One of the hardest decisions a business owner faces is what to do when someone on their team isn’t performing.
Do you coach them? Move them into a different role? Or acknowledge that they’re no longer the right fit?
For companies running on EOS®, tools like the People Analyzer™ and Accountability Chart provide a structured way to evaluate these situations and make more confident decisions.
But identifying the problem is only the first step. The real challenge is knowing what to do next.
We recently published a post about why confidential searches are the wrong way to handle the replacement of “problem employees.” In this post, we are going to talk about the right way to handle an underperforming employee.
Alex Freytag
The ability to solve your people challenges is a decisive factor in the growth of your business. It’s something we are passionate about here at VisionSpark, and we know it’s important to growth-oriented business leaders whose companies run on EOS®.
To tackle this topic, we enlisted the help of EOS Implementer and entrepreneur Alex Freytag. The following post is taken from an interview with him and represents his expertise. It has been edited for length and clarity.
Whether the right next step is coaching, repositioning, or letting someone go, the goal is the same: make thoughtful people decisions that strengthen your team and support the long-term growth of your business.
Why People Problems Are So Difficult to Solve
People problems are rarely simple.
An employee who consistently misses expectations might lack the skills to do the job. They might not understand what’s expected of them. They could be in a role that doesn’t match their strengths, or their behavior might not align with your company’s Core Values.
The challenge is knowing which problem you’re actually dealing with.
Many business owners delay difficult conversations because they don’t want to lose a valued employee, disrupt the team, or make the wrong decision. Others keep trying to solve the problem through additional training, even when the real issue is a lack of role alignment.
The longer these issues go unaddressed, the more they affect the business.
The goal isn’t to get rid of underperforming employees. It’s to understand what’s preventing them from succeeding and determine the right next step.
EOS® offers a practical framework for doing this through two important questions:
- Right Person: Does this individual consistently demonstrate your company’s Core Values?
- Right Seat: Do they Get it, Want it, and have the Capacity to do the job?
These questions help leaders separate cultural alignment from role fit before making a decision.
Step 1: Identify the Real Issue: Core Values or GWC™?
Before deciding what to do about an employee, identify where the problem actually exists.
There are two different areas to evaluate: Core Values and GWC™.
Core Values: Do They Fit Your Culture?
Your company’s Core Values define the behaviors and principles expected of everyone on the team.
An employee might consistently hit their numbers, meet deadlines, and deliver excellent results. But if they regularly undermine coworkers, avoid accountability, or disregard company standards, their performance comes at a cost.
A strong performer who doesn’t align with your Core Values can create problems that extend far beyond their individual responsibilities.
Look at observable behaviors rather than personality or personal preferences.
Ask yourself:
- Does this person consistently demonstrate our Core Values?
- Do their actions reinforce the culture we want to build?
- Do they take responsibility when something goes wrong?
- Do they treat colleagues and customers in a way that reflects our values?
GWC™: Are They in the Right Seat?
GWC™ stands for:
- Get it: Do they understand the responsibilities and expectations of the role?
- Want it: Do they genuinely want to perform the work required?
- Capacity to do it: Do they have the skills, time, energy, and ability to succeed?
Someone can be a great cultural fit but struggle in a particular role.
For example, a highly collaborative employee might thrive in a relationship-focused position but struggle in a role requiring independent decision-making and rapid execution.
That doesn’t automatically make them the wrong person. They may simply be in the wrong seat.
Core Values evaluate the person. GWC™ evaluates their fit for a specific seat.
Both matter, but they answer different questions.
Step 2: Use the EOS® People Analyzer™
The EOS® People Analyzer™ helps leadership teams evaluate whether employees are the Right People by assessing their alignment with company Core Values and whether they are in the Right Seats through GWC™.
Rather than relying entirely on personal opinions or gut feelings, leaders can use a consistent framework to discuss employee fit.
How the Core Values Scoring System Works
The People Analyzer™ uses three ratings to evaluate how consistently someone demonstrates each Core Value.
How GWC™ Is Evaluated
GWC™ looks at whether an employee is suited for the responsibilities of their specific seat.
GET IT
Do they naturally understand the role, its responsibilities, and what success requires?
WANT IT
Are they genuinely motivated to do the work? Do they want the responsibilities that come with the position?
CAPACITY TO DO IT
Do they have the necessary skills, experience, time, energy, and ability to perform the job successfully?
Each element needs an honest yes or no assessment. A person needs to meet all three requirements to be considered a fit for that seat.
