A well-built progressive discipline policy is a roadmap for resolving employee issues while cultivating a fair, transparent work environment, as well as reducing legal risks.
Progressive discipline is a formal company process of addressing and correcting employee-related performance and behavior issues with increasing severity. A clear progressive discipline policy outlines how the process works, providing a fair and standardized way to manage your team while documenting the progressive discipline steps (from verbal warning through termination) for employees who do not meet your standards.
The key theme of this process is to help employees improve, not to punish poor behavior or performance. Taking the mindset of helping employees often results in better results and overall improvements within your organization.
We’ve provided a free progressive discipline policy sample that you can use for your business.
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How Progressive Discipline Works: The 4-Step Approach
The most common form of progressive discipline, a crucial component of employee management, involves four steps: verbal warning, written warning, final written warning, and termination. The goal is to correct any inappropriate behavior, improve performance, and prevent future misdemeanors before relying on the most extreme sanction of termination.
Tip: When it comes to disciplining employees, you must first explain what constitutes unacceptable behavior. While some behavior is illegal (sexual harassment, racial discrimination), other behaviors can be unique to your organization. You need to define these and communicate them clearly in your employee handbook.
It is also imperative that employees understand the consequences of poor work performance. Starting with their job description, you need to ensure that every employee understands their goals and how they will be held accountable.
Step 1: Verbal Warning
The first step in a progressive discipline policy is to discuss the employee’s poor performance or behavior with them. It is imperative to address these concerns in real time. Discussions with the employee during their next formal performance review are fine, but issues that can be resolved immediately should be handled immediately. Managers with stellar people management skills can handle these tense situations with grace.
If you give a verbal warning, you don’t simply tell the employee to change or leave. Your goal is to provide direction to the employee to help them improve. Managers need to discuss the issue with employees and ask how they can help them resolve the issue. It is also crucial for the manager to define clearly what steps the employee must take to improve their performance or behavior.
For example, in dealing with excessive tardiness, if an employee has been late three days in one week, the manager should address it with the employee and ask how they can help. Managers should avoid asking about medical or family issues—but ask why the employee is tardy. Together, the manager and employee can work to address and correct the problem. This can be easier with a clear attendance policy in place.
While this first piece of a progressive discipline policy is a “verbal” warning, you must still document the discussion and put a copy in the employee’s personnel file. The employee should receive a copy of the document, and you should request they sign it to acknowledge its contents. If they refuse to sign it, note their refusal on the document and place the document in the employee’s personnel file.
Step 2: Written Warning
When an employee fails to correct a problem even after being given reasonable time to do so, the next step would be to issue a written warning. When an employee receives a written warning, they are informed that if they fail to resolve the problems, further disciplinary action will be imposed.
Prepare a write-up form before having a conversation with the employee. In the formal written warning, clearly state what previous steps have been taken to help the employee improve and how their performance or behavior is still sub-par.
For example, if an employee does not have a valid or protected reason for being tardy and continues to arrive late to work, taking the next step to provide a written warning is the right move. In the written warning, state the consequences for failure to correct the behavior.
Once you’ve written the document, have a discussion with the employee. Never simply hand an employee a written warning without allowing them to discuss it with their manager (if that’s you or someone else), HR, or both. As long as you show the employee that you are there to help and support them, even a formal discussion doesn’t need to be tense or uncomfortable.
You may also decide to place the employee on a performance improvement plan (PIP). If the employee fails to comply with it, your company will have legal support should you need to terminate the employee as a result.
Step 3: Final Written Warning
The next step in your progressive discipline policy is a final written warning—and this can come with more serious sanctions, such as a demotion or suspension. If an employee has not made a substantial improvement in performance or behavior, a final written warning represents the employee’s last chance to do so. As long as you gave the employee every chance to improve, you know you did everything you could and have a valid business reason to terminate the employee.
Following the previous example, excessive tardiness can be a legitimate business reason to give an employee a final written warning. If an employee is routinely late, it has a snowball effect on the rest of your team and can demoralize other employees when they have to pick up the slack.
