All organizations have Still-Valuables, but they’re not frequently recognized as such. He can’t do the job, she’s not carrying her own weight, he’s over-compensated, she never should have been put into this job. But she’s loyal, his heart is in the right place, she stays until the job is done, he’s honest and reliable. Don’t make the common mistake. Don’t remove them from the organization. Rather demote to a level where they can perform. Don’t lower their comp but put it on extended freeze. Convert this person to an upper left hand corner Don’t Lose ‘Em. I’ve done this to over 30 people in my career; in every single case converted someone from “I hate to go to the office, I know I’m over my head, I might get fired” to a person whistling as he or she comes to work early full of pride in their performance. Read further.
If this individual really has the characteristics for this category (“heart’s in the right place”), almost always he was over-promoted. He was over-promoted because he was doing a good job where he was, and was a good person with a solid attitude. It’s not his fault he wound up promoted beyond his abilities!
Employees with some capability, with experience, and with a heart in the right place are difficult to find. They are an asset to your company…they just have to be handled properly. In this case, let gravity be your friend. Move the individual back to his former position or level of responsibility.
I’ve heard people say, “We can’t demote them. They’ll be heartsick, humiliated, or demeaned by the organization. They’ll create trouble, they’ll want to still do their higher-level jobs, and they’ll undermine their new boss.” Well…not!
First, confirm that their hearts are truly in the right place. Once you’re satisfied that they really are devoted employees, demote them to a level at which they can perform. Create a gravity-induced resettling. Keep their compensation package untouched to preserve their dignity at home, and tell them they’ll get no salary increases until the passage of time raises their salary grade to their salary level.
I have overseen a dozen examples of absolutely solid performances by individuals who were moved back down to a level they could handle. In previous blogs, for example, I’ve discussed the Northern Ordnance Company and its 40 years of cost-plus contracts. Faced with a competitive atmosphere, the organization had zero—not 0.1% but zero—ability to market. It did, however, have a sales manager.
George had been promoted to the position because no one else in the organization knew how to spell “sales.” He was abysmally under-qualified. He couldn’t describe the Department Of Defense procurement system and didn’t know how to write a proposal. But he had significant knowledge in the spare parts area. While this was a relatively small part of the business, the $20 or $30M of revenue and its high margins were important.
His cardiovascular system bled Northern Ordnance. There was nothing this guy wouldn’t do for the organization. But he came to work every day a defeated individual, knowing he couldn’t carry the bags of VP of Marketing and Sales. Obviously he wasn’t going to risk being fired by telling me he couldn’t handle the job. His attitude was self-demeaning, clearly not something to inspire confidence in me or any fellow employee.
I moved him downward to Sales Director for Replacement Parts. Two days later, he started each day with a big smile. He turned out to be an excellent performer at this important although secondary job. No one else could’ve done what he did in that position.
Remember, too, that long-term employees whose hearts are in the right place generally are liked and are believed to be pretty decent employees. Firing them, the typical approach to someone who “can’t do the job,” is considered mean, heartless, and perhaps a bit clueless. Demoting them to a job they can do, and keeping them in the organization, gives you kudos.
Best of all, by shifting George to a different level, I shifted him out of the Still Valuable category into the Don’t Lose ‘Em quadrant. It’s not a magic trick; it’s just good sense. George got to stay at the company he loved, the organization reaped the benefits of having him work at maximum capacity, and other employees saw that management was smart enough to find a way to keep a good guy on the team. Voila!
People are multi-dimensional. They all have limits. Some hit their limits faster than others. They all have their own experience. That experience doesn’t always translate into promotable skills. Let gravity settle employees into their best slots and you’ll have Star Performers at many levels. You need Star Performers throughout your company, so don’t ever give up the opportunity to save one or have one.
Hi Tom,
I find your lesson regarding this quadrant to be the most profound of all four. It makes a lot of sense.
But what about when you are operating a small entrepreneurial company that cannot afford to demote a manager, continue to pay him his salary, and then hire a new manager who also makes a manager-level salary? I can see it work in a large organization, where you can afford to make room for the demoted "Still Valuable", but what about when it is too costly to pay twice?
Response from Tom Epley: First, if there is a lower position available, the salary of the individual in question cannot be that much higher than that lower position's ceiling salary so we're talking about a relatively small amount of cost penalty resulting from not lowering the salary. The reason not to lower salary is (a) it's very demoralizing, and (b) the difference will always be small. You tell the demoted person that he will not be receiving salary increases until his salary and his new job compensation standards get in line. If there is not a lower position open, then there is a difficult choice; either replace the incumbent in that lower position with the demoted person, or unfortunately you have then to terminate. In a small organization, where each $ and each individual's performance are both important, you cannot afford to have a non-performer, regardless of excellent attitude, remain.
Thank you in advance for your reply. See you Friday.
Posted by: Robin Nourmand | April 17, 2007 at 07:46 PM