Practical Example: Evaluating an Employee
Imagine an employee who consistently demonstrates your company’s Core Values. They’re dependable, collaborative, and take responsibility for their work.
However, they repeatedly struggle with the strategic responsibilities of their leadership position.
Their People Analyzer™ results might reveal:
- Core Values: Strong alignment.
- Get it: No. They struggle to understand the broader responsibilities of the role.
- Want it: Yes. They genuinely enjoy the position.
- Capacity: Not yet. They lack some of the experience and skills required.
What does this tell you?
You may have the Right Person but not the Right Seat.
Instead of immediately considering termination, evaluate whether coaching, development, or another position could help them contribute more effectively.
The People Analyzer™ is a starting point for better conversations, not a substitute for understanding the circumstances behind an employee’s performance.
For additional guidance, visit the official EOS® Toolbox.
Step 3: Evaluate the Seat With the Accountability Chart™
Once you’ve evaluated the individual, take a closer look at the position itself.
This is where the Accountability Chart™ becomes important.
The Accountability Chart™ defines the structure of your organization by identifying the seats your business needs and the responsibilities attached to each one.
Instead of starting with the person, start with the seat.
Ask:
- What does the business need this position to accomplish?
- Are the responsibilities clearly defined?
- Does the employee understand what they're accountable for?
- Are there overlapping responsibilities or gaps in ownership?
- Does the role still make sense for the company's current stage of growth?
Sometimes the problem isn’t the employee. It’s the structure surrounding them.
For example, an operations leader may be struggling because they’re expected to manage daily execution, oversee multiple departments, and make strategic decisions without clear authority or defined priorities.
In that situation, replacing the employee may not solve anything.
The business needs to clarify the seat first.
How the People Analyzer™ and Accountability Chart™ Work Together
These tools answer two complementary questions.
The distinction matters: You cannot accurately evaluate someone’s ability to succeed in a role if the role itself hasn’t been clearly defined.
Start with the structure. Define the expectations. Then evaluate the person against those expectations.
Step 4: Decide What to Do Next
After evaluating Core Values, GWC™, and the Accountability Chart™, you’re in a better position to determine the appropriate course of action.
But what should you actually do when someone isn’t the right fit?
Not every performance issue requires termination. Some employees need better direction, additional training, or a different position. Others may no longer be the right fit for the organization.
The important thing is to make an informed decision instead of allowing the problem to continue.
What Should You Do When Someone Isn't the Right Fit?
These are starting points, not automatic decisions. Consider the employee’s circumstances, the severity of the issue, the support already provided, and the needs of the business.
Before making a decision, leaders should ask:
- Have we clearly communicated what success looks like?
- Does the employee understand what's expected of them?
- Have we provided the training, resources, and support needed?
- Is the issue related to ability, motivation, behavior, or role structure?
- Have we documented specific performance concerns and previous conversations?
- Is there a realistic opportunity for improvement?
- Can the business afford the time and resources required to develop this person?
Coach, Develop, Reposition, or Separate?
There are four common paths leaders can consider.
- Coach
If the employee understands the role but isn’t consistently meeting expectations, direct feedback and coaching may help.
Be specific about the behavior or performance gap. Explain what needs to change and establish measurable expectations.
- Develop
If the employee has the right attitude and potential but lacks certain skills or experience, consider a development plan.
Training, mentoring, and additional support can help someone build the capacity needed to succeed.
However, development needs realistic expectations and a reasonable timeline. It shouldn’t become an indefinite extension of underperformance.
- Reposition
Sometimes a person is a strong cultural fit but struggles in their current role.
Consider whether their strengths, interests, and capabilities align better with another seat.
A lateral move or adjusted responsibilities may allow the employee to contribute more effectively.
- Separate
When an employee consistently demonstrates misalignment with Core Values or continues to underperform despite clear expectations and reasonable support, separation may be the most appropriate decision.
This is never an easy conversation. But delaying it can create greater problems for the employee, the team, and the organization.
Any employment decision should be based on documented performance, observable behaviors, consistently applied expectations, and appropriate HR or legal guidance.
Why Avoiding Tough People Decisions Costs Your Business
One of the biggest mistakes leaders make is waiting too long to address a people problem.
They hope the employee will improve. They wait for the right time to have a difficult conversation. They keep adjusting responsibilities or adding support without addressing the underlying issue.
Meanwhile, the rest of the team feels the impact.
Strong employees may become frustrated when accountability isn’t consistent. Managers spend more time correcting mistakes. Responsibilities fall through the cracks. Business goals become harder to achieve.
