Jack Welch, the much-lionized CEO of General Electric from 1981 to 2001, evaluated his managers using a classic 2×2 matrix: results delivered on one axis, living by organizational values on the other. Managers who didn’t share the company’s values but delivered strong numbers were the toughest call. Welch believed adherence to values was critical — if high-performing managers didn’t adhere to values, they could destroy the trust-based open culture that an organization needed to win in the longer term. As a result, they were terminated, which sent a strong message to the GE organization.
This is great advice if you’re running General Electric. However most business owners or presidents of small to medium-sized businesses don’t have the luxury of getting rid of a high-performing, toxic employee. The issue in smaller organizations is often that their businesses ‘need’ the revenues that the toxic employee is delivering.
First of all, it’s important for the CEO or president to be aware that their organization is paying a price for the decision to let the person stay. There are costs in terms of reduced levels of engagement and morale and potentially higher levels of turnover.
What To Do With Toxic Employees
- Be Explicit With Them — make their toxic behaviour and its organizational impact a topic of ongoing conversation.
- Try Coaching — a great deal of executive coaching today is aimed at helping people become more relational. A coach can help them become aware of how their behaviour negatively affects others.
- Wall Them Off — depending on the role, create a buffer that minimizes their contact with others. For example, a star salesperson who is difficult to deal with might be given a dedicated inside support person and encouraged to stay out of the office.
- Use a 360 Survey — anonymous feedback from peers on emotional intelligence can be a powerful wake-up call that motivates toxic employees to change their behaviour.