A Bad Hire Doesn’t Have to Bring Your Company Down

One of the most difficult things you’ll do when you run a business is hiring people. When you hire employees, you’re entrusting them to take responsibility for some aspect of your company, which you may feel a strong emotional connection to.

While in many cases, new hires work out and increase your company’s productivity and support its growth, every so often, a bad hire gets through. Bad hires are more likely to occur when you feel rushed to fill a role. Although a bad hire can be a setback, it doesn’t have to bring your business down. Here’s how to correct a hiring mistake and keep it from happening in the future.

Talk to Them About Performance Issues

Sometimes, a bit of communication goes a long way. If you hired someone who isn’t meeting your expectations, talk to them about it. It could be that they misunderstood their responsibilities or the expectations of the role. In many cases, informing employees that they aren’t performing as well as they could or should is enough to get them to improve.

It can be particularly useful to provide your employee with direct advice and guidance on how to improve on the job.

Give Them an Out

There are times when an employee  just won’t be a good fit, no matter how hard you try to work with them. In that case, providing them an incentive to leave can be worthwhile. For example, you may consider offering employees a bonus for leaving within the first three months of being hired. The bonus lets people feel comfortable walking away from a job that isn’t a good fit and provides your business with the chance to start from scratch.

Get Outside Opinions (Before Hiring)

Perhaps the best way to handle a hiring mistake is not to make it in the first place. While hindsight is always 20/20, you can equip your team with the resources it needs to hire right, the first time. A vCFO can provide outside insight and advice to help you hire the right people the first time.

If possible, slow down your hiring process can also help you avoid making a mistake.

Hold Exit Interviews

When employees leave quickly, you may be left wondering what went wrong. Schedule exit interviews with departing employees, particularly those who leave before a year if possible. The interviews can give you insight into your company’s culture and hiring practices, allowing you to make improvements and avoid repeating the same mistakes.

New Direction Capital’s vCFOs work with CEOs to help them manage the business’s challenges, including making smart hiring decisions. To learn more about how we can help your company succeed, hire your virtual CFO today.