Firing a non-productive or anti-social (in the destructive sense) member of a team actually increases the team’s productivity by 30 to 40%. That means that on a team size of 4, productivity will stay the same or get better even if you don’t replace them, Yet your payroll drops by a quarter.
On a larger team then you’re making money by getting rid of the bully / degenerate because of the bump to productivity. If they’re at the managerial or executive level your return on investment is even higher. The higher up in an organization the greater their impact, positive or negative.
Cost of a Bad Hire
If that doesn’t convince you then consider the cost of make a bad hire, or keeping them around. It starts at five times their annual salary and goes up from there, depending on their impact within the organization. Up to 27 times.
Too many leaders are afraid to replace, move, or let go somebody they know needs it. Perhaps they’re in a key position. Perhaps they’re a family member (tough one for sure). Perhaps they’re a loyal, long-term employee whose performance has dropped in recent years.
So decide now what’s best for the business and all the people in it. If you can’t do what’s right, maybe the problem is you.
Let the Facts Judge Them
I like John Spence’s approach as outlined in his book “Awesomely Simple“. You’ll need four sheets of paper: On the first one have thee employee write what they believe is expected of them. It’s important that expectations are clear and agreed, and that they have agreed deadlines.
On the second they write what they need (training, staff, support, equipment) to accomplish what they’ve committed to. On the third what their reward should be if they accomplish their goals. On the fourth, what they believe the consequences of failure should be.
The key to this approach is regular (weekly) face-to-face review. Regular review is where accountability happens. We don’t need to judge our employees. Presenting the facts will do that for us.
What Took You So Long?
A common reaction when they finally do get asked to leave? “What took you so long?” Everybody else knows what needs to be done. Why don’t you?
What’s the hardest fire you’ve had to make? Do you have somebody you need to let go but just keep putting it off? Let us know in the comments.