Hostage to the Hire

The Entrepreneur’s Paradox: From Hiring Help to Becoming Their Hostage

Entrepreneurship is often romanticized as the path to freedom and control. However, many entrepreneurs find themselves trapped in a cycle of hiring employees who then become the ones calling the shots. This article explores the challenges of managing a growing business and how to shift the focus from employee control to profit generation. https://www.forbes.com/councils/forbesbusinesscouncil/2024/03/20/dont-let-a-talented-employee-hold-your-business-hostage

The Challenge: Working for Your Employees

Many entrepreneurs start their journeys with the dream of building a team to support their vision. Ironically, they often end up spending a significant amount of time managing day-to-day employee issues and chasing new hires. This constant state of “tenterhooks” creates a power imbalance where employees hold the leverage, emphasizing their own importance rather than recognizing the value the organization offers them.

This situation arises because entrepreneurs get bogged down in the weeds of HR tasks and firefighting instead of focusing on becoming effective leaders.

The Solution: Owning Your Management Skills

The first step to breaking free from this cycle is for the entrepreneur to acknowledge the need to improve their people management skills. Hiring the right people is crucial, but effective leadership is what empowers those people to contribute to the company’s success.

Profit: The Ultimate Measure

Entrepreneurs often get caught up in chasing buzzwords like innovation, brand creation, and technology. However, the true measure of an entrepreneur’s worth lies in their ability to generate profit. Profit is the tangible outcome of all the other efforts, the ultimate validation of a successful business.

Moving Beyond KRAs: Linking Employees to Profit

Focusing on KRAs (Key Result Areas), a popular management tool, can become an MBA jargon trap. Instead, entrepreneurs should establish 3–4 clear ways in which employees directly contribute to the company’s profit. This creates a sense of ownership and aligns individual goals with the overall objective of the organization.

The Call to Action

If you’re an entrepreneur struggling with employee management and want to learn more about linking employee productivity to company profit, reach out to the author at kunwersachdev@gmail.com