1. Managing the difficult, non-performing employee
A Leadership Strategy
Chuck Olsson
Chief Human Resources Officer
First United Bank & Trust

2. Question: Why do we retain our marginal employees?
Why are coaching and disciplinary actions often ineffective for improving non-performing employee performance?

3. Two talent management approaches:
Managing Non-performers (typically ineffective)
-Verbal discussion
-Written warning
-Probation
-Termination

4. Two talent management approaches:
Leading Non-performers (potentially effective)
-Change the conversation
-Discovery of needs
-Gaining consensus
-Self select, change position or resignation

5. Two talent management approaches:
Both options are available to managers.
Provide the employee a choice.

6. Stages of the non-performer
Candidates for change discussions:
Marginal performance (inconsistent)
Limited skills and abilities (diagnosed)
Difficulty adapting & accepting change (behaviors)
Low-energy (quit & stay)
Impacting moral & work of others (toxic)

7. Starting point: Talent Management Plan
Completing an annual Talent Assessment:
Planning discussion w/ Senior Manager
Assessing competencies & contributions
Identify high, mid-level, low performers
Create a management action plan (goal)

8. Starting point: building Trust to lead change
Assess current levels of trust.
Effectiveness of any change strategy directly relates to levels of trust.
“How much trust have a built within my staff?”
“ How much trust does my staff have with the company?”

9. Employee self-selection discussions
High trust is required.
Timing is very important.
Consensus achieved; results good for all.
Human Resources should be leveraged in planning and supporting a manager and employee through the process.

10. Employee self-selection discussions
Objective is to “lead” the employee to make own observations and conclusions:
Using empathic listening techniques.
Asking probing questions.
Slow discovery process.
Providing tangible feedback to validate.

11. Employee self-selection discussions
Achieving mutual agreement for change
1st Meeting – Change the conversation:
“It’s not working out; we need to make a change.”
“How satisfied are you; how does receiving feedback (negative) make you feel?”
“ Are you frustrated? You don’t seem happy?”

12. Employee self-selection discussions
Achieving mutual agreement for change
2nd Meeting – Discovery of Needs:
“What’s important to you in your work?”
“What goals are you working toward?”
“How can your talents be better put to use?”

13. Employee self-selection discussions
Achieving mutual agreement for change
3rd Meeting – Gaining Consensus:
“How can making a change be better for you?”
“How can we help you make a change, what resources do you need?”
“What is holding you back from moving forward?”

14. Starting Point: Change your performance management system objectives
Design around needs of high performing employees:
Consistently self assess/self correct.
Seek feedback & self-improve.
Require managers who provide continual feedback, direction & resources, growth & development.

15. Employee-Lead Performance Reviews
To facilitate an effective review of annual performance, the manager and employee have a shared responsibility in completing the review.
Marginal performing employees will struggle with this type of system and can lead to change conversations.

16. Employee-Lead Performance Reviews
Employee Role:
Completes a full self-assessment.
Outlining strengths/areas of focus for better results.
Define resources/development steps needed for growth.
Employees “own” their performance management process.

17. Employee-Lead Performance Reviews
Manager Role:
Feedback on results & behaviors.
Reviewing capabilities vs goals.
Structure development plans.
Managers “lead” employees through a performance management process.

18. Benefits of Leading non-performers to self-select
Employee decision; taking personal accountability, having control, win-win.
Leaders reputation; firm/fair, proactive, empathetic, staff appreciation.
Minimum impact to staff; employees can be supportive of coworker, open & honest interaction.
Helping vs damaging the employee.
Avoids negative external reputation issues.
Lower employment risk.

19. Benefits of Leading non-performers to self-select
Ending an persons employment and work relationship is one of the most difficult decisions and actions a manager will make.
Leading an employee to make a change, done with dignity and respect; can lead to a moment where both people say to each other….
“Thank you”

20. Thank you
Chuck Olsson
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