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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Salesforce's new hires are less productive, says CEO Benioff

(2022/12/19)


Salesforce founder and soon-to-be sole CEO Marc Benioff says newbies on the payroll are being less productive and he is trying to get a better handle on why this might be, asking staff if the lack of office time is a contributing factor.

In a message posted on the corporate Slack channel at the end of last week, as [1]revealed first by CNBC , the billionaire questioned how his organization could increase the potency of its most recent hires.

"New employees (hired during the pandemic in 2021 and 2022) are especially facing much lower productivity. Is this a reflection of our office policy? Are we not building tribal knowledge with new employees without an office culture," Benioff asked.

[2]

"Are our managers not directly addressing productivity with their teams? Are we not investing enough time into our new employees? Do managers focus enough time and energy on onboarding new employees and achieving productivity?"

[3]

[4]

He finished off with one last poser: "Is coming as a new employee to Salesforce too overwhelming?"

The CEO signed off by saying he was "Asking for a friend."

[5]

According to Microsoft research in September, the number of meetings users held on Teams was up 153 percent globally since the pandemic, yet some company bosses still have [6]productivity paranoia .

At the start of this year, Salesforce pinned its colors to the mast of hybrid work, warning that [7]back-to-office mandates don't work . Then at the start of this month, [8]Salesforce called hundreds of workers back into the office . This followed slowing sales growth at the company.

[9]Corporate execs: Get back, get back, to the office where you once belonged

[10]Bias toward office staff will cost you: Your WFH crew could walk, say execs

[11]CEO told to die in a car crash after firing engineers who had two full-time jobs

[12]'What's the point of me being in my office, just because they want to see me in the office?'

Benioff said on a conference call to discuss those results that some roles would be required to be done on site, on occasion, however the world of working in-person wasn't going to go back to pre-pandemic norms.

Salesforce's headcount grew during from around 35,000 in 2019 to circa 49,000 in 2020, up to 56,606 in 2021 and 73,000 this year.

Other tech firms recruited heavily during those times too and are now coming under pressure. Google, for example, has [13]hired 37,000 people in this calendar year alone , and Meta swelled from 58,000 in 2019 to 87,000 by the third quarter of 2022.

[14]

Meta is laying off [15]13 percent or 11,000 employees and Google is [16]under fire from a large institutional investor that wants management to make employees more productive while paying less them less. [17]Amazon is expunging 10,000 people .

Salesforce has itself started to reduce its workforce, [18]chopping hundreds recently , but this was a fraction of its total headcount and appears to have been a decision to clip the worst performing salespeople.

The movement of senior people at Salesforce is perhaps more dramatic, where in recent weeks the company has confirmed that chief strategy officer Gavin Patterson was leaving, as are Slack founder and CEO Stewart Butterworth, Tableau CEO Mark Nelson, and Salesforce [19]co-CEO Bret Taylor .

With sales slowing, these departures will no doubt help ease any pressure on operating expenses. ®

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[1] https://www.cnbc.com/2022/12/16/marc-benioff-says-newer-salesforce-employees-are-less-productive.html

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y6CYrM6WvxYdpUzeFX9LgAAAAAI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6CYrM6WvxYdpUzeFX9LgAAAAAI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y6CYrM6WvxYdpUzeFX9LgAAAAAI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y6CYrM6WvxYdpUzeFX9LgAAAAAI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[6] https://www.theregister.com/2022/09/23/microsoft_highlights_productivity_paranoia/

[7] https://www.theregister.com/2022/06/24/back_to_office_benioff/

[8] https://www.theregister.com/2022/12/02/salesforce_office_worker_return/

[9] https://www.theregister.com/2022/12/16/return_to_office/

[10] https://www.theregister.com/2022/10/21/proximity_bias_workforce_productivity/

[11] https://www.theregister.com/2022/10/19/overemployment/

[12] https://www.theregister.com/2022/11/29/wfh_report/

[13] https://www.theregister.com/2022/10/26/google_reviewing_every_project_after/

[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Y6CYrM6WvxYdpUzeFX9LgAAAAAI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[15] https://www.theregister.com/2022/11/09/meta_redundancies_mark_zuckerberg/

[16] https://www.theregister.com/2022/11/16/tci_fund_google_cut_costs_waymo_compensation/

[17] https://www.theregister.com/2022/11/14/amazon_job_cuts/

[18] https://www.theregister.com/2022/11/09/salesforce_trims_workforce_as_growth/

[19] https://www.theregister.com/2022/12/01/salesforce_q323_co_ceo_departs/

[20] https://whitepapers.theregister.com/



ravenviz

Maybe productivity/life balance is the new work/life balance.

Joe W

Maybe new employees need some time to get up to speed? Maybe experience is worth something?

Anonymous Coward

No Marc it's because your product suite is a sprawling mess of barely-integrated acquisitions supported by one of the most cutthroat, hard-to-navigate channel and partner landscapes in history, and all your key executive and sales talent have fucked off for pastures new as growth has slowed.

Look a bit closer to home. Ask why everyone uses Salesforce but everyone hates using Salesforce, not whether it must be your employees that are wrong.

Sounding rather like a micro-manager

Will Godfrey

See title.

Pay

elsergiovolador

If someone isn't productive, likely they are not paid enough to be productive.

If I have to worry about how am I going to pay the bills or whether I will be able to afford a holiday or that house repair that has been due for ages, then that will eat into my brain "processing power".

If WFH does not increase productivity, then maybe after saving on the train tickets and lunches, the workers are still being short.

Maybe they can't afford to live in a place big enough to support WFH?

I mean I would still take working in the kitchen or utility room over going to office, but you know what I mean.

edit: just checked at their website what kind of pay they offer, but they seem to be only showing the pay ranges where it is required by law (e.g. for jobs in New York). It means that their pay packages are probably not something to write home about.

Re: Pay

Anonymous Coward

>It means that their pay packages are probably not something to write home about.

Salesforce are in the top tier in compensation terms. Not right at the very top - they're not throwing cash at people like netflix or roblox or databricks, but certainly nobody there is looking at their TC and dreaming of working at Amazon one day.

Re: Pay

elsergiovolador

Are they?

The ranges shown for the US states are nothing fancy and my guess is for the UK are lower than that.

ElRegioLPL

The best way to get your new employees to improve is by publicly outing them all as being slow, inefficient & unproductive

I believe very recently someone else tried a similar tactic which resulted in 70% of their staff leaving and they're getting abused on their own platform, every day

Documentation and training

Anonymous Coward

They're both things, but why do that when you can just shove people together in an office and make the new guy or gal to go around and pester people until they get an answer thanks to random chance.

The most costly of all follies is to believe passionately in the palpably
not true. It is the chief occupation of mankind.
-- H. L. Mencken