Manager: Hire Carefully, Fire Quickly

When I started Arcade, overnight I went from someone who had never hired anyone to constantly thinking about building high-performing teams. These are a few things that I've learned along the way. I believe that great people solve 80% of problems (and build great product and great revenue), and can significantly alter the trajectory of your company. The inverse is true: hiring the wrong people can cause damage that can take years to unwind. 𝟭. 𝗛𝗶𝗿𝗲 𝘀𝗹𝗼𝘄, 𝗳𝗶𝗿𝗲 𝗳𝗮𝘀𝘁: Being very thoughtful about WHO to hire is critical. Usually, a pain slowly emerges within the daily workflow. Solving the problem yourself is really important as a hiring manager. If you're also not doing the job frequently enough, it's a signal that it's not really a full-time role. For example, I did not hire our first sales rep until we were at $800k in ARR. Being fast to part ways is important to unwind any potential damage. While firing fast is never ideal - and should be avoided by putting in the upfront work during the interview process (see below) - there's only so much that you can learn until they're in the role. Usually, if you have questions after the first 90 days, and not improving after at least two rounds of feedback, then the person is likely not the right fit. 𝟮. 𝗕𝘂𝗶𝗹𝗱 𝗮 𝗿𝗶𝗴𝗼𝗿𝗼𝘂𝘀 𝘀𝗰𝗼𝗿𝗲𝗰𝗮𝗿𝗱: Write down the attributes and qualities of who you want to hire, and a rating system across each attribute for each interview. This needs to be super specific to the role, and interviewing the best of the best in this role can give great inputs into designing the scorecard. This also helps keep the bar high across the team and avoid changing your mind after meeting someone. 𝟯. 𝗣𝗮𝘆 𝗮𝘁𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝘁𝗼 𝗶𝗻𝘁𝘂𝗶𝘁𝗶𝗼𝗻: Some people are better at reading people than others. While interviewing, pay attention to every signal at the potential cost of over indexing - I've picked up on issues. Typos in emails? Not going to work. Late to interviews? If they're late to interviews, why would they be on time in the role? Rude to the waiter during lunch? Matter of time before they will treat your team the same. Blaming everyone else but themselves for past mistakes? They'll likely say the same about you when the next challenge comes. If there's a doubt about a person, don't hire. 𝟰. 𝗜𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗼𝗻𝗯𝗼𝗮𝗿𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗰𝗹𝗲𝗮𝗿 𝗴𝗼𝗮𝗹𝘀: This step is glossed over too often, but if you bring in top 1% talent and don't give them context or upfront education, they are not set up to succeed. Studies have shown that rigorous and thoughtful onboarding can extend retention by 2x. I've learned a lot over the years and believe that learning to hire well is one of the most, if not the most, critical part of team building.

This was the most requested action with our company's anonymous peer reviews. But doing it has the potential to backfire. It's hiring. For annual reviews at GoWild, we asked "How can we better support this person?" A common answer was "hire help." It's natural to think that putting more bodies on a problem will help. It's not always the case—and it comes with risk. I was recently chatting with a friend and it was a reminder on how wrong it can go. His company hired a new employee and it's crushing their entire team. The new hire is insufferably bad and it's gotten to the point where they're not only impacting the new hire's role, it's impacting every department. The new hire is begging for help, drowning in responsibility. Other employees are left with the choice of letting them drown, or trying to help because they love the company and their mission. The new hire is toxic, though, with a really bad and entitled attitude. It's quickly caused a riff among the team, and long tenured employees are considering their own departure. Tasks are being ignored. Work is piling up. Output is suffering. This took just a few weeks. It's why I believe in hiring slow and firing fast. HIRE SLOW 🐢 Take time to make sure a new role is the right answer. For startups, adding a salary is a big decision. I generally lean on contractors first before committing to FT. Sometimes a better process can create enough capacity in a department that you realize you don't even need to hire. And sometimes, with proper evaluation, you determine you don't need those tasks completed at all—they were the wrong priority. FIRE FAST 🐇 When you hire a person, throw everything at a proper onboarding. Teach them about the culture and tasks at hand. For most roles, you should be feeling some impact in a month. If you still aren't seeing impact by 90 days in, it's time to cut bait. This sounds brutal to people who have never been in leadership, but if you don't meticulously operate with this mentality, you can end up with at best a bunch of C & B players (vs. the A players you meant to hire) who may be likable people but just not the caliber you need. And at worst, you get one toxic person, and regardless of their skill, they poison the well. Bad attitudes are like spilling oil in your water source—it spreads quickly & is difficult to remove. When you realize you have a toxic oil leak in your culture, you have to cut it off at the source for the sake of your team. Your team will not see this as aggressive. They'll admire you for it. These moves earn A+ player loyalty because they see you're committed to fostering the culture that retains them. The flip side? It's best for the person being fired, too. Keeping them in a job where they can't hack it, and giving them hope they'll figure it out isn't fair to them either. Knowing when to hire—and fire—is a tough leadership lesson. Screwing it up has a sweeping impact on many lives. Sincerely, A guy who's been fired

