When Should New Leaders Terminate Underperforming Team Members
July 8, 2024

Just like planting a tree was best done twenty years ago, it’s wise for new executives to address underperformers before they start their role. But if that’s not possible, the next best time is as soon as they begin—or as soon as they can practically manage.

So, who has to leave? Those who are unable to adapt to necessary changes in the company’s operations, those who fail to produce the expected outcomes, or won’t fit into the intended culture. Of course, there are variations on the themes; nonetheless, they always align with fit, delivery, and modification.

Part I: Pre-existing knowledge

How soon are you aware of it? Everyone already knows that certain people may need to go away.  To avoid giving the impression that you moved on before giving folks an opportunity, someone else should move on from those individuals before you begin in your new position.

Part II: Unfit

Individuals that don’t align with the intended culture make up the second group. It won’t take you long to identify those individuals. Those who applied for your position but were unsuccessful should receive special attention. Offer them a position on the new team. Offer them all of your assistance. 

Make them go after eight weeks if they haven’t approached you in six to eight weeks to proactively tell you that they were first sceptical but have since changed their minds and want in.

Part III: Failure to deliver

Those who fail to deliver make up this group. This is one of the reasons milestones are set in place: to help you anticipate who will and won’t deliver. Some people won’t reach their initial goals. It’s okay if they take responsibility for the misses, feel guilty about it, and step up to make up ground.

But it’s a solid indicator of passive-aggressive behaviour if they fail to meet agreed-upon milestones because they were focusing on tasks that were “more important.” As quickly as you notice that, make them leave.

Part IV: Unable to adjust

Those who are unable to adapt to necessary changes in the business make up the final group. Until you identify them and, in certain situations, begin to make those adjustments, you won’t know who they are. Send them off as appropriate.

#1 Regret: Failing to move on individuals quickly enough

The top regret of seasoned executives is not acting quickly enough on individuals. Additionally, after they do move on from somebody, some inquire as to why it took them so long. “We were beginning to think you were stupid,” those folks are thinking to themselves.

Why do leaders falter? The personal connection, the sunk cost trap, or risk aversion are frequently the things that prevent these leaders from succeeding.

When Should New Leaders Terminate Underperforming Team Members

Human interaction 

On the one hand, firing someone is never easy on the individual. They are people, some of whom are employed by the company, with families, friends, and dependents. But, they are aware if they don’t fit, can’t deliver, or can’t be adjusted. It is preferable for them if you assist them in moving toward a position and a role where they can fit in, perform, and adapt as quickly as possible.

Sinking costs

Hiring, training, and developing new employees comes at a substantial expense. Some put off firing someone since they know they’ll have to do it repeatedly. However, such a trade-off is untrue. It’s something that will eventually have to be done. The new investment will start to pay off sooner if you act on it. 

An avoidance of risk

Finally, others worry that they won’t be able to find a better candidate to replace the employee they are considering firing. They do believe that they might end up with someone worse. Some variation of sticking with the devil they know was their justification for the delay. Yet they are aware that the current employee is incorrect.

When Should New Leaders Terminate Underperforming Team Members

Consequences for yourself

If you think that you will need to fire someone, you will have to go ahead and terminate them. Rob Gregory, the previous CEO of VF and a farmer, once said:

1) Never provide the name of an animal you’re going to eat, and

2) Don’t fire anyone until you have solid replacement for the position

Or, to put it another way, wait to form strong personal bonds with your new direct reports so that you can assess them and establish backup plans. 

It is imperative to promptly terminate an individual who does not align with the culture you are cultivating or who is impeding others from achieving their goals. 

This may require assigning them to a temporary position. Otherwise, before sending them on their way, you can find replacements.

Final thoughts 

In conclusion, while the decision to terminate underperforming team members can be daunting for new leaders, it is a crucial step in establishing a culture of accountability and excellence within their teams. By assessing performance objectively, providing clear expectations, offering support and feedback, and giving ample opportunities for improvement, new leaders can effectively manage underperformance. 

However, when efforts fail to yield the desired results and it becomes clear that a team member is unable or unwilling to meet expectations, decisive action is necessary. Timely terminations, conducted with empathy and professionalism, not only protect the productivity and morale of the team but also demonstrate the new leader’s commitment to fostering a high-performing environment. Ultimately, by prioritising the well-being and success of the team as a whole, new leaders can navigate these challenging decisions with confidence and integrity, paving the way for long-term growth and success.

(Tashia Bernardus)

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