Hire the Best Today (so you won’t have to fire tomorrow)

In our firm’s ten-plus years of management consulting, issues about employee production and contribution have frequently come up. After all, in the segment of the market we work in, Small Medium Enterprise (SME), each employee is critical and a disproportionate amount of time can be spent on those that are underproductive or problematic.

In the Great Recession that started in 2007, many firms used the downturn as a reason to cast out the lower echelon of their employees. That’s not to say that this wave of downsizing did not also get rid of some good producers; some talented employees who were let go in the name of survival. But many who were let go were deemed to be expendable, at least in the eyes of their employer.

While some cuts during the recession were so deep that the survivors became very overworked, many times we’ve seen that letting go of the under-performers actually has a positive impact on the remaining workers. Employees are not blind or stupid. They know who is pulling their weight and who is not.

For example, one of our clients let three under-performing, disruptive employees go after structured conversations with key internal stakeholders revealed the unhappiness the retention of these problem employees was causing. After the notices were given, the CEO/Owner gathered the remaining 25 employees together, explained why he took this action, and laid out a vision for the future.  The result was a much improved morale among the employees.

But the best outcome would have been to avoid this situation altogether. Don’t let your employees down – when the time comes to once again add staff do so with care. Remember that management sends a strong message about quality and expectations by constantly hiring the best.