What do you do when an employee hasn’t actually done anything wrong, but they just aren’t doing anything right either? What happens when you like the person in question, but their performance is just not good enough?

The well-documented labour shortage shouldn't see you keeping people on board if they don't fit or fail to meet performance expectations. As most of us will know from our own experience, unmotivated and unhappy employees can not only turn in poor individual performances, but they also affect the performance of the people around them. Retaining unmotivated employees for whatever reason is simply not cost effective and should not be used as a trade off against the cost of recruitment.

So when is the right time to let someone go?

Many managers suffer sleepless nights and a great deal of anxiety and guilt when wrestling with the decision to send someone on their way. After all, it could be argued that a manager who is unaffected by exiting people might not possess quite the right mix of skill and temperament necessary to be leading a team.

Firing an employee should be the last resort and there are a few things you need to do before heading down that path. 

Involve the employee at the earliest possible opportunity

Essential to the start of this process is allowing the employee the opportunity to address the situation. Talk to your employee one on one. Are they aware a problem may exist and are they able to help identify it? Could the situation be resolved through additional training or mentoring? Do they have the right tools and support needed for their role? A good tip is to use a mixture of 'in person' meetings and written communication, being as clear and straightforward as possible in every instance. Communication and inclusion of the individual at the earliest possible point is also the best way to avoid surprises and will lessen the impact further down the track if the situation does require termination.

Consult with colleagues, human resources or an external party

You may not want to involve anyone else in the early stages as you work through the situation with an employee, however, do not wait until the last minute to seek additional perspectives. Ensure you are following due process, but be prepared. If you do not have the expertise within your organisation, use an external consultant. Third party consultants can also be useful as a sounding board, they can provide advice regarding your legal obligations and can be used as mediators.  They can also assist in devising exit strategies and in conducting exit interviews.

Ensure you understand why this person is not right for the role

Take the time to examine the situation from every angle. Dig out the original job description, recruitment advertisement and employee resume and cross check it against the actual day to day job role. Are there any mismatches that should have been addressed? Were you trying to fit a square peg into a round hole? Finding a potential root cause is not a blame game and could stop the same mistake being repeated over and over again.

If you catch the situation early and deal with it quickly and well, you increase your chances of creating a positive outcome for everyone involved. You might even be able to help place an employee in a better position within the company or with a supplier or business partner.

Avoid procrastination - keeping someone in a position longer than necessary increases the chances of creating disharmony within your team, lowers productivity and makes it far more difficult for an individual to leave the organisation without resentment.

Final hints and tips

1. Don’t hire someone without doing your homework. Is the job description up to date? What are the skills required for the job? Do they match?

2. Provide regular feedback with employees and be clear about your expectations.

3. Remember that as a manager you are being scrutinised for your ability to lead. If you procrastinate on difficult decisions this will affect your team’s desire to follow you.

4. Address the situation early enough and don’t leave it until they are walking out of the door. Could you find a solution for them, a role in another part of the company, with a supplier or business partner?