The importance of documenting performance problems as they occur cannot be overstated. Although this requires meeting with the employee and discussing the issue, which will almost certainly be uncomfortable, it’s your best defense to a wrongful termination claim should the employee feel litigious after termination.
Too many employers rely on the concept of employment at-will to protect them, when the reach of this concept is actually quite limited. The problem is that if an employer has little to no documentation and relies on at-will employment—and the theory that legally no reason is required—the terminated employee, their attorney, and possibly a jury of their peers will fill the blank with an illegal reason. Although you may be within your rights to terminate “for no reason,” it’s a dangerous position to take.
But if the threat of litigation isn’t compelling enough, there are other reasons to deal with performance and behavioral issues promptly and with documentation. Addressing performance and behavioral issues as they arise will improve performance and behavior! There are a few basic principles working in your favor when you commit to the manta of “Don’t delay, manage today.”
Here are just a few:
Ultimately, talking to employees and making a paper trail will serve you both during employment, by encouraging better performance and reducing turnover costs, and after, should they threaten to sue.