Frustrated Manager Dealing with a Bad Hire Situation

How to Handle a Bad Hire: A Step-by-Step Guide

You Made a Bad Hire — Now What?

Let’s just say it: hiring the wrong person stinks!

You spent time, energy, and probably a fair amount of budget getting someone in the door—and now it’s clear they’re not the right fit. Maybe it’s a skills mismatch, a cultural disconnect, or something more subtle like attitude or work ethic. Either way, you’re stuck with a problem no leader enjoys facing.

But here’s the thing: a bad hire isn’t the end of the world. In fact, it can be a valuable learning moment—if you handle it the right way.

Here’s a step-by-step guide to navigating this tricky situation.


Step 1: Get Clear on What’s Actually Going Wrong

Before jumping to conclusions, pause and assess. Is this really a “bad hire,” or is this a performance issue that can be fixed?

Ask yourself:

  • Is it a skills gap or a misunderstanding of expectations?

  • Are they a cultural mismatch, or just new and adjusting?

  • Is it a communication issue—or a motivation problem?

Get feedback from the team. Review specific examples. Try to separate emotions from facts.

Frustrated business leader reviewing a resume after a bad hire


Step 2: Own Your Part

Yes, the employee might be falling short—but hiring is a two-way street.

Were the job expectations crystal clear?
Did onboarding set them up for success?
Were there red flags during interviews you ignored?

Taking ownership doesn’t mean blaming yourself—it means seeing the system holistically so you can improve it next time.

Step-by-step process for resolving a bad hire situation


Step 3: Have the Tough Conversation

This is the moment a lot of leaders avoid—but you can’t fix what you’re not willing to talk about.

Have a direct, honest, and respectful conversation. Be specific. Use examples. Let them know what’s not working—and what needs to change.

Also: ask for their perspective. You might uncover issues you weren’t aware of (like unclear goals, lack of support, or misaligned expectations).

Sometimes, this conversation is enough to turn things around.

Manager giving honest feedback to an underperforming employee


Step 4: Give Them a Chance to Improve

If the conversation doesn’t lead to immediate progress, a Performance Improvement Plan (PIP) can help create structure and accountability.

What a good PIP includes:

  • Clear, measurable goals

  • A set timeframe

  • Regular check-ins

  • Support and resources to help them succeed

A PIP isn’t about punishment—it’s about clarity, opportunity, and fairness.

Visual representation of employee performance review data


Step 5: Know When to Let Go

Sometimes, despite your best efforts, it’s just not the right fit. That’s okay.

Dragging it out only makes things harder on everyone—your team, your client base, and the person in question.

If it’s time to part ways:

  • Be clear, kind, and respectful

  • Follow your internal HR process

  • Leave the door open for them to grow elsewhere

Ending a professional relationship doesn’t make them a bad person—it just means this role wasn’t the right one.

Manager and employee having a calm conversation about parting ways


Step 6: Reflect, Adjust, and Move Forward

Every hiring miss is a chance to improve your process.

What to ask yourself:

  • Should we update our interview questions?

  • Do we need better onboarding?

  • Are we screening for culture as much as we are for skills?

  • Can we add more voices to the hiring process?

Make it a learning moment. Then, use what you’ve learned to make the next hire a great one.

Whiteboard covered in hiring process notes and improvement ideas


Final Thought

You’re going to make hiring mistakes. Everyone does. But what defines strong leadership is what you do next.

Be honest. Be decisive. Be better next time.

Because hiring is one of the most important things you do as a leader—and every step you take to improve that process will pay dividends.

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