Does the concept of ‘hire slow, fire fast’ work in Southeast Asia?
The adage ‘hire slow, fire fast’ has long been a guiding principle in Western business culture. It emphasises the importance of meticulous hiring to ensure a good cultural fit and high performance, while advocating for swift action when an employee isn’t meeting expectations.
But does this approach translate effectively to Southeast Asia, with its distinct cultural nuances and labour market dynamics? At its core, the ‘hire slow, fire fast’ strategy is about minimising the risks associated with bad hires.
According to a study by the Society for Human Resource Management (SHRM), the cost of a bad hire can range from 30% to 200% of the employee’s annual salary. This includes expenses related to recruiting, onboarding, training, lost productivity, and potential damage to company morale.
The ‘hire slow’ component emphasises thoroughness in the selection process. This includes multiple rounds of interviews, assessments, reference checks, and even trial periods. The goal is to ensure the candidate not only possesses the necessary skills but also aligns with the company’s culture and values.
On the other hand, the ‘fire fast’ aspect advocates for swift action when an employee underperforms or demonstrates a poor cultural fit. The rationale is to prevent the situation from escalating, impacting team dynamics, and incurring additional costs.
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The Southeast Asian perspective
Southeast Asia presents a complex and diverse business environment. While the region is experiencing rapid economic growth and modernisation, cultural factors and labour regulations play a significant role in shaping employment practices. Here are some of them:
Collectivism
Southeast Asian societies tend to prioritise group harmony and relationships over individual achievement. This can make swift terminations, even for performance reasons, challenging as it can be perceived as disruptive to the team’s cohesion.
Saving face
The concept of ‘saving face’ is deeply ingrained in Southeast Asian culture. It refers to protecting one’s social standing and reputation. Terminating an employee, especially publicly, can cause them to ‘lose face,’ which can have broader social ramifications.
Loyalty and long-term relationships
Employers and employees in Southeast Asia often value loyalty and long-term commitment. Frequent turnover can be seen as a sign of instability and can negatively impact a company’s employer brand reputation.
Skills shortage
Certain sectors in Southeast Asia face skills shortages, making it challenging to find qualified candidates. A ‘hire slow’ approach can be even more time-consuming in this context.
Regulatory frameworks
Labour laws in Southeast Asia vary across countries but generally offer more protection to employees compared to Western countries. Termination procedures can be complex and require valid reasons.
High-growth environment
Southeast Asia’s dynamic business landscape can lead to rapid changes in company needs and priorities. This can make it difficult to predict long-term fit during the hiring process.
Read More: How AI revolutionises recruitment in Southeast Asia
Will ‘hire slow, fire fast’ work in Southeast Asia?
While the ‘hire slow, fire fast’ philosophy might need some adjustments in Southeast Asia, the underlying principles remain relevant. It might be better to take the “hire slow, fire with compassion” approach. Here are some ways to do this:
Cultural fit assessment
Go beyond skills and experience. Incorporate cultural fit assessments to evaluate how well a candidate aligns with the company’s values and the team’s dynamics.
Network and referrals
Leverage personal networks and employee referrals to source candidates who are likely to be a good cultural fit.
Probationary periods
Implement probationary periods to assess performance and cultural fit in a real-world setting.
Clear communication
Set clear expectations during the hiring process and provide regular feedback during the probationary period.
Performance management
Implement a robust performance management system to identify and address performance issues early on.
Documentation
Document performance issues and provide opportunities for improvement before resorting to termination.
Constructive feedback
When termination is necessary, provide constructive feedback and support to help the employee transition.
Confidentiality
Handle terminations with discretion and respect for the employee's privacy.
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The generational factor in talent acquisition
No conversation about the ‘hire slow, fire fast’ concept in Southeast Asia would be complete without acknowledging the profound influence of Gen Z and Millennials, the youngest segments in the labour market.
These generations, who are rapidly becoming the driving force in the workforce, bring with them distinct expectations and priorities that are fundamentally reshaping the employment landscape.
As digital natives, Gen Z and Millennials have grown up in a world where technology is seamlessly integrated into every aspect of their lives. They are mostly purpose-driven – yearning for meaningful work that aligns with their values.
These characteristics have significant implications for the ‘hire slow, fire fast’ concept. To attract top Gen Z and Millennial talent, companies need to showcase their commitment to technology, purpose, feedback, and career development.
While the ‘hire slow, fire fast’ concept may have its merits in certain contexts, its effectiveness in Southeast Asia is challenged by the unique expectations and priorities of Gen Z and Millennials.
The ‘hire slow, fire fast’ mantra may need to evolve into a more nuanced approach that balances careful selection with ongoing investment in employee development and a commitment to creating a positive and fulfilling workplace.
In the end, the ‘hire slow, fire fast’ concept can be adapted and applied effectively in Southeast Asia, provided that companies take into account the region’s unique cultural nuances, demographics, and labour market dynamics.
By striking a balance between thoroughness in hiring and a sense of compassion in termination, companies can build high-performing teams and foster a positive work environment.
Remember: the key is to adapt the approach to the local context while staying true to the underlying principles of minimising risks and maximising productivity.