Recently, I’ve been hearing about a troubling trend from my network—passive-aggressive leadership tactics that are raising big ethical questions in the startup world.
With the job market favoring employers, some startup leaders are turning to fear-based tactics to drive performance. One particularly controversial approach?
Orchestrating fake job interviews—where employees are asked to interview candidates for their own role.
The goal? To light a fire under underperforming employees, making them work faster, collaborate better, and push harder to prove their worth.
While some argue this is an effective way to shock teams into peak execution mode, others warn it’s a toxic approach that could backfire, leading to low morale, broken trust, and long-term damage to company culture.
So, is this a real trend happening across startups—or just isolated incidents? And more importantly, does it actually work?
In this article, I break down:
- Why this tactic is emerging in today’s job market
- How founders are using it to drive execution speed
- The risks of fear-based leadership—and smarter alternatives
Why Passive-Aggressive Leadership Works in Today’s Job Market
This approach is particularly effective right now because the job market favors employers. With layoffs, hiring freezes, and economic uncertainty, employees are already feeling vulnerable. Startups who exploit this reality can push their teams to work harder, execute faster, and collaborate better.
1. Fewer Alternatives for Employees
Unlike in boom times, where unhappy employees could jump ship easily, today’s job market is tight. Many white-collar professionals are staying put out of fear rather than chasing better opportunities.
2. Increased Layoff Anxiety
With major tech companies and startups cutting staff, employees are hyper-aware that no job is safe. Introducing an external “threat” via fake job interviews amplifies this existing fear and makes them more likely to step up their game.
3. Cost-Cutting Measures Favor Efficiency
Startups are under pressure to do more with fewer people, so they need their teams executing at peak performance. Creating the illusion of replacement forces employees to self-correct before they become a target.
4. Tough Market Means Higher Compliance
In a strong economy, employees might rebel against this tactic, quit, or badmouth the company. But in today’s job market, most will comply and work harder rather than risk unemployment.
How Passive-Aggressive Leaders Implement This Strategy
1. Identifying Underperforming Employees
Passive-aggressive leaders don’t outright fire employees for being slow or uncooperative. Instead, they subtly identify those who need a wake-up call—the ones missing deadlines, failing to collaborate, or delivering mediocre work.
2. Creating the Illusion of Replacement
Once a target has been identified, the leader begins the recruitment process for a similar or slightly superior role. This is where the psychological manipulation begins:
- The job description mirrors the struggling employee’s responsibilities.
- The founder brings in external candidates with impressive backgrounds.
- The struggling employee is asked to interview their own potential replacement.
3. Making the Employee Feel the Pressure
During the interview, the employee is forced to confront the reality of their situation:
- They see someone with a better resume, more experience, or a fresh perspective.
- They realize the company is actively looking for someone who could do their job better.
- The conversation naturally makes them reflect on where they’re falling short.
4. Forcing a Performance Reset
The emotional impact of this tactic is immediate. Employees who once felt secure now feel the heat, pushing them to:
- Speed up execution. They start getting things done faster to prove their worth.
- Improve collaboration. They become more proactive in working with other teams.
- Reignite their ambition. The fear of replacement sparks a renewed drive for excellence.
Does Passive-Aggressive Leadership Work?
The Upsides
- Immediate performance boost. Employees who get the message often become highly motivated overnight.
- Better cross-team collaboration. The fear of losing their job encourages them to work better with others.
- Eliminates dead weight. Those who don’t step up either leave or expose themselves as underperformers.
The Downsides
- Toxic work culture. Employees may feel constantly on edge, leading to stress and burnout.
- Loss of trust. If employees figure out the strategy, they may feel manipulated and disengaged.
- Unintended attrition. Some top performers may leave, feeling undervalued or insecure.
Short-Term Gain, Long-Term Risk
While passive-aggressive leadership works well in today’s job market, it’s not sustainable forever. As the economy rebounds, top talent will remember this manipulation and look for better workplaces.
Startup leaders use this as a temporary push, but long-term success requires building a culture of motivation that doesn’t rely on fear.
Better Alternatives to Passive-Aggressive Leadership
If the idea of orchestrating fake job interviews feels too extreme, there are other (less manipulative) ways to get similar results:
- Set aggressive but realistic performance goals. Hold teams accountable for execution speed and quality.
- Introduce internal competition. Gamify productivity with performance-based incentives.
- Foster a culture of transparency. Have direct conversations about performance expectations.
- Provide mentorship instead of threats. Help employees grow rather than fear being replaced.
Final Thoughts
While passive-aggressive leadership can be highly effective in the short term, it carries significant risks. Creating fear-based motivation may drive execution speed and urgency, but it can also lead to resentment, low morale, and high turnover.
The best startup leaders find a balance between driving performance and maintaining a strong company culture. If fear is the only motivator, the startup’s long-term success may be at risk.
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