What a fantastic read. As a CEO who has grown my company from 6 to almost 100, this is one of the hardest discussions to have with someone. It's not that they did anything wrong, they're just no "right" for the position in its current state.
He suggests that it's impossible to retain employees through such changes. I haven't found this to be the case. One technique I've used is to keep the company title-light, so that changes in title aren't as stark. I've also had a few people who have gone from IC->manager->IC, which shows the company that I value people no matter what their role is. Retaining people after hiring above them requires a lot of careful, honest conversations not just with the affected employee, but with messaging to the broader team.
I'd love to know how you approach the messaging to the broader team about hiring above someone (perhaps if they've always been an IC, or if they tried management and weren't performing). In my view it seems quite difficult to maintain face in such a scenario, and it's not obvious how one can alleviate that.
He suggests that it's impossible to retain employees through such changes. I haven't found this to be the case. One technique I've used is to keep the company title-light, so that changes in title aren't as stark. I've also had a few people who have gone from IC->manager->IC, which shows the company that I value people no matter what their role is. Retaining people after hiring above them requires a lot of careful, honest conversations not just with the affected employee, but with messaging to the broader team.