When To Fire & When To Coach | Ep 216
Build with Leila Hormozi
Deep Dive
Why is firing people a difficult decision for Leila Hormozi?
Firing people is emotionally challenging for Leila because she deeply cares about her team and considers the personal impact on individuals, such as their career prospects and family situations. However, she prioritizes the long-term success of the business and the team over individual short-term needs.
What is Leila Hormozi's approach to handling underperforming employees?
Leila distinguishes between skill issues and cultural fit issues. She prioritizes cultural fit, as it is harder to teach values and behaviors. For skill issues, she identifies specific areas for improvement and coaches the employee. If the employee lacks the will to improve, she considers letting them go.
How does Leila Hormozi decide whether to fire or coach an employee with skill issues?
Leila assesses whether the skill can be taught and if it is worth her time as a leader to invest in coaching. If she can teach the skill and it aligns with the company's growth, she coaches. If not, she lets the employee go to avoid holding back the team.
What is Leila Hormozi's view on hiring for culture fit versus skill?
Leila believes hiring for culture fit is more critical than skill because values and behaviors are harder to teach. Practical skills, like sales techniques, are easier to teach than soft skills like kindness or empathy.
What is Leila Hormozi's advice for leaders dealing with underperforming employees?
Leila advises leaders to clearly identify the specific skill or behavior that needs improvement, provide actionable feedback, and monitor progress. If the employee lacks the will to improve, it may be time to let them go.
How does Leila Hormozi handle employees who lack the will to improve?
Leila believes that if an employee is given clear feedback and tools to improve but does not put in the effort, it is not acceptable. She refuses to invest more in someone who is not willing to invest in themselves, as it undermines the team's performance.
What impact does tolerating mediocrity have on a team according to Leila Hormozi?
Tolerating mediocrity can lead to a loss of respect from the team and damage the company's culture. It signals to other team members that underperformance is acceptable, which can erode trust and motivation.
What is the final question Leila Hormozi asks herself when deciding whether to keep an employee?
Leila asks herself if the person makes her work easier or harder. If they make it harder, she considers it a valid reason to let them go, as her effectiveness as a leader is crucial to the company's success.
- The emotional difficulty of firing employees, even with experience.
- The impact of one underperforming employee on the entire team's performance and morale.
- The importance of making decisions that benefit the business in the long term, even if it's difficult in the short term.
Shownotes Transcript