Former employees say Free Agency CEO cares more about control than the company

In response to former workers of human sources startup Free Company, CEO Sherveen Mashayekhi’s management type is holding the initiative again as a result of he cares extra about demanding loyalty and controlling his workers than constructing an organization.

The New York-based startup set out with the concept of ​​carrying the expertise company mannequin, which is well-liked in Hollywood and sports activities, to different professions in 2019. Founders Alex Rothberg and Mashayekhi had been clearly as much as one thing as purchasers. rolled and know-how abilities flocked to work within the enterprise due to its mission.

However when the enterprise started proving its product market viability in early 2022, co-founder Rothberg stepped again from a day-to-day function. This left Mashayekhi as the one senior government within the firm. Workers stated the ambiance started to alter after Rothberg left.

TechCrunch spoke to 10 former workers and reviewed audio recordings, Slack messages, and different supplies from many, each present and former, who expressed first-hand how they felt that Mashayekhi’s habits in the direction of workers was beginning to deteriorate and his focus was turning into extra aggressive. making use of micromanagement and overcontrol.

Our sources stated it began utilizing PTO as leverage – the corporate denies it, however a number of Slack messages supplied to TechCrunch present that Mashayekhi has denied PTO and, in lots of circumstances, canceled it – and informed workers that their nights and weekends aren’t “sacred” . Ex-employees additionally bear in mind “exploding” on themselves or different colleagues if issues did not work out. The corporate denies this, saying that as a result of nature of the enterprise, workers could generally need to work outdoors of enterprise hours. The corporate additionally denied yelling at colleagues, saying “Sherveen is extraordinarily clear and communicative.”

the tip of the iceberg

Former workers stated the issues with Mashayekhi went past benefiting from PTO. They informed them that he usually informed them that they may all be modified and that he might run the corporate on his personal if wanted, whereas additionally begging for his or her loyalty. The corporate says this was solely informed to a selected worker, however many former workers bear in mind such cases.

“It was clear to me that he needed this cult-like follower,” a former worker informed TechCrunch. “I felt that his endgame did not truly construct a profitable firm.”

Former workers stated he was obsessive about following up on what was stated behind his again—workers as soon as referred to as a gathering as a result of he was “whispering” an excessive amount of and needed to know why, they recalled. They informed him they had been one another’s help system and he stated, “You may’t do this. I am ending it as a result of the reality is it hurts enterprise.”

The corporate stated this motion was taken because of “a number of” workers complaining about exclusionary teams:

“As any firm can, Free Company promotes a constructive office the place all workforce members really feel supported, relatively than a subset of the workforce gathering or exercising an excessive amount of cultural energy.”

One former worker recalled that after their direct supervisor left, Mashayekhi was constructive about it as a result of, based on her, their workforce wasn’t doing nicely “as a result of they weren’t shut sufficient with my thoughts.”

Former workers stated they thought Mashayekhi’s habits was weird, contemplating that he apparently did not delegate something to his managers or workers, recruiting expertise with expertise in expertise company or HR. The corporate denies this.

“It was bizarre; he had no concept what he was doing, however he wasn’t letting anybody do actually something,” recollects a former worker.

One former worker stated they knew that Mashayekhi would “attempt to discover the issues that undergo my bones and examine additional” or that somebody will intentionally say damaging issues about them to their subordinates and so they know it is going to come again to them. The corporate replied, “Sherveen by no means deliberately stated something damaging about them to somebody’s direct subordinates as a result of he knew he would come again to them.”

Former workers stated that workers really feel topic to fixed strain and loyalty assessments that take time from their precise job. One instance was when workers got seemingly random tasks simply to check how exhausting they may work. This instance is a TikTok video from a potential worker who stated he was shut down by referring to this throughout the interview course of. The corporate denies this, nevertheless it was echoed by quite a few former workers who spoke to TechCrunch.

One other incident that occurred throughout the firm’s withdrawal to Denver was at a drill the place Mashayekhi gathered workers and requested them to take a stroll and discuss with the corporate about mission alignment. On their return, Mashayekhi requested them to shut their eyes and lift their arms if their companion was not in line.

“I used to be fascinated with McCarthyism,” one worker recalled of this occasion. “Later somebody stated they opened their eyes and did not see a hand within the air. [Mashayekhi] insane.”

The corporate confirmed that this was the case however stated all classes had been scheduled with an government coach forward of time. The chartered coach was not accessible for this train.

Former workers stated this obvious loyalty and power-hungry did not simply contribute to a damaging firm tradition: It had a detrimental impact on actual enterprise as nicely.

