A valuable workplace culture is reliant on a happy, stable workforce therefore, fostering a good work environment is imperative for any successful business.   But it only takes one challenging employee to decrease staff morale and ultimately productivity.

Challenging employees come in a myriad forms. At the lower end of the scale it may be a case of an employee turning up to work late, being rude to fellow workmates or producing sloppy work. At the serious end of the scale it could involve harassment or theft. These types of behaviours have flow on effects and can build resentment among other employees who perceive the problem acutely. If staff see a colleague continually arriving late or cutting corners, what impetus is there for others to turn up on time and produce good work?

This situation is further exacerbated if staff perceive nothing is being done about the employee in question. Problems left un-checked may have ramifications for the team dynamic and also affect how other employees view the manger. Consequently, any breaches should be dealt with swiftly. Problems should be nipped in the bud before an issue escalates. Though bearing in mind, the issue might be symptomatic of wider issues within the organisation.

Here are a few ideas on dealing with a challenging employee. While most strategies are based on common sense it is worthwhile reinforcing a step-by-step approach.

Identify the problem

What is the problem and whose responsibility is it - the employer's, the organisation's or the employee's? Be prepared to give an honest appraisal of how you see the situation and what steps you would take to mitigate the problem. Ask the problem employee for ideas as they might be able to suggest a solution. Detailed documentation such as emails or notes on previous conversations held with the employee may be a useful when outlining your concerns. Documentation, such as warning letters or previous performance evaluations is imperative if termination is considered.

Set clear expectations

What type of culture does your organisation foster? What behaviour is expected? Do you set a good example? Ultimately, employees should know what is expected of them and ramifications of performance failure. Employees are more productive if they are supported and feel as though concerns will be listened to and taken on board. But more important is seeing action as a result of raised concerns. Be firm and clear about expectations and outcomes for any breaches.

Set clear ground rules

Boundaries are paramount. What penalties are in place if an employee fails to live up to expectations? Be consistent when enforcing ground rules and ensure position descriptions and contracts are up-to-date with the company's policies and ground rules. .

Seek advice

As a manager your first course of action is to seek advice from the human resources department. The HR department can inform you of your rights and obligations, plus the process you are required to follow when disciplining or terminating employment. Make sure you familiarise yourself with the company's discipline policy and ensure the employee aware of the process and their rights. However, for a small to medium sized business that doesn't have a specialist HR department, there are a multitude of consultancy services available to guide you on the best course of action when dealing with challenging employees and implementing workplace policies.

Keep detailed records

Keep good records and detailed notes on dealing with the challenging employee and be prepared for a tough conversation if necessary. Nobody enjoys confrontation; raising unpleasant matters is uncomfortable for all involved, but it is also necessary at times. For most workplaces, it is a legal requirement to keep detailed notes, especially if disciplinary action is being taken.

Analyse your alternatives

Is the person in the right position? Are the employee's skills compatible with the job description? Do they receive enough support? Attempting to rehabilitate an employee is often cheaper than re-advertising, interviewing, selecting and subsequently training another employee. All efforts should be made to keep the employee on staff, provided he or she, is willing to make changes. Could they use additional training or supervision? Do they require a mentor for whom he or she can discuss work issues confidentially?Be upfront. Make the mentor aware of your concerns and explain why. Figure out a probation period if necessary and provide regular, accurate and fair feedback on the employee's progress.

Discipline and termination

View termination as a last resort. Ensure you follow your business' policies for disciplining and dealing with challenging employees. But if termination is required make sure proper documentation is kept to avoid or mitigate any formal grievances. Reasons for termination must be fair and legitimate. Prior to termination, an employee must receive warnings in writing, be provided with further training or mentoring if appropriate, and given a reasonable amount of time to make amends. If this fails, provide a reason for dismissal and give the employee an opportunity to respond. Upon termination a relevant notice period and pay-out must be served according to the original contract or workplace agreement.