Why Retain Bad Employees With 14% Unemployment?

Human Resource Management Services, LLC Why Retain Bad Employees with 14% Unemployment? Michigan Primary Care Association September 28, 2009 By Andie Creamer, CHRS [email_address]

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 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

Why Retain Bad Employees With 14% Unemployment?

by MPCA on Sep 30, 2009

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Why Retain Bad Employees With 14% Unemployment? — Presentation Transcript