As a business coach who works primarily with women business owners in Silicon Valley, I’ve long been aware of how women run their businesses slightly differently from men. And, it’s also clear that we could learn something from the “boy’s club.”
Hiring and firing are clearly areas that could use improvement. Here’s why:
Women entrepreneurs are more reluctant to hire employees. I’m not sure whether it’s an issue of control, although that’s an area I often find myself coaching. There’s a fear of taking a risk, that income will go down. Many women entrepreneurs in Silicon Valley run their businesses without a lot of cushion. Because they tend to finance their businesses with 2nd mortgages and credit cards, a financial mistake in business can make a big impact on their personal lives. They also hate to hire because they hate to fire.
They hire too fast and for the wrong reasons. In a recent article called “A Better Approach to Hiring,” Sara LaForest and Tony Kubica talk about the process of hiring and make good recommendations about due diligence on employment decisions. Basically, knowing how you want the person to fit into your organization, the skills he or she needs and something about their character will stand you in good stead. Feeling sorry for someone, a casual friendship or a need to hire someone quickly will not.
They fire too slowly. Women entrepreneurs know long before they get around to firing someone that it’s got to happen. Why don’t they fire quickly? They keep hoping something will change and they don’t have to confront the other person. Or, they’ll become passive-aggressive, thinking that if the person becomes miserable enough, they’ll leave. Don’t hesitate. When you know the person needs to be gone, contact your HR representative or consultant, and start the due diligence process.
These common actions by women entrepreneurs can cost company’s money. If your current employees can’t handle the business you’ve got, you have to hire if you want your company to grow. Hiring too fast means you’ve wasted money on someone you can’t keep. Firing too slowly means you’re spending money on an unproductive employee.
