why retain bad employees with 14% unemployment?

Human Resource Management Services, LLC

Why Retain Bad Employees with14% Unemployment?

Michigan Primary Care AssociationSeptember 28, 2009

By Andie Creamer, [email protected]

Session Objective

• Understand the decision making process when considering when to keep a challenging employee or when to separate the employment

• What pitfalls may come with both options

• Not one size fits all

Define “Bad”

• Definition of a “bad” employee– Not doing anything illegal or immoral– Takes up a large portion of supervisors time– Always on the edge of discipline or pushing the

limits– Uses sick time the minute it is earned– Stirs the pot ~ antagonizes co-workers,

complains and/or argues– Barely making quality and/or quantity minimum

standards– Not necessarily “bad” but definitely a challenge

Have We Done Our Job?

• Evaluate challenging employee’s personnel file

– Is the manager of this employee doing their job?• Has the employee been spoken to regarding their

performance in a timely manner?• Have action plans been established for performance

improvement?• Are performance evaluations consistent with performance?• Is the file documented to support a decision to terminate?

OR– Is this employee choosing to be difficult?


• If you answered “no” to any of the previous questions, this may not be the time to terminate.

• This could be an indication that the company failed the employee rather than the employee failing the company.


• If you choose to keep the employee then what?– Coaching and Counseling

• Make sure the employee understands they are not meeting expectations

• Create an action plan that will result in improved performance (This should be done with input from the employee on the best ways they learn)

• Document, Document, Document– Should you decide the employee has all the skills needed

but is just being difficult, documentation will provide facts on what the employee has been trained to do

– If this is a behavior problem, documentation will support the conversations that took place

Have We Done Our Jobs?

• If you decide the employee has had adequate training, coaching and counseling, and the company has not failed this employee

Continue with the process

But We Are At Will!

• Understanding the At Will Relationship– ITS NOT A TRUMP CARD

• At Will vs. Just Cause– Must have justifiable reason to terminate– May put company at risk and open the door

for employee to sue for wrongful discharge

But We Are At Will!

• Know your Liabilities– Discrimination– Retaliation– Morale of Staff– Production

But We Are At Will!

• At Will does not allow discrimination

• What are the protected classes?

• Age, gender, national origin, race, religion, marital status, familial status, pregnancy, height, weight and any other classification outlined in company handbook

• Does the employee belong to a protected class?

• Are there other employees that belong to the same protected class in good standing with the company?

• Is this the only employee that belongs to this protected class?

But We Are At Will!

• Retaliation ~– If this employee is let go, does it have the

appearance of a retaliatory move by the company? (intentional or unintentional)

• Has the employee recently filed a claim against the company?

• Has the employee notified state agencies of questionable practices by the company?

• Has the employee asked for an accommodation due to a medical condition?

• Has the employee reported to work with a doctor’s note requesting light duty or has restrictions?

What Does It Cost To Terminate?

• Cost of Turnover– Advertising the open position $_________

• Newspaper, on-line, MI Works

– Screening Process $_________• Will get a large number of applications to sort

through for any decent paying job• All those on unemployment must be “looking for

work” to receive compensation. Therefore you will get applications from those that are just going through the motions


– Testing $_________• Background/reference checking, drug testing etc.

– Setup Costs $_________• Additional equipment, uniforms, handbooks, new

hire paperwork, orientation etc.

– Training Costs $_________• Special classes, hourly wage for the trainer plus

the trainee, etc.

– Grand Total $_________


• Unemployment System (currently)– 79 weeks of compensation for involuntary

termination– Being forced out is involuntary termination

• And may be retaliation– Increase to experience rating which means your

costs will go up– In the current economy, most former employees

will get unemployment– Know when to fight a claim and when to let it go

• How and who fights the claim?

What Does It Cost To Retain The Employee?

• Cost of Retaining the Employee– Re-training $_________

• Employee may simply need to be re-trained on how to do specific tasks

• Original training of employee may not have been adequate

• Consider the hourly wage of the trainee and the trainer

What Does It Cost To Retain The Employee?

– Increased Manager Supervision $________• Coaching and counseling sessions• Immediate feedback for inappropriate behavior or

poor performance• May not be any additional time from the manager,

just more productive

– Attention to Documentation $_________• May only take a small portion of managers time but

will reduce the risk to the company should the employee ultimately be terminated

Who’s Available If We Do Terminate?

• Understand the Reduction in Force Process– Available job pool may be majority “weak links”

– Companies are cleaning house when reduction in staff is necessary

– Who would you let go if you needed to reduce your staff?

– May require longer periods of time to find the right new hire

Who’s Available If We Do Terminate?

• Consider “challenging employee” vs. new hire– You know what you have with the challenging

employee, new hire may be worse than what you are currently dealing with

– Desperate job seekers are willing to agree to anything in the interview process but quickly change behaviors and willingness once they have the job

The Show Must Go On!

• What to consider if you do decide to terminate:– Reassignment of job duties while looking for new

hire• Are temporary workers an option? If so, what are the

costs associated?• Will other workers experience over time with the

vacancy? If so, what are the projected costs?

– Company re-organization• Is this the time to re-organize and save on payroll

costs?


Consider the Morale of the

• To Terminate– Staff may be tired of putting

up with the pot stirring– Tired of doing poor

performers work– Many employees are

willing to pick up extra work in exchange for not having to deal with pot stirring

– May be tired of managements willingness to put up with the situation

Remaining Staff

• To Retain– Staff may appreciate effort

to retain employee with additional training

– Employee may not be intentionally disruptive, just needs extra training or guidance

– Employees may appreciate keeping the employee in such a bad economy


Consider the Morale of the

• To Terminate– Other employees may think

the management staff approves of the behavior and will start to behave in a similar fashion

Remaining Staff

• To Retain– May create very loyal

employee is the situation is resolved to everyone’s satisfaction

Only you will be able to decide which way your staff will perceive your decision


• If you decide to terminate ~ How to handle remaining staff– Go on the offense instead of the defense ~ let

them know the plan before they even have to ask.

– Answer staff questions honestly, if you cannot answer their questions without jeopardizing confidentiality ~ say so.

– Don’t blow off staff, if you don’t give them the answers they will make them up on their own

Conclusion

• Every situation is unique and must be evaluated individually using the steps discussed

• High unemployment rate does not mean employees should be fired for the smallest infraction

• Once we get back to low unemployment, that also does not mean we need to retain employees that should be let go

• Leadership of your company cannot be based upon the unemployment rate

Human Resource Management Services, LLC

Helping you solve your employee problemsHelping you solve your employee problems • Employee relations • Customized handbooks • Management and supervisory coaching• Job descriptions• Compensation systems• Staffing• Training• Performance appraisal systems• Performance development• Policies and procedures development and implementation• Personnel file system• Human resource audits• Federal and State regulation compliance

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