Don't
Be in a Rush to Rehire
Trump
is going, the vaccine is coming, so the economy might start to rebound. But
it's a mistake to think that you need to bring back all the same people as your
business moves forward.
BY HOWARD
TULLMAN, GENERAL MANAGING PARTNER, G2T3V AND CHICAGO HIGH TECH
INVESTORS@TULLMAN
Notwithstanding all
the pain and grief that the Trump pandemic has caused every organization, his
continuing insane protestations, and his malicious if not criminal interference
with the transition to the Biden presidency, the end of the nation's nightmare
is in sight. As we start to give serious thought to a more normal operation of our businesses, there are
actually a few important opportunities buried amidst all of the political
noise, and complex legal, health and regulatory concerns, that shouldn't be
overlooked.
Just as the people
issues were critical to the virus-necessitated downsizing, they're going to be
even more central as you scale your team back up to fighting strength, regardless of where physically or virtually they
happen to end up working. And maybe the most significant question at this point
is -- putting aside all of the emotional issues, personal connections and
loyalties, which is easy to say and very tough to do -- which of your people
will you be hiring back? Getting off to the right start is extra crucial at
this point because there won't be enough time or any tolerance for do-overs. As
they say at NASA: off by an inch at launch, miss the moon by miles.
Part and parcel of the
personnel decision-making process is deciding who on your current smaller and
sleeker team you're going to trust and involve in the evaluation and selection process. Remember as
you work your way through this analysis that, virus aside, there weren't many
companies that wouldn't have benefitted from belt-tightening and headcount
reductions that might not have been popular or politically correct in the past.
Now's a unique moment where you have permission, board support and realistic
justifications to make at least some of the changes and cuts that were probably
long overdue.
Here's what I can tell
you for sure. The easy and wrong answer for virtually every one of
us is to try to bring back all those people who used to work for you. Even if,
once the first 100 million folks are vaccinated, the economy explodes positively
and your customer demand and order volume increases rapidly and exponentially,
it still makes sense to take your time and do an internal
audit, including a top-to-bottom review of the entire workforce. We're all
anxious to get moving again at warp speed (no pun intended), but this is really
a critical juncture where a little extra time is a very worthwhile investment
in your future. Nothing's gonna be easy or normal for a while yet and you need
the very best people you can attract - not necessarily the ones who are handy,
easy or waiting in the wings.
No company has ever
addressed these kinds of issues better and more succinctly than Netflix,
which developed and articulated the basic Keeper test and all of its
corollaries. Simply stated, it asks each manager to decide which of their
employees they would fight to keep or, in the current case, who they'd argue
aggressively to hire back. In an amazingly high number of cases, the decisions
are very clear and fairly easy. It's not about loyalty. It's not about good
intentions. It's not about trying hard. It's about production and results.
Nothing else puts bread on the table and gets the job done. Look for the meat
eaters and the ones who will help you get to where you're headed.
Adequate and average
employees need to move on and work elsewhere to make room for exceptional
players and stars. It's the same mindset you used to see at auto dealerships
and at ad agencies. You sell cars or you hit the bricks. The agency loses a big
client and the whole account team is looking for work elsewhere. Economist
Tyler Cowen wrote a book a while ago called Average is Over and
ain't it the truth. As you pull your team back together, good enough just won't
get the job done; you've got to be cold and calculating because the moment you
settle for OK, you'll end up with less than you settled for.
And please be sure to
watch out for false economies. It's easy to talk yourself into hiring or
rehiring people who are underpaid and a "bargain." But they're still
a bad deal for your business. The truth is that, if they have any brains and
balls, they won't stay long anyway because they'll find a place where they're
more valued and appreciated. If their prime virtue is their price and not their
productivity, you're selling your business short. Cheap is the solution for
managers who can't figure out better.
Bottom line: don't bring someone back for
anything but the best of reasons. If they can't help you build a better and
stronger future for your business, then they need to find another job and,
honestly, not only don't you "owe" them employment, but you'll also
be doing them a favor by offering them a chance to find a better opening
elsewhere, rather than a crutch or a sinecure.