Signs Your Company is Recovering from ZPES

Companies recovering from ZPES show positive signs like executive turnover and a return to in-office work.

### Signs Your Company is Recovering from ZPES
* 💼 Many employees enjoyed a **flexible work-life balance** during the ZPES period, but recent demands from management indicate a shift back to a more **traditional work environment**.
* 🔍 To determine if your company is recovering from ZPES, look for signs such as **increased executive turnover**, which may suggest a **necessary restructuring for better accountability and performance**.
* 👥 Founders may become more involved in daily operations, indicating they are **taking back control** and **addressing issues that arose during the ZER phase**.
* 🏢 A return to the office can signal that senior management is **committed to rebuilding a productive work culture**, despite potential employee resistance.
* 📉 The reduction of vanity projects, which often serve **personal agendas rather than company goals**, reflects a shift toward prioritizing **meaningful work and resource allocation**.
* 💰 The scaling back of excessive employee benefits may be a sign of a **more realistic approach to company resources**, encouraging employees to engage in **genuine work** rather than relying on perks.
* 📈 Ultimately, being part of a company that is actively recovering from ZPES may require hard work, but it can lead to **greater rewards and personal growth**.
* 🚀 If your current company shows no signs of recovery, consider exploring new opportunities or starting your own venture to achieve a **more fulfilling work-life balance**.

When my company was infected with zpes, I was working three days a week, and I got to enjoy a lot of hobbies. I got to travel. I lived the nomadic lifestyle, and I felt like I had great work-life balance. This week, my boss asked me to do something over the weekend that is a violation. You should report him to HR. I think I saw a problem on Michael just reporting HR. This is Dalton plus Michael, and today we're going to talk about how to tell whether your company is recovering from zures. So, as I'm sure you've seen from our previous video, we did a video on Zer zero interest rate phenomenon. This was the kind of shorthand term for the crazy period of time around COVID where money was thrown around like trees, and funds were doing amazing, and KPIs and metrics didn't matter. And now we're in the recovery, and um, a really intelligent founder coined this phrase zpes, and I just frakin love it. It just, the analogy works so well. So, that founder said uh

I'm giving him the credit, and let's talk about how to tell whether your company is recovering from ZPES because all companies had to live through the ZER experience. Yeah, whether it was the huge big tech companies all the way down to the two-person startups, it had a profound impact on yes, everybody basically. And like, you know, to be really clear, if you're working in a company that is effectively recovering from ZPES, that's good. Yeah, like you should probably keep staying there. Like, your stock is going to be worth more. Yep. If you are working at a company that's not effectively recovering from ZPES, have you considered starting a start? That not the worst idea. Yeah, not the worst idea. Awesome. So, how can you tell? How can you tell your company is recovering? Well, one of the most obvious things is turnover on the executive team. Yeah, turnover at the top, which is again normally you're like, Oh, this is a bad thing. We are arguing that is probably a really good thing. Yes, why is it a good

thing. Well, I would say that there's a type of executive that comes into a company that's made it, yep, and like a big company person, exactly, a company, a person who's used to an infinite resource scenario with little accountability. And that kind of person is a mere paper cut inside of Google and is a massive flesh-eating virus inside of a scaling-up startup. And that kind of person needs to go. And I would also say there's another point here. You'll often see the founders doing more, yeah, yeah. It's like the founders wake up one day and they're like, Oh no, I have to run this country we're host and all these people I hired are actively burning us to the ground. Yes, yes, yes. So I have to wake up out of my stupor, yes, start running my company again, and need to get into sort of a wartime mentality. I need to get real about the situation. Well, and what I hate is that like oftentimes there's an immune response to the founder in their own

yep right where the organization like whoa whoa whoa. You hired us to do these things like you shouldn't be. You should be working on products. I'm your head of product. You should be working on marketing. I have a head. I have a CMO. Yeah, so it's almost like the founder gets boxed in. Yeah, which is like it's like well you know if that person is doing a great job you're right the founder shouldn't have to worry about it. What if the person's doing a bad job? The founder's whole nose face body should be involved to give them the bit of the doubt. They were D at the height of Zer sure to execute on a strategy that in the cold light of current environment is not a strategy they want to work on. Perfect perfect example that's giving them the benefit of doubt but that still doesn't mean it's a good fit. No still a bad fit but not their fault. So this executive turnover founder more involved thing great good sign your company is.

