Toxic vs underperforming employees

At VIP we use a simple rule when recruiting employees: Hire the smile and teach the skill. VIP has a very strong value-based culture and we instil it from the day that the employee starts with the company.

Companies have the right and responsibility to manage their businesses in a profitable way. Employees must, therefore, be managed in such a way that it will enhance efficiency and profitability, which implies creating and implementing regulated standards of behaviour. In order to be effective, the employee needs to know which actions are regarded as unacceptable and the reasons why.

Difference in approach

The difference in how you approach a "toxic" and underperforming employee lies in the question: Are they willing and/or able to do the job? It is almost always related to either their attitude or skill. The underperforming employee is usually willing but not able to do the job, while attitude is often found at the core of "toxic" behaviour.

Underperforming employees are often incapable of doing the job for which they have been employed due to lack of skill, knowledge or ability. I would recommend that companies place their emphasis on matching the talent of the candidate with the role requirements during the recruitment and internal movement processes. A misfit of these key indicators often results in underperformance.

Underperformance can also be referred to as circumstance of "no fault" on the employee's side and should be addressed by means of counselling procedures, such as:

• Step 1: Assessment - Review the content and standards of the job; evaluate the performance and pinpoint shortfalls. Identify and discuss the reasons for the sub-standard performance. Assess the employee's competence against the job standards.
  
• Step 2: Action plan - The manager and employee agree on the appropriate plan of action to rectify the situation.
  
• Step 3: Review - Decide on a reasonable date to review and monitor the improvement and establish if the underperformance has been resolved. A secondary review date can be set.
  
• Step 4: Counselling enquiry - If it becomes clear that even after further counselling, the employee still does not perform in accordance with the required standards, or does not prove that he is capable of achieving the required standards, a counselling enquiry is called. A counselling enquiry is the medium through which the fair and just procedures required by law are conducted. A dismissal without an enquiry is deemed to be unfair.

The above-mentioned guidelines and steps do not refer to those situations in which the employee is capable to perform in accordance with the standards set, but intentionally or negligently refrains from adhering thereto.

When an employee's conduct is not in line with the rules, regulations or values of the company, it is dealt with as misconduct in accordance with the company's disciplinary code and policy. It is, however, impossible to list all possible situations in the disciplinary code and it should therefore not be seen as an exhaustive list of conduct that the company will address by way of disciplinary action in the form of a disciplinary hearing.

The guidelines for a disciplinary hearing are:

• Step 1: Investigation - Investigate the facts before embarking on formal action.
  
• Step 2: Notification of the hearing - Sufficient written notification of the hearing should be given. Employees have the right to internal representation and, if required, an interpreter.
  
• Step 3: Conduct the hearing.
  
• Step 4: Applicable sanction - If the employee is found guilty a decision is taken after mitigating and aggravating circumstances are presented.
  
• Step 5: Notification - The employee is notified of the outcome, if he is dissatisfied with the outcome he may appeal.

The best advice would be to instil a strong value-based culture within the organisation that will shape behaviour from the day that the employee starts with the company.