Part 26: Good Hiring Practices & Dealing with Non-Performers – How Small & Mid Sized Companies Grow

In this discussion of: “How Small and Mid Sized Firms Grow” we will discuss good hiring practices and dealing with for non performers.

It is important all the time to maintain the highest standards in ones organization. Yet in recessionary times one is forced to get rid of the so called dead wood, but in good times, such as we are in now this does not have the same sense of urgency and most companies do not maintain the same high standards they are forced to when their future is on the line. To compete in this highly competitive world one must maintain their standards, regardless of whether we are in a good or poor economy. So we are using the term of a “non performer” as shorthand for someone who in not meeting your expectations within the organization. They may well do great somewhere else and you will be doing them a favor by letting them find where that environment is.

Of course no one wants to be an ogre and have to terminate people, but those who are not performing up to standards need to be for the health of the company and the security of the rest of the staff. To start with well managed companies have a highly refined hiring, training and evaluation process to find the best candidates for their company. They are constantly reevaluating and upgrading their staff for if one wants to grow and prosper, atrophy can set in and the efficiency of the organization eventually starts to suffer.

Employees are of course part of a team and they must fit into the group, understand their role in the company, accept its culture and buy into the mission of the company. This is not easily determined and an intensive interviewing process often helps unravel things before someone comes onboard. Some companies will have candidates come back a dozen times before they feel that they have a good handle on things. This may be excessive, but one or 2 interviews are far too few as you have to penetrate the veneer of someone prepped and at their best. Multiple visits wear down a façade so you can get down to the real person. Even after one is hired there is nothing like a probationary period to validate ones fit. Many companies rely on profile testing, reference checks and gut feeling to make their hiring decisions. These elements help, but there is no magic bullet. It is the integration of all of these elements that increases the chances of finding producers for your specific company, with in-depth multiple interviews being the most important. Many people are good and highly qualified in their own right, but just do not fit in a given situation and the sooner that this is recognized the better it is for everyone.

In our next blog we will discuss measuring standards: KPI and KFI.

We welcome your questions as to the challenges you face in order to grow.

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Optimal Management is the premier management consulting company to the staffing industry. We act as mentors to owners and managers to maximize their sales, profits and value of their company. We become an extension of our clients operations and are there for all of their staffing and business needs, from sales, marketing and compensation plans, to finance, M&A, general management and everything in between.


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