You've probably been there. That one person in the office who is incredibly good at their job but makes everyone else want to quit. They're the "brilliant jerk." They hit their numbers, but they leave a trail of emotional wreckage in their wake. Back in 2007, Stanford professor Robert Sutton wrote a book that gave a name to the solution for this specific brand of corporate toxicity. He called it The No Asshole Rule.
It sounds blunt. It is blunt.
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But honestly, the core idea isn't just about being "nice." It’s about the bottom line. Sutton argues that these people—the bullies, the belittlers, the credit-takers—actually cost companies a fortune. He even coined a term for it: the Total Cost of Assholes (TCA). When you factor in the turnover, the missed workdays, and the sheer time HR spends mediating petty dramas, that "high performer" starts looking like a massive liability.
What People Get Wrong About the No Asshole Rule
Most managers hear about this rule and think it means they can't ever be tough. That's just wrong.
There is a massive difference between a leader who holds people to high standards and a person who is systematically mean. Being "nice" isn't the goal. Effectiveness is. Sutton’s research distinguishes between "temporary assholes"—people having a bad day or reacting to intense stress—and the "certified" variety. We’ve all been the temporary one. You lose your cool in a meeting because you're exhausted. You're snappy. It happens.
The real problem is the person who consistently targets those with less power.
That’s the litmus test. How do they treat the intern? How do they talk to the barista or the janitor? If someone is charming to the CEO but a nightmare to their subordinates, they are a certified asshole. Period.
The Financial Drain Nobody Talks About
We often excuse bad behavior if the revenue is high. We shouldn't.
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Consider the "TCA" calculation. Sutton once shared a story about a high-ranking professional whose behavior was so toxic that the firm eventually calculated what he cost them. Between legal fees, recruitment costs for the people who fled his department, and the hours wasted by senior partners trying to "manage" his personality, the number was over $150,000 for a single year. And that’s a conservative, decade-old estimate. Today? It's likely double.
When you keep a jerk on the team, you aren't just tolerating one person. You are actively punishing your best employees.
Top talent doesn't stay in toxic environments. They have options. The people who stay are usually the ones who feel they can't go anywhere else, or they become toxic themselves as a survival mechanism. This creates a "toxic ripple" effect. It’s contagious. Research into emotional contagion shows that negative emotions spread faster and more aggressively than positive ones.
Implementing the Rule Without Being a Jerk Yourself
You can't just fire everyone who is grumpy. That’s not how business works.
The implementation of The No Asshole Rule requires nuance. It starts with the hiring process. Most companies interview for "culture fit," but they rarely screen for "de-selection." You need to look for red flags early. Did the candidate interrupt the receptionist? Did they take all the credit for a team project in their portfolio?
If you're already stuck with a jerk, you have to document the behavior, not just the performance.
- The Dirty Dozen. Sutton lists twelve specific behaviors that define the "certified" jerk. These include personal insults, invading "personal territory," uninvited physical contact, threats, "sarcastic jokes" used as insults, and shaming. If you see these consistently, it’s time to act.
- Small Wins. You don't always have to fire the person immediately. Sometimes, setting clear boundaries and providing direct feedback on the behavior (not the person) works. Tell them: "When you roll your eyes while Sarah is speaking, it shuts down the brainstorming process. Stop doing that."
- Protect the Victims. If you're the boss, your job is to be a human shield. Give your team the permission to avoid the jerk or call out the behavior in real-time.
Why Tech and Finance Struggle Most
It's no secret that certain industries are magnets for this behavior.
In Silicon Valley, the "Founder's Trap" often protects assholes. We've seen it with legendary stories of CEOs who were notoriously difficult. People point to Steve Jobs as a reason why the rule shouldn't apply. But here's the kicker: even Jobs eventually learned (or was forced) to evolve. And for every Steve Jobs who succeeds despite being a jerk, there are ten thousand others who fail because they drove away the very people who could have saved their company.
The "talent" excuse is a myth.
Most people are not so gifted that their presence outweighs the destruction of a ten-person team's morale. In reality, most "brilliant jerks" are just "jerks" who happen to be competent. You can find competent people who are also decent humans. They exist. I promise.
The Hidden Power of the Rule
When a company actually enforces The No Asshole Rule, something weird happens. Productivity doesn't just stay the same; it usually spikes.
People stop "checked-out" working. They stop spending 20 minutes at the water cooler complaining about what "He-Who-Must-Not-Be-Named" did this morning. Psychological safety—a term popularized by Amy Edmondson—is the single biggest predictor of team success. You cannot have psychological safety if people are afraid of being belittled.
If people are afraid to speak up because they'll be mocked, they won't report errors. They won't suggest that "crazy" idea that might actually be the next billion-dollar product. They'll just do their jobs and go home.
Limits and Nuance
Let's be real: this isn't about creating a "utopia."
Conflict is actually good for business. You want "task conflict"—disagreeing over the best way to solve a problem. You do not want "relationship conflict"—disagreeing because you hate the other person's guts. The rule is meant to eliminate the latter so you can have more of the former.
Also, beware of "Asshole Blindness." This is when we excuse the behavior of people we like or people who are similar to us. We call our friend "passionate" but call the person we don't like "aggressive." True adherence to the rule means applying it equally, even to the people you grab drinks with after work.
Actionable Steps for Your Workplace
If you're ready to actually use The No Asshole Rule, don't just put a poster on the wall. That's cheesy and nobody likes it. Do this instead:
Audit your "Stars." Look at your top performers. Ask their peers—privately—what it's like to work with them. If the feedback is "they're great but I hate talking to them," you have a problem.
Change your interview questions. Ask candidates about a time they failed. If they blame everyone else, they're a risk. Ask them to describe a colleague they disagreed with. If they use derogatory language, pay attention.
The "Rule of One." Sometimes you have to keep a difficult person because they have a specific, irreplaceable skill (it's rare, but it happens). If you do, isolate them. Don't let them manage people. Treat them like a specialist, not a leader.
Mirror the behavior. If you're the leader, you set the tone. If you're snarky, your VPs will be snarky. If you're a jerk, you are giving everyone else a "jerk license."
The goal isn't to be a "soft" company. It's to be a professional one. In the long run, the organizations that survive are the ones where people feel respected enough to do their best work. Being an asshole is a short-term strategy that leads to long-term failure.
Next Steps for Implementation:
- Conduct an "exit interview" audit. Review the last two years of departures. Is there one manager whose name keeps coming up?
- Redefine performance reviews. Include a "team impact" metric that accounts for 25% of a person's score. This makes the "asshole tax" a literal reality.
- Implement a "Cooling Off" policy. Encourage people to step out of meetings if things get heated, rather than letting temporary lapses turn into permanent character flaws.
Stop pretending the "jerk" is worth the cost. They almost never are.