Run Your Business with Systems, Not Emotions. One of the fastest ways to stay stuck as a CEO? Managing based on your feelings instead of a system. I’ve been there—and I see it all the time. If you want to get out of reaction mode and actually build something that runs without you, here’s where to start (no fancy consultant needed): 1️⃣ Systemize FIRST. Before you hire anyone, get the process out of your head and into a system. If you hire without a clear system, you’ll build the role around the person… and that never works. → Write out exactly what the role does, what success looks like, and what tools are needed. Only then are you ready to hire. 2️⃣ Right Person, Right Seat. Don’t hire just because you “like” someone or you’re desperate for help. Hire based on alignment—skills, mindset, values—and make sure they fit the role you’ve already built (not the other way around). 3️⃣ Fire Fast (Kindly). If it’s not working, rip the Band-Aid off. Keeping someone who isn’t a fit is a tax on your business, your sanity, and your good team members who have to pick up the slack. Bless and release. Move forward. ⸻ These sound simple, but this is what separates stuck operators from true CEOs. ✅ Build the system first. ✅ Hire the right people. ✅ Let go quickly (and kindly) when it’s not working. What’s been your biggest challenge with stepping out of daily operations? Drop a comment—I’d love to hear it. #Leadership #BusinessGrowth #Scaling #CEO #Operations #Hiring #LeadershipDevelopment #SmallBusiness #Entrepreneurship

I was trembling, stomach twisted - I had to lay someone off for the first time. He was such a great guy with so much potential, but he just wasn't delivering what we needed. I felt extra torn because the number one thing people appreciate about working at Mighty Digits is how much we care about them. How am I supposed to tell a man with a wife, 3 children, and a mother-in-law that he's losing his primary income? This moment shaped my journey as a business owner and taught me how vital it is to let someone go when they aren't performing. For a long time, I didn't know how or understand why. ➡️ I HAD IT COMPLETELY BACKWARDS "Hire Slow, Fire Fast" was the mantra I heard everywhere. But that didn't make sense to me. When you fire someone, you disrupt their livelihood and affect their family's financial situation. So my approach was the opposite: "Hire fast, Fire slow." Show employees you have a spine by treating them well, and they'll give you more output and dedication. Until I realized I had it completely reversed. ➡️ WHY QUICK ACTION IS ESSENTIAL Someone told me: "You're not just hurting the underperformer by keeping them - you're hurting everyone else on the team." At first, I didn't resonate with that. But after letting a few people go, I finally understood. You're not the only person who works with an underperformer. Your entire staff is exposed to their work. Pairing an underperformer with an amazing performer adds pressure and workload to the performer, leaving them frustrated and at risk of leaving. You not only have someone underperforming - you diminish the well-being of your best people. ➡️ HOW TO FIRE THE RIGHT WAY I learned you can act quickly without burning bridges or destroying culture: — Give ample feedback and notice before taking action — Put them on a Performance Improvement Plan as a last resort — Offer reasonable severance with a separation agreement — Tell them they're better off somewhere else (usually true) — Offer to provide a recommendation focusing on their good qualities When you don't fire correctly, it can be one of your worst mistakes as a business owner. Between hits to company culture, lawsuits, and disgruntled employees, treating someone unfairly creates incentives for retaliation. ➡️ THE BALANCE It's a healthy sign when organizations let people go each year. Companies constantly evolve, and not everyone remains a good fit. But it's important to show staff you don't see them as just output machines - you appreciate them and invest in them. How you demonstrate that balance makes the biggest difference. === To me, learning to fire properly was one of the hardest but most important leadership lessons. You can protect your team's well-being while still treating departing employees with respect. What's your experience with letting someone go? Have you ever had to fire someone? Share your thoughts below 👇

I made my first hire in in 2020. 25+ hires later, I’ve learned the do’s and dont’s of hiring. Here’s everything I wish I knew before building my team: First, hiring takes an incredible amount of trust! When you’re building something from the ground up, it feels like your baby. You worry if others will care about it as much as you do. But you can’t grow without people. Learned this the hard way! Now, onto the more practical aspects of hiring: 1. Don’t rush into W2 hires. We made this mistake. Within 30 days, we knew a new hire wasn’t going to work. When this happens, you often unfortunately have to let them go and start a new search, which can get pretty expensive. Instead, start on a contract basis (1099), and evaluate your working relationship after a while. If the person meshes well with your team, that’s great. Consider the FTE promotion. If not, parting ways is easier, faster, and cheaper. Win-win. 2. Set a probationary period for full-time hires. No less than 90 days. Communicate this upfront. You want new hires bought in and understanding of how you’ll work together. We’re not here to instill a bunch of fear into new hires, but setting this up for their first ~3 months on the job will save you a lot of headaches down the line. 3. Fire fast when it’s not working. We didn’t and paid the price. Just because you gave it 3 months doesn’t mean you give it another 6, hoping for a change. There are special cases, but a lot of times, you’re hoping for something that won’t happen. 4. Don’t hire based on lukewarm recommendations. Again, we’ve made this mistake. The candidate unfortunately resigned 8 weeks into their role. If you’re hiring based off recs—which is fine—make sure they’re glowing, or don’t hire at all. 5. Don’t limit yourself to one location. Hire overseas contractors. Great talent is available at 1/3rd of the price. Not every role makes sense for this, but many do. Hiring is like playing a sport: ➜ 0-1: You're the player, coach, and even the waterboy. ➜ 1-10: You play a bit, but coach more. ➜ 10-100: You’re the GM overseeing the game. Hiring isn’t easy, but I hope these tips help you out. What’s the worst hiring advice you’ve ever heard?

