November 30, 2020
What Every Business Owner Needs to Know About Hiring (and firing)
I started my financial services business more than five years ago, and I’ve learned so much in that time – planning, budgeting, marketing, hiring and firing people.
Ugh – that last one is never pleasant.
But something good did come out of it. It’s taught me that whenever it’s time to bring a new team member into my financial services firm, I have two rules that I never deviate from:
Rule 1: Hire slow, fire fast.
Rule 2: Hire for attitude, fire for skill.
These rules are not negotiable. They’re not something that I maybe I’ll adhere to. They’re carved-in-stone principles I’ve learned the hard way – and which have helped me preserve my sanity and my business.
If your goal is to create your own successful financial services firm or grow your sole proprietorship into something more, you’re going to need to learn how to effectively hire and, when necessary, fire people.
Yes, it’s so time-consuming! I know that frustration and drive for instant gratification to get someone into a role so they can start producing and you can get back to work. But rushing into things and hiring the wrong person will cost you even more time and sometimes a higher price than you ever saw coming.
Slow the hiring down. Way down.
Hiring and firing is both analytical and intuitive
For me, hiring slow means several things: understanding exactly what I want a new hire to do, deciding what skills and personality type will be the best fit for my business, and (so important!) following through with full due diligence when screening and interviewing.
It’s so easy to get dazzled by a sparkling resume that appears to be a match for everything you’re looking for or an interviewee who radiates charisma.
I admit I’ve fallen for appearances like that, but I learned from those mistakes.
What is the biggest lesson? Don’t take shortcuts!
Call former employers to confirm dates and positions listed on a resume. When interviewing, ask a broad range of behavioral, competency, and experience-related questions and listen carefully. Talk to the candidate’s references and ask for details about job performance. Depending on the position and how close you are to making a decision, you may also want to run a background check (with the candidate’s knowledge).
Learn to trust your instincts, too, when it comes to hiring and firing.
As a financial services professional, I think I “read” people fairly well. I pay close attention to body language and visual and vocal cues which, during a job interview, can communicate a lot.
When hiring, first impressions matter. So does the message that’s coming from your gut as you get to know that person.
The bottom line: Take your time when assessing candidates. Be objective, think critically, do your research, and don’t ignore anything that triggers your BS detector!
As for firing fast, enough said. If the evidence and your intuition say it’s time for someone to go, be kind (and legally compliant), but don’t drag out the firing process because it’s uncomfortable for you or too time-consuming to fill the role again.
Your business is too important to hang on to someone who isn’t performing to standards, behaving inappropriately, or worse.
What is hiring for attitude and firing for skill?
Hiring for skill or attitude… it can be a conundrum. Is it better to bring on someone who has the skills you desperately need now but has a snarky attitude? Or, do you hire someone who will need a lot of guidance to get up to speed but is enthusiastic and adaptable to learning?
In my experience, the latter is far better.
That’s because skills can be taught. Attitude, on the other hand, is ingrained in a person. Indifference, negativity, pessimism, or resistance to change can be toxic and even infectious to an existing team. As an employee years ago and as an employer today, I have witnessed first-hand how a rotten apple can spoil the bunch.
Of course, hiring for attitude involves the tradeoff of time and effort to train the person but, in the end, you’ll have an employee who is a positive and productive addition to your team. Yes!
In a perfect world, you’ll find a candidate who has both the right attitude and the skills you need, but if you’re forced to choose, always go with attitude – and be prepared to invest in their development.
The bottom line
How did I know when it was time to hire someone in my financial services business?
Honestly, I was just so tired… tired of doing everything myself, tired of losing precious time with family and friends, tired of trying to figure out office functions that were beyond my experience and know-how, tired of not having time to do what was most important in my business.
My superwoman “I can do-it-all” mentality (and the fear of hiring) held me back for a long time. The day finally came, however, when I knew I had to do something. Otherwise, I was putting my business – and my health – at risk.
My best advice? Trust in yourself.
While those first steps toward growing your team can be intimidating, you will find your way.
When I finally took action and hired my first employee, I experienced this wonderful sense of accomplishment. I suddenly had the freedom to focus on what I loved to do. Most importantly, I was excited about the future of my financial services business again.
Becoming a “boss” can feel strange at first. Just remember why you wanted to go out on your own in the first place and know that it’s all part of the journey to reaching your greatest potential. You got this!
Have questions about how you can succeed in your business and accelerate your journey toward reaching your goals? I invite you to learn more about ELEVATE, an exclusive group coaching program specifically designed to help female financial advisors. Start with a no-cost 30-minute consultation to discuss where you are in your career and where you want to go.
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