Situation: A CEO has several employees who report to a single manager but who are not performing to expectations. The manager is seeking the CEO’s assistance. When faced with a similar issue in the past, the CEO has turned up the pressure on an individual until he or she decided to leave on their own. Is this the best option? How can she resolve this situation and, at the same time, improve company morale? How do you handle underperforming employees?

Advice from the CEOs:

• Letting underperformers go sends a positive message to the rest of the team. It reinforces the message that a high level of performance is expected, and that a low performer won’t be allowed to penalize the overall performance of a team.
• There is a serious downside to just turning up pressure until an individual leaves.
  • Even low performers usually have friends among the staff.
  • Turning up the pressure on an individual without telling them why creates an impression of unfairness. “Why is Joe being asked to do all of this – particularly when it doesn’t look like he can handle the work?”
  • The most serious downside is that a high performer becomes fearful that the company may have the same “unfair” expectations of him.
• It is healthier to sit down with an underperformer and face the problem. This also reduces exposure to charges of discrimination.
  • Plan a meeting with the manager and each of the under-performing employees. In each meeting, tell the individual that specific areas of their performance are not up to company standards. Provide objective, measurable examples. Listen to the individual’s reaction.
  • Work with the manager to develop a program with each individual to assess whether they are willing to improve their performance over a specified time frame. Inform them that there will be a decision as to whether they will remain on the team at the end of the time period. Again, listen to their reaction.
  • If an individual does not respond positively and improve performance, it will be necessary to fire them. However, they have received fair warning and a fair chance to demonstrate that they can produce the expected performance.
  • If an individual isn’t interested in performing to company standards, the assessment period gives them time to look for another job.
• Because these individuals report to their manager, coach the manager on the process outlined above and have her oversee the outcome. Help the manager to make a call after a period as determined with the manager.
  • Continue to coach and support her during this process.
  • Make it clear to the manager’s team that she is in charge of this process.

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