Managing Difficult Employees: How to Handle Performance and Behaviour Issues Professionally

Why Difficult Situations Get Avoided and Why That Makes Them Worse

The management behaviour that most consistently converts manageable people problems into serious organisational problems: avoidance. The manager who avoids the performance conversation because it’s uncomfortable, who tolerates behaviour that violates team norms because confronting it feels risky, or who gives misleading performance feedback to avoid a difficult conversation is creating a worse situation with each day’s delay. The employee who doesn’t know their performance is below standard has no opportunity to improve; the team that observes bad behaviour being tolerated concludes that standards don’t actually apply; the manager who has never had the honest conversation has no foundation for the disciplinary action that eventually becomes necessary.

The psychological reasons for management avoidance that are worth understanding: the social discomfort of delivering negative information to someone face-to-face is a genuinely difficult human experience that most people are wired to avoid; the uncertainty about how the employee will respond creates fear of an escalated reaction that makes the conversation feel riskier than it is; and the hope that the problem will resolve itself without intervention is the optimistic narrative that avoidance hides behind. None of these reasons justify the costs that avoidance produces — for the organisation, for the team, for the employee who deserved honest feedback earlier, and for the manager’s own effectiveness.

The Early Conversation That Prevents Most Later Problems

The management intervention with the highest ROI in difficult employee situations: the early, direct conversation that addresses a performance or behaviour concern at the first clear instance, before the pattern is established and before the problem has compounded. The employee who receives clear, specific, early feedback that their work on a specific project was below the standard the role requires — with explicit description of what was lacking and what would have met the standard — has the information needed to change before the pattern becomes an entrenched performance problem.

The early feedback conversation that most effectively produces behaviour change: specific (about the particular instance rather than the general character), timely (close to the specific event rather than months later in a performance review), forward-looking (describing what different looks like rather than dwelling on what went wrong), and private (between the manager and the employee without an audience). The AID model (Action-Impact-Desired outcome) provides a useful structure: describe the specific action that was the issue, describe the impact that action had, and describe the desired different behaviour going forward.

The Performance Improvement Plan: When and How

A Performance Improvement Plan (PIP) is a formal documented process that defines specific performance expectations, timelines for improvement, and consequences for failure to improve. PIPs serve two purposes: providing the employee with a clear, documented understanding of what improvement is required and giving the organisation the documented foundation for termination if improvement doesn’t occur. The PIP that’s designed primarily as the final step before termination rather than as a genuine improvement opportunity is being used incorrectly and often produces the legal exposure that PIPs are sometimes thought to create.

The PIP design that most effectively produces the intended result (either genuine improvement or a documented performance management process that supports a potential termination): specific and measurable performance goals rather than vague expectations, a timeline that’s long enough to demonstrate improvement in the relevant competencies but short enough to limit the organisation’s exposure to continued poor performance (typically 30–90 days depending on the nature of the gap), clear description of the support the organisation will provide (coaching, training, additional resources), explicit milestones for check-in during the PIP period, and explicit statement of the consequence if the PIP goals aren’t met.

Behaviour vs Performance: The Distinction That Changes the Response

The two categories of difficult employee situations require meaningfully different management approaches. Performance issues (work output that doesn’t meet the required standard) are typically addressable through clarifying expectations, providing coaching and development, removing obstacles, and adjusting support. Behaviour issues (conduct that violates workplace norms, policies, or values — including harassment, dishonesty, aggression, or persistent interpersonal conflict) are typically not addressable through performance improvement processes and may require immediate, serious intervention regardless of whether the employee’s work output is otherwise acceptable.

The behaviour issue that most commonly gets managed as a performance issue (which is the wrong framework): the technically excellent employee whose interpersonal behaviour creates significant problems for the team — who takes credit for others’ work, who dismisses colleagues dismissively, who creates an environment where team members feel unable to speak up. This employee’s ‘performance’ in the narrow technical sense may be excellent; their behaviour in the broader sense is causing organisational harm that shouldn’t be managed through a performance improvement process. The appropriate response is a behaviour conversation that explicitly names the specific behaviours that must change, with the same directness and documentation that a performance issue would receive.

When Termination Is the Right Answer

The management decision that most experienced managers identify as consistently delayed too long: the termination of a clearly wrong-fit employee who has received adequate opportunity to improve. The cost of maintaining an employee who isn’t able or willing to perform at the required level accumulates daily: the work not done or done inadequately, the team morale affected by the visible tolerance of under-performance, the management attention consumed by the ongoing performance management, and the signal to the high performers on the team that standards are not consistently applied.

The termination process that most protects the organisation legally and treats the employee respectfully: the documented performance management history that shows the employee was given clear expectations and adequate support and coaching (which is both legally protective and ethically appropriate — the termination that comes as a genuine surprise to the employee is a management failure, not a legal strategy), the HR involvement that ensures the process was consistent with policy and free from discriminatory patterns, and the termination conversation that is direct about the reason, respectful in its delivery, and clear about the practical next steps for the employee. The termination that’s handled with genuine care for the departing employee’s dignity, even when it’s the absolutely right business decision, is the one that the remaining team members observe and use to evaluate whether the organisation treats people fairly.

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