recovering from zpes um opposite not so good. Let's talk about a sticky one here. Returning to the office. Returning to off. Return to office. Something that some people may not love. We are recording this from the yator office. We have returned to office. I think there was this moment at the height of Zer when people are like, you know, we're never going to have offices anymore. Like we should just tear down the Office Buildings. Let's turn them all into Apartments. All offices are done. Yeah, you know, some of the founders loved it. They're like, oh, I could just live in a tropical island and exactly Bali, right? Islands are great. Yeah. And let's point out like, I will create a world for you, Dalton, where this idea is correct. In a world where we can only be inside of our houses because everyone fears death going outside, we probably don't need offic. That's fair. That's fair. Like, yeah. And I argue San Francisco lived in that world for a long time. Two years maybe. Maybe.

three yeah probably three yeah uh but not in that world. Yeah. And so if a company is doing return to office again, you may not love it personally, but is a sign that the Senior Management has gotten real. Yes. And has gotten religion on how to get their company back on track. Yes. And if you are an ambitious person working at these places, you should be relieved. Yes. Because it's a sign. Yes. Your Equity might be worth something and that you're recovering. They're like that the Senior Management got real. And I think this is like I I hate having to argue about this because there's so much empirical evidence right. Cities exist. What are cities? Collections of people who are closer to each other. And like it's obvious that cities create productivity. Having a team close to one another obviously creates productivity. And like we can talk about the like but but but but but well yeah but like and and it's like it's funny because people always want to quantify it so like you know you run into someone at the water coolers but it's just like having a

deeper connection with the people you're working with. And I think we can all agree you have a deeper connection with people who you see in the physical world than on Zoom screens. Having a deeper connection with people you're working with gives you the ability to potentially be more productive. And the meta point I would make on this is even if you personally are one of the butt-butt-butt people about this, yes, the sign that senior management is getting religion about this and is willing to make a big change, it means you're working in a good place with a winning culture. That the senior manager was like, Hey, I know some people may be grouchy about it, but we're doing this. That's a good sign. That's a sign that they've gotten real. Yes, making hard decisions, making hard decisions, and willing to have some people be upset about it, but they're going to do the right thing anyway. Again, I think that's a good sign. One would argue that a big part of Zer was using money to not have

to make any hard decisions. Yeah, give everybody everything always. All the money's free. Yes, you could do anything. You could live anywhere. Yes, this is kind of making a hard decision, which is again a sign of critical thinking. Yes. All right, next one. Vanity projects. Anyone working inside of a company knows when they encounter a project that exists. The best one. I love to get someone a promotion. Yep. What is the opposite of building something for the customer and like using company resources? It's like, I don't want to call to justify the promotion of someone. Yes, it's like, here, build this thing. Okay, I'm going to throw this in the trash. Thank you. All of your hard work is going to get me promoted though. Is that stealing? Like, you're taking company resources to produce something that can only benefit yourself. It'd be like if you stole office supplies and sold it on Etsy. Yes, but worse. But worse. It's like if you stole money from a bank and put it in your bank account. Yeah, that's kind of what you. I

don't. I don't know if we're going to win this argument, but okay. But basically, there's a lot of people in a lot of companies who are like, I need a team, and I need resources, I need budget for blah blah blah project. And the whole thing is a self-perpetuating, yes, I need resources to do things so that I can get more resources to do things. And basically, the game you're playing is how many people can you get in your org reporting to you so you continue to level up. Now, I don't want to blame those people because I would argue that that machine, that system that they're trying to optimize, was created on purpose or not by the founders of that company. And so, those founders trying to correct that system, yep, is a good thing. Yeah, that's a good thing. Like, and so if you're working in a place and you're noticing that the people that were doing this are gone, yes, or at least doing something more useful, yes, or that, and you're just like, We're

