If you run an organization long enough, you will eventually face a difficult reality: not every hire works out. Sometimes the problem is performance, sometimes attitude, and sometimes the organization itself has changed in ways that make a once-good fit no longer the right one.
Dealing with these situations is one of the most challenging parts of leadership. Handling them well requires judgment, fairness, and a willingness to address problems directly.
Over time, I developed a simple framework for thinking through these situations, grounded in doing what is best for both the organization and the person involved.
The Framework
The goal is not to react emotionally, but to approach the situation in a structured and thoughtful way.
While every situation is different and every problem is unique, there is a simple framework that helps me and I believe it will work for you. When dealing with problems involving an associate, I try to follow a simple framework:
- Understand the facts you have available.
- Consider the possible responses, evaluating the pros and cons of each alternative.
- Make the best decision you can with the information available.
Paul’s note: I often use the term “associate” rather than “employee.” In my experience, as a cultural philosophy, organizations function better when people feel they are contributing partners rather than simply workers taking instructions.
What are the facts?
The first step in dealing with any people issue is understanding the facts. Assumptions and emotions are dangerous, clarity matters.
Define what your issues are with the associate:
- Something they are doing at work.
- Something(s) they are doing away from work, such as behavior that damages the organization’s reputation, illegal activity, and/or conduct that affects workplace safety or trust.
- Something they are not doing at work or away from work (see above).
- Something they have said or are saying.
- The job that they are doing.
- The way they appear or dress.
- Their attitude at work, or towards their work, or towards their co-workers, and/or supervisors.
- The organization can no longer afford to keep the person.
- Or something as basic as they simply do not fit into the vision of the company, as the environment in which the organization exists has evolved.
As an organization grows, associates who were a “good fit” at one point may no longer be making the same level of contribution.
When determining the facts, consider:
- What is the associate’s current role in the company? Issues with a senior person will have a bigger impact on the organization than issues with a junior-level associate.
- How long have they been with the company? Tenure can have a dramatic financial impact if termination is considered.
- How much do they make? In difficult financial times, any organization that is looking for savings will automatically look at salaries as one of the areas of cost-cutting.
- How influential are they in the organization? The state of your culture and/or morale is always affected by anything that the organization does. You should not assume that a decision that affects one associate would not affect others, directly or indirectly. Every decision involving people sends a signal to the rest of the organization about what is acceptable and what is not.
- Is the associate open to conversation? Whenever an issue arises, preferably before it escalates, conversation should always be the first step in the process. Having a “carefully prepared for” conversation with an associate who is causing issues may be enough to resolve the issue without further escalation.
- What are the person’s skills, attitudes, and behaviors? Essentially, how valuable is this associate to the organization? Although as a company you should strive to treat everyone the same, the world is not black and white, only hundreds of shades of grey.
- In a world with very limited time and unlimited demands on that time, choices have to be made. Leaders have limited time. Sometimes difficult decisions must be made about where that time will have the greatest impact.
- How serious are the issues that you have with the associate? As with the above point, how much do the issues you have with the associate really affect you and your organization? Something minor that isn’t likely to get worse may not be worth the time to fix; however, something that could grow into a significant issue should be dealt with while it is still small.
The Alternatives
Consider the options for addressing the issue. The steps you can take include:
- Speak to the associate – Having a “carefully prepared for” conversation with the associate, one where you try to discuss the issue(s) at hand, should always be considered. You need to be as prepared to listen as you are to talk because the conversation could veer off and degenerate very quickly if either side is overly sensitive or defensive. Having a plan of questions to be asked will help keep you on track. Some deviation is acceptable; just remember why you are there. Avoiding this type of conversation will not solve anything.
- Do nothing – This seldom works and usually only makes things worse. Whatever the issues are, especially if you have multiple associates, your team will notice when a problem is ignored. In many cases, the team is already aware of the issues before management addresses them. The associate who is creating the issue is bad enough for your associates, but your perceived unwillingness to do anything now makes you look weak and untrustworthy. Morale and culture will suffer. A manager or owner earns their money by dealing with the difficult things that come up; anyone can run things that are running well.
- Terminate the associate – This may be overly harsh, particularly if you jump right to this step. Termination is not a “one-step solution.” Termination is a multi-step process that should take months and involves lots of conversation, documentation, and escalation.
- Get the associate to quit – DANGER, DANGER, DANGER. Having an agenda where you try to get an associate to leave by making their life difficult will only get you and your organization in trouble.
- Find a new role for the associate – Sometimes people fail because they are in the wrong role, not because they are bad associates. Working with an associate after having a conversation is a good solution because it shows that the partnership is working. They appreciate as much as you do that there are issues and are willing to figure out ways to help the organization grow and contribute in different ways.
- Be supportive – Sometimes the associate may decide to leave on their own because of these conversations, but unlike the previous point, it is their choice. Should an associate decide to do that, make sure that you are supportive of their decision, offer references, and time off for interviews if requested. As with any of these alternatives, make sure you document everything.
Make a decision
Eventually, every situation reaches the same point: a decision must be made. Avoiding that responsibility is itself a decision, and usually the wrong one.
- There are costs to everything, and these costs need to be carefully considered for each of the alternatives. Examine how this associate fits into your short, medium, and long-term goals for your organization. Examine the impacts on the organization in the worst-case scenario.
- It is quite likely that whatever you decide to do will have more than one step. My suggestion would be to start with a conversation and find out what your associate is thinking. If they are acting out of character, it is quite possible that something outside of work is bothering them.
Having associates who trust you and who are willing to talk to you is a very important component of running a successful organization. Making the time for someone is a huge factor in building trust and having your associates believe that you are interested in them. This doesn’t happen overnight; you must be genuine, and you must consistently do this.
- Understand that the results of your decision may not be popular, but as an owner or manager, you must do what is best for the organization, regardless of how difficult it is to do personally.
- Remember that you control the timing to a certain extent. You can certainly choose to advance or delay whatever decision you make while understanding that there will be costs and benefits depending on what you decide to do.
- Given the facts and alternatives that you have, make the best decision you can. YOU WILL MAKE MISTAKES, and usually it is impossible to go backwards. It is like downhill skiing; each time you turn one way or the other, opportunities present themselves, and others are lost to you. That’s just how it is. Try your best and then keep moving forward. Keep in mind another lesson taught to me by Doug Robbins: Once a decision has been made, you are allowed to self-correct. Always ask yourself:
- What did I do right?
- What did I do wrong?
- And then, what would I do differently next time?
At the end of this process, the leader must make a decision and accept responsibility for the consequences.
Leadership will always involve difficult decisions about people. Avoiding them is not leadership. Some situations will work out exactly as you hoped, and others will teach you lessons you did not expect. The important thing is not to avoid these situations, but to approach them thoughtfully, fairly, and with the long-term health of the organization in mind. Do the best you can with the information you have, treat people with respect, and keep moving forward.
Good luck,
Paul.