Every business owner starts out with a vision of building a team that will take the business further than they could alone. The dream is simple. Hire good people, motivate them to perform well, and then step back while the business runs smoothly. The reality is usually very different.
Hiring, firing, managing and motivating often feels like trying to herd cats. Unlike cats, however, people talk back, make their own decisions and sometimes demand a pay rise at the least convenient moment. It is no surprise that many business owners describe people as the most challenging part of running a company.
The truth is that people can be both the greatest asset and the greatest liability. When you get it right, a reliable and motivated team gives you freedom, confidence and growth. When you get it wrong, your time is swallowed up by managing issues, your energy is drained and your profits are eroded.
Over the years, we have seen three consistent lessons that separate struggling teams from strong ones.
First, recruit slowly and with clarity. It is tempting to hire quickly in order to fill a gap, but the wrong hire costs far more than leaving the role vacant a little longer. Be clear about the role itself and about the culture of your business. Skills can be trained, but attitude and cultural fit are much harder to fix.
Second, never shy away from difficult conversations. Many owners hope that poor performance will improve by itself. It does not. Left unaddressed, it spreads through the team. High performers lose motivation when they see underperformance tolerated. Early, honest and respectful conversations save far more pain in the long run.
Third, recognise that motivation is never one size fits all. Some people thrive on financial rewards. Others value flexibility, recognition or opportunities to learn. Effective leaders take the time to understand what drives each individual and then tailor their approach accordingly.
People problems are not limited to recruitment or performance management. As businesses grow, communication becomes more complex, roles overlap and personalities sometimes clash. It is the responsibility of the owner or leadership team to create clarity. Every person should know what is expected of them, how their role contributes to the bigger picture and how success will be measured.
Many business owners expect their systems and strategy to carry the business forward. In reality, it is the people who breathe life into those systems and who execute that strategy. A brilliant plan will still fail if the team is disengaged or misaligned. Conversely, even an average plan can succeed with a motivated and committed team behind it.
Building and maintaining a reliable team takes effort, patience and consistency. The rewards, however, are significant. A strong team allows the owner to step back from the day to day and focus on leadership, innovation and growth. The business becomes more resilient, more enjoyable to run and far more valuable in the long term.
So here is the question to reflect on. What has been the most difficult people problem you have faced in your business, and how did you overcome it?
