The saying goes, Where there are people, there will be problems. Why is this? Simply put, because we are a sinful people living in a fallen world. Tough people-problems are a part of life and that includes when you're in business leadership. Ignoring these situations will not solve them; it will only make them worse.
Sometimes we ignore problems because the process of dealing with them seems too complicated. Although each situation is different, there is a way to simplify the process. Following are some examples of things we've learned along the way that have helped us in our company.
Create a Foundation
Prevention is always better than any cure, and that includes handling people problems. If a strong foundation is laid and your team culture is healthy, tough employee problems will become fewer and fewer. Following are some basic ways to build a great foundation. These points are often undervalued, but they've made a huge difference in our company.
Share your company’s core values. Do your employees know what the company’s values are? Every company should have an employee handbook with its core values. This can even be a handwritten piece of paper with three to five values and some bullet points that are non-negotiable to you as the company owner and help clarify boundaries. Where expectations are clear, accountability is fair. The core values in our company are:
1. Team Players
2. Hospitality
3. Lean Thinking
4. Clarity
5. People Development
Knowing your company core values will keep your employees from making decisions that lead to problems. For example, if a leader in a department decides on a change in procedure without complete buy-in from the team, he violates the value of team players. Our management team also knows that hospitality and people development are more important to the company than just producing volume. This helps us make plans for things like growth, spending, and hiring people.
Recognize that your employees are people and not machines. At the core, all people have a heart, a soul, feelings, and the desire to feel valued. People want to be a part of something bigger than themselves. Why do people who retire often get old fast? I believe they suddenly don't feel of value anymore. In today's age, however, we need our older people more than ever before to help the young with guidance and direction.
What makes employees feel valued? A simple “thank you” or small note in their lunch pail goes a long way. Morning walk-throughs with a hearty "Good morning" and smile set the tone for a good day even if problems arise. Learn to know what makes your people “tick.” What encourages Maggie might be different than what Tom needs to hear. Remember, machines come with owner’s manuals, people don't.
Show your employees that you care for them and their families. Let them know that they are your greatest asset. Your business will only be as strong as they are.
Have an organizational chart. A basic organizational chart communicates to employees where their place is in the company and who their leader is. When you first create an organizational chart, ask each employee who they would ask for a day off, and this will tell you who their leader is. At L&J Woodworking, we don't give anyone more than seven direct reports, as one can only effectively lead so many people. The leader’s job is to stay in touch with each of his people and hopefully deal with smaller issues before they become big.
Provide a friendly environment. Who wants to handle a tough people-problem when you’re sitting in a dirty lunchroom with no privacy? Provide your employees with a friendly break room and clean restrooms. A designated employee parking area that's close to the entrance with easy access also makes them feel valued.
Be trustworthy and confidential. If you are known to be the community gossip or your local “news station,” your employees will lock down when communicating with you. Building trust is essential. Trying to solve difficult problems without trust is like showing up to a softball game with no glove.
Make serving God a central part of your company. If people understand that the company they are working for is God's business, and we are to serve Him in all things, they can view challenges from a broader perspective, trusting that God is ultimately in control. As a result, problems often seem less overwhelming and more manageable. Post scripture in break rooms. Organize monthly devotions that employees can participate in. This will help build closeness on a spiritual level.
When Tough Problems Arise, Then What?
Getting to the meat and potatoes, how do you handle tough employee problems? Let's first define a tough employee problem.
Jimmy is a member of your church congregation. He has been with the company for five years. Although Jimmy is not the fastest employee, he is dependable and always has a great attitude. Lately though, he has been five minutes late to work at least twice a week. Because of his good attitude and no history of this, you have let it go. This week, however, Brady has now started coming in late. Now you have a problem.
Emma was hired as a secretary last year. She is enthusiastic and outgoing. During the past month, Emma has begun purchasing expensive office decorations, premium stationery, and unnecessary supplies using the company's purchasing account. The spending has exceeded the department's budget, and several of the items were not approved beforehand. On three occasions, you briefly mentioned the issue to her, but the spending has continued. You do not want to upset her, but something must be done.
Many other sensitive issues can come up in a company, including hygiene, anger, or complacency. These issues must be handled slowly and sensitively. What is the path forward?
Steps to Resolving a Problem
Determine the outcome you want to have. When a problem arises, sit down and determine what your objective is in solving it. What do you want the outcome to be once the problem is handled? There are three basic ways a situation can end. The employee can change, move to a different position on the team, or find a new job. Ask yourself which of these three would be the best for both the employee and the company? If you are the one responsible for the solution, you want to be in control of the situation and how it ends up.
Find a quiet area and size things up. A place of silence helps refresh the mind. I believe God wanted Moses to lead sheep for forty years, so He could prepare him to lead the people of Israel and help solve the problems that would come up. Ask God to help you through the problem process and give you wisdom to make the right decisions.
