Situation: A CEO is pondering how to handle a difficult employee. This individual has brought in good business but is never satisfied with his level of pay – though he is highly paid. While he is good at bringing in new accounts, he doesn’t make the effort to grow them over time. How do you handle a difficult employee?

Advice from the CEOs:

• It is necessary to establish a mutual understanding with the employee that no matter the level of pay, the employee will think that it is too little. This reframes the discussion because it establishes that there is no win by paying the individual more. The unspoken part is “why bother?”
  • Given this reality, the maximum level of pay for the employee is $X.
  • Note that there is no negotiating power until once this is said it is acceptable to let the employee walk away.
• The CEO feels indebted to this individual because he has brought the company many new accounts. He is a good hunter. But the task now is not to hunt but to cultivate and grow the opportunities that that the company has in hand.
  • The issue is that this individual doesn’t build relationships that will grow business in his accounts.
  • He has done well for the company. The company has rewarded him handsomely. However, now a different talent is needed.
• What’s the best alternative for action, and how is this communicated to the staff?
  • Do not lay this individual off – terminate him for cause.
  • This individual has repeatedly been asked to act as a team member, but he has steadfastly refused to do this.
  • His attitude, while good for his own efforts, is bad for the company and is clearly counter to the desired culture.
  • He is better off in a situation that aligns with his talents and style.
• Terminating this individual for cause sends a critical message to the rest of the company – culture is important. You are determined to establish a healthy culture even it if means eliminating your best performer.
  • To those who ask, answer that this individual was treated fairly. Clear expectations were established, and ample opportunity was given to be a part of the culture that you are establishing.
  • Ultimately, the culture that you seek to establish – one that is good for the whole team, not just for star performers – was not right for this individual.
• Use this situation to relaunch a campaign to build a company culture of collaboration and best practice development between teams. With the elimination of this individual there may be new enthusiasm around this initiative.

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