For-profit companies exist mainly to maximize profits and growth. These enterprises, devoid of sentiment, operate independently from their leaders, who are tasked with meeting corporate objectives. Leaders must navigate the company’s non-emotional goals with humanity and understanding.
Profit growth relies on the full engagement of everyone involved. Experience and evolution have taught us that success stems from empathy and ensuring individuals are well-suited for their roles. This brings us to a pivotal question: how should leaders deal with employees who are not a right fit for their positions?
Consider a small company, where owners often invest considerable time attempting to develop an ill-suited employee’s skills, typically yielding mediocre results at best. This is a common and critical mistake.
Take an outside sales role, for example. Success in sales demands specific characteristics: self-motivation, people-orientation, energy, and ambition. An employee without these innate qualities will struggle. It’s not reflective of their worth but indicative of a poor job fit.
Often, business owners hire someone for a key role who doesn’t deliver. Despite their efforts to nurture improvement, the employee’s nature may not align with the job’s demands. Principals then may try to adapt the job to the employee’s limitations, but the analogy applies: ‘If your face is dirty, wash it, don’t cut off your head.’
Such a scenario disregards the principals’ obligations to the company. Failure to address this can result in a demotivated workforce, leading to reduced profitability and missed opportunities.
A message to small business owners: imagine being a CEO accountable to a board for missed sales targets. Such accountability requires decisive action, sometimes letting go of an employee.
Yet, empathy, care, and love shouldn’t be overlooked. If an employee lacks the aptitude for sales and there’s no suitable alternative role, releasing them may be the kindest action. Conducted with sensitivity, a fair severance acknowledges the unmet needs of both parties.
Leaders must stay true to their corporate duties. Difficult decisions, made with compassion, are necessary. Cut losses from ineffective employees, realign roles, and recruit ones better matched to your goals. The costs linked to missed opportunities often outweigh severance expenses.
Ultimately, leading with empathy and making tough choices can steer a company towards profit and growth. Such leadership extends its benefits beyond business, enhancing personal interactions and life quality. With wisdom and humanity, leaders fulfill their roles—cultivating a professional environment where everyone is positioned to contribute meaningfully.
Contributing Associate: Roch Gagnon