In business, I’ve learned that clear expectations and accountability are non-negotiable. As a leader, I believe in setting transparent timelines for performance while taking full responsibility for hiring decisions. This approach might seem harsh to some, but it creates an environment where both the company and employees can thrive.
When I bring someone new onto my team, I make one thing crystal clear: the first ninety days are my investment in them. During this period, I provide training, mentorship, and opportunities to learn the business. However, by the end of those ninety days, they need to be breaking even for the company. If they haven’t reached this benchmark, regardless of their personality or potential, they simply can’t continue with the organization.
Setting Clear Performance Expectations
My performance expectations follow a simple timeline:
- First 90 days: Break even (minimum requirement to continue)
- 180-360 days: Achieve three times earnings
These aren’t arbitrary numbers. They represent the reality of running a sustainable business. Every position must eventually contribute more value than it costs. When employees understand these expectations from day one, it eliminates confusion and creates focus.
I don’t believe in keeping underperforming employees just because they’re nice people or show potential. While these qualities are valuable, they don’t pay the bills or grow the business. This might sound cold, but it’s actually compassionate in the long run. Keeping someone in a role where they can’t succeed does them no favors.
Taking Ownership of Hiring Failures
Despite my firm stance on performance, I hold myself accountable first. If someone doesn’t work out, I view it as my failure, not theirs. As the leader, I’m responsible for:
- Properly assessing candidates’ skills and potential
- Understanding if their knowledge aligns with our needs
- Gauging their desire to succeed in the specific role
- Creating an environment where they can thrive
When a hire doesn’t succeed, I look inward first. Did I misjudge their capabilities? Did I fail to provide adequate training? Did I misunderstand what the position required? This level of accountability is essential for growth as a leader.
I believe every person I fire is my failure. Accountability is really important as a leader. It’s my failure. If something doesn’t work out, I’m the one that hired you.
Aligning Skills with Opportunities
One of my core beliefs is that I should know my business better than anyone I hire. This knowledge allows me to accurately assess whether someone’s skills, knowledge, and desire align with the opportunity I’m offering them.
When there’s misalignment, it’s usually because:
- The candidate oversold their abilities during the interview process
- I failed to properly assess their capabilities
- The role evolved in unexpected ways
Regardless of the reason, the outcome is the same – a mismatch that ultimately leads to separation. By taking ownership of this process, I can continuously improve my hiring practices.
Balancing Compassion with Business Reality
Some might view my approach as lacking compassion, but I see it differently. True compassion isn’t keeping someone in a role where they’re struggling. It’s creating clear expectations, providing support to meet those expectations, and being honest when things aren’t working out.
This approach benefits everyone. The company maintains its performance standards, successful employees aren’t burdened by underperforming teammates, and those who don’t succeed can find opportunities better suited to their strengths.
Running a business requires making tough decisions. By establishing clear performance metrics and taking accountability for hiring outcomes, I’ve created an environment where both the business and the right employees can flourish. This balance of expectations and accountability isn’t just good business practice – it’s good leadership.
Frequently Asked Questions
Q: Isn’t a 90-day break-even expectation too aggressive for new hires?
The 90-day timeline works because it’s communicated upfront. New team members know exactly what’s expected from day one. This clarity actually reduces pressure because there’s no ambiguity about performance standards. Additionally, I view this period as my investment in them, providing the training and support needed to reach this benchmark.
Q: How do you measure if someone has reached “break even” status?
Break-even measurement varies by role but generally means the employee is generating value equal to their compensation and overhead costs. For sales positions, this might be direct revenue generation. For operational roles, it could be efficiency improvements or cost savings. Each position has specific metrics established at hiring.
Q: If you believe every firing is your failure, why terminate employees at all?
Taking accountability for hiring mistakes doesn’t mean keeping underperforming employees indefinitely. It means I learn from each situation to improve my hiring process. Maintaining performance standards is essential for the company’s health and ultimately benefits all stakeholders. The best response to a hiring mistake is to acknowledge it, learn from it, and make the necessary changes.
Q: How do you balance giving people chances to improve versus maintaining business performance?
The structured timeline (90 days to break even, 180-360 days to reach three times earnings) provides built-in improvement opportunities. During these periods, I offer coaching and support. However, business sustainability requires making tough decisions when benchmarks aren’t met. This balance ensures both compassion for individuals and responsibility to the organization.
Q: What advice would you give to new leaders about implementing performance expectations?
Start by clearly defining what success looks like for each role and communicate these expectations during the hiring process. Be transparent about timelines and metrics. Provide the necessary training and support, but be prepared to make difficult decisions if expectations aren’t met. Most importantly, take accountability for your hiring decisions rather than blaming employees when things don’t work out.
