| One of the biggest challenges for entrepreneurs when their business starts to grow…
… is learning how to build and manage a high-performing team.
Many of our coaching clients have 5, 10, even 25+ team members…
And almost weekly I hear comments of frustration about past hires.
“What am I doing wrong?” they ask.
The answer is nothing...
Other than mismanaging your expectations.
Think about it for a second:
If you’re expecting 60-120 minutes of interview conversation to lead to a perfect, stress-free 40-year relationship…
You’re setting yourself up for disappointment
Do you think that would work for finding a romantic partner?
Of course not.
So why would it always work out perfectly for hiring a team member?
(By the way, if you have a physical location for your business and your team members work with you there… you’re likely to spend more time with them over the course of your life than you are with your family!)
The point is…
Team members are a critical piece of your business...
And often a huge part of your life.
So getting and keeping the right people around you is crucial.
Here’s 3 key points about hiring and firing that every entrepreneur should know...
1. Core Values & Company Culture Are Key
We’ve all seen sports stars get labeled as ‘cancers’.
We’ve also seen sports teams over-achieve...
Even when the team has no particular superstar on the roster.
These are examples of when “culture is king” and talent takes second place.
When hiring, you MUST know your core values and culture...
And don't let anyone in who doesn't fit.
Once a new member is hired…
Set clear expectations and agree upon KPI's (Key Performance Indicators), sign off on them, and then manage performance according to the numbers.
During your onboarding process…
Make sure each new team member gets laminated printouts of core values and KPIS…
And anything else they need to succeed.
2. Incentives Can Be Dangerous
Be very wary about giving out individual incentives.
This can corrupt good behavior. Monetary incentives for hitting certain individual targets can encourage well-meaning people to start taking ‘incorrect actions” in order to get the incentive.
For example, sales people can start overpromising.
Operations people might start cutting every cost to increase profits, even if it comes at the expense of customer experience (i.e. "choosing cheaper toilet paper", less frequent facility cleaning, etc.).
Group based incentives (where the behavior of the group is responsible for a group goal) are usually a better way to set incentives with checks and balances.
3. Fire The Right Way (Don’t “Wing It”)
For most people, firing is the most difficult part of all.
But it’s 100% necessary in order to protect team culture…
And maintain the level of performance your business needs to win.
Recently, I heard from a client who’s absolutely nailing this challenging task…
Here’s what he shared:
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Hey Craig, firing can be the worst feeling.
But often when I reflect back, I find that the firing almost always should have happened much sooner. And so it usually brings a sense of relief, a feeling of a burden lifted, when it’s over.
Here’s how I do it...
- We have a copy of the termination letter in an envelope (which explains the exact reason for termination, etc.).
In addition to myself, we have our Administrative Manager with me in the room.
- We all sit down in our mini-conference room with the employee, and I slide the letter over while calmly stating, “I am sorry, this is not working out.”
Some employees react poorly and it is important they be escorted out immediately.
- Because we have other employees in the office, I notify our leadership team immediately before the termination.
I usually ask them that, when they see me pull the departing staff member in, they have the other team members go into another office area or take them out to lunch.
- I also alert IT prior to reset passwords, have our admin ensure all necessary documents are accounted for, etc. so there is nothing lingering.
- If there is a poor reaction, I never feed in to it. I remain calm, request the computer, key, and any other equipment and walk them to the door.
If they do not become angry, I very briefly explain the reason for termination (i.e. “As you know we have met a number of times regarding a failure to meet [insert standard], during our last meeting it was discussed and signed that further instances of not meeting [insert standard] would result in termination. On [insert date and what occurred].
- I let them know that we will pay out their vacation time… maintain theirs and their family’s health insurance for an extra month (and anything else we are doing to aid in their transition period).
This is all outlined in the letter I give them. And I also ask if they have any questions at that point.
Generally it takes less than 5 minutes.
It’s the most uncomfortable 5 minutes of my life…
But then it is over and the burden is lifted from all parties.
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^^ This is excellent advice that my client shared.
And it’s very similar to what I’ve done in the past with in-office teams.
Firing is never fun for anyone…
But when you follow a good, professional process like this one…
It helps take the sting out of it for everyone involved.
And it makes doing something that really sucks 10X easier than it would be otherwise.
If you have a business that involves managing team members…
I strongly suggest saving this email or even printing it out.
Success Loves Speed,
Craig
PS - If you’re ready to 2X your income (or more) while working 10 less hours per week...
... Just REPLY to this email with the words “2X 10 LESS” and we'll set up a time to chat with you to find out if we can help. | 