The Fractional Leader Podcast

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Matthew Warren, Drew Powell

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0:00 | 19:55

As a follow up to the previous episode on hiring , Matt & Drew bring their experience and practical takes on the things leaders need to know when it's time to let an employee go. 

Navigating Hiring and Firing Decisions

Speaker 1

so even though hiring is daunting sometimes , it is an optimistic sign of your business . If you get to hire people right , it's like man , we're moving forward , we've got some cash flow , we can pay people yeah , I always love .

Speaker 2

I mean to me that was exciting .

Speaker 1

Yeah , I love to hire we , we had initially planned to do hiring and firing as a one part episode , but it went a little longer just talking about the hiring side of things . So I was like , okay , now I have to do the Debbie Downer episode of let's talk about firing people .

Speaker 2

Yeah yeah , I'm not good at that , by the way . No Well , I'm a people pleaser , and so I got a lot of ego wrapped up in the firing .

Speaker 1

Do you want them to like you when they leave ? Is that what it does ?

Speaker 2

Yeah , probably I want them to . Like I really want to make it work . I'm also . I internalize it's always my fault . Yeah , like I'm not . Even when I fire someone , I'm like man , if I'd have led better , if I'd have done better , if I'd have set them up Like I never , I always look at me first .

Speaker 1

I would say that's healthier than not . Healthy , though , really , oh yeah absolutely .

Speaker 2

Yeah , I mean , that's that's where I start , but , yeah , it's so tough because I don't I've in the past , I'm not so much this way now , but I don't want to be at odds with anybody in the world and the fact that I'd have to go in and and , honestly , that's a there's a high responsibility when it , like it , really impacts someone's , it does life , and I have been fired poorly before , yeah , and that has really shaped me .

Speaker 2

I've been fired well before , too right , but , um , there's been times and so you have to caretake these moments because they can be in the top 10 defining moments in someone's life which is why I hate , hate doing it , you know , because I'm like , oh , this is going to suck , you know , and so so I think we go back to something we said on the last episode context matters .

Speaker 1

You know , if you're letting a kid go from a fast food restaurant because he has no availability to schedule , that may not impact him the same way it would be . Hey , I've been at this company for 10 years . I thought I was a part of the team . What happened ? So context really matters when it comes to fire .

Speaker 2

You may not lead an emotional and relational business . It might just be like you're not doing the job well and we need to move on .

Speaker 1

It's an easy cut so . I'm not not everyone has got it . Yeah , that's right . So a couple of things I always think about . So my wife is always in the back of my head when I think about firing , because she's done her fair share of it .

Speaker 1

You want Ashley in the room when you're getting fired and if you knew her , you wouldn't think , oh , ashley's the hatchet woman , like if she shows up in your office you're getting fired and she's not . But um , she has this incredible , um graceful , um clear and kind way to let someone know when a transition is coming . And she knows because she's got HR training that she had around the bases . You know , make sure there's documentation , make sure there's been as many conversations on the front end before it gets to that decision , to do everything you can to make sure someone's not blindsided by it . But at the end of the day we've talked about this Almost everybody that gets fired is blindsided by it . What's behind that ?

Speaker 2

It's self-aware . I mean , I've never fired anybody who was like you know . I saw that coming and I totally agree with this decision . No , it's never that . And it doesn't matter how many improvement plans you do and how many times you document and written it up or whatever . There's mostly a self-awareness issue or you know this can get overused , but sometimes it's it's . It's just not the right fit , yeah , and I know that that can be a scapegoat line or like hey , it's just not , but that's that can be true .

Speaker 1

We'll define that so obviously . As a person who leads an organization , you know what fits in your organization . But an employee sometimes doesn't understand what that word means . So if you did have time and you weren't so emotional in a moment of letting somebody go , what does it mean to fit an organization ?

Speaker 2

Well , this is something you talk about a lot . It's just it's values you go back to like . Okay , if , first of all , if I don't have defined cultural values , then it's going to be really tough to know in the hiring if this person is going to be a good fit or not . But a lot of times it goes back to even things like you know , we I was an organization one time where I put together a health code , and the reason we did this for this team was because I needed them to understand certain things , and one of them is this is a creative team . They need to understand that we're going to be pretty fast moving .

Speaker 2

So if you want to make movies , this is not the place for you . But if you want to be in a newsroom and you like exciting , cranking stuff out , moving , fat , urgent , you're going to love it here , right ? So that's not a right or wrong , that's just a personality type . So I might say there's no way . This gives me too much anxiety , and then other people thrive in the run and gun . So if you don't define those , those cultural values , even on the at the team level , like you want them to always submit to the greater organizational values , of course you don't have competing values at all , but you know that's a big part of it . What do you have in mind ?

