“As your business grows and you make decisions about individual people, you can’t let your emotions get in the way of what you really need to do, which is to drive the success of the business,” O’Leary added.
O’Leary cited that a common problem facing inexperienced entrepreneurs is that many are often quick to hire a family member or friend because of the existing relationship and level of comfort already established. Hiring a friend or family member into a management position, for example, presents a quandary for entrepreneurs who must face the difficult task of firing them if they are unable to perform.
“Very often, nepotism is what kills the golden goose,” said O’Leary. “Because very often, the better manager is not your sister, brother, uncle, cousin, whatever.”
Rather than simply cutting employees cold, O’Leary cites ways to do it fairly and amicably, such as explaining why the termination is happening and preventing bad karma by ensuring they get a severance package or assistance with locating another job. Furthermore, the termination should take place as soon as the entrepreneur realizes the individual is not fit for their current position.
“The moment you realize that the person isn’t right for the job is the time to take them out of it,” said O’Leary. “Because it’s not fair to them. It’s not about you. It’s not fair to them and the people they’re working with and the team that they’re a part of.”
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