In business school I was berated with the idea that bad apples spoil the bunch. That one employee could ruin an entire culture and the productivity that comes with it. (I listened to an episode of This American Life as part of a lecture, and although I enjoyed it thoroughly, the full value of it didn’t sink in for a few more years and I still have a long way to go.)
For most people seeing is believing, which is why I absolutely cannot ignore the bad apple theory – especially at times when I am working to scale a company.
I saw one individual drive down the productivity of a skilled and experienced team, increasing hourly wage costs by an average of 15% over a three month period compared to the previous year.
On top of all this, the morale of the team was absolutely crushed. Nobody was enjoying their work because a single individual was stirring the pot every day at every opportunity. They enjoyed getting other people riled up and undermining decisions.
We had hired this individual because we thought we needed the labour at the time. Looking back, we should have waited for the right individual, or fired them as soon as we realized what was going on (which was almost immediately). Instead, it stewed within an under-performing team for a full quarter.
We had turnover with other employees in that team at the end of the year, even after we gad fired the bad apple.
This was a blessing and a curse.
The curse is we had 2 remaining members (1 lead, 1 first-year employee). The blessing was it let us rebuild for the next year. We didn’t have to worry about the seeds of doubt being planted by the bad apple.
And we spent a lot of time hiring that year. We were more selective with our teams, vetting candidates we would have taken in previous years. It was a process, sometimes it felt like we had to take “somebody” to fill a spot, but this never proved to be entirely true. We could always find ways to get by, waiting to find the right fit.
We started searching earlier, but we also held out longer, waiting for the right people. We found them, trained them, gave them an incentive and because they were the right fit we saw performance levels better than any year prior (~30% wage reduction on through increased productivity).
But you don’t need to flip a team to get rid of a bad apple, you can save the bunch and a lot of time/effort/money if you act quickly.
There are two approaches you can take to this and both of them are effective for entirely different reasons. The first is to hold out in hiring, wait on candidates and sleep on decisions. The second is to hire whomever you want, while being prepared to terminate at the drop of a hat.
Either way, weed out the bad apples.