It happens in workplaces everywhere. A top performer suddenly hits a slump—missed deadlines, fading enthusiasm, and declining work quality. Before you consider termination, pause. Saving a struggling employee might be the smarter, more humane choice. What if their dip in performance signals a temporary challenge, not disengagement? As a manager, your response can retain talent and strengthen company culture.
What if there’s more to the story? What if that dip in performance is a signal, not of a disengaged employee, but of a person who is struggling? As a manager, your response in this critical moment can not only save a valuable team member but also fundamentally strengthen your company culture.
The Hidden Costs of Employee Turnover: It’s More Than Just a Vacant Desk
On the surface, letting a struggling employee go might feel like a straightforward solution. The reality, however, is far more complex and costly. The price of replacing an employee is often significantly higher than you might think. A study by the Society for Human Resource Management (SHRM) estimates that the average cost of replacing an employee is six to nine months of their salary.
Let’s break down where these costs come from:
- Recruitment and Advertising: Posting the job, sifting through hundreds of resumes, and conducting initial screening interviews all take time and resources.
- Interviewing: The time spent by multiple managers and team members interviewing candidates is a significant drain on productivity.
- Onboarding and Training: The new hire needs to be brought up to speed on company policies, software, and team dynamics. This process can take weeks or even months.
- Lost Productivity: While the position is vacant, work either doesn’t get done or is distributed among other team members, leading to burnout. The new employee will also have a learning curve, during which their productivity will be lower than that of an experienced team member.
- Loss of Institutional Knowledge: This is a silent but profound cost. Long-term employees possess a deep understanding of the company’s history, processes, and client relationships. When they leave, all that valuable knowledge walks out the door with them.
When you’re dealing with an employee who has a strong track record, the value they bring in terms of institutional knowledge and established trust with the team and clients is immense. Firing them means you lose all of that, and it’s something a new hire can’t replicate overnight.
The Power of Empathy: Get Curious, Not Reactive
The knee-jerk reaction is to react to the dip in performance. A more effective and compassionate approach is to get curious. Instead of assuming the employee is lazy or doesn’t care, open a conversation and ask what’s going on.
Many life events can impact an employee’s performance, things they may not feel comfortable disclosing in a formal setting. These can include:
- Mental or Physical Health Challenges: Burnout, stress, depression, or an undiagnosed illness can severely impact focus and energy.
- Family and Caregiving Responsibilities: A sick parent, a new baby, or a child with special needs can create immense pressure and require a lot of time outside of work.
- Financial Stress: Unforeseen financial burdens can be a huge distraction.
- Major Life Changes: A difficult divorce, the loss of a loved one, or a recent move can all take a toll.
By approaching the situation with a genuine desire to understand, you create a safe space for your employee to be honest. A casual check-in, an invitation to grab a coffee or lunch, or a simple, direct question like, “I’ve noticed a change in your work lately, and I wanted to check in. Is everything okay?” can make all the difference. This doesn’t just show you’re a good manager; it shows you’re a human being who cares.
Balancing Accountability with Humanity
Being empathetic doesn’t mean you have to ignore performance issues. In fact, a compassionate approach often makes it easier to hold people accountable. It’s about balancing your expectations with an understanding of the human element.
Start the conversation by acknowledging their past contributions. Remind them of their value to the team and the company. This isn’t a performance review; it’s a conversation. Frame it as a partnership to help them get back on track.
- Identify the specific issues: Be clear about what has changed. “Your last three reports were submitted after the deadline,” is more helpful than “Your performance has been poor.”
- Ask what support they need: Do they need a flexible schedule for a few weeks? Can you adjust their workload temporarily? Does a specific task need to be delegated?
- Work together on a plan: Create a clear, achievable plan with defined goals and check-in points. This shows them you’re invested in their success.
Often, simply knowing their manager sees them as a person and is willing to work with them is enough to motivate an employee to bounce back stronger than ever. They feel seen, valued, and respected.
The Long-Term ROI of a Supportive Culture
When you choose conversation over termination, you’re not just saving an employee—you’re building a culture of trust and loyalty. Your team will notice how you handle difficult situations. When they see you treat a struggling colleague with compassion and support, it sends a powerful message: “This company cares about its people.”
This kind of culture leads to:
- Higher Employee Retention: People are more likely to stay with a company where they feel supported and valued.
- Increased Morale and Engagement: A supportive environment reduces anxiety and fosters a sense of psychological safety.
- Better Performance: Employees who feel trusted and respected are more likely to be productive and innovative.
The long-term return on investment from a single supportive conversation can be immeasurable. It can transform a potential turnover into a story of resilience and a stronger team member.
Final Thoughts: A Simple Choice
Before you make a final decision, remember the choice you have. You can react to the situation and sever ties, incurring significant costs and potentially losing a great asset. Or, you can choose to be a leader. You can choose to be curious, empathetic, and human.
If an employee has built a solid track record with you and your company, they’ve earned the chance to be human and have a tough moment. Before you terminate, try a conversation. You might just keep a great employee, and in doing so, build a truly exceptional company culture.