By Justin H.
“I’m giving ~1/3rd of my Twitter stock (exactly 1% of the company) to our employee equity pool to reinvest directly in our people.” – Jack Dorsey
It’s been quite the and month for Twitter and Square CEO Jack Dorsey. For one, today is his birthday! Happy 39th, Jack!
In honor of his birthday, and his overall wise words and success stories, Tek Shouts! has awarded him with the quote of the month. It may or may not be slightly better than the $1 billion he has already made today (but really, it is).
Since he is the CEO of Twitter, it’s only fitting Dorsey’s quote came in the form of a tweet! Although it doesn’t sound like much, the amount of stock options he gave up amounts to over $200 million.
His incredible gesture reminds us of an invaluable tool that often gets lost in the business world; investing in your employees. He later tweeted the reasoning for his generosity, which was nothing short of refreshing.
There are a few reasons why investing in his people was so important:
1. It made the employees feel valuable. There is no doubt that just about every person who works for Twitter puts their heart and soul into making the company as successful as it currently is. Dorsey realized that rewarding them for their loyalty and hard work would ultimately benefit the company, because employees perform better when they feel valued. Nobody ever wants to feel like just a number, or that they could be replaced at the drop of a hat. Showing them how valuable they are will keep their performance level high, transitively making Twitter more successful.
2. It will eventually increase retention rate. Human characteristics are intangible assets. They play a massive role in what a company is despite not being able to measure their individual effects. You can’t crunch any numbers or hire any auditors to deduce just how much they mean. Even though Dorsey had recently laid off 8% of Twitter’s employees as mentioned in the previous link, the stock gifts will keep the remaining 92% around. It’s another way of showing them his appreciation, and that they are a part of something special!
3. It increases the reputation of both Dorsey and Twitter. How do you think these giant new-age tech companies become and remain so successful? Obviously, they all produce unbelievable products that completely change the world we live in, but those products don’t exist without great employees and leaders. Companies like Google and Facebook are widely known for being some of the greatest places to work, which only helps them attract new employees. There’s no doubt that Dorsey providing all the employees with this massive stock package will go a long way towards improving Twitter’s reputation.
Pushing your employees to be great will have a domino effect on the entire company. Jack Dorsey’s awesome decision provides a great lesson for workers at any level. If you push forward and give it your all in your career, you will be adequately rewarded. You get in what you put out, and if you don’t, maybe you’re working at the wrong company!
Kudos to Jack Dorsey for being a great CEO of two companies, and happy birthday!
What do you think of Dorsey’s decision to reward his employees? Who would you like to see featured in our Quote of the Month in December? Let us know in the comments!