Gather the facts. This part of the process is like putting together a puzzle. The objective you've determined is the picture on the box; the facts are the puzzle pieces in the story that created the problem. Once you think you’ve gathered all the facts, make sure there are no gaps. If you find gaps, continue to gather facts. Review any written notes of previous conversations you have had concerning the problem. Perhaps keep a folder for each employee where you can file notes from previous conversations.
Review your core values. Were any of these rules broken? I would recommend that every company should have a handbook with basic guidelines included. This does not have to be fancy. It can be as simple as a handwritten piece of paper with guidelines that all employees receive and sign upon hiring.
Ask people directly involved and not third parties. If, for example, Barry comes to you and says, "Tim told me that Dave is cheating on the timecard,” go find Tim and ask him directly. Refuse to attack or blame someone; instead, focus on gaining clarity and understanding. What made Tim think Dave was cheating? What happened? Ask lots of questions and remember, no assuming or gaps.
Think through and decide. After you know the objective you want, and you have all the facts, look at all the causes and effects of taking a certain action. Ask yourself, if I decide to take this certain route in dealing with the problem, who all does it affect? Depending on the situation, production might be greatly affected by how the person responds if you decide to move him to another department. Again, ask for the Lord's wisdom. Situations cannot be easily undone. Rarely do I act slow enough in this stage of problem solving.
A good night’s sleep might give you a totally different perspective. Remember to never jump to conclusions. You might even need to go back and gather more information to finalize your decision. Or, if possible, share the situation with a brother or father and get their perspective; the grayer hair a person has, the wiser they should be!
Take action. This is where the rubber meets the road. If you are a department manager, make sure you have the authority to act. Share the problem with the owner to ensure he supports your decision, not eighty-five percent but one hundred percent! In some circumstances, the employee may have to find a new job.
Having The Difficult Conversation
When it comes to having that difficult conversation, timing is everything. , In fact, timing is often just as important as the action you will take. Fridays and early mornings are not good times to be addressing tough issues. Think back to the Garden of Eden; God waited for the right time before confronting Adam and Eve.
The place where you have the conversation is also important. Choose a clean, private area. The saying goes, “Praise in public and correct in private.” Phones should be turned down as well as things like two-way radios and intercoms.
Once these things are in place, it’s time to have the conversation.
1. Start out with a positive.
2. Address the problem clearly and concisely. This step is crucial. Ask the person if they understood everything you have said.
3. Ask for a solution and then be quiet. You still want to lead the conversation with the objective leading the way, but this is the time to let them do the talking.
4. Find a solution together and document it.
5. End the conversation with a positive.
6. Set a time to follow up.
A conversation with Jimmy might go as follows:
"Good afternoon, Jimmy. I want to express appreciation for your dedication to doing the job right the first time. Rarely do your projects have to be redone.
"Recently though, I've noticed you've been clocking in late. Our handbook states that unless an emergency comes up, we expect you to be on time. Were you aware that this is a problem?"
This is where you want Jimmy to do the talking, but you want to continue to keep conversation on track.
“Thank you, Jimmy, for acknowledging the problem. Are you willing to come up with a solution together?” Document the solution on paper and read it aloud.
You might end the conversation with a positive by saying, “Jimmy, I appreciate your willingness to work with me in coming up with a solution. I’ll check up in the next few weeks and let you know how you’re doing.”
Check the results. This is the last step in problem solving. If you’ve decided to keep the employee, follow up in a few weeks to see if the problem is resolved. Document each conversation and put it into the employee's file. Watch for changes in output and relationships. Give the employee good honest feedback and don't beat around the bush if improvements are still needed.
In our company, we use a basic points system to determine if the employee should be let go if the problem isn't solved. If we have to sit down and have the conversation with the employee again, they get one point. If that problem comes up again within six months, we have a third sit-down and send the employee home for two weeks to think about their future with the company; this is always paid time. That gives them a second point.
During this time, the employee might feel that finding a new job would be the best way forward. Others come back with a plan to fix the situation and stay with the company. Both outcomes can work without harming relationships. If the employee comes back, we have a meeting stating that the last warning has been issued. If the issue arises again within six months, the employee gets a third point and is terminated.
In summary, people problems don’t have to be complicated. Build relationships with your people before problems arise. Know your objective before tackling a problem, communicate in a clear and peaceful way, and hold your people accountable for their actions.
As you prepare for your next challenge, ask God for wisdom and direction. And then do the best you know—experience is how we all learn.
Gabe Yoder and his wife Mary Lou Have 3 little boys. They reside in the hills of Holmes County Ohio. Gabe is the CEO of L&J Companies, a 2nd generation woodworking business he owns in partnership with his brother Adam. Gabe's favorite part of business is the people part. After all, it's all about the people.