Several facts may lead to this. Your employee may not be prepared enough for the job or he might not have all the required skills for the job. Mistakes can be made in the recruitment process so this is one thing to keep in mind.
But an employee can also become unproductive over time. This leads to two possible situations: He is no longer motivated or can no longer accomplish new tasks.
If your employee lacks motivation, find out why and what happened. Make sure your employee knows his work is appreciated and find out if he is satisfied with the salary he receives.
The onus is on you to discuss what caused his sudden lack of motivation.
In general, poor performance has three reasons behind it
Often, this situation arises after you promote an employee. Since he doesn't want to let you down, he many feel uncomfortable asking for help out of fear that you might reconsider your conviction that he was right for the new promotion.
Before you jump to any conclusion and dismiss
a good employee, make sure you understand the real situation.
If the new job is above his level of competence, see what you can do since you are part of the problem as well. You made the promotion for good reasons and you had arguments to sustain your decisions. Go back to those and see what can be done so the current situation improves!
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Can you afford to invest time and money on the same employee or should you retract your promotion? Test, play with the numbers and see what's the right choice!
Be careful to the way you negotiate things! The last thing you want to do is turn a capable employee into someone who no longer feels motivated to work for your company and improve as a professional.
One great negotiation tool you have is to come up with a new offer for him.
Offer a performance bonus, make a new offer on the salary, state the performance standards and discuss all these aspects with your employee.
Does your employee need more time to adjust to the new job? Is the process taking longer than you thought? You should make sure you have a full understanding of the entire transition.
Could a training session be helpful?
Make the right decision and use the above information to understand which employees are valuable and which ones just are not right for your company.
Don't make the mistake of thinking everyone is replaceable. Invest in your team and make sure they are motivated. Results will show in a much better work performance!