Hire Slowly, Fire Quickly - from Peter Thiel.
Never, ever make it easy to join your team. In fact, make it very hard to join your team. More talented people will respect this and be excited that it's hard to join your company. It is very important to A-level people that they work with other A-level people. Publicly letting the world know that you have a very difficult hiring process will generally attract more A-level people and will scare off B-level people and below - making your job that much easier.
In terms of firing, remember, if you have 10 people on your team and you have 1 bad team member it can affect your company in many ways - not just because they represent a significant percentage of your company’s work capacity.
- If they suck, then their work with suck.
- It will bum out all of the A-level people that they have to work with a B-level person.
- It will reduce your credibility with your people if you don't deal with it fast; often times it is painfully obvious to your team that one person needs to go well before you know it. Make sure you stay close to your super stars so that you can act quickly. Staying in touch with your people, acting quickly and acting decisively will improve morale and increase your reputation as a deserving leader.
- Firing quickly can often times dramatically improve morale and bring a renewed sense of confidence; I even got applause once for firing someone.
- This is a big one. If you have someone that needs to go and everyone knows it but you, or you don't act quickly, they may actually refer someone to become an employee and that person may actually get in. Chances are, if that happens, now you have two problems.