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May 2012 – Vol. 35 No. 5

Daily Deposit
NextGen Know-How: Problem Employees
October 2010 – Vol: 33 No. 10
by Laurie J. Maddalena, MBA, CPCC, PHR

Nine strategies for dealing with poor performers

Credit Union Management’s online-only “NextGen Know-How” column runs the second Wednesday of every month.

The first time I had to deal with a poor performer as a manager I panicked. I was nervous for days, internalizing the issue and rehearsing in my head how the interaction would go. I feared the employee would hate me and, since I was a new manager, I really wanted to be liked by the employees. I put off the interaction for a week, and realized things weren’t getting better; they were getting worse. The employee was taking advantage, and I was letting her.

One of the most common remarks I hear from managers in organizations is that they dislike dealing with poor-performing employees. After all, poor performers just add more stress, time and responsibility to your job—time that is already limited. It would be much easier if employees always met expectations and performed exceptionally. But at some point in your management career, you will be faced with managing a poor performer. And it doesn’t have to be a difficult or unpleasant experience. You can manage the situation in a positive, principled way and learn to take the emotions out of it.

Many managers, whether seasoned vice presidents or new supervisors, approach poor performers by avoiding the situation and hoping it will go away. This approach almost always yields the opposite result—the situation rarely improves and usually just gets worse.

Most importantly, the longer you let the situation go, the more likely it will affect the team and frustrate your great employees. Confronting the situation early on sets a tone with all employees and garners respect. Employees want to do a good job for managers who they respect. Leaders who only aim to be liked are often taken advantage of. Your job as a leader is to set clear expectations and coach employees to success. If you have a poor performer whose performance won’t improve, you as the leader need to confront the problem rather than let it go.

Most employees really want to do a good job. There may be many factors influencing their behavior. When approached early and encouragingly, most employees will work hard to make the necessary improvements.

Below are nine strategies for managing poor-performing employees in a positive, principled way:

Shift your mindset. Dealing with poor performers can feel like a negative experience. By shifting your mindset, you can deal with the situation in a way that is best for both sides. As a leader, one of your roles is to help move employees toward success. Rather than think about “confronting” an employee, think of it as helping the employee to learn and grow. View your role as coaching the employee from unsatisfactory performance to great performance. If you avoid the issue, you are actually hurting the employee’s growth opportunities. By shifting your mindset, you can take the negative emotion out of the situation and approach it from a productive, positive standpoint.

Set the tone. By approaching issues in the beginning stages, you set the tone for what behavior is acceptable. Employees will actually respect you more for taking a stance and will be less likely to take advantage of you. Letting problems linger will only create more issues for you and frustrate your high-performing employees. By dealing with concerns in a timely manner, you will actually decrease performance problems in your department.

Hold regular coaching meetings. Make sure you are meeting with all employees regularly to provide feedback and support. Employees who feel their managers care about their growth and development are less likely to have performance problems. Use these meetings to set clear expectations and deadlines and to offer support and encouragement.

Don’t delay. If you start to see an employee’s performance slip, approach the employee right away in a casual manner. Become curious and ask questions to gather information. For example, “I noticed you’ve been late three times this week; is everything OK?” This approach not only acknowledges to the employee that you noticed the change in performance, but is more casual and less likely to put the employee on the defensive. Taking this approach will often resolve the issue in the beginning stages so no further action is needed.

Set clear goals and expectations. This sounds cliché, but in my experience working with leaders, I find that most managers think they are setting clear expectations, but it is often not the case. A disconnect often happens because the manager is so busy, that she doesn’t always take the time to explicitly communicate expectations or priorities. Employees often don’t understand the organizational goals and what part they play in achieving them. Make sure you regularly discuss expectations and deadlines and offer support and guidance.

Focus on performance.
When meeting with an employee, focus on behavior and performance rather than the employee. Instead of saying, “You are a poor performer and things need to change,” focus on the behavior. Say something like, “I noticed you have been late four times in the past week.” Employees are less defensive and more open to discussing their challenges when you focus on behaviors.

Reward small improvements.
Many managers will only recognize dramatic improvements in performance. However, studies show that the more you recognize small improvements, the more likely the employee is to repeat the positive behavior.

For example, if you spoke with an employee about being late four times a week, and the next week he is late twice, that’s a 50 percent improvement. It may not be perfect, but it’s a step in the right direction. Acknowledge the employee by saying you noticed he’s been on time three times this week, and to keep it up. It may sound counterintuitive, but recognizing the small improvements reinforces positive behaviors.

Approach the situation with an open mind. Don’t assume you know the reasons behind the decline in performance. Approach the meeting with an open mind and ask questions to gain clarity. Use phrases like “I’ve noticed” or “I’m concerned.” Don’t start the meeting by giving the employee the riot act or giving a list of things to improve. Think about the result you want from the interaction; you want to provide the employee feedback so she can improve her performance. Start the dialog by asking questions and remaining curious. The employee will be more open and willing to share. For example, say something like, “I’ve noticed you’ve called out sick three times in the past two weeks. Is everything OK?” You never know what could be going on with the employee, so give her a chance to explain.

Develop solutions together. Once you’ve discussed the performance issues, ask the employee what suggestions she has for improving her performance. By getting her involved in the process, you will have a better chance of gaining her buy-in. Offer some of your suggestions and keep the dialog going. After you have developed solutions, let the employee know you have confidence that she can improve and ask for her commitment. Simply saying, “Can I count on you to make these changes?” reinforces the discussion and what improvements need to be made. Thank the employee and offer your support.

Following these steps doesn’t mean you won’t ever have to terminate a staff member’s employment. However, if you address issues in the beginning stages, you will see performance issues decrease and will be less likely to get to termination. This saves you and the credit union time and money.

Laurie J. Maddalena, MBA, CPCC, PHR, is a certified executive coach, consultant and founder of Envision Excellence, LLC, Rockville, Md. She was also an HR executive at a $450 million credit union. Contact her at 240.605.7940 or lmaddalena@envisionexcellence.net.