not going to do this stuff anymore. Yes, a very good sign. It's a sign that Senior Management has gotten real, yeah, is being intentional about the culture and system of work, and not copying, yep, um, especially not copying the big companies. This is prevalent in the big companies, y benefits, Dalton. I used to get this DoorDash thing and free haircuts and massages and, you know, 16 days of personal, you know, mental health time and blah, blah, blah, blah, blah, and those things are going away, yep. My company doesn't respect me and is not looking out for my best interest, right, yep. Again, it's the sign of just like getting real, yeah, and I think what the Senior Management is looking for from employees is employees that are like, Yeah, I want to work at a real place. I want to work on real products that help real customers. I want to be paid for my work and compensated, but please don't treat me like a child and don't try to treat me as this fragile person who can't take care of myself, yes, and who

can't make who has to be shielded from the harsh world. It's kind of like treating people like adults. Well, it's weird because like I think some of the analogies that maybe you rightfully expect from a government, like you expect a government to create a social safety net. You give up taxes and you give up certain rights to your government, and maybe you expect that in return. You're the company you work for is not a government. Like, let's not have similar, like, it's not responsible for your social welfare. And let's be clear, you're not required to work in it, right? We're required to pay taxes to the government. So, hey, our expectations that we need to get some in return, that company, it's not the same relationship. And I think that somehow got flipped. And you know, hey, I understand it during a pandemic. Shit's scary, and a company trying to step up and do right in a scary moment for their employees makes sense, but like it

also makes sense that when things aren't scary, maybe some of those practices get taken away. Yep, the environment changed, and so it's a really good sign if those HR benefits are starting to get edited. Yeah, and it's like, have you seen this genre of TikToks, which again, I'm pretty sure it's pretty clear the people that make them, they're now just doing the trigger for. Yeah, it's basically, we should make one of the, but they're like, Oh, hey, come join me while I do no work, yes, job at LinkedIn. And they're like, Okay, just showed up getting free coffee. And the day in the life is they do nothing. The better ones are when they're working on vacation. They're not on vacation, they're just in the pool. I saw that one, yes, yes, it's great. And so the correct immune response for you as a colleague of these people is to probably be like, Wow, I should get a new job. Yes, yes, yes, and it should again, it should be refreshing. Yes, if you're

starting to notice this being put aside. Yes, right, that's a good sign. That's a very good sign. And hey, some people can be disappointed, right? Some people have adjusted to a lifestyle that's not sustainable, and when the company's like, Hey, we don't need you anymore, they're sad. And like, once again, I still blame the Founders because like, I don't think that was reasonable to start, but you know what's better? Like, not correcting the error, yep, or correcting the error, right? Yeah, I mean, ultimately, fake work jobs make a lot of people sad, and it is dystopian, and it is like the Matrix, or it is like you're a drone in a machine where you're like, I do work that doesn't matter. I don't even need to work. No one cares about my work output. My life is a joke. Yeah, that does not create happy people that are like satisfied with Society. Not good for mental health, not good for mental health. And so, I think it's really good to feel like you're working somewhere where your

colleagues. Your management, the founders of the company, whoever it is, take things really seriously, and they themselves are not checked out. That should be motivating, and if you don't feel like you work at a place like that, maybe you should consider working somewhere else or starting your own company. Yeah, because I think you'll be a lot happier. Yeah, yes, yeah. I got one for you. Here's a controversial one. You know, during Peak Zer Dalton, when my company was infected with zpes, I was working three days a week, and I got to enjoy a lot of hobbies. I got to travel. I lived the nomadic lifestyle, and I felt like I had great work-life balance. This week, my boss asked me to do something over the weekend. That is a violation. You should report him to HR. I think I saw a problem on Michael. He reporting HR. I have to work more is a sign your company's recovery from zerp. Takes a lot of hard work to make a good company happen, and especially in these

kind of large-scale pre-IPO companies. There's a lot of work to do. Like, it's so easy to think you're at Google when you're not at Google. Yep. And you have to turn your eyes on and your brain on for five seconds and then be like, Oh, this isn't Google. I have to work really hard. Like, I'm still part of making this thing happen. This thing could still not make it. Yeah, well, and The Hangover isn't over again. I think this is part of why we're making this video now, not like a year ago, is zero interest rate stopped a while ago. Yes, but there's a lot of slow unwinding of all this stuff. It's literally taking years. Yes, for the course correction to happen. It's not done yet. Not done. Well, and I mean, if we're just telling an employee for a second to be strategic, Hey, make like one, it's great if you're working at a company that's recovering from R.P. two, can you be on the right side of the recovery? Right?

