Giving up on Employees Only Hurts Your Business

Sometimes it’s easy to give up on someone who hasn’t really been up to par lately. Sometimes, doing this can actually end up hurting your business. This article that TBM Payroll wanted to share with you comes from Entrepreneur.

Giving up on Employees Only Hurts Your Business

Over the years, I’ve seen a lot of bad management.

I’ve seen people leave a company and their manager says things like,”It wasn’t a big deal they left.” “We wanted them to leave.” “We managed them out.” “They weren’t a great performer.” I’ve seen managers give employees bad reviews without a clear plan for their recovery. I’ve seen managers give low bonuses to “send a message.” Then, their passive-aggressive behavior creates a self-fulfilling prophecy of failure — and fosters an environment where employees feel unsafe — resulting in low levels of productivity and a constant fear of “being next.”

Why does it matter? Job security, employee trust and an expectation for candid, constructive feedback are all at the top of what employees say they need to succeed. In fact, respectful treatment beats out compensation as a motivating factor.

A safe, candid environment doesn’t come from employees — it comes from leaders. While there is a time to let employees go, you’ll save time, resources and great people if you tackle communication problems first.

Don’t manage employees out. Help them grow into the employees you need.

Let’s say you have someone who’s underperforming. You could withhold bonuses, informally demote him or just manage him out. That does not fix the problem — either you’re stuck with someone who hates his job, or you’ve got an empty seat to fill. A better solution is to help that person grow to fit the role — you may be surprised how much some people are capable of changing.

Two foundational components to effective management of employee growth are 1. psychological safety and 2. candid feedback. You can think of them as soil and sunlight.

If you want someone to meet expectations, his baseline has to be feeling safe at work. That means freedom from passive-aggression and pointless punishment, but above all it means reciprocity. This person is working to help you look good and succeed — he has to know that you’re doing the same for him.

Safety through reciprocity also means giving honest feedback. I believe in radical candor; the basic idea is that you give people incredibly critical and direct feedback so they can improve, but you do it from a place of love, care and compassion. It may be hard for them to receive at first, however, they will see it’s coming from the right place, and in the long run, they will thank you.

You can’t have conversations with radical candor if you are not willing to do the difficult work of making people uncomfortable for their own benefit. Your impulse might be to avoid having hard conversations — don’t. Push through and be radically candid; it will be worth it. When your employees know that failure results in learning and growth — instead of punishment — they will feel safe to act, and the whole company benefits.

Safe employees are better employees

When you hire people, they are now “under your protection.” It’s your job to look out for them, keep them safe and make them the best person they can be.

Simon Sinek often talks about how great customer service can be traced back to the leaders — the ones making employees feel safe and protected. The Tempkin Group reports that companies that excel in customer experience have 1.5 times as many engaged employees compared to companies with a poor customer experience.

On the other hand, when employees do not feel safe, we see the exact lousy performance we are trying to avoid. They are more worried about doing something wrong (and getting in trouble) than doing what is right. Job insecurity strongly correlates to poor performance and more absenteeism.

Here’s my guide to the growth approach.

This style of management isn’t easy to practice. So here’s a checklist to take you through the process of helping your employees grow — or, if they’re ultimately unwilling, helping them exit the right way.

1. Be direct.

If you are annoyed or disappointed by something, take it head on. Calm yourself down, organize your thoughts, think of how you also have contributed to the issue and address it proactively. Take the person for lunch or coffee. Let her know that there’s a problem, but that your concern comes from a good place. Be clear that you will work to fix it — together.

2. Make your expectations clear.

Part of feeling safe is knowing where you stand. Whether you’re satisfied with or disappointed by the performance, let employees know specifically why, while making sure they know they are safe. If you don’t communicate your expectations, you can’t expect anyone to live up to them.

3. Have an open dialogue.

If your team never challenges your ideas or thinking, chances are they do not feel safe enough to do so. You’re setting the tone and standard for the team, but make sure your people know that their ideas are valued and, in fact, necessary for the success of your organization. Come to tough conversations with a game plan on fixing the problem, but be sure to make your team members part of the discussion.

4. Provide a parachute.

If they’re unable to accept the challenge of changing, provide them a safe way to exit with dignity, support and a generous severance. If you’ve fostered a trusting environment, then you can have this conversation openly rather than having the person “secretly” looking for a new job or letting it get to the point where you have to let them go more abruptly.

5. Avoid the sideshow.

Don’t drive a wedge between your staff. Don’t be part of the gossip. When people have issues with each other, get them in the room and talk it out. Do not allow yourself to be a part of negative conversations about other employees on or off the team.

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