Handling Problem People
A careful hiring process can help to reduce your need to handle difficult employees or contractors. But you might still find yourself with someone who either isn't as competent as you'd hoped he'd be or is causing you other problems (such as not showing up on time, not putting in a good effort, or alienating customers). If it's a one-time issue and doesn't recur, then perhaps he was just having a bad day. But if it does occur again, you need to deal with the situation — immediately.
It can be tempting to avoid the issue, because it's difficult to deal with someone who's not performing well. However, remember that this is your business and your livelihood. You have certain expectations, and — as long as they're reasonable — your employees need to meet these expectations. Besides, not dealing with performance problems sets a precedent that allows the individual (and others who work with you) to believe that poor performance or behavior is acceptable.
Be sure to check any government regulations that apply to your business in terms of an employee discipline or termination process. If you don't abide by these regulations, you could find yourself facing — and losing — an expensive wrongful dismissal claim. Obtaining legal advice is a good idea.
Talk to the Individual
Whether the person is an employee or a contractor, have a private conversation with her — preferably at a time when neither of you is stressed — about whatever issue you're having with her. Be specific about where the problem is and ask for her assistance in solving it. You need to be clear, but tactful, because putting her on the defensive will be counterproductive.
During the interview, ask open-ended questions (that can't be answered with a simple “yes” or “no”), make sure that you obtain all the facts involved in the situation and focus on the actions or attitudes that are the problem. You're trying to let the individual know that you're not criticizing her personally; you're aiming to correct a specific problem or behavior.
It's much easier to handle a difficult conversation with someone when you're not angry or upset yourself. If necessary, give yourself time to cool down before addressing the issue — this will help you maintain control over the conversation and will avoid making the problem worse.
Document that you've had the conversation with the individual and let him know that you'll be following up. If he needs additional training time, make sure that you provide it. If he's identified any problems within the relationship or the business that are affecting his performance, decide how you're going to solve these problems.
Give Him or Her a Chance
Depending on the situation, you need to give the individual an opportunity to improve. Of course, if the issue is one of theft or other major dishonesty or if you're dealing with a contractor, and there's no hope for the working relationship, you can move more quickly. Usually, however, it's better to try to solve the performance issue. After all, going through the hiring and training process all over again will be costly in terms of time and money.
You may wish to use an “escalating” discipline process where you start with an informal or verbal discussion, then go to a verbal warning, and then to a letter that clearly states the problem and the expected solution in writing. If you have to eventually fire the individual, this sort of process will help you establish a solid basis for the termination. Whatever process you choose, however, it must be consistent for all your employees.
Letting an Employee Go
As unpleasant as it might be, you might not have any choice but to terminate an individual's employment or work with your business. If that's the case, ensure that all of your documentation is clear and that you've followed all applicable government regulations. Then, make sure that you're fully prepared. First, decide when to tell the individual. It needs to done in person (not over the phone or via mail), in a place that's private and, if possible, neutral. Time the talk for the end of a work week or a work day. If you think the person might cause a problem when you terminate him or her, have someone else present. Talk to your lawyer about whether this is appropriate.
Have the person's last paycheck (including benefits such as vacation pay, if applicable) and all other necessary paperwork with you at the interview. Follow up with any further paperwork promptly. If a contractor needs to bill you, let her know that she should send you her bill up to and including that day and that you'll send her the check for the agreed-upon work immediately. You don't want to be hurtful during the interview, but you do need to be firm and clear about the reasons for the termination.
