We have seen sweeping layoffs and furloughs around the world as companies look to pivot away from loss making business units and invest more heavily in those which they see a bright future for over the next 1-2 years or more.
We are now moving to the second stage of this downturn where many of these initial layoffs have finished and now more selective layoffs will take place for under performers. What I love about a market downturn is that, as Warren Buffet said, “it’s only when the tide goes out that you learn who has been swimming naked”. With each month of this challenging market that goes by, the tide drifts further out and those employees who were cherry picking in good times without doing the real work are further exposed.
During the global financial crisis, I remember thinking that not a lot had really changed in the job market except that when speaking with clients they were really negative. Their businesses were certainly down, but that didn’t mean that needed to impact my recruitment business, companies still needed people!
So, I read the news, drove an hour and a half in the snow to meet clients by 8am and met every single hiring manager I could so that when the changes that were clearly written about in newspapers, finally did happen, I would get the first phone call on any new jobs that needed to be filled.
I did all the basics to the best of my ability, quietly increased all targets by 50% and didn’t let myself off the hook with any excuses. Fast forward to today, I find it difficult to have sympathy for those that don’t do any of those things and carry on like they did pre-CV19 expecting business to come to them. For many leaders who have built a business from scratch or had some real pain in getting to the level they are currently at, they will likely feel similar. This can create a challenge when it comes to performance management.
It can be easy to assume that employees should do this or that. When they do not, they are instantly labelled as poor performers. But it’s not obvious to everyone right from the start that they need to do these things to be proactive and then resentment can build as the leader takes their lack of effort personally “if I can do it, why can’t they”.
Sitting down to discuss a performance improvement program therefore can bring a certain amount of emotion to the hiring manager who goes in confident in the fact that the employee is capable but just cannot be bothered. There is a risk that the leader goes into this with certain expectations of how the employee will react. This overconfidence needs to be managed as it can lead to being underprepared for the myriad of potential reactions from the employee.
Sometimes the individual takes it well, they understand that their performance has not been where it should be. However what will you do when the person is absolutely shocked, and cannot possibly see your perspective? Which to you with your numerous years of experience seem incredibly obvious? So obvious in fact that you are similarly shocked, become defensive and also become emotional!
What will you do if the person tries to sneakily record the conversation? What will you do if the person cries or begs? What will you do if the person starts to blame this person or that thing? How about if they have mental health or ongoing family issues? What if they threaten to sue you??
Action plan:
- Write out the performance plan document in advance and double check with your boss and HR that all the goals, timeline, projects and behaviours expected are all correct and in line with their expectations
- The leader has to ensure there is a “no surprises” rule. They must highlight in advance to the employee that they will move onto a performance improvement program if they do not reach the revenue, activity and behaviour requirements the company has for them. Pro tip – this in itself can lead to the increased activity a formal program would illicit from the individual!
- When sitting down to talk through the new program, make everything very clear and do not mince words around your expectations as well as the consequences of not meeting expectations, “failure to meet these targets will result in your termination from this business” – practise saying this if you are uncomfortable
- Write onto the document and say during the meeting a clear date by which their performance will be reviewed, this can typically be 4-8 weeks
- Reassess on a weekly basis the progress of the individual and escalate with HR if necessary in advance
The onus is on the Executive to take the bravado or nervousness out of the equation by playing devil’s advocate and potentially role playing the different ways this conversation can go with the leader. Ensuring they are prepared and managing through them is crucial to the success of this program.
It is never easy to let someone go but by ensuring that you prepare thoroughly, take emotion out of the conversation and listen to the employee’s perspective, this inevitable part of business can be as humane as possible and lead to a win-win situation where they leave on good terms and get a job better suited to their skills.
