Not every poor performer should be fired.
Most executives are slow to part ways with underperformers. Typically, they give the person an opportunity to turn things around. A second chance. A third chance. Anything to avoid the tough conversation.
Usually, separating is the right decision–but not every time.
As hiring managers, we’re not infallible. Sometimes we reward strong performance by promoting someone into a job they can’t handle. Other times, we hire a good person for the wrong job.
We can–and must–undo these mistakes. Plus, in this ultratight labor market, you simply can’t afford to lose someone unless you have no alternative.
Why not consider demoting an underperforming employee to a position that is more aligned with their competencies and experiences? Particularly if you’re convinced that the person can add value in another role and is the right DNA match for your company.
If you’re a sports fan, you frequently see coaches demote players from the starting line to second string or to a lesser role.
Yet, in the corporate world, demotions of any kind are rare.
Last week, I came across a research report that astonished me. According to Office Team, 54% percent of HR professionals said that no employee had never been demoted at their company.
Talk about not giving people second chances.
As a 25-year executive recruiter, I’m a strong advocate for letting go of poor performers and replacing them with rock stars. I’ve fired countless people in my career and often find myself advising clients that they need to move more quickly to discharge people who are a drag on the organization.
But before I decide to fire someone, I’ve learned to ask myself: Is there a different role in the company where the person could excel? Could I redeploy their talents?
Admittedly, the answer is usually No.
Most employees have specialized skills in a particular discipline. If the job matches their skill set–and they are underperforming–it’s unlikely that an organization will have another role that fits them better.
That said, there are two situations where demotion is the better solution:
- The first-time manager: When your top individual performer excels, you’ll often be tempted (or forced) to promote the person to a managerial position. Sometimes the person isn’t prepared to manage others, performs poorly and becomes frustrated. This almost always happens when a company promotes its top salesperson to sales manager. Your first response should be to provide training and mentorship. If that doesn’t take, returning the person to an individual contributor role might be the best option. You’ve invested so much time and effort in the person. Find a way for them to save face and shift them back to an individual contributor role.
- The multi-skilled employee: A person may have a valuable skill set that is underutilized in their current role. For example, an underperforming marketing manager who is an excellent writer might be a rock star as a copywriter. Or an ineffective salesperson with strong technology skills might do well in a data analytics role that supports the sales team. Once you find a DNA match, don’t kick them off the bus before trying to find them the right seat.
While general rules are helpful, the question of whether to fire or demote an employee can only be made on a case-by-case basis.
So, demotion should only be considered if the person has demonstrated a strong affinity for your organization’s DNA, evidences a great work ethic and collaborates well with others.
Employee reactions to the prospect of being demoted will differ. Some may feel stressed by their current job and will welcome the new role. Others will be offended and may quit on the spot or within a few months after finding another position.
According to the OfficeTeam survey, 52% of demoted employees resign and many others become demoralized and lose interest in their new job.
If you go the demotion route, you must handle employee emotions with sensitivity.
The employee probably will feel a sense of failure and embarrassment and may feel angry about people and situations that they think contributed to their ineffectiveness.
You want to communicate two points:
First, rather than reinforcing the person’s hurt feelings, take some of the burden off them and say that the organization made a mistake in placing them in a position where they weren’t completely prepared to succeed. Then explain why you would like to offer them a position that better suited to their competencies and experiences.
Second, emphasize that you value the employee and want them to stay in the organization. Reassure them that they still have a career path in the company and lay out a vision where they could advance and achieve their ultimate career objectives.
Choosing demotion over discharge will always be more the exception than the rule. But in the right circumstances, it’s the best choice for you and your staff.
Sometimes a second chance is all a person needs.
