Ray Dalio’s fascinating management principles are so strange and demoralizing that they have pissed off a lot of employees.
30% of people hired leave the firm in the first 2 years; and the firm also sees a lot of turnover at the top, according to AR Magazine.
As a result of the high turnover, many of its current employees have only worked at the firm for three years — and it sounds like a lot of them are very young, and many hold liberal arts, not economics, degrees.
And there’s another alarming detail about working at the firm. The management principles seem so unorthodox (former employees call them “demoralizing” because they’re meant to strip you of your ego by constantly criticising what’s wrong with you in front of everyone else — talking behind employees’ backs is not allowed) that some have even questioned whether or not they’re legal.
Here’s an excerpt from a recent AR Magazine article that mentions legal complaints brought against the firm by about five former employees — employment issues :
[Bridgewater’s recent due diligence questionnaire] stated the firm’s legal employment issues:
- It recently resolved two complaints brought by former employees (in 2007 and 2008)
- In 2009, it defended an arbitration action regarding employment issues
- Bridgewater is also the subject of two pending Equal Employment Opportunity Commission actions, (both of which the firm says are nonmaterial).
What could Bridgewater be doing that’s legally questionable?
For one, we’ve heard that the firm asks for dental records from new hires — even though everyone has a right to keep those very revealing records confidential.
And though none of this sounds illegal, the firm also asks job applicants to submit to a Meyers-Briggs personality test (which isn’t that weird, we’ve heard Goldman asks employees to take a personality test), and tell Bridgewater what they think about God and abortion, according to AR Magazine.