Latest / Hiring & Firing with Fexingo: Recruitment, Performance, and Workforce Decisions / The Case for Firing Faster
Transcript
- Lucas: There's a piece of conventional wisdom in hiring that everyone loves to repeat: hire slow, fire fast. But the truth is, most of us are pretty good at the first part and terrible at the second. Luna: I think we've all been on the receiving end of that — a manager who waits months, sometimes years, to make a call on someone who clearly isn't working out. Lucas: Exactly. And the data backs that up. A study from the Society for Human Resource Management found that the average cost of a bad hire can be up to 30 percent of that employee's first-year salary. But I think that number actually undersells the real damage. Luna: Because it doesn't capture the team impact. The drag on morale, the extra work everyone else has to pick up, the cultural spillover. Lucas: Right. There's a concept called the 'cultural tax.' One person who's a poor fit — not malicious, just misaligned — can lower the performance of everyone around them by 10 to 20 percent. Multiply that across a team of ten over six months, and you're looking at a productivity loss that dwarfs the direct costs. Luna: So why do managers wait? Is it fear of confrontation? Hope that things will magically improve? Lucas: A mix of things. The number one reason I've seen is something called the 'sunk cost fallacy of hiring.' You've already invested weeks in interviewing, maybe paid a recruiter fee, spent time onboarding. Letting someone go feels like admitting that investment was wasted. So you double down. Luna: But that's exactly when you should cut your losses. The longer you wait, the more you dig the hole deeper. Lucas: There's a company I've been following, a fintech called Brex, that implemented something they call the 'Three-Week Rule.' Basically, during the first three weeks of a new hire's tenure, any manager can decide to terminate with no questions asked, no performance improvement plan, no red tape. Luna: That seems incredibly aggressive. Three weeks is barely enough time to learn the coffee machine. Lucas: It is fast. But the logic is that within three weeks, you can tell if there's a fundamental mismatch in values, work ethic, or basic competence. The things that are hardest to change. Skills can be taught; attitude and alignment are much harder to fix. Luna: So what's the success rate? Do they actually use that rule, or is it just a theoretical policy? Lucas: The founder shared in an interview that roughly 5 percent of new hires are let go under that rule. But the more interesting statistic is that managers who use it report higher overall team satisfaction and lower turnover among existing employees. The team knows that poor fits get dealt with quickly. Luna: I can see that. Nothing saps morale faster than watching someone coast while everyone else works twice as hard to compensate. Lucas: And the flip side is also true. When you fire someone who's not working out, the team often breathes a sigh of relief. They were already factoring that person's underperformance into their own workload. Removing that drag can actually boost productivity immediately. Luna: But let's talk about the risk: wrongful termination lawsuits. In a lot of places, at-will employment means you can fire someone for any reason that's not discriminatory. But the three-week window feels like it could get messy if the person claims they were fired for a protected reason. Lucas: That's a real concern, and any company using a fast-track policy needs to document decisions carefully. But the key is that the policy is applied uniformly, and the reason for termination is simply 'not a fit.' You're not making performance claims that require a paper trail. It's a probationary period, essentially. Luna: So it's like an extended interview. The first few weeks are really part of the selection process. Lucas: Exactly. And look, I'm not saying every company should adopt a three-week rule. But I think the principle — fire faster than you're comfortable with — is broadly applicable. The typical manager waits three to six months longer than they should before making a termination decision. Luna: Because they want to be fair. They want to give the person a real chance. But at some point, fairness to the team outweighs fairness to the individual. Lucas: I'd frame it differently. I think the fairest thing you can do for someone who's genuinely a bad fit is to let them go early, with a clean break, so they can find a role where they'll thrive. Keeping them in a job they're failing at isn't kind — it's cruel. And it wastes their time. Luna: That's a good point. There's this idea that firing is always a negative event, but it can be a liberation for both sides. I've known people who were fired and later said it was the best thing that ever happened to their career. Lucas: Exactly. So let's get practical. When should you fire? I'd say there are three clear signals. One: the person consistently misses deadlines or produces work that requires significant rework, even after clear feedback. Two: their presence lowers team energy — people avoid working with them, or meetings get tense. Three: they show a pattern of blaming others or deflecting responsibility. Luna: And if you see one or more of those within the first 90 days, that's a strong indicator that it's not going to get better. Lucas: Right. And the research backs that up. A study from Leadership IQ found that 46 percent of new hires fail within 18 months, and the top reason isn't technical skill — it's coachability, emotional intelligence, and motivation. Those are traits that reveal themselves quickly. Luna: So what's the right way to do it? If a manager decides to fire someone, how should they approach the conversation? Lucas: First, do it in person, in a private space. Keep the meeting short — no more than 15 minutes. State the decision clearly and directly: 'We've decided to end your employment effective today.' Don't get drawn into a debate about whether the decision is fair. It's not a negotiation. Luna: And then explain the practical next steps: severance, benefits, how to return equipment, any outplacement support. Lucas: Exactly. And then listen. The person may have questions or need to vent. But don't change the outcome. One of the worst things a manager can do is say, 'I'll think about it' and then drag the process out for another week. Luna: I've seen that happen. It creates this awful limbo where the employee knows it's coming but has to keep coming to work. Lucas: And it's unfair to everyone. So my rule of thumb is this: if you've decided to fire someone, do it within 48 hours. Once the decision is made, delay only increases anxiety for you, the employee, and the team. Luna: Let's talk about the team after the firing. How do you handle the communication to the rest of the group? Lucas: Be honest but discreet. You don't need to share details of the person's performance or the reasons. A simple statement like, 'We've parted ways with. We wish them well. Here's how we'll cover their work in the interim.' That's enough. Luna: And then follow up individually with key team members who may be affected. They might have questions or concerns about their own workload. Lucas: Yes. And one more thing: don't badmouth the departed employee. It damages trust and makes everyone wonder what you'll say about them when they leave. Keep it professional. Luna: So the takeaway for managers is: be decisive, act early, and treat the person with dignity. But don't let the fear of a difficult conversation keep you from making the right call for the team. Lucas: Exactly. And if you're a manager listening, I'd encourage you to look at your current team. Is there someone you've been hoping will turn around for months? You probably already know the answer. Trust your gut, and act on it. Luna: I think that's a good place to leave it. Next time, we might dig into the flip side: how to avoid making the bad hire in the first place. There's a lot we can learn from how companies like Bridgewater do reference checks. Lucas: Love that idea. For now, the message is simple: hire slow, but when you realize you've made a mistake, fire faster than you think you should. Your team will thank you. Luna: Until next time.