Eh, mixed feelings on that. This feeds my sensibilities that adult babies are getting a taste of reality. But here's the rub. How much is he paying them? If only exceptional performance constitutes a passing grade, while that's a lofty standard and all, he's going to have to open up the wallet to attract and keep exceptional performers because they're few and far between. We've gone through a spat of hiring where I work, and I think < 20% are what I'd consider exceptional. It's hard to find them.
If 88% of the staff quit, maybe the 12% remaining are the exceptional ones. But driving employees into the dirt, especially without appropriate compensation, it's not a good long term employment strategy. You'll have high turnover and you'll grow cynical attitudes in your employees. No one wants to be treated like **** by their boss. And there are still plenty of opportunities for software engineers. Be demanding, sure. Have high standards, sure. But be fair. And recognize that people have a life outside of work. And for those times when you need them to make work their life, you better ***damn pay them if you want to keep them.
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From what I heard previous to all of this, Twitter employees were very well paid. Expecting them to actually work for that salary is called reality. If he works them too hard and their pay isn't enough for it, then they're free to find jobs elsewhere and hardworking people who aren't afraid to work for a nice salary can take their place. Sounds like the way things are supposed to work.