How Bosses Are Dealing With Underperforming Workers

Summary

WSJ Your Money Briefing

Episode Title: How Bosses Are Dealing With Underperforming Workers
Date: March 16, 2021
Host: J.R. Whalen
Guest: Patrick Thomas (WSJ Careers Reporter)

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Overview

This episode explores how employers are adapting their management and evaluation of underperforming employees in the era of remote work brought about by the pandemic. The discussion focuses on increased leniency, the shift in performance review processes, the role of empathy and personal circumstances, and the legal steps businesses must consider before taking disciplinary action.

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Key Discussion Points & Insights

1. The Shift in Performance Management (01:25–02:49)

• Pre-pandemic Process:
  Traditional management involved clear, staged processes for handling underperformance (meetings, warnings, then termination if necessary).

• Pandemic Impact:
  The move to remote work disrupted these workflows. Employers now take more time to understand individual employee situations before making performance judgments.

  “Employers have definitely given their employees much more leeway than they might have in the past. Some companies are reevaluating the way they do performance reviews... trying to understand what personal issues they may be going through or what's happening at home.”
  — Patrick Thomas (02:04)

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2. Who Gets More Leeway? (02:49–04:00)

• Virtual Onboarding and Broader Empathy:
  While added slack is extended to those onboarded during the pandemic, many companies are adopting a generous approach with all employees.

• Example:
  ServiceNow gives virtually onboarded employees extra support, revisiting training and clarifying expectations to reduce immediate performance plans.

  “One company... told us that they were giving employees that had been onboarded virtually during the pandemic even a little extra leeway... Those sorts of things... have cut down on the number of performance improvement plans.”
  — Patrick Thomas (03:17)

• Managerial Reluctance:
  Guilt about terminating employees and removing health coverage is a factor. The new climate emphasizes empathy.

  "Managers might feel more guilty about taking employees off their health insurance, which is often tied to employment... maybe even a little bit of a guilt factor."
  — Patrick Thomas (03:38)

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3. The Emotional Burden and Raised Bar for Action (04:00–05:27)

• Emotional Challenges for Managers:
  There's a heightened reluctance to terminate employees during the pandemic, due to economic hardship and the broader health crisis.

  "Nobody wants to fire somebody during a pandemic if they don't have to. There's definitely more of a reluctance..."
  — Patrick Thomas (04:08)

• Prolonged Second Chances:
  Companies now keep struggling employees much longer, adjusting roles, tasks, and expectations to accommodate.

  "One company in Texas talked about a struggling employee that kept on a month longer than they probably would have, splitting tasks... trying to get right before action was taken."
  — Patrick Thomas (04:39)

• Performance Visibility:
  Managers can no longer rely on in-person visual cues or physical presence, making performance assessment more complicated.

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4. The Future: Will Empathy Continue? (05:27–06:22)

• Return to Office and Slack:
  The shifting balance between home and office could change how much flexibility employees receive.

  "ServiceNow... they're really trying to meet employees where they are and taking more time to understand personal circumstances... health, child care, and are they living alone, mental health. Those are things they say they're going to keep doing."
  — Patrick Thomas (05:48)

• Speculation on Permanence:
  The continued leniency depends on leadership philosophy and post-pandemic norms.

  "Whether employers continue to be this invested... kind of depends on if you're a glass half full or half empty kind of person."
  — Patrick Thomas (06:13)

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5. Legal Considerations for Managers (06:22–07:12)

• Documentation is Critical:
  With more remote work, precise documentation of performance issues becomes vital to defend against claims (e.g., retaliation or lack of accommodations).

  "There's just a bigger need to document performance issues with technology because, again, you can't go around and see if somebody's in their seat... you have to take other steps to document it in case an employee says, I’m being retaliated against..."
  — Patrick Thomas (06:35)

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Notable Quotes & Memorable Moments

• "Employers have definitely given their employees much more leeway than they might have in the past."
  — Patrick Thomas (02:04)

• "Nobody wants to fire somebody during a pandemic if they don't have to."
  — Patrick Thomas (04:08)

• "Companies now keep struggling employees much longer than they probably would have, splitting tasks... trying to get right before action was taken."
  — Patrick Thomas (04:39)

• "There’s just a bigger need to document performance issues with technology..."
  — Patrick Thomas (06:35)

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Timestamps for Important Segments

• [01:25] — How the pandemic changed employee performance management
• [02:04] — Increased leeway and empathy for struggling workers
• [03:17] — Extra support for those onboarded remotely
• [04:08] — Managerial reluctance to terminate during pandemic
• [04:39] — Companies prolonging chances for underperformers
• [05:48] — Will increased understanding persist post-pandemic?
• [06:35] — Increased importance of documentation for legal protection

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Conclusion

The pandemic has prompted a significant recalibration in how companies manage underperformance, with a pronounced focus on empathy, adaptability, and careful legal documentation. While it's uncertain how permanent these changes will be, both employees and managers are navigating new standards shaped by the challenges of remote work and broader societal pressures.

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Episode summary by podcast.summarizer.ai – for listeners who want the key points, context, and standout quotes.

Transcript

[A]

Deal replaces fragmented payroll vendors with one global system. No third parties hire, manage and pay teams in 150 plus countries operate like a local everywhere. Visit d eel.com WSJ.

[B]

Here's your money briefing for Tuesday, March 16th. I'm J.R. whalen for the Wall Street Journal. Working from home during the pandemic has its challenges, and sometimes it includes just trying to focus on your work while dealing with everything else going on at home. For managers on the other side of the zoom screen, accurately measuring employee performance remotely can also be hard. That's caused some companies to take a more cautious route when it comes to dealing with underperforming workers.

