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How soon should you terminate a bad hire?

September 17, 2024

When is the right time to say goodbye to a new hire that isn’t working out?

So you’ve made a new hire that isn’t meeting expectations. After all the time spent on interviews and assessments to get to the stage of hiring someone, it can be a depressing situation to find yourself in. You’ve invested time, money, and effort to get to this point and now you’re looking at going back to the start all over again.

Don’t beat yourself up about it. Don’t buy the argument “if you have to let someone go, you have failed as a leader”. This is not always true. Some candidates are great at interviews but then don’t perform when they get into the role.

It’s a particularly costly issue for startups so it’s important you know when the right time is to let someone go. But how do you know they aren’t about to turn a corner and improve overnight?

Why exactly aren’t they working out? What is it they are failing at?

Do you have a list of specifics at your fingertips?

A lot of employers don’t have this data because they haven’t been tracking progress fairly and correctly. Luckily, it’s an easy fix that ensures you don’t make mistakes by getting rid of people too soon or holding onto bad hires for too long.

Assuming you’ve got a solid onboarding & training plan, the best way to sort the good hires from the bad is to have a well-structured progress checklist.

This gives you a way to assess each new hire fairly. If you have to let them go, you can sit down at the exit interview and highlight why.

The first step is to create a Progress Checklist. (Sign up to receive our free Template for employers below.)

As a guide, use the following criteria for assessment, breaking down milestones over the probation period. Each week record where a new employee’s progress is compared to where it needs to be.

This tool will help you see clearly whether a new hire is meeting expectations.

It also helps you identify strengths, weaknesses, and any extra support needed.

 

Below are 10 components you could include on a Progress Checklist:

1) Completion of Initial Training

Have they managed to complete the basics expected of all new hires?

Things to score:

  • Attended scheduled meetings/training sessions
  • Completed systems training
  • understand company policies, values, and culture

2) Familiarity with Systems and Processes

Do they demonstrate the ability to navigate core systems and follow processes?

Things to score:

  • Demonstrate ability to use and navigate key systems
  • Follow processes that have been explained and demonstrated for them
  • Have completed any required training provided on your systems and processes

3) Clarity on the Role and Expectations

Do they demonstrate a clear understanding of what the expectations of the role are?

Things to score:

  • Key responsibilities have been reviewed and discussed with their manager
  • Short-term and long-term goals have been discussed and agreed
  • They understand how success is measured. Be transparent, show them the Progress Checklist.

 

4) Initial Quality of Work

This needs to be assessed throughout the onboarding process. If it’s not at the standard you expect, provide the support they need.

Things to score:

  • Assignments or projects are delivered on time
  • They’re meeting the quality standards you’ve set
  • Colleagues are giving positive feedback

5) Teamwork & Integration

Here you assess the degree to which they are easy to get along with and fit into the culture of the overall team.

Things to score:

  • Actively take part in team discussions, projects or activities
  • If others rely on their output, it meets their needs
  • The rest of your team give positive feedback about them being a good team player

Everyone claims to “work well alone and as part of a team”, but the truth is, not everyone does.

 

6) Communication Skills

Measure how well they communicate with your team, clients, and/or customers. If they face challenges in their work or have requirements, are they voicing them? Always give someone the chance to ask for help or let you know if they’re struggling.

Things to score:

  • They attend meetings and participate in discussions
  • Communicate in a timely manner through email, chat, or calls
  • Build positive relationships within the business and with external stakeholders


7) Initiative and Adaptability

Very important in a startup. Can they roll with the punches, or do they need constant direction and reassurance?

Things to score:

  • They can identify and solve at least one problem by themselves or know who to involve to solve it
  • Volunteer to take on tasks beyond those that have been assigned as required
  • They suggest improvements or how to optimise current practices or processes

 

8) Time Management and Prioritization

Another biggie for startups in particular. Assess a new hire’s time management skills and ability to prioritize tasks.

Things to score:

  • They’re able to consistently complete of tasks on time
  • They show sound judgment when prioritizing tasks
  • They can handle multiple projects or tasks without bogging down

 

9) Adaptability to Changes

This is of key importance for any new hires in a startup.

Assess how well a new hire adjusts to change in the work environment, process, or team dynamics.


Things to score:

  • They show flexibility in the face of a priority change or shifting tasks
  • Accept easily any changes in the team or the introduction of new technology
  • Don’t buckle under pressure and know when you ask for help and/or accept it when offered.

10) Feedback and Development

Assess how well they handle and action feedback to ensure continuous improvement. Do they take it onboard?

Healthy debate and questions are good, which is usually a sign someone cares about their work. Arguing and getting confrontational is not good.

Things to score:

  • They proactively seek feedback from you or their colleagues
  • Demonstrate clear improvement in areas where feedback was given
  • Show openness to constructive criticism and respond constructively to it

 

Weekly Reviews

How you go about implementing this is important and the best way is with a weekly catch-up. Being “too busy” as a leader of a business is not an excuse. You have to invest time in your people.

Be clear on your expectations from the start and let them know each week where they are and where you need them to be. If they’re falling short, give them specifics and offer support and advice.

Monitoring progress in these 10 areas allows you to easily identify underperformance. It will also highlight star performers!

As long as issues are recorded, a checklist allows for course corrections before the end of the probationary period. If by halfway through probation they are less than 50% where they need to be, you have to call it.

Making decisions that affect other people’s livelihoods is never easy. However, if you arm yourself with the right data, you can be confident you’re doing it fairly.

Download our free progress checklist.

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