07/ 25/ 2007
by Shannon McRae
Rehabilitating struggling employees is often easier--and cheaper--than starting over
Five years after being promoted to branch manager of an Everett, Wash.-based staffing firm, Bonnie Schoolcraft was struggling. Burdened with trying to balance a fast-paced job and two school-aged children at home, Schoolcraft felt overwhelmed by the competing demands in her life.
Even though she never voiced her concerns at work, her managers noticed a change in her attitude.
"While she had always been a devoted employee, you could see the stress was taking its toll on her," says Betty Neighbors, owner of 40-employee Terra Resource Group. "We recognize that employees have a life outside of work. Sometimes it overlaps and affects their progress."
So after months of working late at the growing business and then rushing home to help her kids with homework, Schoolcraft finally admitted that something had to change. After careful plans and discussion, Neighbors and other managers agreed to give Schoolcraft a four-month leave from her job. When she returned--refreshed and renewed--she assumed a role as a part-time outside sales rep rather than branch manager.
The new setup has worked wonderfully for both the business and Schoolcraft. "We've seen outstanding results," Neighbors says. "She's in a job that fits her well."
Helping employees succeed might also protect your business from legal trouble, says Beth Gaudio, senior executive counsel with the NFIB Small Business Legal Center. "With the increase in employment litigation, you can protect your business by providing poor performers an opportunity to improve before taking disciplinary action."
Neighbors' willingness to work with a struggling employee might seem like more trouble than it's worth. But it's a perfect example of her flexible management style. "For some small companies, there might not be as many places to reassign an employee who is having a hard time," Neighbors says. "But we were blessed that our circumstances allowed it. Long-term, loyal employees are hard to find. It makes sense to restructure their jobs to retain them, if you can."
Manage for Success
How to save struggling employees
Catch problems early. Open communication helps identify employees who are having trouble on the job or at home before the problems escalate. At Terra Resource Group, managers meet weekly with employees during their first year on the job. After the first year, meetings are held at least every other week. "Address problems as soon as they arise," advises the NFIB Small Business Legal Center's Beth Gaudio. "Don"t wait for an annual performance evaluation to 'sock it' to an employee."
Convey expectations. The touch-base meetings also give managers a chance to clearly explain what's working--and not working--about an employee"s performance. "Our job is not to rescue employees or make them change," Betty Neighbors says. "But we intentionally manage our employees when things aren't working well. We provide the tools and training to be successful—the rest is up to them."
Be flexible. By finding new ways to work, Neighbors retained an employee who already knew the business. "We had invested five years in Bonnie--and she in us," Neighbors says. "She is a good fit with our company, and we knew her values lined up with ours." All it took was a little effort to find a place where Bonnie could excel.
Know when to give up. Not all employees can be saved. The challenge is knowing when to cut ties and move on. "Sometimes you need to make the choice to start over," Neighbors says. "But only make that choice after you’ve considered the whole picture: Who is this person? What contributions has this person made to my company? How committed is the person to making it work?"
NFIB.com
Have questions about employment law? The NFIB Small Business Legal Center has created the Federal Employ-ment Law Handbook to answer common small-business questions. NFIB members can download it at www.NFIB.com/legal.
