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The Least Productive Employee – To Fire or Not to Fire?

One clear advantage of being an employee based here in the Philippines is that few companies practice the method of terminating the so called “poor performers”. This approach is common in Western countries, particularly in the United States, where people are being fired as long as it is within the legal boundaries and workers are being laid off even if the organization is thriving. Filipino business companies are more lenient towards their workforce. Here, you cannot be fired unless there is a justifiable cause or reason. Ruben Anlacan Jr. writes about this and expounds more on why it might be a good idea for companies not to do so in this article for the Manila Bulletin.

The Problem

Filipino companies tend to give employees far more leeway to avoid getting fired. This often leads to less productivity. This is the issue here. Here’s another premise: At first glance, it may seem that from a monetary standpoint, being quick to get rid of the least productive is the rational option. It is to be expected that companies would adapt management tools to ensure that this policy is applied. One of the most potent tools to bring about the elimination of the bottom performers is the use of stack ranking. 

Stack ranking is ranking employees based on performance and then getting rid of those at the lowest ranks. But this seemingly created another problem with some organizations because it promoted distrust, poor morale and lack of cooperation, among others. This method does not select the ones with great personalities, even though they lag behind performance-wise. These employees still deserve chances, which is not allowed in this scheme.

Although assertiveness in optimizing operations and workforce is highly impressive, methods such as stack ranking is not the answer you might be looking for as a company head. Of course, one should not tolerate “deadwood” employees who are basically just riding on the coattails of others. Stack ranking is not a good idea, but it may be used just to select those who are candidates for termination. As written in the article: it is just a temporary tactic to identify objectively those that should be retrenched. Bottom line, it is definitely up to top management to come up with a better method/process to single out unproductive individuals in the company, something businesses here in the Philippines might want to look more into.

Read the Original Article: http://www.businesscoachphil.com/should-you-fire-your-least-productive-employee

   

About Kristian Dayrit

Kristian Dayrit was the Associate Editor and Content Writer for AITS Philippines. He has edited and wrote various published works, articles, newsletters and such since 2007.

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