Strategy Coach: Finding the Keepers
How much does it cost you to have the wrong people working for you? Poorly performing sales associates might not be able to sell their prospects fully featured products or add profit-boosting warranties and accessories. Worse yet, they might not have the skills to close as many sales as they should, sending prospects out to your competitors. An incompetent buyer might leave you overstocked and out of cash. And a marginal bookkeeper may not give you timely information you need to manage your business.
As Jim Collins wrote in his best-selling book, "Good to Great," you've got to have the right people on the bus in the right seats for the bus to take you where you want to go. As the driver, that's a tricky proposition.
Many managers, weary from the hiring process, keep underperformers just so they don't have to go through the recruitment process all over again. Others don't want to admit they've made a hiring mistake while some continually try to re-train their people hoping they become successful. I've seen some companies who move people from job to job hoping to find somewhere the employee will fit.
Some dealers avoid terminating poorly performing team members because they don't want to pay unemployment compensation or because they fear some kind of litigation from the employee.
Online retailer Zappos has distinguished itself not in low prices but in selection and service. Zappos aims to be the brand with the absolute best service. Employees are taught to work for a preeminent service company that happens to sell shoes, handbags, clothing and, if the future unfolds as planned, anything else you want to buy online.
Part of their secret sauce lies in their hiring and training process. Zappos understands the high cost of hiring mistakes and has developed a plan for mitigating them as quickly as possible.