like like you you don't want to be seen as part of the problem. You want to be seen as part of the recovery. Yep. And what I will say is that maybe you feel burned because those efforts during Zer weren't rewarded. But if you're at the right kind of company, those efforts will only be rewarded more and more now. Like, and we see that in Spades. Like, when people wake up and they start taking account for, Hey, what have you done? [Laughter] Yeah, eventually the hard workers get ahead. Eventually, they get ahead. All right, so I think we want to summarize this kind of how we said in the beginning. It might be hard if you're working at a company recovering from zpes. Like, your lifestyle might be taking a hit if you're actually doing this so that you can make a great product, serve customers, make the world a better place, actually learn skills, be a part of a team. It's doing things you're going to learn a lot more. You are. I mean, this is like the decision between going

to a challenging school and not a challenging school, right? Like, you're going to learn more at a challenging school, and you're going to learn more around people who want to be at a challenging school. You're going to learn more; you're going to have so much more fun being with people who want to work hard versus people who want to be on permanent nomadic, yep, whatever. So, suck up the pain, you know, deal with it, and consume the benefits of that. And if you are at a company that is not recovering from zpes, and there's evidence of zpes everywhere, what do you do? Yeah, you might want to find a different job, or you might want to start a company, you might want to bootstrap, you might want to work for yourself. There's lots of choices, like, yeah, if you want to live a very flexible lifestyle, there are ways to work for yourself and pull that off, but be careful where you are because it might not be around, up, yep. All right, good shat, thanks. [Music]

Signs Your Company Is Recovering From A Bad Case Of ZIRP

Videos to help you build a successful startup. Subscribe for startup advice, founder stories, and a look inside Y Combinator.

What is Y Combinator?
We invest $500,000 in every startup and work intensively with the founders for three months. For the life of their company, founders have access to the most powerful community in the world, essential advice, later-stage funding and programs, recruiting resources, and exclusive deals. 

Visit ycombinator.com to learn more.

Video Team:
Zach Both - Video and Content Lead
Ryan Loughlin - Senior Producer



Y Combinator

The speaker experienced a work-life balance during the ZPES period but is now facing a troubling request from their boss.

The video discusses how to identify if a company is recovering from ZPES, highlighting the importance of executive turnover and increased involvement from founders.

The speaker suggests that if a company is not effectively recovering from ZPES, considering starting a new venture might be a good idea.

The Impact of Organizational Changes and Returning to the Office

Founders can feel boxed in when they hire executives, leading to increased involvement in the company's operations.

Executive turnover and a founder's greater involvement can be signs of a company recovering from challenges.

The return to the office, while unpopular for some, indicates that senior management is getting serious about getting the company back on track and can be a positive sign for ambitious employees.

The Importance of Deeper Connections in the Workplace

Having a deeper connection with colleagues in the physical world can lead to increased productivity.

Senior management making hard decisions for positive change is a sign of a winning company culture.

Vanity projects that solely benefit individuals can be detrimental to the organization's resources, and correcting such systems is a positive step towards improvement.

Shifting Workplace Culture and Employee Expectations

Senior Management is becoming more intentional about work culture, moving away from copying big companies' excessive benefits.

Employees are seeking a real and respectful work environment, wanting to be treated like adults rather than fragile individuals.

The removal of certain HR benefits post-pandemic is seen as a positive sign of a more realistic and responsible company approach.

The Impact of Company Dynamics on Employee Satisfaction

Fake work jobs can lead to dissatisfaction and poor mental health, creating a dystopian environment for employees.

A company's recovery from a challenging period often requires hard work and commitment from employees.

It's important for individuals to feel motivated by their colleagues and management, and if not, they should consider other job opportunities or starting their own company.

Navigating Career Challenges in a Recovering Company

Working at a company recovering from past struggles can be tough, but hard work will eventually be rewarded.

Being part of a team focused on growth and learning can provide valuable skills and a fulfilling experience.

If the company shows signs of ongoing issues, it may be wise to consider other job opportunities or explore self-employment for a more flexible lifestyle.