Business Banter with Tom and Kerry
Kerry: This month, we’re diving into a topic that every business owner has faced at some point, and most do not love talking about.
Employees.
More specifically, what happens when an employee just is not working out.
Whether it is performance, attitude, or simply not fitting the culture, these situations
can be uncomfortable, emotional, and sometimes avoided longer than they should be. But they are also a very real part of running a business.
Tom and I talk about this often, because how you handle these moments matters. Not just for that one employee, but for your entire team and your culture.
So Tom, let’s get into it. How do you actually deal with a problematic employee?
Tom: I wish I could say that all my businesses have the best employees and I never have to worry about letting someone go. That simply would not be true.
I am just like you. I run into employee issues all the time. It is a natural part of business.
People are not perfect, and that is okay. We are not expecting perfection. What we do expect is a high caliber employee who fits our culture and gets, wants, and has
the capacity to do their job well.
But what if they do not? What if you can tell they are just not the right fit for the role or for your organization?
Let me start by saying I am talking about employees who are not performing or not fitting the culture. If someone breaks rules in a way that creates legal concerns, that
is a different conversation. In those cases, you need to work with your HR resource and make sure you are following the law.
But for everyone else, especially in an at-will state, we have to make decisions about employees who are simply not working. And the question becomes, what do you do
about it?
Kerry: I think this is where a lot of business owners get stuck, because it is not always black and white. It is not always a clear violation or a clear decision.
Sometimes it is just a feeling that something is off.
And instead of addressing it directly, we hope it gets better. Or we wait. Or we tolerate it longer than we should because we want to be fair.
So Tom, where do you start?
Tom: My answer is always the same. Give them a chance.
How do you know it is their fault they are not doing well? They may not have been trained properly. There could be something temporary happening in their life that is
impacting performance.
You have to start with a conversation.
I use a three-strike system.
Strike one is a one-on-one meeting with the employee. And it needs to be the person responsible for managing them, not just anyone. You explain clearly what is
not working and give specific examples.
Then you ask them what they think is causing the issue. You explain what needs to change. And most importantly, you schedule a follow-up meeting two to four weeks
out.
That follow-up matters.
Kerry: That structure is so important, because without it, these conversations either never happen or they happen once and then disappear.
And from the employee’s perspective, clarity is everything. They need to know where they stand and what is expected.
So what happens at strike two?
Tom: Strike two is your follow-up.
Ideally, you are telling them they improved and they are meeting expectations. But if they are not, you are very clear about that.
You go over the examples again. You restate what needs to change. And before the meeting ends, you schedule strike three.
At this point, you are also very clear that if things do not improve by the next check-in, their employment will be terminated.
Now let me tell you what typically happens here.
If someone does not change after the first conversation, they usually do not change after the second. And most of the time, you do not even get to strike three.
Nine times out of ten, the employee realizes it is not working and they leave on their own.
Kerry: That is such an important insight, because I think many business owners fear the final step, when in reality, the process itself often leads to the outcome.
And it reinforces something bigger. This is not just about one employee. It is about the standard you are setting for your entire team.
So let’s talk about strike three.
Tom: Strike three is the final meeting.
And to be clear, it is not another chance.
You are walking into that meeting either recognizing that they turned things around or you are letting them go effective immediately.
At that point, they have been given clear expectations, multiple opportunities, and time to improve. If they have not, we cannot continue to keep them in the organization.
Again, make sure you are following proper employment practices and working with HR as needed. By this point, you should also have clear documentation of everything
that has happened.
This is not about being harsh. It is about being responsible.
Kerry: And I think that is the key takeaway for me.
This process is not about being quick to let someone go. It is about being clear, consistent, and fair.
It gives the employee an opportunity to improve. It gives the employer a structure to follow. And it protects the culture of the organization, which ultimately affects every
single person on the team.
Because when one person is not meeting expectations and nothing is done about it, everyone notices.
Tom: Exactly.
We all hope every hire works out. And if you are hiring well and focusing on culture fit and capability, most will.
But there will always be some that do not.
And having a system like this makes those situations far easier to navigate.
Kerry: If there is one thing to take away from this month’s Banter, it is this: avoiding the conversation is usually the worst option.
Clear expectations. Honest feedback. Consistent follow through.
That is what creates strong teams and healthy businesses.
And that work matters.