Question:
The organization is currently undergoing restructuring, which includes the demotion of two staff members due to performance issues. We have thorough documentation showing that both employees were given ample time to make the necessary improvements. While there may be some resistance to the changes, the decision was made to demote them rather than terminate them. They will maintain their current positions but with reduced responsibilities, different titles, and a corresponding pay cut. Additionally, they will transition from salaried (exempt) to hourly (non-exempt) status. To improve productivity, their decision-making responsibilities will be outsourced. Specific cases: Director of Grants: No grants have been awarded since her hire three years ago. Director of Marketing: Currently relies heavily on the Executive Director for guidance. Both women are in one or more protected classes.
Questions: Before implementing these changes, what steps should I be mindful of to ensure a smooth transition while minimizing potential legal and compliance risks? The Director of Grants often reacts with undue anxiety to simple requests for information or discussions about upcoming deadlines. For instance, when asked for a straightforward report, her immediate response is frequently, “Am I getting fired?” This recurring behavior seems to be a deflection tactic aimed at controlling the situation. However, it creates discomfort for the employer, making it challenging to address performance concerns directly. Thank you
Answer:
No matter what you do, this one is going to be tough. So, it’s crucial to have thorough documentation of the performance issues, improvement plans, and opportunities provided to both employees. This will be your primary defense against any potential discrimination claims, especially given that both employees are in protected classes.
Before implementing the changes, consider the following steps:
- Schedule individual meetings with each employee. Start with the person you expect to provide the lowest level of friction.
- Explain the reasons for the demotion clearly, focusing on performance issues and organizational needs.
- Prepare written notices detailing the changes in job title, responsibilities, compensation, and effective date.
- Develop a transition plan outlining how responsibilities will be redistributed and any support that will be provided.
For the Director of Grants, address the lack of grant awards over the past three years as the primary reason for the demotion. For the Director of Marketing, discuss the need for more independent decision-making and how the new position will allow for skill development in this area.
Regarding the Director of Grants’ anxiety and deflection behavior:
- Document these instances
- Address the behavior directly if it occurs during the demotion meeting
- Set clear expectations for professional communication
- Stay on topic and don’t fall into the trap of defection or circle talking
- Consider offering resources for managing workplace anxiety
- Establish a structured follow-up plan with regular check-ins
Finally, ensure consistent application of the demotion process across the organization, monitor the impact of these changes, and set a timeline for reevaluating the demoted employees’ performance in their new roles without making any promises or signaling any potential for restoration.
I hope this helps.
Note: This blog post is for informational purposes only and should not be construed as legal advice. Always consult with a legal professional for advice specific to your situation.
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