By Jennifer Leahy | HRTools.com Business Writer
Deciding whether or not to terminate a problematic employee is one of the toughest decisions managers face. Chronic poor performance and a bad attitude by one person can infect an entire office and wreak havoc if left unaddressed.
Termination is not the only answer.
Getting an employee back on track through retraining, reallocation or a decision-making leave can save thousands of dollars in costs related to the hiring, training and firing process and create a competent and dedicated employee.
“Often an employee develops bad habits and doesn’t realize what they are doing and how it affects the business,” says Randall Barker, a certified employment law specialist (CELS).
The first step in the process of attempting to retain an employee is to have an objective conversation about where the employee is failing and identifying what may be impeding his or her success. Drafting a plan for improvement with the employee not only specifies the problems but can also serve as proof that termination was justified at a later date if needed.
“Managers need to be explicit about expectations and the bar for performance, explicit about how the employee is falling short and explicit about the consequences for continued poor performance. Honesty and straight forwardness is the key every time,” says Alison Green, management consultant and author of the popular “Ask a Manager” blog.
Training an employee in areas needing improvement can often solve problems simply. A computer course or instruction from a colleague might provide the tools that the employee is lacking. Employees seldom are happy when they aren’t successful and are typically open to gaining skills that will lead to success.
Another option is to reallocate the employee to another position. Instead of trying to fit the proverbial square peg into a round hole, move the employee into a slot better suited to their skill set. Someone who cannot meet sales goals may have the personality and talent that would work well in another department. The person was hired because it was at one time determined that they were the best candidate. Tweaking the job to suit their talents or moving them to another position altogether may solve the problem.
Asking the employee to “take a break” in the form of a decision-making leave is another option for employers.
The leave, whether a few days or a week, paid or unpaid, is designed to give the employee time off to determine if they are willing to adhere to the company’s standards.
“Decision-making leave is an opportunity for some honest/blunt communication about what is perceived to be the employee’s short comings and an opportunity for the employee to change and stay employed,” says Barker, who has managed more than 80 U.S. Equal Employment Opportunity Commission (EEOC) claims for employers. “If done right it demonstrates that the company cares enough to offer a ‘life line’ if the employee wants to grab it.”
Even if the employee is ultimately terminated, the leave serves as proof that the employee was sanctioned. It also protects the employer against an unemployment claim.
“Employers need to realize that if they are not terminating in a way that helps them avoid unemployment insurance (UI) benefits that when their UI rate goes up the tax increase is for the applicable/taxable wages for all of their employees. For some organizations, just a bump of a couple of tenths of a percent can end up being thousands and thousands of additional tax cost to the bottom line,” Barker says.
Still unsure if termination is the best option for your problem employee?
Green has a test that can help you decide.
If you had a red button in front of you and could replace the employee with just a push would you? If the person resigned would you feel relieved?
“If the answer to these questions is ‘yes,’ it's time to deal with the problem, no matter how hard it may be,” Green says.
Legal Disclaimer
The information contained in this document is for general, informational purposes only and is not intended to be legal advice. This information is not a substitute for the guidance of a professional and should not be relied upon in reference to any specific situation without first seeking the advice of a qualified HR professional and/or legal counsel regarding applicable federal, state or local laws. HRTools, Insperity and their respective employees make no warranties, express or implied, and make no judgments regarding the accuracy of this content and/or its applicability to a specific situation. A reference or link to another website is not an endorsement of that site or service.