Tech

Salesforce CEO Points Out New, Remote And Young Workers Due To Falling Company Productivity

Hot potato: Once again, the CEO made the argument that remote workers are less productive. Salesforce chief Marc Benioff made the announcement during a general meeting on the company’s massive layoffs, where he also blamed new hires brought in during the pandemic and younger workers.

insider writes that Benioff echoed statements he made last month that Salesforce’s new and retired employees are falling short of expectations when it comes to productivity. “We don’t have the level of productivity and productivity that we had in 2020 before the pandemic. No,” Benioff said. “When we look at a certain percentage of employees, especially some new hires, [hired during the pandemic]just not as productive.”

Benioff said he turned to productivity after COO and head of sales Brian Milham told him that 96% of a company’s annual contract value – ACV measures annual revenue from each individual customer – is provided by 50% of salespeople.

“Half of our sales team is not very productive, and many of them are our new hires. So why? Benioff said. “Are we not managing our remote workers well enough? Do we need new skills? Because this has never happened in the history of the company.”

From TSMC to Samsung, virtually every company, especially the big tech companies, has been negatively impacted by the post-pandemic downturn and the current economic crisis driven by high inflation and rising costs of living, causing consumers to spend less on essentials. Salesforce is still closing large-scale deals quickly, according to its CEO, “but half of our sales organization is really struggling. Like they don’t know how to do it.” […] There must be a few things going on both psychologically and technically.”

Benioff wondered if part of the problem was with remote workers, especially younger ones. He questioned their ability to build relationships with customers and wondered aloud if they “have the social experience, dealing with people and the ability to swivel chairs that we used to have.”

Some employees affected by layoffs at Salesforce say the company’s performance appraisal system sets them unrealistic goals that leave them doomed to fail. Regarding Benioff’s comments, one of them said, “Obviously he’s a CEO from a different generation.”

Much of the world has been forced to switch to remote work since the start of the pandemic. And while many companies are trying to get employees back to the office, the vast majority say they are happier and more productive at home.

Many managers and executives, especially Elon Musk, are vague about remote work, often citing lack of interaction with colleagues as a big problem, but a recent report shows that remote workers increased their interaction with colleagues between 2020 and 2022.

It’s not just bosses who think avoiding the office equals laziness; Most people think that their co-workers are not productive while working from home.


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