Most executives and business owners have faced the challenge of realizing too late that they’ve hired the wrong person. Though it can be difficult and uncomfortable to do so, it's essential to act quickly and decisively to limit the negative effects on your organization. There are many common reasons why a hire might not work out. Learn what these reasons are, plus some tips for recovering from a bad hiring decision.
Reasons Behind a Bad Hire
It's useful to understand the fundamental reasons that contributed to a bad hiring decision. Common causes include mismatched skills or experience, a poor cultural fit, or a lack of motivation or engagement. These issues may be due to a crisis in confidence about the standard of drive or commitment necessary to perform at a high level.
Tips for Addressing a Bad Hiring Decision
Provide Clear and Timely Feedback
When you identify that a new hire isn't meeting expectations, take the time to provide clear, specific, and actionable feedback. This feedback can help the employee improve their performance and make necessary changes.
Don’t wait for quarterly evaluations. Schedule regular check-ins to discuss problems with achieving goals and identify areas for improvement. Get input on what the employee thinks has gone wrong; they may be relieved to have the opportunity to discuss it. Work together to create actionable steps to boost performance.
Identify Root Causes
Dig deeper into the reasons behind the bad hire to understand its root causes. This can help you avoid similar mistakes in the future. Perhaps the new hire wasn't clear on the expectations of the role, or maybe there was a misalignment of values. It’s essential to identify red flags that were missed and mismatches in skills and experience that caused the failure of performance, especially when it comes to mission-critical positions like Chief Financial Officers.
Consider a Performance Improvement Plan
If you think there’s hope for salvaging the employment relationship, consider a performance improvement plan (PIP). A PIP includes specific goals the employee must meet and steps they must take to achieve certain benchmarks within an identified timeline. It also sets expectations about consequences for failure to meet goals, up to and including reassignment or termination.
Don’t Wait Too Long To Act
Waiting too long to address a bad hire can delay progress and harm team morale. Waiting six months or a year to act can lead to resentment among co-workers who have to cover for the underperforming employee. Worse, it can lead to the departures of valued and productive employees.
Know When To Move On
Despite your best efforts, some new hires may not work out. Know when to cut your losses and move on. A new hire who doesn’t fit within your company culture and isn’t responsive to feedback isn’t likely to improve, no matter how much time and effort you invest in them. Recovering from a bad hiring decision expeditiously can restore morale and confidence in employees who’ve worked hard and long to further the success of your company.