Who Should You Hire?

Entrepreneurs must hire people to grow their companies. What kind of management team do they hire? Who should they hire?

In order to keep costs down, there might be a tendency to recruit lower-cost managers who might require a lot of supervision. Is this keeping costs down in the long run? Is the Entrepreneur’s time well spent in managing such leaders?

Entrepreneurs should not be afraid to hire people smarter than they are. Hiring smarter people might be tough on the ego and wallet, but in the long run the company will be much better for it. In fact, hiring smarter people will provide the opportunity to not only learn from them, but also allow Entrepreneurs to focus more time and energy on their areas of strength.

Do the Right Things!

Ravi Patel

Published in: on June 16, 2020 at 7:08 am  Leave a Comment  
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Productivity Measurement

Given that most employees are working from home during the current pandemic, how do you know if your employees are productive? Or productive enough? Should you? Claiming to have good employees that you trust is one thing, but backing it up with data is essential.

Have you established metrics to measure productivity directly based on your annual company goals?  Are the metrics simple and easily understandable? Do you communicate them effectively to your employees? How often do you post or discuss measured results? Are there periodic meetings (even with video-conferencing) to analyze performance and develop methods to improve productivity?

Working productively from home is required now or might be the way of the future, but gauging its effectiveness with productivity measurement data makes it more meaningful.

Once you do measure productivity of your employees and obtain successful results, align your reward systems to be in line with productivity improvements.

Improving productivity of your employees is a sure way to deliver more to the bottom line. Are you doing that? If not, why not?

Ravi Patel

Re-creating Team Cohesiveness

With stay-at-home in effect, many Entrepreneurs, their management teams, and employees are working from home.

While mentoring and coaching the members of the management team is possible via video conferencing, Entrepreneurs need to build cohesiveness in their teams. Members of the management group must work well together and function as a well-oiled machine. Doing so remotely becomes very difficult.

The Entrepreneur should plan, after businesses reopen, team building events, preferably off-site, to re-create a feeling of camaraderie among the management team and facilitate effective working relationships between the members.

Ravi Patel

Engage Your People

Recruiting and hiring good employees is not enough for Entrepreneurs.

After new employees start work, on-boarding, orientation and making them aware of the company’s Vision, Mission and culture should be a standard part of any hiring process. How many Entrepreneurs do that?

Even if you have a robust on-boarding process, what do you do to keep your people actively engaged in your company?

Entrepreneurs don’t treat working in their company as a “job.” They need to develop that sense of spirit in their employees. People should feel closely attached to the Mission of the company such that they view their job in a macro sense – as having a direct impact on fulfilling the Mission rather than just completing assigned tasks.

Offering material rewards for accomplishments works for a while. What is more important is the emotional engagement of employees in the company such that they personally identify themselves with the company’s success (and failures). Finding ways to engage employees in a meaningful way should be a key objective for Entrepreneurs.

Engaged employees are generally happy and productive. Involve them in your in your company.

Ravi Patel

Value Adding Performance

Classifying employee performance  varies with each company. Most traditional ways focus on actual performance against expectations or against established goals.

Here is an alternative approach. Entrepreneurs should categorize employees into three categories – those who add direct value to your business, those that are neutral or add indirect value, and those that reduce company value.

Clearly, you should pay special attention to the first category by training and motivating them so that they continue to add value. Have a strong retention program for these individuals so that they don’t leave your organizations.

Deal immediately with people that reduce the value of your company. These are the bad apples that need to be removed from the company as soon as possible.

The people that are neutral as far as their contribution to company value need to be either moved to the category of employees that add value by training, or red-circled if they are providing a support function to the first category of employees. If there is a chance that they would reduce the value to your company, they need to be transitioned out.

Identifying the three categories of employees and dealing with them appropriately will go a long way in building the value of your company.

Ravi Patel

Leadership by Example

Leaders often encourage their followers “to give their best” to whatever they are doing. Entrepreneurs do the same when motivating employees towards fulfilling the Mission of the company.

In a team environment it is normal for all employees to contribute to fulfilling the objectives of the mission. However, is it always true for the leaders?

If Entrepreneurs expect the best from their employees, then they too should give their very best to the employees and the company. Do they? Leadership by example is not just a catchy phrase!

Entrepreneurs need to give their best to the organization to inspire their employees to do their very best. If Entrepreneurs show an attitude of “do what I say, not what I do,” their employees are not going to be motivated for the long haul.

Doing the right things for leaders means giving 100% or more to prove to the employees that they all are part of the same team and everyone needs to contribute their very best.

Ravi Patel

Firing People

Is firing people wrong? Depending on the circumstances firing a person or a group of employees might be necessary for an Entrepreneur.

A continually poor performer in any enterprise becomes a liability to the other team members and the organization. If there is no change in the employee’s performance after repeated attempts to improve it, it would be wise to part company. Similarly if a third-party service provider does not consistently provide excellent service there is cause for firing that provider.

In a broader sense, for the survival of a company and a majority of its employees if a few employees have to be let go (after all other options have been exhausted), it is most often the right thing to do. As Spock used to say in Star Trek, .. for the survival of the many, a few have to suffer.”

Firing people for spite, revenge, uneconomic, or irrational reasons is never appropriate, but letting go of people for the right rationale is not necessarily wrong.

Ravi Patel

Being an Effective Manager

Various books and articles about management focus on each aspect of management and discuss skills to master these areas.

Here is my take – Effective management is all about making it easier for employees to perform their jobs to achieve the established goals.

It is the manager’s job to make his/her employees successful. An effective manager works on eliminating obstacles that impede their employees from reaching their goals, and providing the required resources and tools.

Poor managers bent on too much control, in fact, create obstacles for their employees. They create processes that make the jobs of their employees more complicated and difficult.

Entrepreneurs, which manager should you be?

Ravi Patel

Viewing Employee Performance Differently

There are several ways to evaluate employee performance  in your company. Most traditional ways focus on actual performance against job expectations and/or against established goals.

Consider a different perspective. Entrepreneurs should classify employees into three categories – those who add direct value to your business, those that are neutral or add indirect value, and those that reduce company value.

Clearly, pay special attention to the first category by training and motivating them so that they continue to add value. Have a strong retention program, including appropriate incentives, for these individuals so that they don’t leave your organization.

Deal immediately with people who reduce the value of your company. These are the bad apples that need to be removed from the company promptly.

The people who are neutral as far as their contribution to company value need to be either moved to the category of employees that add value by training, or red-circled if they are providing a support function to the first category of employees. If there is a chance that they would reduce the value to your company, they need to be transitioned out.

Identifying the three categories of employees and dealing with them appropriately will go a long way in building the value of your company.

Ravi Patel

 

Working Hand in Hand

Leaders lead from being in front of their people – not only in their thinking but also sometimes physically.

However, if Entrepreneurs are always ahead of their people, they might not follow. This could be for many reasons. Entrepreneurs might not have fully convinced employees of the reason for the task at hand; they might have previously seen you in action and are hesitant; or they don’t fully know you yet as they have not seen how you work.

Entrepreneurs might want to lead their people by being and  working side by side with their employees to mitigate these reasons..

Leadership by example can only happen if you are willing to roll up your sleeves and work with your employees in doing tasks that are necessary. That means physically working besides your people rather than isolating yourself.

Leadership does not always mean that you decide and your people follow. Work with your people to tackle issues and develop with them solutions that need to be implemented. Think with them by involving employees in the process.

Situational leadership demands different styles – leading from beside your people is one of them.

Ravi Patel

http://www.patelCFOservices.com