It's a New Year - Review your Employees

This is another in a series of articles on Running a Profitable Company from Eliot Cobb

At the beginning of each year, take a good look at all of your employees. Who is really necessary for running your business? Maybe you have a few people that don't add value. If so, you need to deal with those employees as if you are Re-Hiring them. By this I mean, pretend that you have just hired them. Go over expectations with them. Put them on a probation program…….give them 30 to 90 days and review their progress along the way. Look for ways to praise them if they do something commendable. People generally respond to praise rather than criticism. Maybe they just need some additional training, or perhaps some mentoring. Try to inspire them in some way. Every person wants to excel in some manner. Get to know that person, and figure out what will inspire the problem employee to perform better.

IMPORTANT: Do something! Reviewing employees, but NOT taking action, where needed -- is just a waste of time!!

If it is clear that the employee can not satisfy the requirements of the job, make a clear break with the past. Either offer them a job that they can do effectively, or, put them on a path towards termination. A CEO that is serious about becoming profitable will make the hard choices when it comes to people.

If Uncle Joe, in the corner office, has not contributed in many years, you need to eliminate his position. Keeping a family member on when they aren’t doing the job, costs the company valuable resources that could be used elsewhere. It also sends a bad message to the employees…….that being “I favor certain people – non-family employees have to work hard, but a family member doesn’t”. Everyone in a company wants to see fairness applied in all situations.

Summary: At the beggining of the year, take a look at your employees and deal with those that need to perform better. Employees that don't perform will drag down your profits. Make the hard choices. Deal with employee issues NOW, not six months from now!



By: Eliot Cobb

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Eliot Cobb, is a former CFO with several companies and has broad experience with turnaround situations. He is a also a Co-Founder of eBags.com, the largest supplier of luggage and bags on the Internet, and, a profitable company. He is currently CEO and Founder of hitspot.com, a new social network.