The Art of Online Business
Stuck in Neutral: The Hidden Dangers of Holding on to an Employee for Too Long
Wed Jun 21 2023Description
The episode discusses the impact of underperforming employees on online businesses. It emphasizes the importance of having the right team members in place and highlights signs of underperformance. The episode provides strategies for monitoring and addressing underperformance, including regular check-ins, open communication, and performance improvement plans. It also explores the challenges of managing underperforming employees and offers insights on when to let go of an employee. The episode concludes with actionable steps for taking action on underperformance.
Insights
Underperforming employees hinder business growth
Holding onto underperforming employees for too long can hinder the growth of an online business. It is important to address performance issues and manage people effectively.
Signs of underperforming employees
Signs of underperforming employees include missing deadlines, under delivering, decreased engagement and enthusiasm, making frequent mistakes without learning from them, resistance to change and improvements, and having a negative impact on team morale and productivity.
Addressing underperformance is crucial
Regular check-ins, team meetings, and scorecards can help monitor performance and ensure alignment with business values. Addressing consistent underperformance through open communication and honest feedback is essential for business growth.
Knowing when to let go of an employee
CEOs need to evaluate whether they would be upset if an employee left the business tomorrow. If not, it may be time to consider letting go of underperforming employees.
Taking action on underperformance
Evaluate the performance of team members and identify any underperforming employees that need to be addressed. Have conversations, performance plans, and reviews in place to avoid surprises when letting go of an employee.
Chapters
- The Impact of Underperforming Employees
- Monitoring and Addressing Underperformance
- Managing Underperforming Employees
- Taking Action on Underperformance
The Impact of Underperforming Employees
00:09 - 07:17
- Holding onto an underperforming employee for too long can hinder the growth of an online business.
- Signs of an underperforming employee include missing deadlines, under delivering, decreased engagement and enthusiasm, making frequent mistakes without learning from them, resistance to change and improvements, and having a negative impact on team morale and productivity.
- Underperforming employees may damage client relationships and harm the reputation of the business.
- A case study highlights the negative impact of an underperforming employee on revenue and decision-making during a crucial launch.
Monitoring and Addressing Underperformance
06:57 - 14:25
- Regular check-ins, team meetings, and scorecards can help monitor performance and ensure alignment with business values.
- Address consistent underperformance by having open communication and providing honest feedback.
- Implement quarterly reviews for full-time employees or monthly check-ins for contractors to assess overall performance.
- Create a performance improvement plan with clear expectations and deadlines for improvement over a 30-day period.
- Failure to address underperformance can hinder business growth, affect team motivation, and increase workload on high-performing team members.
Managing Underperforming Employees
13:57 - 21:12
- Holding onto underperforming employees can have negative consequences for the business.
- Lack of trust in a team member is difficult to recover from as a CEO.
- Underperforming employees can cause other team members to pick up the slack.
- CEOs need to address performance issues and manage people, even if it's uncomfortable.
- Knowing when to let go of an employee and how to do it respectfully is important.
- Evaluate whether you would be upset if an employee left the business tomorrow; if not, consider letting them go.
- Holding onto underperforming employees can slow down the progress of the business.
Taking Action on Underperformance
20:47 - 23:13
- Evaluate whether there are any underperforming employees that need to be addressed
- Assess if your team members have the desire, capability, and action to meet expectations
- Identify any team members who may have been held onto for too long and need to be addressed
- Having conversations, performance plans, and reviews can help avoid surprises when letting go of an employee
- Holding onto underperforming employees can have significant consequences
- Remember that it's common to face this challenge and it's an opportunity for improvement