Can You ‘Unboss’ Yourself Without Ruining Your Career?
Managers want to shed the headache of running a team without losing pay and power
Managers want to shed the headache of running a team without losing pay and power
Sick of managing people? Maybe you should stop.
So many of us stumble into being the boss, or raise our hands because it feels like the only way to get ahead . We’re attracted to the cachet of the title, the promise of more money or the comfort of having a ladder to ascend.
Then come the performance reviews to write, the team drama to adjudicate, the meetings to attend . The job keeps getting harder. Managers oversee nearly three times as many people today as they did in 2017, according to data from research and advisory firm Gartner . Nearly one in five managers says that, given a choice, they’d prefer not to oversee people.
“That’s what we call buyer’s remorse,” says Swagatam Basu , a senior director in Gartner’s human-resources practice.
You can switch back. And your company might be amenable. More are “unbossing” their workplaces by shrinking middle-management layers .
The trick is figuring out a way to maintain your pay and influence. In some companies, the number of people you manage is a proxy for your power. Others now use special individual-contributor tracks, meant to ensure that technical experts have a set path to climb.
You might have to give something up. Making the shift could still feel like a relief.
“It was like, oh, I don’t have to deal with the people issues,” says Suzet McKinney , an executive at Sterling Bay, a Chicago real-estate company. She’d served in leadership positions before. When she started her current role in 2021—no pay cut required—she figured she’d eventually hire direct reports and build out a team. Then she realized she didn’t miss it.
“Managing people would be more of a distraction,” she says.
Dennis Henry , an engineering director overseeing about 45 staffers, was hungry to move to the next managerial rung at software company Okta last year. Then his supervisor explained that would mean even less time to do the technical work he loved. It made the 38-year-old wonder: Did he want to be a boss at all?
“What would hurt more?” Henry asked himself. Giving up managing or giving up coding? The latter felt unfathomable.
He pondered what he’d want if he left management entirely and became an individual contributor, ranking priorities. Maintaining his base salary—just shy of $300,000—was tops. He told his boss that he was happy to stay in his current role if a new opportunity didn’t pan out.
“You have to be ready to hear ‘no,’ ” the Orlando, Fla., resident says.
He got a yes: The company created a new job for him and preserved his pay. After 15 years as a manager, carving out a new kind of authority has been a transition.
As a boss, “I could just say, ‘Do this,’ ” he says. Now he spends more time amassing evidence for his ideas, making his case.
“It is so much harder to convince people that something is the best option,” he says.
Jenny Blake ’s mental health took a dive after she was promoted to team lead at Google at age 24. She felt stressed and emotionally drained, deeply responsible for her team but beholden to decisions from above, like a department reorganisation ordered up by executives.
A 2024 survey from SHRM, a lobby for human-resources professionals, found that 40% of respondents said their mental health declined when they took on a managerial or leadership role.
Blake switched to an individual contributor job, spending several years rolling out new programs she felt had a much bigger impact than her management. Now an author and speaker focused on careers and business, she recommends broaching the transition conversation by laying out your unique strengths and how they can better serve the company in a new role. Don’t dwell on your distaste for managing people.
Want to ensure the shift isn’t a demotion? Make sure you’re staying close to parts of the business that are directly tied to revenue, she says. Build your reputation externally, speaking at conferences and publishing papers.
“Become an industry expert,” she says.
Just because a company touts opportunities for individual contributors to grow doesn’t mean you’ll be able to rise to the top unimpeded. A former consultant at a professional-services firm told me that partners who didn’t have their own teams were treated like second-class citizens.
At Launch Potato, a digital-media company based in Delray Beach, Fla., the individual-contributor track tops out several levels below the executive level. Even on the lower rungs, managers have the opportunity to make higher salaries and bonuses than commensurate individual contributors, says Kristopher Osborne , the company’s senior vice president of talent.
“You are getting paid a premium to deal with a lot more issues and challenges,” he says of managers. “People have to be realistic.”
He recommends ambitious individual contributors show they’re bringing leadership to the company in different ways. Can you run strategy initiatives, coach teammates or get swaths of the organization on board with new initiatives?
In a previous job, Sheri Byrne-Haber liked managing people and being a “one-stop shop” for her 20-person digital-accessibility department, even as the workload ballooned. So when her boss suggested splitting her role in two, she initially said no.
She reconsidered when performance-review season arrived. She had to write 19.
The company hired a new counterpart for her, charged with managing, and Byrne-Haber focused on strategy. Letting go was harder than she expected. It took her three months to unsubscribe from all the manager-only Slack channels, email lists and meetings she had been looped in on. When colleagues reached out with questions, she’d pause to determine whether the queries were still related to her responsibilities. If not, she forced herself to forward them to the new manager, even when she knew the answer.