Speaker 1

Well , I mean some of the tools that you have to have at your disposal when you're walking . A process like this is like what are your company's guidelines for severance and transition ? So always go back to this phrase it might've been Gary Vee , it may not have been that average performance gets a generous severance .

Speaker 2

It's like look , it's just not cutting it .

Speaker 1

We're not just going to cut you cold , but we're going to move you out of here pretty quick . We're going to do that with this . Say that again Average performance gets a generous severance . Average performance gets a generous severance . It's like , hey , we're a high-performance organization . It's just not meeting the demands of what we have here , so we're going to move on . Here's a little stipend to get you to your next . Yeah .

Speaker 2

So what are some tips ? Like , say there's someone like me out there , that's just like man , you know , and I would tend to hold onto someone way too long , you know , just because I don't want to give the bad news . And also it's it's , you know , it's a blow to a leader's ego because they're like man . This didn't work , you know . I've worked for leaders before that you could almost do anything and not get fired , because they just held real precious this idea of no one ever leaves this team . And that's back in the day where and thankfully , most organizations have moved past this , but that's back in the day where family was your family . Well , you can't fire someone in your family , you know , which I have done before by the way but you know .

Speaker 2

So what are some things , as you're approaching these conversations , that are helpful ?

Speaker 1

Well , I think if a leader cares , that's like where I have to start . I've never not lost sleep . I've always lost sleep over a transition . I can still remember the first time I did . It was my first like job I was managing a music store and had to let somebody go for performance . And nice guy , creative guy , had a family , had kids and it just it just wasn't working out . You know , we had set goals that didn't happen . I still think about , like , how disappointed he was to lose his job , how much weight I carried , thinking man , this guy's gonna have to figure out a way to provide for his family , like , and I think if leaders understand the weight of that decision , yeah , it makes all the next steps a lot easier and it should impact your hiring . Hey , I'm not going to hire anybody that I couldn't fire , like just knowing that's a reality for anybody you put on your team .

Speaker 2

Well , and it makes it in the hiring process whether you do a 30 , 60 , 90 day evaluation . You got to take that serious , like a lot of people put that in there , but it's like the person needs to know that they really do . We're going to look at this in 30 days .

Speaker 2

If it's not the right fit , we're going to move like either of us Right and they need to know like this is not just a formality , but we're really going to take these evaluation periods , if that's something your organization does . But , to your credit , you called me not that long ago after one of those hard meetings . It was just like hey , I just need to process this out loud . This just happened and I love that because it does show that you care for the person For sure , and I think a lot of times the care for the person can lead to what I would call like a leadership codependency , which is I'm trying to manage If it's overboard . I'm trying to manage your feelings , your emotions , your responses , as opposed to just saying listen , I'm going to you wouldn't say this out loud but I'm going to treat you like an adult , like I'm going to treat you like hey and I don't have to overly try to sympathize or empathize . I think to your point about how ashley does these conversations like I learned from a leader a long time ago when you go in and have a hard conversation , you get to the point quick , that's right . You don't start in a meeting and you you know , hey , how's your weekend . Whatever you bring them in and you say this is going to be a difficult conversation . So I'm going to cut to the chase and then you get right to it . It's clinical , it's surgical , right and you can communicate .

Speaker 2

If you , if you're the , if you feel this way , if it's true , hey , this is . This is really tough for me and I'm sad about this and I really now , whether or not they believe you or buy it or whatever , at that point that's on them . Yeah , like you can still show compassion and you can hold both parts and say listen , I think this is the right decision and I'm also I'm really sad about it and I'm really sorry this is happening . Both can be true and genuine , and that person sitting across for you might say you're full of crap . Yeah , you know , I'm mad , I'm pissed , I hate whatever . And that's when you have to just allow people to have their own feelings or process whatever . Probably the thing that's kept me from having those decisions is I'm trying to manage that other person's emotions Right , and that's really disrespectful to that person ?

Speaker 1

Yeah , and again , we keep saying this context really matters . So if you're working in corporate America , a lot of times a C-suite , a board of directors , is looking at trends . They get to fourth quarter and go we need to make sure our stock prices are right . If we're not going to catch up on the revenue and sales side of things , we're going to cut costs . That means we got to cut 10% of our headcount and I think if you are in that world , you just have to understand that's the risk you're taking , that you're A . You have to fire people like that sometimes . And if you're an employee , hey , I could get fired just as a result of a financial metric .

