Frustration among current team members is perhaps one of the worst effects of a bad hire. Constantly having to help new hires, pick up the slack when the new hire fails, or contend with a “checked out” disgruntled employee when they under-perform is an immediate turnoff to top talent. The last thing any organization wants to do is drive away top-performers.
There are three approaches one can take to identify and release the 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 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 any 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” on their work is something that needs to be addressed quickly. It IS 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 that reference checks are performed to help detect possible issues is one of the best preventative measures. In the end, despite some of the best plans and preparation, bad hires still happen. Having a process to work with them will mean the difference between a learning opportunity and having a poor-performer in the organization for an extended period of time.