Managing Underperformers as a Resource-Strapped Entrepreneur

Every entrepreneur faces the challenge of underperforming employees. These challenges often prove costly for those running lean operations as the time and money for extensive HR processes can feel like a luxury. 

Here we explore how South African entrepreneurs with limited resources can navigate this situation while following Labour Law guidelines, and therefore not opening themselves up to even more costly labour disputes:

Focus on Communication (It's Free!)

• Regular One-on-Ones: Schedule informal chats to discuss goals and identify any roadblocks the employee faces.

• Clear Expectations: Outline performance expectations verbally and follow up with an email summarizing key points.

The key thing is to make sure that these are documented and filed.

Leverage Free Resources

• The Department of Labour Website: The Department of Labour website offers a wealth of free resources on performance management, disciplinary procedures, and the BCEA https://www.gov.za/sites/default/files/gcis_document/201409/a75-97.pdf. 

• Newsletters: Sign up for newsletters published by industry experts. Stay informed!

Simple Documentation is Key

• Performance Notes: Keep brief, factual notes after each one-on-one, recording performance issues and any corrective actions discussed.

• Email Communication: Use email to confirm key discussions and reiterate expectations. This creates a basic paper trail.

Addressing Underperformance

• Informal Warnings: Verbally warn the employee of performance concerns, referencing your notes and emails.

• PIP [Performance Improvement Plan] on a Budget: Create a basic PIP outlining improvement areas and timelines. Discuss it with the employee and keep a copy for your records.

If Improvement Doesn't Happen

• Gather Evidence: Compile your notes, emails, and any related performance metrics.

• Seek Free Legal Advice: Many law clinics and organizations offer free consultations for small businesses. Briefly explain the situation and get guidance on next steps.

Termination as a Last Resort

• Follow Procedural Fairness: Ensure to follow a fair process, and that the employee is given the right to present their case. 

This is a general guide, and consulting a professional is ideal. However, by focusing on communication, leveraging free resources, and maintaining basic documentation, you can significantly strengthen your position should a CCMA dispute arise.

The StartUp Legal is here to help make your entrepreneurial journey a seamless one. Book a complimentary online session using the following link: https://calendar.app.google/5Co6tDFjYBmqkCHE8