And the longer the situation continues, the harder it can become to make a decision.
Understanding the "36 Hours of Pain"
EOS founder Gino Wickman refers to the discomfort surrounding a difficult people decision as the “36 Hours of Pain.”
It’s the short but emotionally challenging period surrounding a tough conversation or decision, such as letting someone go.
Leaders may experience anxiety, guilt, uncertainty, or fear about what happens next.
But avoiding the conversation doesn’t eliminate the problem. It simply extends the stress and allows the consequences to grow.
When a decision is necessary, addressing it directly and respectfully allows everyone to move forward.
The employee has clarity. The remaining team can regain focus. Leadership can redirect its attention toward building a stronger organization.
Sometimes the most responsible decision is the one you’ve been avoiding.
Taking Responsibility as a Leader
Before concluding that an employee is the problem, take a closer look at how leadership may have contributed to the situation.
People problems don’t always begin with the employee.
Sometimes, the conditions for success were never established.
Consider whether:
Did the employee understand their responsibilities, decision-making authority, and expected outcomes?
Were performance standards communicated and reinforced consistently?
Did the employee receive the tools, guidance, and resources needed to succeed?
Were performance issues addressed early, or did leadership wait until frustration had built up?
Was the individual evaluated against the actual requirements of the role, or was the decision based primarily on experience, personality, and interview performance?
Strong leadership requires taking responsibility for the environment people work in.
That doesn’t mean leaders should excuse repeated underperformance or avoid accountability. It means understanding the full situation before deciding what needs to change.
Build a Stronger Foundation for Your Team
This is where a more intentional approach to talent management makes a difference.
VisionSpark helps growing companies build stronger teams through several complementary services:
People Plan™
Determine who you need, how your organization should be structured, and when to make critical hires. A clear People Plan helps ensure your talent strategy supports your company’s growth.
Position Maximizer™
Get greater clarity around the responsibilities, expectations, and requirements of each position so you can evaluate talent against what the business actually needs.
Team Health
Understand how your leadership team works together, identify potential friction, and uncover opportunities to improve communication, collaboration, and alignment.
The objective isn’t simply to fill positions. It’s to build a team that can support the company’s vision and perform at the level its next stage of growth requires.
Explore our People Plan™, Team Health services, and learn more about the four types of employees and how to identify the best.
Frequently Asked Questions
1. What is the EOS® People Analyzer™?
The EOS® People Analyzer™ is a tool used to evaluate whether employees are the Right People in the Right Seats. It assesses how consistently individuals demonstrate company Core Values and whether they Get it, Want it, and have the Capacity to perform their roles.
2. How do you use the People Analyzer™?
Start by identifying your company’s Core Values and evaluating each employee’s observable behaviors against them using a plus (+), plus/minus (+/−), or minus (−) rating. Then assess GWC™ for each seat the employee holds. Use the results to guide a conversation about alignment, performance, and potential next steps.
3. What does GWC™ mean in EOS®?
GWC™ stands for Get it, Want it, and Capacity to do it. It helps determine whether someone is suited for a specific seat by evaluating whether they understand the role, genuinely want to do the work, and have the ability and resources to succeed.
4. How do you know if an employee is in the wrong seat?
An employee may be in the wrong seat if they consistently struggle with the responsibilities of their position, lack the required skills or capacity, or don’t genuinely want the work. Compare their performance against clearly defined responsibilities and use GWC™ to evaluate their fit.
5. When should you coach an underperforming employee versus replace them?
Coaching may be appropriate when an employee understands expectations, demonstrates alignment with company values, and has the motivation and potential to improve. If performance or behavioral issues continue despite clear expectations and reasonable support, leadership may need to consider repositioning or separation. Document the process and consult appropriate HR guidance.
6. How do Core Values affect employee performance?
Core Values establish the behaviors expected throughout an organization. Employees who consistently demonstrate those values help strengthen trust, accountability, and collaboration. When someone repeatedly acts against those values, even strong individual performance may come at the expense of the broader team.
Do You Have the Right People in the Right Seats?
Identifying people problems is one thing. Knowing how to solve them is another.
VisionSpark helps growing businesses evaluate their teams, clarify leadership responsibilities, and make more confident people decisions.
Whether you need to strengthen your leadership team, define critical roles, or identify gaps in your talent strategy, we’re here to help you move forward with clarity.
Let’s talk about building a team that can take your business where you want it to go.
