Dealing with Employee Performance Issues

As a manager, dealing with employee performance issues may be one of your most difficult yet important leadership responsibilities. Because it’s difficult, many managers put off taking action (or avoid it altogether) hoping that the issue will resolve itself or the employee will leave. This delay can have a negative effect on team morale, customer satisfaction and the success of the organization overall.

Difficult tasks become easier when you approach them with a plan or process.  Here’s a 5-step process  for addressing performance issues.

1. Set clear expectations. Be sure that you have clearly communicated your expectations to each of your employees. This includes expectations related to their job duties as well as attendance, behaviors, interactions with others, status reporting, attire (if applicable), etc.  These should be documented in the Employee Handbook and job description, but it’s also your responsibility to ensure that the employee understands them. Clearly defined expectations will support your actions when performance issues arise.
2. Document and discuss performance. Giving regular, productive feedback to both your good performers and problem performers is essential. When there’s a problem, address the issue head on. Review your expectations with the employee and ask for ideas about how he or she can improve. Document incidents relating to the issue(s), including date, time, description and impact. If it gets to the point where you have to let the employee go, it’s essential that you have clear and timely documentation to support the termination.
3. Explore and evaluate the cause. Poor performance may be rooted in any of a number of causes. Perhaps the employee has some personal issues that are affecting his or her work. Maybe there’s a new aspect to the position that requires additional training. Or maybe the employee was just a bad hire.  It’s important that you have a discussion with the employee to identify the cause, and then determine the appropriate course of action.
4. Develop a plan. Once you’ve clearly conveyed to the employee that there’s an issue and have reviewed your expectations, it’s time to develop a plan.  The plan or PIP (Performance Improvement Plan) should be in writing and be focused on specific, sustained improvement. It should identify a time period for the initial improvement (typically 30 days) and state the consequences if improvement is not made and sustained.  Be sure to ask the employee for input on what he or she will do to improve. The employee needs to make the commitment. It’s also a good idea to set up checkpoints within the time period of the plan, for example, a weekly check-in during the 30-day period.
5. Take action. Once the plan is in place, be diligent about the periodic check-ins and ongoing feedback. Continue to document. Provide the appropriate praise and encouragement when you see improvements.

Of course, the optimal outcome is if you can turn the employee around and he or she becomes a productive member of your team. But we all know that’s often not the case. If the employee cannot improve or is not willing to improve or was simply a bad hire, then the best action for you, the employee and your organization is to let the employee go.

Next time: Completing the Termination Checklist