They reported that Mashayekhi cares extra about how the corporate appears from the skin than how it’s run inside. Former workers stated the corporate is spending extra time equipping its sizable New York Flatiron workplace with hundreds of {dollars} of know-how and internet hosting business occasions, however little time for the corporate’s precise enterprise practices or operations. Free Company denies this.

“I needed to manipulate him to get cash from clients,” one recalled.

Others agreed. One former worker added that they felt he positioned “nearly zero” emphasis on paying payments; the reasoning was that the corporate did not want clients to pay—the corporate’s fundamental revenue stream—as a result of it was the traders’ cash.

Nonetheless, what stood out probably the most, within the shared views of former workers, was the corporate’s incapacity to just accept its personal function in any of its issues. Workers reported having a number of conferences on how issues might have been carried out otherwise or improved, however nothing was applied until the concept got here from Mashayekhi himself. The corporate denies this.

“I do know most CEOs are a bit narcissistic and loopy, however this [was] on a brand new stage,” stated a former worker.

When the corporate retired to Denver final summer season, former workers stated they began the week by saying that if workers did not take motion, the corporate would finish in two years. The corporate denied that Mashayekhi had stated this, however acknowledged that it supplied a monetary replace however to not worker efficiency. Former workers stated they felt in any other case, as a number of sources recalled him particularly saying they weren’t doing sufficient as workers.

Former workers spent the week brainstorming with the Free Company workforce to search out out that Mashayekhi nonetheless did not like his concepts and did not see himself as incorrect with any of the problems.

On the final day of the journey, an worker informed him it was his ego and lack of self-awareness that was holding the corporate again. Mashayekhi refuses to reciprocate, however each former worker who spoke to TechCrunch stated he fought and later informed new workers that he disagreed with what was being stated about his management. The corporate acknowledges that Mashayekhi has addressed this concern with new workforce members.

“His responses to what he stated had been much more enlightening, he was that unsympathetic,” a former worker recalled. “He refused to take accountability for what he did incorrect. He refused. One of the simplest ways to explain him on this journey is to be immature and childlike, unable to carry himself accountable.

Former workers stated his habits in seclusion was only one instance of what they perceived to be habits unbecoming of an organization CEO.

“He would throw me in convention rooms, scold me and make me appear like a sufferer,” one former expertise rep stated. “There was a lack of information that it is a CEO and I’m an worker. He thought we had been equal and at a drawback.”

Final July, Mashayekhi’s habits led six workers to just accept a voluntary stop supply made to those that now not felt that working on the firm was not for them, our sources stated, and just one lined up. After they left, former workers stated that Mashayekhi referred to as them names like “again oil” and “baggage” and infrequently humiliated them in comparison with new workers. The corporate denied a number of the particular phrases used:

“Sherveen does not bear in mind ever utilizing the time period “again oil” or being acquainted with it. Free Company strives for a performance-oriented tradition. After many seen enhancements and adjustments all through 2022, Free Company management’s context relating to earlier workforce construction, outcomes, techniques, and associated points It was crucial for him to share it transparently along with his new workforce members.”

Former workers additionally stated that they perceived Mashayekhi’s private departure from the corporate voluntarily and that they’d think about it a “betrayal”.

The corporate defined that Mashayekhi will truly take a few of these examples personally, as he sees a few of these workers as buddies outdoors of labor as nicely:

As is usually the case with startup founders and groups, Sherveen has constructed deep relationships with early workers and infrequently served as a mentor and buddy. For example, Sherveen was usually invited to out-of-office conferences with their households at social events reminiscent of birthday events and dinners. Because of this, Sherveen had a extra emotional response than might have been warranted as these relationships ended. Sherveen has at all times provided help to people on their method out, together with extending advantages, utilizing gear, mentoring and job search recommendation.

The issues of ex-employees originating from the CEO workplace additionally affected the enterprise externally.

Many former workers recalled that they’d chilly outreach as a part of their place and acquired responses that individuals didn’t need to work with Mashayekhi. Others could additional restrict alternatives for the corporate, recalling cases the place they’ve witnessed Mashayekhi scolding or humiliating potential companions and sponsors. When introduced to those accusations, the corporate responded:

“Free Company takes its accountability to construct strong relationships with distributors and companions very severely. Usually, and particularly in 2022 and 2023, this implies respectful, aggressive negotiations to make sure the corporate, workforce and finish customers get the very best deal.”

General, Free Company rejects the characterization of the corporate shared with TechCrunch by former workers, however acknowledges some examples the place its previous habits fell in need of expectations:

“Each motion we take, each resolution we make at Free Company is just not at all times going to be good looking back. As a younger startup, we’re looking for our method. At instances, we are going to stumble, as we do now and again, as we attempt to create and strengthen a customer-first, proprietary tradition inside Free Company.”