Hire superstars, or remove toxic employees?
Avoiding ’toxic employees’ may in fact be more beneficial than to be on the constant lookout for superstar employees. So why do superstars tend to get all the attention? For one thing, truly exceptional employees stand out, both in the workplace and as the focus of research.
Consistently hiring great employees -- much less consistently hiring superstars -- is impossible. Be thorough, thoughtful, and deliberate when you make hiring decisions. Be even more thorough, thoughtful, and deliberate about dealing with toxic employees. Because that might make an even bigger difference on your bottom line.
COVID cost-cutting may backfire in the long run
The pandemic has left the world’s economy blanketed in uncertainty, with managers drawing up cost-cutting plans – and often hurriedly implement them – with the survival of their firm in mind. From a managerial perspective, the question is whether such cost-cutting is a good move, or whether it possibly could be an overreaction.
While uncertainty is high in the current pandemic-induced crisis, firms might collectively be better off if managers would not proceed to drastic cuts, especially given the opportunities that arise from struggling competitors.
In shareholder-oriented countries, managers may be under a lot of capital market pressure to deliver short-term performance. They might be forced to slash costs by their environment. Countries where business is encouraged to keep a longer-term perspective – or where managers are legally prevented from cutting as much – do not see such an increase followed by a sharp decrease in profitability in response to macroeconomic uncertainty: Overall efficiency is higher.
The path to true transformation
To thrive in the next normal, companies need to make more fundamental changes. That’s because if business models and mindsets don’t shift, those costs will just creep back. True transformation—the kind that alters the way a business operates on a cellular level—is what’s needed in today’s uncertain climate. It’s the only path to elevating financial performance, building capabilities and changing culture in ways that will not only get companies through this global health crisis but sustain them in the years ahead.
Research shows that 70 percent of transformations fail, but by starting boldly, acting fast, sharing a vision and stretching aspirations, business leaders can flip that script. Taking a more holistic and expansive approach to transformation increases the chances that an organisation will, in fact, see significant and sustainable improvement in the years ahead.