How to Handle an Underperforming Employee: Advice from HR Executives at Salesforce, EY, and Microsoft

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How to Handle an Underperforming Employee: Advice from HR Executives at Salesforce, EY, and Microsoft

Human Resources (HR) leaders, especially Chief Human Resources Officers (CHROs), are responsible for a wide range of critical functions within organizations, from driving digital transformations to overseeing succession planning and employee development. One of the perennial challenges they face is managing underperforming employees. This task has become increasingly complex in the current work environment, which is marked by a growing mental health crisis, widespread feelings of disconnection, and an ever-present sense of burnout among workers.

The issue of underperformance is not new, but it is currently exacerbated by several contemporary factors. The mental health crisis, characterized by rising levels of stress, anxiety, and depression, has become more pronounced in recent years. Concurrently, many employees report feeling disconnected from their work and their organizations, contributing to a broader sense of burnout. These issues make it more difficult for employees to perform at their best and present additional challenges for HR leaders tasked with addressing performance issues.

To gain insights into effective strategies for managing underperforming employees, Emma Burleigh reached out to a variety of career experts and leaders from major companies, including Microsoft, Salesforce, and EY. These experts provided a blend of enduring advice and innovative approaches tailored to the current workforce challenges.

Ginnie Carlier, Vice Chair of Talent for EY Americas, highlights a fundamental truth in managing underperformance: it is an inevitable aspect of managing people. “We don’t need to prevent underperformance. The reality is it can happen,” Carlier states. This recognition underscores the need for a proactive and thoughtful approach rather than an idealized expectation of flawless performance.

Traditional strategies for managing underperformance include setting clear, specific expectations for job roles and responsibilities and maintaining consistent follow-up conversations. These practices help ensure that employees understand what is expected of them and provide regular opportunities for feedback and improvement. However, in light of current challenges, there is a growing emphasis on adopting more supportive and empathetic methods.

One key recommendation is to focus on growth and development rather than solely on corrective actions. CHROs are encouraged to identify and create opportunities for employees who may have lost their sense of direction or purpose within the organization. This might involve exploring different roles or responsibilities that better align with the employee’s skills and interests. Providing such opportunities can help rekindle motivation and engagement, leading to improved performance.

Empathy plays a crucial role in modern approaches to managing underperformance. Denis Hickey, VP of Total Rewards at Wellhub, emphasizes the importance of understanding the broader context affecting an employee’s performance. “By building empathy with the employee, you develop an understanding of the full scope of what might be affecting their work, including stress, burnout, or personal concerns,” Hickey explains. This empathetic approach allows HR leaders to work collaboratively with employees to develop plans that address both performance issues and overall wellbeing.

Addressing mental health concerns and burnout is particularly important in this context. HR leaders should be prepared to offer support and resources for employees struggling with these issues, whether through counseling services, flexible work arrangements, or other forms of assistance. By addressing the root causes of underperformance, rather than just the symptoms, organizations can foster a more supportive and productive work environment.

In summary, managing underperforming employees in today’s work environment requires a shift towards more empathetic and supportive approaches. By understanding the broader challenges affecting employees and focusing on growth opportunities and wellbeing, CHROs can better support their teams and improve overall performance. This approach not only addresses immediate performance issues but also helps build a more resilient and engaged workforce.

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