Speaker 2

Yeah , some companies and I don't know if they still do this , but I know Facebook , they used to you basically write your job description for six months . Hey , here's what I'm going to do for the organization . I don't know at what level I think this was a little higher up but after six months , if you did your job , even if you did it really well , hey , thanks , you did what you said . Unless you can come up with okay , here's what . The next six months , the next year , whatever . There was just this understanding of , like man , we're going to treat you well , we're going to pay you well , we're going to expect great things from you and then , once it's accomplished , then our relationship is done , unless there's

Leadership and Employee Performance Management

Speaker 2

something else you come up with . Now , some people may hate that , right , that's just one way of doing things . But to your point , there's a lot of clarity of like , hey , this is a six-month gig .

Speaker 1

Unless I've got something , I can continue to add value to the organization , and so for a lot of the clients that we coach , I'd say small to mid-sized businesses you're talking about maybe five to 50 employees in that range . Those are the cultures where it's really difficult , cause , like you know , if you work at a AmeriCorps mega company and you know , and it's a giant office building filled with people , if someone's not in their desk the next day , you're like , okay , moving on , like if you've got a room full of 10 people working on something and all of a sudden somebody's not there anymore , like you feel it right . That's the emotional thing there that person's not here anymore .

Speaker 2

What happened ? Yeah , and that that's something that we help leaders with . When we're working with a , with an organization , you know we help with the whole process of evaluating like hey , is this person ? Cause sometimes a leader can get emotional about a person and you're like , wait a minute , there may be something on the leader's side that they need to do .

Speaker 1

Um , go ahead . I gave advice , literally , um , very recently I just said hey to this leader if you sold your company today and a new leader took over , right , and they got to run the business , yeah , and they didn't have the emotional connections , they didn't know your employees' stories , they didn't know , you know , about their family situations , would they keep X , y or Z employees ? Like no , they probably wouldn't . I was like , well , that's what a good leader would do is make that decision now . Yeah , wow . And so I think to go back to some more practical stuff instead of some of the more philosophical stuff is um , there's a couple of reasons people have to transition . One is that financial situation Like we talked about hey , we've got to meet this financial deadline , we've got to get more profitable , so we're going to lose 10% of our employees . We're going to move forward . That's pretty unavoidable . Those are tough .

Speaker 1

But if it is a performance issue , like this person's leaning away , they're not engaged , their heart's not in it , they're not performing or they're violating our values , we have to check on that situation . So it requires management and a lot of leaders don't like to manage , and I think one of the most important tools a leader has at their disposal is a one-on-one meeting , and so few leaders do it Really . Yeah , I think people avoid it . Like the plague is like , oh , just can you just go do your job , let me know when you got a problem . And I think the most important development tool a leader has is a one-on-one meeting and you check in engagement , you check relational , you check um performance , all that stuff . You can really understand what employee you know is leaning in or leaning away . But my thing is like firing is not the first step , like that is not first base .

Speaker 1

Right , we're going to go , hey , what's going on personally , like , is there , is there something at home ? Is somebody sick ? Are you sick ? Maybe not ask those questions specifically , but try to understand . Is there a reason performance has dipped ? Okay , no , it's none of those things . Um , are you not as satisfied um , and engaged in the job because of you know something we're doing ? You try to understand that and then you know , after you take a couple of steps to try to understand what's really going on , because at some point you hired this person and said , hey , this person would be a great fit on the team , we need them on our team , let's do this . And now you're going . Oh , they don't fit anymore . We'll try to understand why that's the case . Do your best , and then you know you kind .

Speaker 1

Performance improvement step of the process where you've documented these conversations . You're making sure from like a legal and HR standpoint , you've done all the right steps and I don't know the percentage . I think it's super low . I think I've read somewhere , like in HR today or something like that , that 90% of people put on a performance improvement plan Don't come back Like it is the kiss of death .

Speaker 2

Well , I was going to ask you , like why do that , Right ? What's the point in doing that ?

Speaker 1

Why do you think I don't know ?

Speaker 2

Well , I think it gives the person the opportunity to adjust . Yeah , because what you don't want and we've said this before Every person we've ever fired always blindsided , even with an improvement plan . It's just like they're not showing up and intentionally trying to be bad at their job most of the time Most people are doing the best they can .

Speaker 2

It's just not working , for whatever reason , and I don't know . I think you really should evaluate in your organization . I'm hoping . I guess my hope would be if you're having consistent one-on-ones , yeah , and those one-on-ones are effective and there's clear communication , then an improvement plan should be happening all along , micro adjustments , tweaking all along like it should just be .

Speaker 2

Like hey , this isn't working to me .

