by Julie Tuggle-Nguyen
It’s the time of year when many businesses are in the middle of their performance and compensation cycles. For leaders, this can bring the uncomfortable task of having difficult conversations with employees whose performance has fallen short of expectations. While no one looks forward to these discussions, they are an essential part of building strong teams and supporting employee growth.
Importantly, performance discussions should not be a once-a-year event. If you’re delivering hard feedback, it shouldn’t come as a surprise to the employee. Instead, it should be the culmination of ongoing conversations throughout the year. Regular feedback ensures employees are clear on where they stand and gives them opportunities to course-correct before a year-end review.
To help you navigate these challenging discussions, let’s explore a proven framework, along with practical advice for giving constructive feedback.
A Simple Model: The SBI™ Framework
One of the most effective tools for delivering feedback is the Center for Creative Leadership’s SBI™ model. This method keeps the conversation focused and professional. Here’s how it works:
1. Situation: Start by describing the specific situation. Set the context so the employee understands exactly when and where the issue occurred. For example, “During last week’s team meeting…”
2. Behavior: Describe the behavior you observed, sticking to facts and avoiding judgment. For instance, “…you interrupted a colleague several times while they were presenting their ideas.”
3. Impact: Explain the behavior’s impact on you, others, the project and/or the organization. For example, “This made it difficult for the team to have a productive discussion and may have discouraged your colleague from contributing in the future.”
While not technically part of this model, I recommend adding a fourth step: Follow up to ensure accountability. Discuss what needs to happen next and how you will support improvement.
Tips for Delivering Difficult Feedback
While this framework provides structure, there are additional best practices that can make these conversations more effective and less stressful for both parties:
- Be prepared. Take time to gather your thoughts and any relevant documentation before the conversation. Having clear examples and notes can help you stay focused and confident. Review your goals for the discussion, and tailor your approach accordingly.
- Provide feedback in private. Always deliver constructive feedback in a private setting. Public criticism can damage trust and cause more harm than good.
- Be timely. Feedback is most effective when given as close to the moment as possible. Research shows that feedback given more than 48 hours after an event is less impactful and often delayed indefinitely.
- Stay professional. Keep the conversation centered on the behavior and its outcomes, not the person. Document the conversation in writing with the dates, names, examples, and agreed-upon next steps. Keep it clean and professional at all times, even in your personal notes.
- Reframe feedback as an opportunity. Feedback is a gift. When framed as an opportunity to improve, it becomes a tool for growth rather than criticism.
Remind yourself and your employee that the worst outcome is no feedback at all—it denies the chance for improvement and undermines the team’s success.
Aligning Performance with Compensation
One common pitfall during performance cycles is sending mixed messages about performance and pay. If an employee is not meeting expectations, giving them a raise undermines the feedback and creates confusion. Conversely, employees who exceed expectations should see that reflected in their compensation.
Here are some key points to keep in mind:
- Clearly link performance discussions to compensation decisions.
- Be transparent about how performance impacts raises, bonuses, or other rewards.
- Celebrate high performers with appropriate recognition and rewards.
Remember, your team is watching. If underperformance is tolerated or rewarded, it can create resentment and lower morale among high performers. Addressing performance issues promptly and fairly demonstrates leadership and commitment to the team’s success.
The Bottom Line
Difficult conversations about performance are never easy, but they are essential. At the end of the day, this is about doing the right thing for your team. As a leader, it’s your responsibility to coach your team, address issues, and create a culture of accountability.
Avoiding the conversation doesn’t make the problem go away—it makes it worse. So, take a deep breath, focus on the facts, and step into the conversation with confidence. Your team—and your employee—will be better for it.
Julie Tuggle-Nguyen is Chief Human Resources Officer at Midwest BankCentre.