Hiring and firing employees is serious business, especially when your company is growing rapidly. Hiring the right employees at the right time is absolutely essential to the growth and development of your company. As David G. Kinney teaches his business clients, you want to hire employees for talent and attitude, and retain employees for skills and knowledge. It is the development of these skills and knowledge that makes employees invaluable resources within your company, and why turnover is such a costly expense to a company.

Companies often times grow so quickly that some employees are hired without the level of scrutiny they would typically experience under normal circumstances. Similarly, such growth also sometimes results in some employees not being fired soon enough because it was unclear exactly what the company needed right then, next month, and in the long-term.

“One of the key turning points in the development of Media Data Corporation,” David G. Kinney recalls, “is when we stemmed turnover. We hired a lot of young employees for our data development department; for many of them it was their first job. We created a process for extracting data for media ratings that had never been done before and hasn’t been duplicated since.” David G. Kinney added, “Unfortunately, it took us a while to figure out the right combination of allowing for creativity while balancing a dedication to our efforts in our hiring process. I vividly recall when we got it right. That’s when we truly started building a team of excellence.”

It’s a common problem. Many companies simply don’t know how to hire and fire. There are many factors, of course, but David G. Kinney teaches his clients that the pitfalls of a sound hiring and firing strategy (whether in rapid growth or not) include:
The trap of “the right now”: Many companies make the mistake of hiring based on where they are instead of where they want to go. As a result, they often find themselves feeling trapped. “You think you know what you need and want,” says David G. Kinney, “but far too often you find you haven’t planned far enough in advance.”
Hiring personalities: A common mistake is hiring someone based on personality rather than skill set. It seems obvious, but it happens all too often. “We all want to work with people we like, but hiring someone because ‘he seems a like a nice guy’ is the wrong approach,” says David G. Kinney. “Attitude is important but it’s only half of the equation. It is absolutely critical that a system be developed to ensure that their talents fit the position such that they will further the goals of the organization.”
Hiring based upon objectives: “Another mistake,” says David G. Kinney, “is hiring strictly based upon qualifications; that is an historical perspective. Rather, determine the exact, quantifiable results you are seeking and develop your evaluation of prospective employees based upon these quantifiable expectations.”
Waiting too long: In fact, regardless of how well developed your process, a bad apple may make it into your organization. Or maybe, as you develop, seasoned employees who are incapable or unwilling to grow with the company may be among your ranks. The fact is that some employees need to be fired. It’s that simple. The big questions are, “Who?” “Why?” and “When?” When your company is growing, you may be attracting and hiring better people than your current staff. Don’t be afraid to let go of staff who are not “A” performers; that’s the “who”—anyone who is not an A-player or on track to be an A-player. “Why?” Because the best team wins. It is as simple as that. “When?”—immediately; as soon as you determine that they are not A-players and they are not going to become A-players. As David G. Kinney says, “The smartest thing to do for both the employer and employee is to find a better match. The company will be more profitable and the former employee can find a more appropriate position.”
Not seeing the big picture: Thinking about the budget? You should be. But you may be looking at it upside down. In the hiring/firing process, are you considering the amount of time it takes to hire and train an employee versus hiring an employee who has the right skill set for the position? David G. Kinney says, “You define an A-player as one who can achieve the specific results you are seeking at the salary level and within the work environment that you are offering. You may not be able to afford the “best” person. Keep in mind that the “best” is always going to be based upon an historical basis of performance at another company.” David G. Kinney added, “Also keep in mind that you are not only hiring for talent but also for attitude. That said, don’t be cheap either. You will save both time and money if you pay a better salary to someone with the right attitude who can step right in and start performing rather than pay the minimum to train someone, regardless of their attitude, to get up to speed.” Among the processes we use to maximize profitability for client companies is to find areas where we can turn expenses into investments. This is one of them. Invest in the right employees and you will see multiple returns on your investment.

This last point reinforces David G. Kinney’s workforce optimization strategy. “You need to select the right person for each position, ensure a smooth transition of that employee, offer continual development, and focus on retaining those employees that are critical to your success,” says David G. Kinney. “When you invest both time and money into hiring the right person, the company grows faster, profits increase, and turnover naturally decreases. If you don’t have a strategic hiring process in place, you’re playing with fire and it is only a matter of time before you will get burned.”