“It felt awkward,” says Byrne-Haber, now at work on her own startup. “But that’s not my job anymore.”
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Wall Street’s hottest momentum trade has reversed sharply, as former winners tumble and heavily shorted stocks surge.
Wall Street’s hottest trade has gone ice cold.
For years, it paid off to buy stocks that were rising in price—and bet against struggling shares. The momentum trade was especially profitable this year, as investors piled into hot stocks including Micron Technology, Nvidia, Advanced Micro Devices and other artificial-intelligence darlings while wagering against those likely to be hurt by the embrace of AI.
The S&P 500 Momentum Index soared 44% in the second quarter, its best quarterly performance on record, and it surged 133% over the past five years, nearly double the broad market’s performance.
Mega funds and rookie investors alike piled into the trade, some using leverage and options contracts in an effort to amplify their returns, propelling the underlying shares higher.
“It is a self-fulfilling prophecy,” said Matthew Tym, managing director at Cantor Fitzgerald, of the trade.
Suddenly, the trade is a loser. The momentum index has tumbled more than 9% since July 1, lagging behind the S&P 500’s 2.8% gain. The index—which tracks stocks in the S&P 500 based on a “momentum score”—is on track for the biggest quarterly underperformance in 25 years. July was the second-worst month for the momentum trade in around 40 years, according to Bank of America estimates; the only month worse was April 2009, in the teeth of the global financial crisis.
Hedge funds that bought momentum shares while shorting low-momentum stocks suffered even more. At the same time, a basket of the most popular stocks held by hedge funds tracked by Goldman Sachs recorded its biggest one-month underperformance in July relative to the S&P 500 in more than 20 years, according to the bank’s analysts.
Momentum trading is based on a rather simple observation: Investments that go up tend to keep outperforming; those that underperform often remain laggards. This kind of trading might seem too simple a stock-picking strategy to work. Yet it often has.
“For decades, it didn’t take a lot of sophistication to run a momentum strategy and make a decent living at it,” says Agustin Lebron, senior researcher at EquiLibre, a trading firm.
Part of the reason: It takes a while for corporate and other information to spread to various investors, so they slowly build positions, producing buying momentum.
“A huge pension fund can’t flip around its positions in a day,” says Lebron. “Behavioral biases also account for some of the effect, as well—people tend to sell their winners too early and hold losers too long.”
Fans of the strategy point to the human tendency to extrapolate from past results—and chase investment returns—noting that momentum patterns have been evident in markets for decades, even centuries. They also say that some of the worst months for momentum strategies are during longer periods of outperformance.
Some have been doing the trade by buying the strongest investments in a sector while shorting the weakest; others lean in to rising markets or asset classes. Still others use a quantitative approach or turn to banks or others who sell ways to make distinct wagers on momentum as a “tradable factor” or a “thematic basket.”
The fans remain believers. “Any strategy has disappointing periods,” says Antti Ilmanen, global co-head of the portfolio solutions group at AQR Capital Management.
The surge in Moderna and other biotech stocks helped crush the momentum trade. These shares were among the most heavily shorted in recent years, but positive news on a cancer vaccine from Moderna and Merck sent those stocks flying, crushing some quant and other hedge funds. Moderna is up around 150% so far this month.
These traders had an especially rough day on Aug. 19, which Goldman Sachs told its clients was the worst day for “systematic long-short managers” in more than two years. About half of the losses were because of momentum trades, the bank said.
Some traders have begun to short, or bet against, the very stocks that propelled the momentum trade earlier this year. Net short positions in futures tied to the Nasdaq-100 index among speculators recently climbed to some of the highest levels of the past two decades, according to data from the Commodity Futures Trading Commission.
The about-face is a sign of how markets have become more treacherous for investors, even as indexes keep climbing. Part of the issue: the recent meltdown of Situational Awareness, a hedge fund that had piled into some of the most popular momentum shares, including chip stocks. After a period of market tumult, Nvidia shares rocketed almost 9% after its earnings, showing how quickly sentiment can shift.
Some investors say the run-up in share prices driving tech stocks higher reminds them at times of the dot-com frenzy decades ago.
Mike Ogborne, the founder of San Francisco-based Ogborne Capital Management, said he has grown more cautious on technology stocks and is keeping more of his portfolio in cash than he typically does.
And he is nervous about the surge in spending by technology giants and quarterly capital expenditures that keep rising.
“It is a little bit like Cinderella and the clock striking midnight. You don’t know when midnight is going to come around,” Ogborne said. “They don’t send a memo around telling you when the capex cycle is over.”