Employee Retention Dealing with Problem Behavior

“Hire slowly, fire quickly”

Performance Problems u What’s the cause of the performance problem? –skill, motivation, ability, obstacles u What’s the appropriate solution? –training –job design –rewards –transfer –termination

Modifying Behavior u Identify behavior you want to stop/encourage u Analyze reinforcers u Identify obstacles to desired behavior u Clarify performance expectations u Obtain agreement u Follow-up and: –Coach continuing problems –Reinforce correct behavior

Progressive Discipline u Investigate and document problem u Oral warning u Written warning u Suspension (or final warning) – u Termination Severe infractions lead directly to termination

Progressive Discipline: Benefits u u u u u u u u u u

Progressive Discipline: Caveats u u u u u u

Fear of Firing u Terminations are the single largest reason for employee lawsuits. Why? u Fear of a wrongful discharge suit paralyzes some employers u Don’t employers have a right to employ who they want?

Employment at Will Doctrine u Employer may terminate employment for good reason, poor reason, or no reason at all –except discrimination on protected characteristics or retaliation for exercising legal rights u Employee has the same right u 60-65% of employees fall in this category

Employment at Will: Exceptions u Breach of contract –Collective bargaining agreements –Literal or Implied contracts u Duty of good faith/fair dealing u Public policy –Refusing to violate law –Retaliation u “Smoker’s Right Bill” (Colorado)

Fairness in Firing u Ultimate issue: Will your decision be judged to be fair? –To the employee affected –To coworkers –To a jury (or arbitrator) u u u

Why Terminate Employees? u For Cause – – – –What about off-the-job behavior? u Reductions in force

Alternatives to Termination u Transfer u Restructure u Neutralize u Encouraging employee to resign

Transfers u When appropriate? –Employee has valuable skills that can be applied elsewhere –Performance problems won’t affect new position –Easier in larger and “richer” firms u New supervisor should be fully appraised

Restructuring u Same basic guidelines as for transfers u More likely in good times and labor shortages u Employee involvement particularly important

Neutralizing u When you want to fire, but can’t u Restructuring work so negatives have least impact on you, coworkers or customers –Ensuring that employee “is no longer in the way of employees who are making money for the company”

What About Encouraging Employee to Resign? u Can be useful if employee voluntarily quits because they realize their behavior won’t be tolerated u But beware of constructive discharge

Firing Summary-I u What warrants termination? –Chronic Performance Problems –Absenteeism –Dishonesty –Insubordination –Substance abuse?

Firing Summary-II u Clarify employment at will –Disclaimers in hiring process –Check/revise policy manual u Avoid appearance of wrongful discharge –Base decision on business issues –Use progressive discipline –Be consistent