Speaker 2

The improvement plan in some ways you're exactly right that's just the warning shot of like hey , you're about to get fired , right , right , because most people can't adjust if you've been having those conversations . I think that improvement plans a lot of times can be used by organizations who are not willing to have the one-on-ones and the ongoing conversations for adjustment . So they have this formal process , they put an improvement plan in place . That is what's kind of blindsiding to the employee . And now you've got this disgruntled employee who knows they're on an improvement plan and they're not getting any better because you've already given a pattern of not having hard conversations along the way . Right , and so I'm not saying I'm against improvement plans , but maybe I am . I don't know , um , but I just think don't use an improvement plan in place of what you were saying consistent one-on-ones , where you're giving clarity and feedback and and chances are , you're going to know a lot sooner and that employee is going to know a lot sooner . This isn't working If those conversations are happening every single week .

Speaker 1

And here's probably the number one . Tell here's probably the number one . Tell that firing is more emotional than it needs to be . Oftentimes , when you transition a low performer , the rest of your team goes . Why did it take you so long to do that ? Right , Because they saw it right . Everybody on the team's like man . This person is not engaging , they're not responding in communication . They're constantly behind in deadlines , Like I'm working my butt off and I'm here . They're not working their butt off and they're still here .

Speaker 2

It's so demotivating A lot of times your team feels that a lot before you do . That's right .

Speaker 1

As a leader , yeah . And so you're like gosh , I don't want to do this , I don't want to fire somebody , I have to hire somebody . It's going to take forever , and so you delay what's inevitable , and sometimes you can lose the team in that process because they're so frustrated that you're not getting rid of the dead weight . That's a great point .

Speaker 2

I one of the hardest fires I've ever made . Um , I had people come up to me afterwards and thank me and say , hey , we're really sad that this happened . It actually if . If you fire someone when it's right right , we're not talking about the person just going out and , just you know , hacking people just because they're bored , but when it's the right decision , it'll actually build trust with your team and your peers . They'll come to you and say , hey , listen , we know that was a tough decision . And if you're open and honest as a leader , they're going to tell like hey , you didn't make that .

Speaker 2

flippantly Like you felt it too and they're going to come and say , hey , we , we see that you really struggle with that decision and I actually I was a learning lesson . I actually had a couple of people that were close to this person come to me and say , hey , I see that that was a really hard call , but I respect you for making that back , making that decision

Navigating Codependency and Control as Leaders

Speaker 2

.

Speaker 1

That's so good . Maybe we wrap with this this idea of codependence that are um self-worth or value comes from the relationship you have with the person you're firing , and I think it's Jim Collins talks about , you know , freeing people to go to their next like sometimes , yes , it could be one of those like significant top 10 significant moments in their life that I got fired . But hopefully on the other side of that is opportunity , reinvention , invigorating . Like no one likes to get kicked in the teeth , right , no one wants to be like I got fired , I failed , but for a lot of people that's the catalyst to get them to what is next . And if you have confidence in whether it's in God or in the universe or something , they can go on and succeed somewhere else and it may be the motivation they need to succeed at the next thing .

Speaker 2

So should I be expecting thank you cards from everyone who's doing well right now that I fired , or yeah ?

Speaker 1

just let's put the address on the podcast , drew Powell , po Box . You're welcome everyone , one , two , three , four . But why is it that , when we are more emotionally engaged in these firings than we need to be , that we can't see how clear that is , that we can't help them get to their next ?

Speaker 2

Well , I think most of us as leaders , if we're being honest , we struggle with control , right . That's almost the shadow side of leadership . In some ways , like most great leaders , they want to be in the driver's seat , they want to lead right . So it's like I'm not saying that's always a bad thing . But the shadow side is I can tend to be a control guy and I want to control people's future , their destiny , how they , how they respond . I want to control , you know , I want you know , I want to feel good by how they respond . I want to control all those things , which is , ultimately , it's codependence , right , and so in that relationship . So I think having to trust and say I'm going to make the right decision and I don't have to be in control of what's next is really tough for me and for most leaders .

Speaker 2

But I think that's where it goes back to , where you say you can , you can surrender and say I'm going to make the right next decision . I don't know what this is going to mean for this person , but I'm going to trust , at the end of the day , that the universe is kind , like and that's a big philosophical shift for a lot of people like is the universe kind is god , kind are good things in store for me . Like those things and I'm not talking like the you know evangelical , like your best is yet to come , bs . I'm talking about like , hey , things work out for those who work hard and you know , and do the right thing and treat people well , like the universe is a kind place and so if you have that worldview , you can surrender and not have to be in control of someone's future .

Speaker 1

That's so good . Thanks for leaving us on a hopeful , optimistic note .