Do You Have What It Takes to Be a ‘Personality Hire’?
Productivity comes second for charming employees who make workplaces more fun
Productivity comes second for charming employees who make workplaces more fun
If you get further on charm than skill and carry a workload light enough to float atop your bubbly demeanor, then you might be a “personality hire.”
Charismatic employees lay the foundations of positive corporate cultures—or leave teammates to pick up the slack. While some people proudly advertise themselves as personality hires on LinkedIn, others roll their eyes.
“It’s annoying,” says Lauren Gomes Atwood , a project manager in upstate New York. “They always have time to hang out in the hallway, but when do they sit down and work?”
Atwood, 39 years old, says she worked with a personality hire in a previous job. Though fun to be around, the person eventually generated resentment and, after winning a promotion , prompted several co-workers to quit, she says.
Atwood started a remote job last month and says her search took longer than expected, partly because interviewers seemed as interested in her vibe as they were in her experience. She describes herself as matter-of-fact and says she doesn’t give off the effervescence some employers appeared to be looking for.
Bosses want the warm-and-fuzzies as the mood at work is generally sour . One-third of U.S. employees say they’re engaged in their jobs—near an all-time low, according to Gallup’s annual report on the state of the workforce, released this month. Half of workers say they feel a lot of stress, and 49% are interested in new job opportunities or actively applying.
With so many lonely, unhappy charges, bosses are desperate for good workplace energy. They say camaraderie is hard to build on hybrid schedules, so they prize upbeat employees whose energy is (hopefully) infectious.
Michael Zachary , a security manager at Pratt & Whitney, says he learned the value of a winning disposition in the Navy. He noticed qualities like collegiality and willingness to learn often proved more critical to new recruits’ success than natural talent.
Certain roles at the defence contractor where he works now are highly specialized and must be filled by the most technically qualified candidates, he says. But others, like data-entry clerks, could be performed adequately by dozens of applicants.
“In that case, I’m going to hire the nicest person to be part of the group,” says Zachary, 38.
The concept of a personality hire—like quiet quitting and lazy-girl jobs before—crystallised on social media. Few have captured the essence better than comedian Vienna Ayla , who plays a Miss Congeniality type in skits that have been viewed tens of millions of times on TikTok and Instagram.
The running joke is that her all-style-no-substance character contributes nothing, until she becomes a hero through schmoozing. In one bit, she gets her team a deadline extension by buttering up the chief executive . In another, she calls in a favour from the mayor , who happens to be her workout partner in an “ass and abs” exercise class.
Ayla, 27, tells me she hears from viewers who work with people like her character. Many feel frustrated, while others concede that personality hires can prove their worth in key moments, despite their lack of hustle.
“I kind of admire that type of person who doesn’t get so worked up but still manages to save the day,” says Ayla, who describes her real-life persona as type A.
Businesses don’t want caricatures, but many judge applicants differently than they did during hiring sprees a couple of years ago, says Brian Vesce , co-founder and CEO of RefAssured, a candidate-reference startup.
Skill was king during the talent war of 2021 and 2022, but recent layoffs suggest a lot of companies believe they have enough, or even too many, capable employees.
“We are seeing more employers looking for the right personality when a role opens up,” Vesce says.
Sensing the shift, he launched RefAssured last year in an attempt to measure characteristics in job candidates that are often called “intangibles.” Using the company’s software, references answer a series of questions about how an applicant communicates, handles stress, takes feedback and manages conflict. The responses yield a candidate’s soft-skill rating on a five-point scale.
Customers include 10 of the country’s 100 largest staffing agencies, Vesce says, and he expects to triple that total by year-end.
Personality hires are a growing presence in tech, as efficiency-minded companies seek engineers who can also make time with customers, says Lorde Astor West , founder of RadHash, which makes back-end software for startups. But people who excel at gabbing about technology products usually aren’t the best coders, in her experience.
“The life of the party might be an individual who isn’t as capable, and now you have other team members who are having to make up the difference and fix mistakes,” she says.
Astor, 49, leads a team of about 100 employees and contractors and says she’s developed an appreciation for the snippy or introverted people who get things done. Give her a pricklebush over a personality hire any day.
Others wear the personality-hire label proudly. They say keeping their energy up takes effort and makes people around them better.
Danielle Norris calls herself a “personality hire meets hard work” on LinkedIn. She tells me emotional intelligence is among the top qualities she brings to her role as a marketing manager at the Jonus Group, a recruiting firm for insurance and finance companies. In meetings, she says she’s able to sense when a colleague is hesitant to share an idea and can help put that person at ease with a smile or encouraging word.
That leads to greater collaboration and results, according to Norris, 32.
“I bring the vibes,” she says. “I’m always looking to have a good time, but I’m still able to drive my team to success.”
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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.”