Release poor performers fast through a no-fault divorce approach

So, you have a robust shortlisting process in place and you’re confident you’re only hiring the best talent. But let’s get real. Mistakes happen. What if you onboard a poor performer? Here’s an effective approach to release poor performers that can work for your organisation. 

While it’s expensive to recruit and train new hires, it’s even more costly to permit mis-hires to sit in a position for lengthy periods of time due to the damage they can create.

Of course, it takes time for new people to learn, gain confidence in their new role, and hit KPIs. However, if they display soft skills or other qualities that are clearly misaligned with your organisation’s goals or culture (e.g. unenthusiastic, rude, poor team player, lack of willingness to learn, bad attitude), this represents a clear problem that will not be resolved with more time or training!

According to Recruitment Strategist Dr John Sullivan, “Today’s sparse talent pool increases your chances of a hiring mistake. But a no-fault divorce approach allows you to release mis-hires quickly. And despite the lack of available talent to choose from, the pressure from hiring managers to “get me, anybody, I need butts in chairs” is immense.”

Average hiring error rates sit at 46%. 

From this perspective, it’s not surprising that hiring mistakes are increasingly common. Which is why you need to get comfortable to release poor performers.

“Unfortunately. because the standard performance management process is so painfully slow and ineffective, it’s a leap of faith to expect it to weed out poor-performing new hires. What organisations need is quicker and less disruptive alternative, which I call a “new hire no-fault divorce” approach. This intuitive approach allows you to quickly release new hires that are not working out while minimising conflict and avoiding the threat of legal action.”

Weak performers do not get better with more time or training. You can train skills, but you cannot train attitude.

What is a “new hire no-fault divorce” release mechanism? 

A “no-fault divorce” concept is tried and proven.

Data from multinational technology conglomerate Cisco revealed that, “after six months on the job, there was little probability that the already weak performance of a new hire, would significantly improve over the next six months.”

Yes you read it here, weak performers do not get better.

Here’s how a “no-fault” process might work for your organisation.

Schedule regular check-ins and a six-month assessment 

Sullivan recommends that the process to remove poor hires begins at the six-month mark. This is because in order to let someone go, you need to have signficant volume of data and evidence that they are not performing according to set standards.

Typically, due to lack of performance data, HR and talent departments rely on convincing poor hires to voluntarily resign.

“The no-fault mechanism begins at the six-month point, where it identifies weak performing hires. HR then projects the estimated performance trajectory of weak new hires for the remainder of their first year. HR then targets those whose performance is projected at year-end to be below the acceptable standard for release.”

Avoid legal issues

Instead of the traditional approach, set targets for your new hires to meet and encourage them to resign to avoid legal issues. Approach hires anticipated to have continued poor performance and share statistics around their chances of success by year-end, which may be slim. During this conversation, you could offer them to option to stay on board, or leave immediately.

“If they agree to leave now, you can offer them between two- and five-months’ severance pay. And, because their continued weak performance is only projected, they get to leave with a positive job reference. As part of the severance package, they also agree to keep their termination quiet and to sign an agreement not to take legal action. Now some may argue that your organisation would be “rewarding for poor performance.” However, the cost of the projected severance payment (even at five months) is usually much less than the value that will be added if the weak current hire is replaced with a top-performing new hire.”

Offering low and high-risk options 

“The carrot and stick approach gives the new hire a low and a high-risk choice. If they don’t want to accept the immediate severance, they still have the option to choose to stay on the job for the remainder of the year.”

If their projected weak performance level turns out to be accurate, you will now have enough performance data to terminate them formally. Therefore, they lose the severance option and leave with a now fully justified negative reference.

“This carrot and stick approach encourages more than the majority to take the early exit option.

61% of new hires are unhappy because they feel that they had been misled during the hiring process (Harris Interactive). 

What if it was your fault? 

In cases where you have oversold your role or misled candidates with inaccurate position descriptions and your new hire ends up disillusioned and confused, this will affect their performance.

As such, the performance deficit and unhappiness of your new hire may not be their fault.

“Without having to assign blame, it makes sense to arrive at a “no-fault conclusion” and then offer the new hire the severance package with a positive reference. Obviously, recruiting leadership then needs to be made aware of any overselling.

Benefits of this approach 

Candidates know they have a safe option to “opt out”, which may help get candidates who are unsure over the line and improve your offer acceptance rate.

“Also, being able to leave with some money and a good reference might also directly help reduce some of the new hire’s anger after they find out the job wasn’t what was promised. Getting them to leave while happy could prevent the ex-employee from damaging the firm’s employer brand image on social media.”

This also benefits your organisation in that you can release poor performers far more quickly. By setting a 6-month benchmark, you cut release times in half, instead of waiting for yearly reviews.

“Getting rid of any new hire that doesn’t “fit” also reduces the damage they can do to the corporate culture. Having new hires leave reduces the team trauma quickly that would have occurred if you waited and lost a long-term employee. Weak employees also take up to 17% of a manager’s time (Robert Half), releasing them frees up managers to do other things. Finally, knowing they can much more easily release a new hire that doesn’t work out, hiring managers will take more risks on an exciting candidate with a few iffy characteristics.”

Other strategies to release poor performers early 

You can also consider using onboarding and training periods as an assessment prior to offer

“Some firms use an extended onboarding process to provide more time to identify their hiring mistakes. Facebook (6 weeks) and Zappos (4 weeks) use their extended onboarding process as a secondary assessment level. The initial training that is provided to new hires can also be used as an assessment level. Firms like Zappos (which pays $3,000) even offer all new hires a bonus to quit at the end of onboarding/training, if they realize this is ‘not the job for them.’”

You could even consider placing new hires into temporary-to-permanent contracts. That way you and your new hires have a few weeks to assess for fit.

“The hardest thing to accurately assess during even an extended interview period is cultural However, you can extend your cultural fit assessment time frame by putting all new hires under contract for “a cultural and job tryout.”

Standard performance management just doesn’t cut it these days, so take this approach to release poor performers.

“Most firms do rely on the standard performance management process to get rid of new hires. Unfortunately, almost without exception, I find corporate performance management processes to be ineffective. Utilising this process usually means you will have to wait an additional 6 to 18 months before you can terminate a weak new hire. And during that waiting time, the recent hire will continue to underperform and to take up a slot that could be filled by a better performing new hire.”

Do you need a recruitment campaign to attract the best candidates to your vacancy? Schedule a discussion with our Recruitment Advertising Specialists, call us on 1300 366 573 or email info@employmentoffice.com.au.