Flip underperformance into progress

Job hugging, AI in travel, and leading through struggle. -

Inside this issue

  • Workplace trends
  • The AI corner
  • Flipping the script on underperformance
  • Water cooler chatter
  • Question of the week
  • Just for laughs
  • Follow the monday.com weekly on LinkedIn

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Companies rethink unlimited vacation policies

Just 7% of US companies offer unlimited PTO today, the Wall Street Journal reports, marking a sharp retreat from what was once considered a progressive employee benefit. The policy's fundamental flaw lies in its uneven usage patterns: high-performing employees consistently underuse the benefit while their colleagues take significantly more time off, according to internal data from companies like fintech firm Bolt. Rather than delivering the promised freedom, these policies generate confusion and guilt, with top talent burning out from chronic underuse while managers struggle to establish fair boundaries. Most organizations are now pivoting back to structured allocations of 15-20 annual days, recognizing that clear limits encourage more consistent usage across all performance levels. Workplace experts conclude that unlimited policies, despite their progressive appeal, inadvertently penalize the very workers companies want to retain most.

 

Employment

Workers worldwide are "job hugging" amid economic uncertainty

Only 11% of UK employers plan to hire before year-end, the sharpest recruitment decline globally, according to ManpowerGroup research. This "job hugging" trend extends to the US, where workers have stopped job-hopping after years of switching roles during the Great Resignation. Companies are now choosing between hiring new workers or investing in AI automation, creating what workforce experts call a glacial hiring pace. While businesses benefit from lower turnover costs, they risk creating workplaces where disengaged employees do minimal work while waiting for better opportunities, according to Korn Ferry analysis. Labor economists warn this creates a vicious cycle where reduced hiring opportunities make workers even more reluctant to leave unsatisfying roles, potentially stifling innovation and productivity across entire industries.

Travel

AI agents threaten to bypass travel booking platforms

Major travel booking sites like Booking.com and Expedia are scrambling to adapt as AI "agents" emerge that can plan and book trips without using traditional platforms. These systems could disrupt the $1.6 trillion global travel market by letting customers bypass intermediaries that charge 15-20% commission fees, according to the Financial Times. Travel platforms are responding by partnering with OpenAI to integrate chatbots and trip-planning tools, while hotel industry groups welcome the potential to reduce their costly reliance on booking platforms. Despite the promise, significant questions remain about liability when AI agents make errors or fail to complete reservations, highlighting the technology's current limitations in handling complex travel arrangements.

 

Investing

AI boom makes traditional stock picking obsolete

The old investment rule of "buy low, sell high" is breaking down as AI transforms how markets work. Companies benefiting directly from AI are seeing explosive revenue growth that traditional valuation metrics simply can't measure. Some semiconductor firms have grown revenue from $6 billion to $60 billion in just two years, according to consensus forecasts tracked by financial analysts. At the same time, businesses using AI to boost productivity are commanding premium prices as investors bet on higher profit margins through efficiency gains. This creates a market where future growth potential matters more than whether a stock looks cheap today. Investment strategists warn that following old valuation rules in our current market could lead to investing in companies that AI will soon disrupt, while avoiding the ones likely to thrive.

Flipping the script on underperformance

It’s easy to feel confident as a leader when your team is thriving and everyone’s bringing their A-game. But true leadership is tested when someone on your team is struggling, and you’re the one responsible for helping them turn things around.

 

One underperforming employee can quietly disrupt the rhythm of an entire team. When deadlines are missed or work falls short, it usually means someone else has to carry the extra weight. And while it can feel uncomfortable to confront performance issues, stepping in early is essential for keeping the team strong, motivated, and moving forward.

 

Avoiding a tough performance conversation might feel easier in the moment, but it almost always leads to bigger problems. When teammates are left to carry the extra weight, morale drops and disengagement festers. The cost of this is real: Gallup reports that under-engaged and actively disengaged employees cost the global economy $8.8 trillion in lost productivity. The sooner you step in, the more likely you are to help someone course-correct. In doing so, you could potentially strengthen the entire team.

