A funny thing happens when people leave companies they didn’t like. They often carry the scars of rigid KPIs, clock-watching managers, or dysfunctional cultures and when they finally get to build something of their own, they go completely the other way.

It reminds me a lot of parenting. If someone grew up with strict or distant parents, they sometimes overcompensate with their own kids. They “kill with kindness,” and the end result isn’t balance it’s spoiled kids.

Business ownership can fall into the same trap. Leaders who hated micromanagement or rigid rules sometimes decide to throw structure out the window entirely. No KPIs. Endless holidays. Zero guardrails. It feels freeing at first, but in practice it creates chaos.

Start as you mean to finish

It’s much easier to start with clear parameters and loosen them over time than it is to tighten the reins later.

No KPIs doesn’t make sense. You don’t need to micromanage, but you do need measurements. Without them, you’ll spend your time firefighting instead of strategically building the business ,too much energy on BD when you should be delivering, or vice versa. KPIs are gauges, not shackles.

Commissions and incentives

The same principle applies to commissions. A “super competitive” structure looks great on paper, but if it only kicks in after $500k in billings, what’s the point? At the other end, a dollar-zero threshold might be a great sell for consultants, but are you really creating an environment where people push themselves?

Think about what you want to drive. 

• Want more new business? Give higher percentages for the first placement with a new client,
• Want to deepen existing client relationships? Create bonuses for repeat business or increased in spend.
• Candidate short markets – look at community, networks, referrals
  

Always consider your return on investment, and build consistency so you don’t end up making endless exceptions and keep commissions and salaries consistent

Benefits with purpose

It feels great to offer generous perks , wellness days, allowances, top-tier health benefits. But they should have a purpose. Better healthcare means peace of mind, which helps people focus. Flexi-time can be brilliant, wfh if it’s tied to outcomes. If not, it becomes a slow slide into four-day weeks. (* don’t make Friday your WFH day unless you actually want to run a four-day week.)

Spend where it counts

Spend on tech, training, and support that helps recruiters do their jobs better. Don’t bury them in clunky systems or over-engineering. In a candidate-short market, drive referrals, manage your database, track touchpoints, and reward the right behaviours.

Consistency beats overcorrection

In the end, building a business is a lot like raising kids. You can’t correct the mistakes of the past by swinging wildly in the opposite direction. Structure, fairness, and consistency will serve your people (and you) far better than knee-jerk generosity or “anti-corporate” reactions.

Start as you mean to finish.