I made a big mistake in hiring. And it cost me more than just time. As entrepreneurs, we’re wired to solve problems. You see the potential. You work around the issues. You believe you can fix it. That mindset helps in business— But it kills you in hiring. I brought someone into Pro Capital Wealth Management who I thought just needed a chance. Turns out, he was lazy. Skipped out early. Lied. Didn’t push the business forward. I had to audit everything he touched. Then clean it all up. The biggest lesson? You can’t fix people. Not in business. Not in life. Not in hiring. People are either wired to work hard, be coachable, and solve problems… Or they’re not. So now? We do it differently. We use tools like CliftonStrengths and Kolbe to gauge fit. We require a video submission—because how someone presents themselves matters. (One applicant literally filmed their video… from bed. Pajamas. Sheets. Full brag mode. Wild.) We slow it down. We watch. We wait. Because the harvest is plentiful—but the laborers are few. And the few we’ve hired? Black swans. Thoroughbreds. The kind of people who raise the standard for everyone around them. The right people don’t just do the job. They protect the culture. They multiply your impact. They increase the respect your business earns. Hire slow. Fire fast. Get culture right—or you’ll get everything else wrong. #wealth #entrepreneur #hiring #employees

I’ve hired too fast. I’ve fired too slow. And I’ve paid the price for both. Everyone says “hire slow, fire fast.” But let’s be real—very few actually do it. It’s hard. It’s uncomfortable. It feels counterintuitive when you’re trying to grow fast. Here’s what “hire slow” really looks like in the trenches: Wait until the wheels are falling off. Wait until your team is stretched so thin they’re yelling for help. Wait until the pain is so real, it’s costing you money and momentum. Only then should you add to the team. Because otherwise, you’re hiring out of convenience, not necessity. And “fire fast”? It means as soon as you know—you act. You don’t overanalyze. You don’t justify. You don’t drag it out. You trust your gut. If someone isn’t rowing the boat with you, they’re rowing against you. Even if it’s just a little. That resistance adds up—and it spreads. And when it’s time to part ways? Do it with dignity. Be honest. Tell them: “You’re a great person. You have real strengths. But this isn’t the right boat for you.” Because somewhere else, there is a better fit. But keeping the wrong person around helps no one—not them, not your team, and not the mission. Lesson learned (the hard way): Great teams are built through discipline, not desperation.

“Hire slow and fire fast” & The mistake that cost us a ton. In the early days of ColdIQ - me and Michel Lieben 🧠 did a lot of hiring mistakes. Making hiring mistakes is extremely costly for a business so we had to revamp our entire hiring process. The team we built is the biggest reason for our success at ColdIQ. We have insanely high standards. And our #1 priority is to keep our talent density extremely high. I’ve learned that you can’t surround top performers with a bunch of average, less talented employees. They would always prefer to work amongst other A players. That’s because A players don’t tolerate B player’s work output. It’s extremely demotivating for them. So, if you see someone who is really not on par with the rest of the team, you sometimes need to be ruthless in letting them go. Because if you don’t, you’ll be taking the average level of performance down. And when that starts to tank, your top-notch employees’ performance will start to diminish as well. They’ll have no reason to try their hardest to produce results when they see that average is being accepted. There’s no doubt that taking your time to hire the best of the best will slow you down in the short term. However, in the long run, it is extremely worth it and will benefit the company a ton. If you have a team full of aces who all motivate each other to do better, you’ll be shocked by the quality of work and the speed at which you start to scale. What’s your take on this?

I made a huge mistake with my first sales hire. She was bringing in over $1M in revenue. The company was two years old. We were finally growing. She was a closer The clients loved her She brought new leads The only problem. She was toxic: Belittled team members Raised her voice Controlling Her overbearing personality dominated the entire office. Her team started: Quitting Gossiping Complaining Soon, the entire company began to resent me. The effects of a toxic employee can be costly: Expensive to manage Great employees leave Time wasted on conflicts In six weeks, she destroyed the culture we worked two years to build. I knew I had to fire her. I waited too long to do it. There’s a reason they say, “hire slow, fire fast.” Losing money is a lot easier than losing trust. Have you ever worked with someone toxic? ♻️Repost if you found this helpful. I founded and successfully exited two staffing companies over the last 37 years, now I’m helping CEOs solve the skill gap and grow their middle managers. Follow Cathryn Baker for insights and inspiration.