When the pace of tech and innovation is fast and furious and the stakes are high, executive leaders can be faced with momentous decisions about the cutting edge of new work and more controversial leadership styles. One of these instances has become a flashpoint for the global corporate world and its leaders: the unusual and seemingly overbearing request that an executive receive text messages from employees ‘24 hours a day, seven days a week’, made by the icon of risky new ventures and new approaches to management, Elon Musk. This article examines a recent legal decision in Ireland, exploring the implications of demanding employees to work around the clock, the executive pushback against that demand, and how it culminated in a record-breaking legal ruling.
Toward the end of 2022, the Tesla CEO and SpaceX founder Elon Musk gave his employees at the social-media behemoth he had recently acquired an ultimatum. The company’s work goals could be more than ‘hardcore’, he said, because they would now be ‘extremely hardcore’. It would mean ‘working long hours at high intensity’. Musk called it ‘a fork in the road’, asking the company’s employees: are you prepared to work like this? He could just as well have asked the broader workforce: have we reached the point where executive expectations are forever changed? Are employees now, and forevermore, expected to go the extra mile?
One of those was Gary Rooney, a senior executive at the then-named company Twitter. While many of his colleagues might have just clicked yes, Rooney – who came to Musk through his acquisition of the rocket company SpaceX – refused an unconditional and undated contract. Rooney’s refusal to click ‘yes’ was the initiation of a legal and moral battle that had implications far beyond the company’s office walls. It was also a fight that brought to the fore the need to discuss executive actions and the ethics of leadership in tech.
The case eventually made it to the Workplace Relations Commission in Ireland, which found that the dismissal was unfair because no just cause had been shown for the dismissal. The decision, which ruled in favour of the executive, repeated what should seem an obvious point about workplaces: ‘refusal to be prepared to yield to open-ended conditions of employment, particularly where coerced, is a matter within the employee’s rights.
Besides validating Rooney, the WRC ruling put an impressive price tag of some $605,000 on Musk’s company. This is revealing of the financial costs of certain leadership decisions that are seen as overly heavy-handed or directional. It serves as a poignant message to executives and leaders within the private sector about the tightrope between insisting on performance and respecting employee boundaries, and how ruinous it can be when their scales are improperly balanced.
The fallout from this judicial ruling has left the business world interpreting the moral of Musk’s hardcore ultimatum and the executive response it received: it’s another way of underscoring honest and good communication with staff; it highlights the principles of proper execution and treatment of employees; and it shines a spotlight on the limits of corporate demands as dictated by the law. For corporate leaders, the moment serves as a reminder of the importance of their words and decisions, and the perils of forgetting the humanity behind the employees on their payroll.
Despite the mistakes that Musk’s hardcore drive has caused, it’s nonetheless a rich case for understanding executive behaviour and choice in high-pressure organisational environments. Managers trying to get their companies through the whitewater of innovation and competition are faced with a dilemma: how to motivate and direct their teams so that they work as hard as possible, for as long as possible, to deliver results? The answer – how to balance getting the most out of people with creating a positive, sustainable work environment – depends on a careful analysis of the mind and circumstances of the people we lead.
At the heart of the matter here is the role of the executive – a broad term for what are often the highest-ranking leaders in any sort of organisation. Executives are those who formulate the strategy, make the big decisions, and steer the company to achieve its stated goals. They are the designers of organisational culture and the guardians of company morale – sources of influence that can (as this case illustrates) affect the personal and even the legal and financial wellbeing of a company and its staff.
From Musk’s brash management style and the WRC’s reasoning to a broader story about executive accountability, employee rights and the hidden toll of hard-driving work cultures, the storyline threads together common themes that will likely continue to shadow tech and beyond in the many decisions that must still come. This episode represents a powerful reminder that executive leadership is complicated business, and that no amount of technical mastery or personal charisma can replace the hard ethical work of servant leaders.
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