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Pay for performance doesn’t work

There’s a mismatch between what science knows and what business does.
- Dan Pink

In his recent presentation at TED, author and business consultant Dan Pink talked about two things I advocate heavily on Renegade HR – data based management and intrinsic motivation (and inspiration).

In the talk, Dan blows apart the notion of pay for performance as a way to increase employee performance. In fact, he says, pay for performance actually hurts performance for most tasks.

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Why I don’t like ROWE

If you’re not familiar with ROWE (the Results Only Work Environment), here’s the 30-second elevator pitch: Employees can do whatever they want, whenever they want, as long as the work gets done. Just like in college, they can’t lie, cheat or steal. But as long as they do their work, they can work wherever and whenever they want to.

I actually like ROWE. A lot. In college, your professor didn’t care where you wrote your paper or when you wrote it, as long as you met the requirements and got it in by the deadline. Why do we treat employees like grade schoolers again once they hit the working world?

That said, ROWE isn’t perfect. Today, I want to tell you why I don’t like ROWE.

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Podcast: Ashley Acker on ROWE

Ashley Acker discusses the Results Only Work Environment (ROWE). (21:58)

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Direct mp3 download

Podcast Highlights

Ideas really happen any time and any place. They don’t just happen in a cubicle.

When we talk about culture, we’re really talking about building common ground so that people can identify with the company on a shared level. What does it mean to work here? What does it mean to be on this team and do this job?

I like to think of it in terms of a college environment. In college, you’re free to do virtually whatever you want. Your professor trusts that you’re going to act ethically. And if you do happen to act unethically there are consequences.

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Work is something you do (duh!)

This article is part of the Renegade Manifesto Series.

Work is something you do. Sometimes that means you have to dress a particular way, be in a particular place or work at a specific time. Often, though, those things don’t matter.

One of the most important things you can do to improve the quality of your workforce is get out of the way and let your people be amazing.

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Career Life Connection

careerlifeconnection

Does your organization offer flexible work arrangements?

Career Life Connection is a great website that helps connect businesses who offer flexible work arrangements with talented job seekers who want them. The company was founded by Leanne Chase, who understands first-hand how freeing your people to focus on their work (and not on their hours) can unleash their talent and productivity.

If you offer flexible work-arrangements, check out the site.

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Care about Earth Day? Tell your employees to stay home.

earth
Image by Woodley Wonderworks

Every year on Earth Day, companies talk about saving the planet. They talk about how they’re saving the planet through recycling initiatives, low-energy lighting and waste-reducing production methods. They talk about how employees can help by shutting off their computers at night and putting recyclables in the appropriate bins.

If you really care about Earth Day, you should consider telling your employees to stay home.

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Smashing the Clock: Best Buy’s ROWE

Best Buy has a unique way of managing their employees: You can do whatever you want, whenever you want, as long as your work gets done. That means you can work from the beach, sleep until noon, or sneak out midday to catch a movie.

They don’t when or how you do your work. They care about your outcomes. It’s actually a lot like being in college.

To learn more, check out this presentation that I put together for one of my grad school classes (click play to hear the audio – you can also download the mp3).

Download the podcast

Download the slides to this presentation (and more) at the Renegade Resource Center.

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