 

So, how do you flip the script on underperformance?

 

Be specific

Opening up the conversation with your under-performing employee can feel emotional, so try to take the emotion out of it. Start by defining exactly what underperformance looks like and try not to generalize. Is it missed deadlines? A change in behavior? Declining work quality? Use data and examples to make the feedback grounded and factual. This helps take the emotion out of it and makes the issue easier to discuss. Clarity gives you something to measure progress against later and prevents misunderstandings from spiraling into bigger issues.

 

Key question: “What specific behavior or output has changed, and when did you first notice it?”

 

Learn the whys

If your employee used to be strong and is now under-performing, there's usually a reason, and that reason might be that they weren't set up for success. Maybe expectations weren't clear or the work load was too much. Or maybe there's something going on in their personal life that is causing them to lose focus. So try to be empathetic in your discussions to show you support them. Even if the reason for under-performance doesn't excuse the issue, understanding it will help you solve the problem.

 

Key question: “What could be contributing to this performance change and how can I help remove that barrier?”

 

Align on expectations

Once you understand the problem, be really clear and specific what good performance actually looks like for that specific employee. This plan might include resetting priorities, updating timelines, or outlining metrics for the next few weeks. As much as possible, try to let the employee help build the plan. Their active engagement increases buy-in and ownership, making them more likely to follow through on the changes.

 

Key question: “What does a strong performance look like for this role and how can we track it together?”

 

Check in regularly

It's very important not to wait until an official performance review to check in on progress. Instead, set a schedule for short, weekly check-ins to offer support, review progress, and make adjustments. Bear in mind that these meetings aren’t about micromanaging, they’re about building momentum. Always try to keep the tone supportive and focused on outcomes. When employees feel like you’re in it with them, they’re more likely to stay motivated and improve.

 

Key question: “How often will I check in, and what specific goals will we review each time?”

 

Acknowledge progress

When someone is trying to improve, even small wins matter. Taking time to notice and acknowledge them builds confidence and reinforces the behaviors you want to see. Maybe you notice that an employee who was continuously missing their deadlines has gotten everything in on time since you last spoke, or maybe the quality of work has improved in specific ways. Be sure to call these things out. The more supported your employee feels, the more likely they are to sustain their progress.

 

Key question: “What’s one small success I can recognize this week?”

 

Be prepared to act if things don’t improve

Not every performance story has a happy ending. If there’s no improvement despite your support, don’t delay hard decisions. Lingering underperformance can hurt team morale and business results. Follow your company’s HR process and document everything along the way. Letting someone go isn’t easy, but it’s sometimes the most respectful path forward for everyone involved.

 

Key question: “At what point will I escalate and how can I protect the rest of my team in the process?”

Water cooler chatter

Rolling Stone and Billboard owner Penske Media sued Google over AI summaries. The company says its revenue dropped by over a third as the summaries reduce clicks to their websites, with publishers forced to choose between free content use or vanishing from search results.

"We have a responsibility to proactively fight for the future of digital media and preserve its integrity – all of which is threatened by Google's current actions."

Jay Penske, CEO of Penske Media

The US IPO market had its busiest week in four years. Seven companies went public and raised over $4 billion, with buy-now-pay-later company Klarna and the Winklevoss twins' crypto exchange Gemini leading the charge. Most companies saw strong first-day performance though some have since pulled back.

"We had three years that were very dry years, [with] very little liquidity globally for tech companies. So in that context, it's really significant now that this year has seen many companies come public."

Niklas ZennstrΓΆm, Founder of Atomico and Co-founder of Skype

Last week’s answer: 29%

This week’s question: What percentage of their workweek do hybrid workers spend in the office on average?

“I get that scoring is a priority, but I have a lot on my plate right now, so maybe we can table that until next game?”

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