[C]

They're taking more time to understand personal circumstances and, as they put it, dig into other issues like health, childcare and are they living alone? Mental health. Those are things they say they're going to keep doing.

[B]

Our careers reporter Patrick Thomas will join us to talk about it more and some of the legal aspects involved after the break.

[A]

Deal replaces fragmented payroll vendors with one global system. No third parties hire, manage and pay teams in 150 plus countries operate like a local everywhere. Visit deel.com WSJ.

[B]

In pre pandemic times, a company's HR department might have a process in place to handle underperforming employees, a series of meetings and warnings which if not heeded, could then be followed by termination. But the pandemic's effect on our work has made that process trickier, and many companies are putting off taking actions against employees who haven't been performing up to par. Our reporter Patrick Thomas has been looking into this, and he's here with us to discuss. Patrick, thanks for being here.

[C]

Thanks so much for having me.

[B]

So Patrick, everyone's work habits and workflow have been affected by the pandemic. They're pretty much, you know, setting up their office in their living room and things like that. How much leeway are companies giving employees?

[C]

Well, since the pandemic started with everybody working remotely, employers have definitely given their employees much more leeway than they might have in the past. Some companies are reevaluating the way they do performance reviews or their performance improvement plans, really trying to understand maybe what an employee who's struggling trying to understand what personal issues they may be going through or what's happening at home since they're not in the office, trying to understand what might be impacting their performance rather than immediately jumping to putting them on an improvement plan or probation or something along those lines. They're trying to take more time to understand their circumstances. And if they're going through something that might be affecting their performance.

[B]

Okay, so this reluctance to terminate an employee, is it just involving workers brought in during the pandemic, or is it involving other workers as well?

[C]

Well, it's involving a lot of other workers. There's definitely an emphasis on employees who were maybe onboarded virtually during this time. One company, ServiceNow, cloud computing company on the west coast, told us that they were giving employees that had been onboarded virtually during the pandemic even a little extra leeway in terms of if there's one of them struggling, going back to them and asking, hey, was there something we missed during training? Was there something we didn't prepare you for? What else can we go over with you that might be hurting your performance? Those sorts of things that have maybe cut down that they said have cut down on the number of performance improvement plans they've had to put employees on this year. So they've definitely given more leeway to employees who are working remotely, onboarded remotely. But there's also a reluctance for other employees as well. One expert talked to us about how managers might feel more guilty about taking employees off their health insurance, which is often tied to employment. That there is just maybe even a little bit of a guilt factor there as well. So it doesn't have to be onboarded virtually. This certainly applies to every employee as well.

[B]

So could this really kind of weigh in the mind of a manager who might be considering having to take some sort of action against an employee?

[C]

Yeah, I think that's right. Some of the experts we talked to said, you know, nobody wants to fire somebody during a pandemic if they don't have to. There's definitely more of a reluctance or understanding that this is the middle of a health crisis. You know, it's a tough time economically for a lot of people, and there's a heightened awareness around that and medical benefits.

[B]

How has the bar been raised during the pandemic for managers who feel like an employee might have to be let go or some significant action might have to be taken?

[C]

Well, I think it's fair to say from the employers we talk to, that company might keep it a struggling employee on longer than they might have in the past. One company in Texas talked about a struggling employee that kept on a month longer than they probably would have, splitting tasks for this person and just adding more and more chances to try and get right before action was taken. I think that employers have just been much more aware of some of the personal problems that employees might be going through, especially if you can't see them in the office. You know, you can't see if someone is struggling, has bags under their eyes or is, you know, too tired that they might be going through something at home. So now it's, they're trying to take more time to understand if they're going through something through their personal lives. And, you know, employers can't look around and see if butts are in seats. So they have to take other ways of measuring performance as well.

[B]

Now, workers who've been home during the past year, they probably didn't have a choice. But if a company gave employees the option to work from home or the office, you know, as things begin to open up, could that play a role in shortening the amount of slack that they get from their employer?

[C]

Well, it depends. I mean, it's tough. It's tough to say. I think some employers would say, yes, that is the case. You know, back referencing ServiceNow again, they talked about how they're really trying to meet employees where they are and taking more time to understand personal circumstances and as they put it, dig into other issues like health, child care and are they living alone, mental health. Those are things they say they're going to keep doing and kind of emphasis on it. But whether it actually happens and whether employers continue to be this invested in giving employees this many chances to kind of get their performance straight kind of depends on if you're a glass half full or half empty kind of person, whether you think this will be a permanent shift from employers.

[B]

Now, what sorts of legal aspects do companies and managers face who might feel that they have to take some sort of action against an employee during the pandemic?

[C]

Yeah, some of the employment attorneys that we spoke to that advise companies talked about the need to increase need to document everything going on. If you do need to let someone go, such as monitoring their computer, how many hours has a worker logged while they were working remotely? There's just a bigger need to document performance issues with technology because again, you can't go around and see if somebody's in their seat. You can't make sure they're there. You have to take other steps to document it in case an employee says, I'm being retaliated against because I wanted to work remotely or I didn't feel like I had the protective equipment. That just gives employers much more of a need to carefully document things than perhaps in the past.

[B]

All right, that's Wall Street Journal reporter Patrick Thomas. Patrick, thanks for coming on the show.

[C]

Thanks so much for having me.

[B]

And that's your Money briefing. I'm J.R. whalen for the Wall Street Journal.

[A]

Deal replaces fragmented Payroll vendors with one global system. No third parties. Hire, manage and pay teams in 150 plus countries. Operate like a local everywhere. Visit d e l.com WSJ.