What do you do when you have hired someone who, once on board, is not a good hire? No one intends to make bad hiring decisions, but they happen for various reasons. Think Dr. Jekyll/Mr. Hyde.
We interviewed several leaders; interestingly, most offered the same advice: You will know if you have made a bad hire within three to six months—and sometimes much sooner, they agreed. Their recommendation? “Face the music and move on. Do not sit tight and hope that it will get better. Fault generally lies on both sides.”
“Nobody wants to fire anybody,” says Jeff Early, a 40-year banking veteran, “but it’s fairer for both the employee and the employer to resolve the problem quickly.”
Cut your Losses
Dan Bowling, Senior Lecturing Fellow at Duke Law School and former head of human resources for Coca-Cola Enterprises, responded typical of the group: “Cut your losses as soon as you can. In my experience, once you begin to have serious doubts, it is hard to reverse them. Your instincts are probably right.”
One executive we spoke to had hired a Vice President of Compensation, a generalist who emphasized compensation. The individual convinced the hiring manager that she could handle a compensation role and interviewed well with key stakeholders. She “Seemed like a good fit. References checked—she had tons of promise.” The hiring manager and candidate both acknowledged there would be a learning curve and that it would take some time to get her up to speed.
However, it quickly became apparent that she needed help to handle the stress of a new environment and the demands of improving her technical skills. Her mistakes added to her stress; she stopped sleeping, which compounded her ability to assess new information, and before long, it was clear that she could not manage the job. The hiring manager openly discussed with the individual how they both decided without having all the facts, and she was released with a two-week notice. “We hired one of the other candidates in the search, and it worked out well in the long run.”
Others could have been more successful.
One executive tells a grim tale of getting stuck with a bad hire: “A typical issue one faces is when a senior person is hired with the involvement of other departmental heads. You know a mistake has been made within the first few weeks—you see it daily. The executive might be satisfying the needs and agendas of those other constituencies but can’t do the job you need doing.”
Undoing a hiring mistake quickly can be difficult in a modern corporate environment because of the multiple constituencies involved in a key executive’s recruitment and selection process. Sometimes, Bismarck’s diplomatic skills are needed to convince the rest of the management team that a mistake was made.
“It took two years to manage his exit,” our executive added. “By then, the damage was done.”
Coaching
In the collective experience of the executives we surveyed, a company has rarely been able to reverse a hiring mistake. When it does happen, it is a magical synergy of the particular individual, their situation, and the complexity of the role.
Some respondents maintain that coaching the individual can sometimes save the hire. 360-degree assessments are highly effective tools for obtaining concrete feedback from others and addressing performance issues.
One executive told us: “Clearly communicate expectations and needed areas of improvement, define key measurable metrics to achieve performance objectives, document all activity and ongoing progress, and genuinely work with the individual to help them embrace the role and deliver desired results.”
Other times when coaching can save the hire are when circumstances change beyond the individual’s control. For example, a person may be assigned a new manager, a new CEO may have a different strategic vision, or the company may be sold or make an acquisition, and suddenly, the newly hired executive may not be a fit.
One executive recalled hiring a Vice President of Human Resources who was a superb cultural and technical fit. However, six months after he joined, the company acquired another company with extensive international operations. The new Vice President of Human Resources had yet to gain international experience and would not have been qualified for his role in the now-global company. The company and the individual used coaching, added support, and training to allow the individual to keep and excel in his expanded role.
However, if the issues are exclusively about style or cultural match, coaching someone to fit into the organization is harder.
Move the Person into Another Role
Carved into another moved function or position that might provide a better fit? Our surveyed executives agreed that this works on occasion. For example, suppose there is a personality conflict with the hiring manager, but there is a comparable role in another region or business unit. In that case, it is possible to transition the person successfully. However, “there are not many second chances in most companies,” one executive cautioned us.
Mr. Bowling added his caution: “Another position in the organization might be a better fit, so make a good faith effort to look for one. But don’t transfer your problems to someone else—that is unethical and will destroy your credibility in the long run.”
Learn from Your Mistakes
What was your mistake? Was it hiring too fast? Ignoring red flags because you personally liked the individual? Being so wooed by a track record that you ignored cultural fit? Do you need more adequate due diligence?
Most of our respondents agreed that many of their hiring mistakes proved an opportunity to re-examine their hiring process. And yes, you need a structured hiring process that defines what you seek, aligns the interview team, includes behavior-based interviewing, and ensures due diligence.
“I once had a boss who said, be slow to hire, quick to fire,” adds Mr. Early. “That’s trite, but, looking back, I should’ve heeded that more often.”
Realize also that a batting average of 100 percent on new hires is unrealistic and shouldn’t be expected. Jack Welch, former Chief Executive Officer of General Electric, said, “New managers are lucky to get it right half the time. And even executives with decades of experience will tell you they make the right calls 75 percent of the time, at best.”
And when you do make those mistakes, don’t be afraid to admit them. Just try not to repeat them.
This article was initially published in November 2011 and updated in September 2018.