Jerks Need Not Apply

"Lars Dalgaard is CEO and cofounder of SuccessFactors, one of the world’s fastest-growing software companies ... All the employees (he) hires agree in writing to 14 'rules of engagement.' Rule 14 starts out, 'I will be a good person to work with—not territorial, not be a jerk.' One of Dalgaard’s founding principles is that 'our organization will consist only of people who absolutely love what we do, with a white-hot passion. We will have utmost respect for the individual in a collaborative, egalitarian, and meritocratic environment—no blind copying, no politics, no parochialism, no silos, no games—just being good!'" — Robert Sutton, The McKinsey Quarterly, 2007 Number 2

Mr. Dalgaard is onto something. The advantages to his no-jerk policy are enormous. Bulls in the office are as dangerous as they are in china shops. Yet owners rarely deal with it. The consequences are staggering, both in terms of the emotional toll on brittle employees and in cold, hard cash.

Mind-body research performed in the past decade has proven conclusively that, without intervention, emotional or psychological turmoil can weaken the body's immune system and lead to physical illness. The upshot? More absenteeism, a productivity plunge, rising health insurance costs and high turnover. One employee's personal problems can set off a chain of events that could threaten a small company. As the old proverb goes, "For want of a nail, the kingdom was lost."