You’re fired! Harsh penalties for small infractions

People are getting fired for using the office printer for personal documents. They’re getting canned for looking at Facebook during a Zoom team meeting. They’re losing their jobs for using their lunch allowance to buy personal items.

All of these behaviors are against their company’s code of conduct. But really — getting fired? After all, just about everyone does this stuff.

Corporations crack down, but why?

A recent front-page article in The Wall Street Journal listed a number of big companies that are cracking down on these kinds of infractions: Meta Platforms, Ernst & Young and Target, among others. What’s going on? 

The article speculates that many companies went on a hiring spree during the pandemic and are now finding they have a bunch of underperformers on the payroll. Leaders could initiate layoffs, but then they would have to provide severance packages. When they fire people for cause, no such packages are required. Cracking down on small infractions is a low-cost way to eliminate less-productive workers. In addition, company leaders may worry that publicity about layoffs would shake confidence in the company’s financial stability, so these firings are preferable.

Another reason may be post-pandemic laxness. After years of working from home, many of us have become less aware and/or respectful of office codes of conduct. As companies require people to come back to the office, the leaders may feel that some strict discipline is required to reestablish the right kind of office culture.

The small stuff matters, but to varying degrees

My question is — is this good leadership? The fundamental task of business leaders is to make their companies more productive and profitable. Will this approach help or hinder that task?

There are some arguments for paying attention to little infractions. Two examples come to mind. In the 1990s, New York instituted a policy of “broken window policing.” The idea was that ignoring small crimes, such as breaking windows, leads to a decline in respect for the law and an increase in serious crimes. The research on the effect of broken window policing found very mixed results, and this approach has been linked to targeting members of minority groups. But at least some studies found it was effective in reducing more serious crimes.

Another rationale comes from a conversation I had with a friend of mine. He was a respected professional until he participated in perpetrating a serious fraud and went to prison. He served his time and has since rebuilt his life. I asked him how he could have chosen such a wrong path. His answer: It starts small. The people around you are deviating just a little bit from the right course of action. You go along, you make excuses, and gradually you travel further and further from the right road. It’s critical to course-correct early on when you realize you’re participating in something dishonest. 

Firings for minor matters can do more harm than good

So yes, perhaps it makes some sense to watch for the small infractions and provide consequences. But there’s another side to consider. What does this approach do to employee morale when people see their colleagues turfed out for minor misdeeds? Especially if they know that others, perhaps higher in the organization, are getting away with similar small (or large) crimes? I would predict that this climate increases fear, reduces openness, builds resentment and makes employees feel infantilized. Not a very good formula for loyalty, creativity or growth.

One of my colleagues noted that it is very unlikely that top performers are getting fired for scrolling through their phones or being distracted during a Zoom training session. These rigid standards will only be applied when someone is seen as a subpar contributor.

How about just telling people who aren’t performing up to standard that they need to do better? How about making it clear that the company won’t accept mediocrity in the workplace? Why pretend it’s about a box of pencils you took home? A direct approach strikes me as a more honest, more effective way to get the best out of your people.   

If you’d like to talk about effective leadership strategies, please reach out at ggolden@gailgoldenconsulting.com.