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The most common hiring mistake is to hire (and even fire) employees like buying (or upgrading) a smartphone or a car, mostly by looking at the specifications (i.e. CV) or brochure. However, most of the hiring and firing issues, when escalated beyond a limit, result in a problem which is entangled by HR policies and Employment Laws.
Therefore, with a view to avoid such situations, here are few best practices that follow a problem solving approach. To begin with, the hiring problem is not confined to either the employer or the employee. Rather, both sides of the fence suffer from issues related to hiring, firing, managing employees and creating a healthy ecosystem, specially in light of HR policies and employment laws.
In short, when such problem escalates, categorizing it as either a HR issue or a Legal issue becomes impossible. Therefore, it is always advisable to follow a problem solving approach, which is neither an HR policy nor any specific law, but a general approach aimed at creating a healthy hiring and employment culture within an organization. The first and foremost way is to keep yourself at employee’s place and analyze it by walking backwards, i.e. to see the things from employee’s perspective and ensuring that various aspects of hiring, HR management and firing are balanced. If anything looks unjustified from employee’s perspective, the same should be amended accordingly.
Another important factor for startup and growth stage companies is to consider hiring plan equivalent to the business plan, which implies that constant changes must be applied to the hiring plan as it is usually done in case of business plan. The key is to learn quickly and adapt the changes accordingly. While hiring, business owners or founders shall wear the thinking hat of the investor, i.e. To invest in the employees with a view to add value to the business. In case of early stage startups, equity should be wisely spent as currency while offering a package to the employee. It should be clearly understood that hiring is like betting, wherein losses are inevitable. As a strict precaution, too much equity shall not be allotted to a single employee and in case of unexpected performance, rapid firing of employee should be avoided. Rather, an appropriate time must be given to an employee to prove his worth. Having a hiring plan is not a process, but it is a pipeline by way of which founders sell their story to future employees, just like they sell it to investors. The job should be pitched to the prospective employees without any hidden condition (similar to hiring a vendor without any hidden fees) and the pitch shall clearly state the Mission of the company, present status, details of team members, failures experienced (and expected) along with the opportunities on offer. This helps employees to clearly foresee their role