Featured Coaching Excerpt - Notes & Transcript, Part 1
Lesson Nugget: When running a business, it is your duty to cut people who are not advancing the company towards its goals.
Action Step: In order to utilize the trial period method, you must have a large funnel of new people coming through your company each week.
Lesson Nugget: Be candid with your employees, tell them if they are performing poorly.
Light Bulb Moment - Never fire anybody without them knowing what’s going on.
“Many consultants to small business Owners believe that probationary employment periods—also sometimes known as trial periods—can be quite useful to both entrepreneurs hoping to get a start-up off the ground and established small business Owners seeking to maintain or increase their current level of success.” - Inc Magazine
netflix like training for human resources, small buisness ideas
-I read in "Inc. Magazine," an article they had. It was about employment period, that trial period there. And they said, many consultants to small business owners believe that the probationary employment period, or the trial period, can be very useful to both entrepreneurs hoping to get a start up off the ground and to establish small business owners seeking to maintain or increase their current level of success.
This was in "Inc. Magazine." It makes sense, and I don't know why more people aren't taking advantage of that trial period.
-I'll tell you why. It's because when we were in middle school. Do you remember in middle school when they assigned you a group project?
CALEB TAYLOR: Sure.
-Or in college, where they were like, Caleb, you're going to a group project with Trevor and Ed. You remember that?
CALEB TAYLOR: Yeah.
-And like, Trevor, it comes to the day, it's like the day that the report is due, and you call Trevor. Boop boop boop boop boop. Trevor? And he's like, ah, I hadn't got started yet. Did that ever happen to you?
-Yeah, yeah, yeah.
-Yeah. And you're told not to judge him because we need to work together as a team. We don't even want to judge anyone. We want to be there as a team. But I'll say, that's great. That's like a unicorn world. Meanwhile, over here in entrepreneurship, we got to get results done.
-And we do have to say, get off my team. Get off my team. Now, in college, you've got to say, we've got to work together, we need to be a team, we need to stick together through this. You're told, right now there's third graders out there who are not getting trophies at games. They're all getting medals. All the players are getting medals because no one wants to get a first place trophy. They all get something.
-They showed up. They showed up.
-They showed up.
-And what's happening is, we're getting this belief system that's taught to us that everybody has value, everybody needs-- everybody's somebody, somebody's everybody, everybody needs to be part of your team. Not true. They might be a great father, a great son, a great husband, a great wife, whatever, but they can't work for you. Your job is not to be a ministry. You're not a social welfare program. You need to cut base with people that are not delivering.
CALEB TAYLOR: Right. You always talk about how your business is a vehicle, a bus. If you have a flat tire, you're not just going to keep driving. You've got to switch it out.
-Yeah. And I was just saying, I personally was crazy guilty of this. I kept looking around and we had an employee who, the guy who was into the pot thing had another guy that he never showed up on time. Ever. And I'm not exaggerating. My wife literally would have to drive to his house at noon.
CALEB TAYLOR: What?
-Drove to his house at noon. You have to ask about this some time. She would drive to his house every day at noon. I say every day. Like four out of five days. And would have to wake him up.
-Yes. And then would have to remind him that he had a 1:00 appointment almost every day. But I never fired him because I thought, well, gosh, he's so good, and he's so talented, and maybe we can change him.
CALEB TAYLOR: Right.
-There's a lot of women I know, a lot of men I know who date people like, well, I can change them. In business, it's not the time to change people. We're not here to reform people and to help people become better people. We're here to deliver awesome value to our customer in exchange for awesome value to us.
CALEB TAYLOR: Right.
-And the customers aren't going to be patient with you. They're not going to stick around with you and say, well, even though your coffee tastes terrible or your product's bad, I'm going to be patient, because I know you're developing. No one's going to do that.
-So I would practically, this is something that's easy for us to implement, this trial period. But in order for the trial period to work, you've got to set up that large funnel. You have to always have people coming in, right?
-I've seen that with you. You're posting on all four of these sites, so each week, you've got a new interview.
-Post twice a week, every single week, so that when you build your team, you ultimately don't have a team that's weak.
-I mean, you've got to post twice a week, though. You've got to have that big funnel. That way, if anybody's not performing, you can always replace him. Now, I want to make sure you're hearing me here. You never fire anybody without them knowing what's going on. You never fire anybody without them knowing what's going on.
CALEB TAYLOR: Good.
-Everyone needs to know where they stand. So if an employee's not performing, you need to tell them. Hey, employee. You're not performing well, and I want to know, do you not know what to do. Have I not trained you? What's going on? And then you document it, and you warn them again, and you warn them again. And if they don't improve, then you fire.
CALEB TAYLOR: Right.
-You never, like, avoid being candid, and you never kind of keep the-- you don't talk bad about the person to others and then never say anything to them. You bring it up to them. So I think you saw, we had a guy that we hired a while back who just missed deadlines, after deadlines, after deadlines. We told him, and he's had an opportunity to improve.
But if I didn't say anything, it'd be bad to just one day fire him because he wasn't performing. You need to tell people they're not performing. Make sure that they know that they're missing the mark. It's not what you expect, it's what you accept.
-Right. That's good. Well, I hope that all these principles, you can apply immediately to your life. We've given you easy action steps here. And if you keep people coming through the door at a high number, you give them the trial period, see if they have that integrity, they catch the vision, then sign them up. If not, don't be afraid to cut them loose.