How to Deal with Poor Performers

Bad hires are a lot like buyer’s remorse.  At the time it seemed to be a really great investment.  Days, weeks, or even months later, regret sets in.  Both the organization and the employee can experience this regret.  The corrective action that takes place is the difference between a bump in the road and a complete disaster.  Read on to learn why creating a “refund” policy can benefit both you and the employee.

Enjoy!

Gary

There is no such thing as a perfect hire.  Every person entering a new role requires time to acclimate to the position.  Some training is not only necessary, but an important part of the on-boarding process.  When all is said and done, as much as 46 percent of new hires fail in the first 18 months.   Fifty percent of hiring organizations and new hires regret their decision.  Holding on to a weak hires can become a disaster if not dealt with in a timely manner.

Unhappy new hires and even disgruntled employees can become a cancer in a company.  Identification and corrective action needs to occur as soon as possible to contain the issue.  These employees soak up time and resources when managers try, many times in vain, to train, retrain and coach them up to speed.  It is very likely that a bad hire or disgruntled employee will not get any better. 

Frustration amongst current team members is perhaps one of the worst effects of a bad hire.  Constantly having to help new hires or pick up the slack when the new hire fails or “checked out” disgruntled employee underperforms is an immediate turnoff to top talent.  The last thing any organization wants to do is drive away top-performers. 

There are three approaches to identify and release bad hires and dissatisfied employees.

•   Create a six-month “refund” policy – After six months the organization can offer a modest severance and good reference if the poor performing hire agrees to resign.  If this is accepted, the employee signs away their right to sue.  Some companies will allow the employee who refuses this deal to stay on for a defined period of time, up to one year. If at that time there is no improvement, the employee is released without severance or reference.

•   On-boarding – An extended on-boarding process that is highly structured is a great way to identify poor-performers.  New hires should be assigned a mentor to help facilitate the training process.  At the end of this initial training period, companies can take a page from Zappos and PAY under performers to resign.  Another approach used at Whole Foods is to have the team vote if the new hire is a strong enough member.  This approach works best when there are team-based performance incentives.

•   Encourage dissatisfied employees to move on – Dissatisfied employees can be just as harmful to an organization as a bad hire.  In fact, they can convert a good hire into a bad hire.  Negativity, absenteeism or general “checking out” of their work is something that needs to be addressed quickly.  It could be in the best interest of the organization to encourage the employee to move on, even if they are performing well.

There is no such thing as a perfect hiring process.  Sometimes candidates are misjudged during the interview process.  Making certain reference checks are performed to help detect possible issues is one of the best preventatives.  In the end, despite some of the best plans and preparation, bad hires still happen.  Having a process to work with them will be the difference between a learning opportunity and having a poor-performer in the organization for an extended period of time. 

Gary Vice is sought out by leaders in Software and Services who recognize the need to attract the industry’s best talent.  Through Strategic Recruiting Partners’ extensive network of relationships, they are able to identify high level opportunities for well qualified candidates.  To discover how this process can benefit your job search, simply reply to this email or call Gary at 469.402.4008.