Why Retain Bad Employees With 14% Unemployment?


Published on

Human Resources/Administrative presentation at the 2009 MPCA Annual Conference.

Published in: Business, Career
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Why Retain Bad Employees With 14% Unemployment?

  1. 1. 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]
  2. 2. Session Objective <ul><li>Understand the decision making process when considering when to keep a challenging employee or when to separate the employment </li></ul><ul><li>What pitfalls may come with both options </li></ul><ul><li>Not one size fits all </li></ul>
  3. 3. Define “Bad” <ul><li>Definition of a “bad” employee </li></ul><ul><ul><li>Not doing anything illegal or immoral </li></ul></ul><ul><ul><li>Takes up a large portion of supervisors time </li></ul></ul><ul><ul><li>Always on the edge of discipline or pushing the limits </li></ul></ul><ul><ul><li>Uses sick time the minute it is earned </li></ul></ul><ul><ul><li>Stirs the pot ~ antagonizes co-workers, complains and/or argues </li></ul></ul><ul><ul><li>Barely making quality and/or quantity minimum standards </li></ul></ul><ul><ul><li>Not necessarily “bad” but definitely a challenge </li></ul></ul>
  4. 4. Have We Done Our Job? <ul><li>Evaluate challenging employee’s personnel file </li></ul><ul><ul><li>Is the manager of this employee doing their job? </li></ul></ul><ul><ul><ul><li>Has the employee been spoken to regarding their performance in a timely manner? </li></ul></ul></ul><ul><ul><ul><li>Have action plans been established for performance improvement? </li></ul></ul></ul><ul><ul><ul><li>Are performance evaluations consistent with performance? </li></ul></ul></ul><ul><ul><ul><li>Is the file documented to support a decision to terminate? </li></ul></ul></ul><ul><ul><li>OR </li></ul></ul><ul><ul><li>Is this employee choosing to be difficult? </li></ul></ul>
  5. 5. Have We Done Our Job? <ul><li>If you answered “no” to any of the previous questions, this may not be the time to terminate. </li></ul><ul><li>This could be an indication that the company failed the employee rather than the employee failing the company. </li></ul>
  6. 6. Have We Done Our Job? <ul><li>If you choose to keep the employee then what? </li></ul><ul><ul><li>Coaching and Counseling </li></ul></ul><ul><ul><ul><li>Make sure the employee understands they are not meeting expectations </li></ul></ul></ul><ul><ul><ul><li>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) </li></ul></ul></ul><ul><ul><ul><li>Document, Document, Document </li></ul></ul></ul><ul><ul><ul><ul><li>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 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If this is a behavior problem, documentation will support the conversations that took place </li></ul></ul></ul></ul>
  7. 7. Have We Done Our Jobs? <ul><li>If you decide the employee has had adequate training, coaching and counseling, and the company has not failed this employee </li></ul><ul><li>Continue with the process </li></ul>
  8. 8. But We Are At Will! <ul><li>Understanding the At Will Relationship </li></ul><ul><ul><li>ITS NOT A TRUMP CARD </li></ul></ul><ul><li>At Will vs. Just Cause </li></ul><ul><ul><li>Must have justifiable reason to terminate </li></ul></ul><ul><ul><li>May put company at risk and open the door for employee to sue for wrongful discharge </li></ul></ul>
  9. 9. But We Are At Will! <ul><li>Know your Liabilities </li></ul><ul><ul><li>Discrimination </li></ul></ul><ul><ul><li>Retaliation </li></ul></ul><ul><ul><li>Morale of Staff </li></ul></ul><ul><ul><li>Production </li></ul></ul>
  10. 10. But We Are At Will! <ul><li>At Will does not allow discrimination </li></ul><ul><li>What are the protected classes? </li></ul><ul><li>Age, gender, national origin, race, religion, marital status, familial status, pregnancy, height, weight and any other classification outlined in company handbook </li></ul><ul><li>Does the employee belong to a protected class? </li></ul><ul><li>Are there other employees that belong to the same protected class in good standing with the company? </li></ul><ul><li>Is this the only employee that belongs to this protected class? </li></ul>
