What to Do With Bad Employees During the Great Resignation

It’s hard to let people go when finding a replacement is difficult. Here are some tips on what to do and when ‘addition by subtraction’ makes sense

Both a robust US labor market and the Great Resignation continue. According to the latest Department of Labor (DOL) report, there “are now a record 5 million more job openings than unemployed people.”  In many senses, this situation affords employees leverage they have not historically had. And unfortunately, this high competition for workers causes employers problems beyond just filling open positions or retaining talent. One of them is deciding what to do when an existing employee simply doesn’t do their job well.

If you fire them, will you be able to find a replacement? And if you penalize or warn them about their performance, will they leave anyway? The pressure caused by this dilemma has ramped up significantly in the pandemic’s aftermath.

Let’s look at strategies for identifying and dealing with poor performers, along with when saying goodbye is the best option.

Assessing employees and their impact

In the halcyon days of a loose labor market, employers seemingly had their pick of great candidates, with the flexibility and leverage to caution or cut loose underperformers. But now, many wonder whether having someone in a seat is better than no one. To answer that question, it’s essential to consider the effects bad workers can have on not only their productivity but the work of others.

First, it’s vital to take a clear, fresh look at whether a bad performer’s position is truly essential and how poorly they do their job. If the role isn’t needed and their performance is terrible, the decision is easier. But there are often many shades of grey after this assessment, so managers should also evaluate an individual’s impact beyond their responsibilities.

Fundamentally, any employee who behaves contrary to a company’s vision and core values is not suitable for the organization long term. Toxic employees are also a bright red flag. These individuals express constant negativity, bully co-workers, slack off intentionally, refuse to work as part of a team, or engage in other highly negative behaviors.

A study “of more than 60,000 employees” by Harvard Business School researchers quantified the effect of toxic employees on their colleagues. Among the findings:

• 80% of the surveyed “employees lost work time worrying about the offending employee’s rudeness.”
• 78% “said their commitment to the organization declined in the face of toxic behavior.”
• 66% “said their performance declined.”
• 63% “lost worktime in avoiding the offender.”

The study also found that firing a toxic employee saved businesses an average of $12,500.

Of course, there are shades of grey here, too. An employee may not be “toxic” but simply might not do their job very well and still have adverse effects. Often, other employees have to pick up the slack for their poor performance and come to resent it. And some workers may become disengaged when their exceptional performance isn’t acknowledged while another’s bad work is tolerated. Why try hard when they seemingly don’t have to?

It’s up to leaders to closely scrutinize their workforce, assessing individual performance and whether some form of a negative group dynamic is in play. If so, it’s time to act.

What to do about bad employees

If a worker simply isn’t cutting it, the first step is figuring out whether they can improve. Performance reviews, written warnings, and coaching and improvement plans with milestones can bring many individuals up to standards.

Another thing to look at is the structure of business operations. For example, let’s say the worker is constantly missing deadlines. Are those deadlines reasonable, and are the responsibilities realistic? Sometimes, more equitable assignments and more efficient procedures are solutions.

If none of this applies, the employee maintains bad habits after coaching, or the initial assessment determines an individual won’t improve, managers must look at letting them go. Leaders must also proactively evaluate their options to replace someone and their job functions:

• The pandemic’s onset forcibly taught many companies to run lean, and many found that some positions or functions within them weren’t needed. Often, technology or new processes played a role in filling these gaps. Examine whether finding a more efficient way to get the job done will solve the problem.
  
• Contract work is exploding as the Great Resignation is, so look at whether freelancers or temporary workers can fulfill key deliverables.
  
• Consider temporarily or permanently assigning tasks to other employees—but be careful here. Overloading good workers can cause them to leave, so only do it to the extent it’s feasible and reasonable, and you can obtain their buy-in. If the situation is temporary, find a contract or full-time position as quickly as possible. If it’s not, pay raises or additional benefits may be in order—and these bumps can show ROI vs. maintaining the fired employee’s position.

Implementing changes the right way

Employers may be competing for good workers, but they haven’t lost all their leverage. Hand in hand with identifying bad employees is creating a good workplace that engages, acknowledges, and rewards your best people. Without that foundation, keeping or attracting any quality employees will be tough.

Beyond that, leading people well depends on closely and realistically assessing individuals’ performance and their impact on others and the company. Good management must pay attention to these factors and recognize them. If someone can be trained and coached up to standards, do it! If the individual is toxic or simply unable to do their job, let them go and explore other options.

In some cases, you may find that a position isn’t as essential as you thought, and greater efficiency, outsourcing, or redistribution of work fills the gap. In others, you will have to find a full-time replacement despite the competitive hiring market. All situations and decisions are unique.

Nevertheless, toxic employees, people who reject core values, and those who otherwise impair good performers are clear cases of ‘addition by subtraction.’ These individuals usually do more harm to an organization—in both employee well-being and the bottom line—than any benefit they provide.

Karp HR Solutions helps businesses attract, retain, and motivate people through creative solutions and strategies that master the mix of finance and human resources. Contact us today for a free consultation.