Prepare the final written warning before having a discussion with the employee. Include brief statements about the steps taken to this point and why this last step is necessary. Once written, speak with your employee and stress to them the seriousness of the issue. Be explicitly clear that if you have another discussion with them, it could be to terminate them.
Step 4: Termination
The final step in a progressive discipline policy is termination. Employees should be terminated if they have been given adequate warnings and provided with necessary support but still aren’t able to improve their performance or behavior.
In every instance, consultation with HR and maybe even an employment lawyer should occur. An employee termination has legal hurdles, and you want to make sure you get everything right.
While it’s never easy to terminate an employee, it’s ultimately in everyone’s best interest. Your company will benefit from replacing the employee with a more effective worker. You will show your existing employees you take action when necessary. The terminated employee will see the consequences of their actions and hopefully make adjustments that help them become successful.
Appeals
At every step in the progressive discipline process, an employee will have the right to appeal. During discussions with their manager or HR, they can rebut the information used to issue the disciplinary action. An employee may also provide written responses within a reasonable time (typically within five days of receiving a warning).
The purpose of an appeal is to allow an employee to inform their employer of contributing circumstances to their poor performance or inappropriate behavior. Some of these circumstances may include sensitive and protected information. An employee who keeps showing up late, for example, may have a sleep disorder that requires reasonable accommodation, including an adjustment in their scheduled start time. Always seek advice from legal counsel when issues like this arise.
In every situation, you must let employees be heard. You must document your discussions with an employee even if you dismiss their reasons as excuses. This will show that you gave them a chance to explain their performance or behavior and ample opportunity to take corrective action.
What to Include in a Progressive Discipline Policy
There are several points you must make clear in your policy—the specific steps, the employee’s right to an appeal, a disclaimer on at-will employment, and the exceptions that allow immediate termination.
Progressive Discipline Steps
This would be the meat and purpose of your policy and should include every progressive step to take before termination will be meted out. Although often commonly known, it’s best to include a short description of what each step means, what to expect from an employee’s manager or the HR department, and how the process should go. If possible, indicate some cases of when each step will apply to the employee.
Disclaimer
Found at the top or bottom of your policy, this is a short statement that the company reserves all rights on when to follow the policy and impose amendments to it. It must also state that the policy does not preclude or change the “at-will-employment” relationship between the company and its employees. This will provide some protection to your company, should there be any issues filed against your company.
Exceptions
This lists some cases or offenses that, when committed, may result in automatic termination. This typically includes criminal acts, like theft or abuse, or gross negligence resulting in business loss, like fighting with a business client or lambasting the company.
Appeals
This section describes the appeals process for employees. You want to make sure your employees understand they always have the right to appeal a decision—even if that decision is termination. Outline your company appeals process, the timeline for making an appeal, and to whom the appeal should be made. The purpose of the appeal is not necessarily to debate the disciplinary action, but instead to allow your employees due process.
Tips to Implement Your Policy
The key to an effective progressive discipline policy is to remember that the intent is not punishment but rather assistance and support. Supporting and guiding your employees to improve their performance and workplace behaviors will lead to better alignment with your company’s culture and expectations.
Ensure the Policy is Clear and Communicated
You must ensure that your policy clearly communicates your intentions. By not doing so, you could end up with employees who think that you are just trying to fire them or hold them to unreasonable expectations.
Make sure the policy is readily accessible to employees as well. Including the policy in your handbook and sending out updates to the whole company will ensure that everyone is on the same page.
Stick to the Policy
When you have a progressive discipline policy in place, you should strive to follow the steps for behavior correction in order—verbal warning, written warning, final written warning, and termination.
In rare circumstances, you can skip steps. If an employee’s behavior is especially egregious, like those mentioned above as exceptions to your progressive discipline policy, you can go right to termination. Just make sure that you have properly documented the incidents, your actions, and your reason for immediate termination.
Apply the Policy Uniformly
Be consistent. Disciplinary action should be based solely on an employee’s performance or inappropriate behavior. Do not unfairly single out employees or put them through this process because you dislike them. Employees will notice, and your organization will get a reputation for unfair treatment. It could also lead to costly employee discrimination lawsuits.
For more best practices, check out our tips on employee discipline.
