Crafting a compassionate exit strategy: Best practices for managing out underperformers

Managing underperformers is never a walk in the park, especially when you want to handle it with both professionalism and compassion. Yet, as HR professionals and team leaders, it’s a part of our roles that can significantly impact the workplace atmosphere and productivity. After all, how we manage these situations can ripple through the organisation, making or breaking team morale. In this guide, we’ll explore how to craft an exit strategy that respects both the individual and the broader team.

Understanding underperformance

Before jumping into solutions, it’s essential to understand what underperformance looks like.It could manifest as missed deadlines, where tasks are not completed on time, disrupting team schedules and project timelines. Subpar work quality might appear, with outputs that do not meet the expected standards, leading to potential rework and dissatisfaction among stakeholders. Additionally, there could be a noticeable change in attitude, where someone who was once highly motivated and engaged becomes withdrawn or disinterested, affecting team morale and productivity.

Drivers of underperformance

Understanding the drivers of underperformance is crucial when aiming to address the root causes rather than simply reacting to symptoms. One significant factor in startups, for example, is the presence of employee shares in the business. This scenario can create a unique challenge where employees, feeling financially vested, may be reluctant to leave even if they become disengaged. The allure of potential future financial rewards fosters a safety net that can lead to complacency. Employees might be tempted to contribute minimal effort, comforted by the thought that their financial stake will yield rewards regardless of their day-to-day output.

Similarly, a quiet job market can contribute to underperformance. In such times, employees who feel disengaged or disillusioned with their roles may find it challenging to secure new opportunities. This lack of mobility can result in “coasting,” where individuals perform just enough to maintain their positions without genuinely investing themselves in their work. They’re essentially in a holding pattern, waiting for the right moment or opportunity to move on, but until then, their lack of motivation can influence team morale and productivity. (Learn how to boost employee engagement here and learn more about quiet quitting here.)

Recognising these signs early can help prevent issues from escalating. Often, underperformance is not about the employee’s lack of skills but rather a misalignment of expectations, lack of motivation, or personal challenges outside of work.

The compassionate exit strategy

Once underperformance is identified, the next step is crafting a compassionate exit strategy. Sounds like an oxymoron, right? But here’s the deal – it’s about ensuring the process is respectful and fair for everyone involved, both the business and the employee.

A compassionate exit strategy doesn’t just focus on the mechanics of departure but also on preserving dignity, fostering understanding, and leaving the door open for future opportunities.

Before initiating the exit process, consider these steps:

  • Assess the situation thoroughly: It’s important to have clear documentation and a comprehensive understanding of the performance issues. Review past performance appraisals, feedback, and any relevant communications to ensure you’re covering all bases.
  • Provide feedback: Offer constructive feedback and set clear expectations for improvement. It’s crucial to have honest and open discussions about what is lacking and how it aligns with company goals. Sometimes, this feedback can be a wake-up call, offering the employee a chance to improve.
  • Offer support: Consider whether additional training or resources might make a difference. Supporting an employee’s development not only aids in their personal growth but can also contribute positively to the organisation if they manage to turn things around.

When it comes to conducting the actual conversation, empathy should be at the core. This is not just a box-ticking exercise; it’s about engaging in a dialogue where the employee feels heard despite the outcome. Acknowledge their contributions and discuss the way forward, whether it involves transitioning to another role within the company or supporting them in finding opportunities elsewhere. Remember, a compassionate approach can turn a potentially negative experience into a constructive one, leaving a lasting positive impression on both the employee and the workplace.

Best practices

Adopting best practices can significantly ease the transition for both the individual and the team, ensuring a more seamless process. Here’s how:

  • Provide support and opportunities for improvement: It’s crucial to ensure you’ve given the employee a genuine chance to improve their performance. This might involve implementing tailored training sessions, offering mentoring from experienced colleagues, or setting up regular feedback meetings to discuss progress and areas for development.
  • Understand legal implications: Be aware of the legal requirements associated with employment transitions to ensure the process is fair and compliant with regulations. This includes understanding employee rights, adhering to contractual obligations, and maintaining documentation of all relevant communications and actions taken during the process.
  • Learn from case studies: Look at organisations that have successfully navigated this tricky terrain. Real-life examples can offer invaluable insights into effective strategies and potential pitfalls. Analysing these case studies can provide guidance on managing expectations, communicating effectively, and maintaining team morale throughout the transition.

The role of HR and team leaders

Ultimately, managing underperformance is a team sport that requires a strategic and collaborative approach. Both HR professionals and team leaders need to work closely together to address performance issues effectively:

  • Identify underperformance early: Proactively use regular check-ins, performance reviews, and open communication lines to detect potential issues before they escalate. This early identification allows for timely interventions that can guide an employee back on track.
  • Plan the exit strategy together: When necessary, involve multiple perspectives by gathering input from managers, team members, and HR to develop a comprehensive understanding of the situation. This collaborative approach ensures that any decision made is fair, balanced, and well-informed, minimising disruptions to team dynamics.
  • Build a supportive culture: Cultivate an environment where growth, feedback, and accountability are core values. Encourage continuous learning and development opportunities, ensuring employees feel supported in their career journeys. This supportive culture not only aids in managing underperformance but also plays a crucial role in retaining top talent, as employees feel valued and inspired to excel.

Conclusion

Crafting a compassionate exit strategy is about more than just parting ways; it’s about maintaining dignity, respect, and professionalism throughout the process. By following these guidelines, you can turn a potentially challenging situation into an opportunity for positive change within your business.

If you’re looking for personalised assistance in navigating performance management and crafting compassionate exit strategies, consider contacting Lodge Court. Our HR consultancy is dedicated to providing comprehensive support and expert advice tailored to your company’s needs. Contact us today to ensure you manage these delicate processes with care, confidence, and professionalism.