushed; it's the process of transferring all the unconscious, tacit knowledge about how and why things are done the way they are, and because it's unconscious, it happens only through long exposure. When you have a hiring freeze, the existing culture ossifies and becomes more insular without any new blood. And then when the hiring freeze lifts, you usually need to "catch up" on hiring, which means that you have a sudden rush of new recruits and relatively few senior people. The new people don't have enough old hands to acculturate them, which means that they end up forming their own culture that may be entirely divorced from the existing org culture. Because the new culture outnumbers the old, eventually the old hands leave (taking their institutional knowledge with them), and the dominant org culture reflects that which the newbies brought with them. Google's culture changed dramatically from 2011-2013, driven by the combination of rapid hiring, a new CEO (this may've been deliberate: if you want to change the culture, one way to do it is bring on a lot of people who agree with you), and the departure of key early employees like Craig Silverstein, Amit Patel, Marissa Mayer, et al. Come to think of it, the U.S's culture wars are largely a result of the "birth dearth" of Gen X. Instead of a continuous shift in culture, you have two "big" generations of Boomers and Millenials and the latter developed a distinctive culture amongst themselves without regards to existing American culture.