  11. 11. But We Are At Will! <ul><li>Retaliation ~ </li></ul><ul><ul><li>If this employee is let go, does it have the appearance of a retaliatory move by the company? (intentional or unintentional) </li></ul></ul><ul><ul><ul><li>Has the employee recently filed a claim against the company? </li></ul></ul></ul><ul><ul><ul><li>Has the employee notified state agencies of questionable practices by the company? </li></ul></ul></ul><ul><ul><ul><li>Has the employee asked for an accommodation due to a medical condition? </li></ul></ul></ul><ul><ul><ul><li>Has the employee reported to work with a doctor’s note requesting light duty or has restrictions? </li></ul></ul></ul>
  12. 12. What Does It Cost To Terminate? <ul><li>Cost of Turnover </li></ul><ul><ul><li>Advertising the open position $_________ </li></ul></ul><ul><ul><ul><li>Newspaper, on-line, MI Works </li></ul></ul></ul><ul><ul><li>Screening Process $_________ </li></ul></ul><ul><ul><ul><li>Will get a large number of applications to sort through for any decent paying job </li></ul></ul></ul><ul><ul><ul><li>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 </li></ul></ul></ul>
  13. 13. What Does It Cost To Terminate? <ul><ul><li>Testing $_________ </li></ul></ul><ul><ul><ul><li>Background/reference checking, drug testing etc. </li></ul></ul></ul><ul><ul><li>Setup Costs $_________ </li></ul></ul><ul><ul><ul><li>Additional equipment, uniforms, handbooks, new hire paperwork, orientation etc. </li></ul></ul></ul><ul><ul><li>Training Costs $_________ </li></ul></ul><ul><ul><ul><li>Special classes, hourly wage for the trainer plus the trainee, etc. </li></ul></ul></ul><ul><ul><li>Grand Total $_________ </li></ul></ul>
  14. 14. What Does It Cost To Terminate? <ul><li>Unemployment System (currently) </li></ul><ul><ul><li>79 weeks of compensation for involuntary termination </li></ul></ul><ul><ul><li>Being forced out is involuntary termination </li></ul></ul><ul><ul><ul><li>And may be retaliation </li></ul></ul></ul><ul><ul><li>Increase to experience rating which means your costs will go up </li></ul></ul><ul><ul><li>In the current economy, most former employees will get unemployment </li></ul></ul><ul><ul><li>Know when to fight a claim and when to let it go </li></ul></ul><ul><ul><ul><li>How and who fights the claim? </li></ul></ul></ul>
  15. 15. What Does It Cost To Retain The Employee? <ul><li>Cost of Retaining the Employee </li></ul><ul><ul><li>Re-training $_________ </li></ul></ul><ul><ul><ul><li>Employee may simply need to be re-trained on how to do specific tasks </li></ul></ul></ul><ul><ul><ul><li>Original training of employee may not have been adequate </li></ul></ul></ul><ul><ul><ul><li>Consider the hourly wage of the trainee and the trainer </li></ul></ul></ul>
  16. 16. What Does It Cost To Retain The Employee? <ul><ul><li>Increased Manager Supervision $________ </li></ul></ul><ul><ul><ul><li>Coaching and counseling sessions </li></ul></ul></ul><ul><ul><ul><li>Immediate feedback for inappropriate behavior or poor performance </li></ul></ul></ul><ul><ul><ul><li>May not be any additional time from the manager, just more productive </li></ul></ul></ul><ul><ul><li>Attention to Documentation $_________ </li></ul></ul><ul><ul><ul><li>May only take a small portion of managers time but will reduce the risk to the company should the employee ultimately be terminated </li></ul></ul></ul>
  17. 17. Who’s Available If We Do Terminate? <ul><li>Understand the Reduction in Force Process </li></ul><ul><ul><li>Available job pool may be majority “weak links” </li></ul></ul><ul><ul><li>Companies are cleaning house when reduction in staff is necessary </li></ul></ul><ul><ul><li>Who would you let go if you needed to reduce your staff? </li></ul></ul><ul><ul><li>May require longer periods of time to find the right new hire </li></ul></ul>
  18. 18. Who’s Available If We Do Terminate? <ul><li>Consider “challenging employee” vs. new hire </li></ul><ul><ul><li>You know what you have with the challenging employee, new hire may be worse than what you are currently dealing with </li></ul></ul><ul><ul><li>Desperate job seekers are willing to agree to anything in the interview process but quickly change behaviors and willingness once they have the job </li></ul></ul>
  19. 19. The Show Must Go On! <ul><li>What to consider if you do decide to terminate: </li></ul><ul><ul><li>Reassignment of job duties while looking for new hire </li></ul></ul><ul><ul><ul><li>Are temporary workers an option? If so, what are the costs associated? </li></ul></ul></ul><ul><ul><ul><li>Will other workers experience over time with the vacancy? If so, what are the projected costs? </li></ul></ul></ul><ul><ul><li>Company re-organization </li></ul></ul><ul><ul><ul><li>Is this the time to re-organize and save on payroll costs? </li></ul></ul></ul>
  20. 20. The Show Must Go On! <ul><li>Consider the Morale of the </li></ul><ul><li>To Terminate </li></ul><ul><ul><li>Staff may be tired of putting up with the pot stirring </li></ul></ul><ul><ul><li>Tired of doing poor performers work </li></ul></ul><ul><ul><li>Many employees are willing to pick up extra work in exchange for not having to deal with pot stirring </li></ul></ul><ul><ul><li>May be tired of managements willingness to put up with the situation </li></ul></ul><ul><li>Remaining Staff </li></ul><ul><li>To Retain </li></ul><ul><ul><li>Staff may appreciate effort to retain employee with additional training </li></ul></ul><ul><ul><li>Employee may not be intentionally disruptive, just needs extra training or guidance </li></ul></ul><ul><ul><li>Employees may appreciate keeping the employee in such a bad economy </li></ul></ul>
  21. 21. The Show Must Go On! <ul><li>Consider the Morale of the </li></ul><ul><li>To Terminate </li></ul><ul><ul><li>Other employees may think the management staff approves of the behavior and will start to behave in a similar fashion </li></ul></ul><ul><li>Remaining Staff </li></ul><ul><li>To Retain </li></ul><ul><ul><li>May create very loyal employee is the situation is resolved to everyone’s satisfaction </li></ul></ul>Only you will be able to decide which way your staff will perceive your decision
  22. 22. The Show Must Go On! <ul><li>If you decide to terminate ~ How to handle remaining staff </li></ul><ul><ul><li>Go on the offense instead of the defense ~ let them know the plan before they even have to ask. </li></ul></ul><ul><ul><li>Answer staff questions honestly, if you cannot answer their questions without jeopardizing confidentiality ~ say so. </li></ul></ul><ul><ul><li>Don’t blow off staff, if you don’t give them the answers they will make them up on their own </li></ul></ul>
  23. 23. Conclusion <ul><li>Every situation is unique and must be evaluated individually using the steps discussed </li></ul><ul><li>High unemployment rate does not mean employees should be fired for the smallest infraction </li></ul><ul><li>Once we get back to low unemployment, that also does not mean we need to retain employees that should be let go </li></ul><ul><li>Leadership of your company cannot be based upon the unemployment rate </li></ul>
  24. 24. Human Resource Management Services, LLC <ul><li>Helping you solve your employee problems </li></ul><ul><li>Employee relations </li></ul><ul><li>Customized handbooks </li></ul><ul><li>Management and supervisory coaching </li></ul><ul><li>Job descriptions </li></ul><ul><li>Compensation systems </li></ul><ul><li>Staffing </li></ul><ul><li>Training </li></ul><ul><li>Performance appraisal systems </li></ul><ul><li>Performance development </li></ul><ul><li>Policies and procedures development and implementation </li></ul><ul><li>Personnel file system </li></ul><ul><li>Human resource audits </li></ul><ul><li>Federal and State regulation compliance </li></ul>