Why Choose Progressive Discipline & Alternatives
Progressive discipline is your go-to tool for managing employee issues. It’s a multi-step process that begins with a friendly, informal conversation and escalates to more serious actions only if necessary. Think of it as your guidebook to navigating the sometimes murky waters of employee discipline.
Here’s a brief rundown of why we recommend progressive discipline policies for small businesses.
1. Clear Communication: Progressive discipline opens the door to clear, direct communication between you and your employees. It’s all about feedback and dialogue. The first step often involves a casual chat where concerns are aired and expectations clarified. Even though it may be casual, don’t forget to document everything.
2. Fairness and Transparency: Progressive discipline isn’t a surprise attack. It’s a step-by-step process that employees are aware of. This transparency promotes fairness, as everyone knows what to expect and when.
3. Improves Employee Performance: By providing timely feedback and a chance to improve, progressive discipline can turn around performance issues. It’s not just about pointing out flaws—it’s about fostering growth.
4. Reduces Legal Risks: With a well-documented process, you protect your business from legal complications. If an employee issue escalates to termination, having a record of progressive discipline steps can help defend your decision.
5. Boosts Morale: Knowing that minor mistakes won’t lead to instant dismissal can boost employee morale and confidence. It’s about creating a safe, supportive environment.
In the interest of full disclosure, let’s look at a couple of alternatives to progressive discipline.
- Zero-Tolerance Policy: This is the tough guy of policies. It’s all about immediate dismissal for violations. While it may seem appealing (and easier), it can lead to high turnover rates and a culture of fear.
- Laissez-faire Approach: On the opposite end, we have the hands-off approach. Letting employees self-regulate might sound idyllic, but it can lead to chaos and inconsistency. This approach can work when you have a self-driven team that thrives on autonomy. It’s great for fostering creativity—but remember, too much freedom can be just as harmful as too little.
- Individual Discretion: You could also play it by ear, handling each situation individually. However, this may lead to accusations of favoritism or inconsistency.
Progressive discipline is fair, it boosts productivity, and it protects your business. It’s the clear, assertive, and smart choice.
Examples of Progressive Discipline in Action
Here are some examples of progressive discipline at work, including what’s done for each step, as well as how to handle instances where skipping steps is necessary. Depending on the behavior or action being disciplined, latter steps may also include additional recourse like suspension.
In each case, you’re being direct, assertive, and thorough. You’re giving your employees a clear roadmap to success, and if they choose not to follow it, you’re prepared to take necessary actions. Progressive discipline isn’t just about penalties; it’s about guidance, communication, and fairness.
Now let’s consider situations where skipping steps may be appropriate.
In both scenarios, bypassing the usual progressive discipline steps is a necessary deviation due to the gravity of the misconduct. It’s crucial to remember, though, that even when skipping steps, the principles of fairness, transparency, and thorough documentation should still be followed. These principles will not only help you maintain a healthy work environment, but also shield your business from potential legal complications.
Always remember: when in doubt, consult with a legal expert to ensure you’re on the right side of the law.
Frequently Asked Questions (FAQs)
What is the purpose of a progressive discipline policy?
The aim of a progressive discipline policy is twofold. First, it gives employees clear guidelines for behavior and performance, offering them opportunities to correct any issues. Second, it provides employers with a structured approach to handling workplace issues, ensuring fairness and consistency in disciplinary actions.
When should I start the progressive discipline process?
Start as soon as you notice a consistent pattern of misconduct or poor performance. An isolated incident typically doesn’t warrant starting the process. Progressive discipline is about correcting ongoing issues, not punishing one-time mistakes.
Do I need to document every step?
Absolutely. If it isn’t documented, it didn’t happen. Documenting not only creates a record of your attempts to rectify the situation but also protects your business in case of legal disputes. Note the date, details of the incident, actions taken, and any communication with the employee.
Can an employee dispute the progressive discipline process?
Yes, an employee can dispute the process. They might disagree with the facts of the case, feel they’ve been treated unfairly, or believe the punishment is too severe. If an employee disputes, review the case, consider their perspective, and consult with HR or legal counsel, if needed.
Bottom Line
When your employees fall below your standards, progressive discipline provides your managers and HR with a process to follow. Having a clear progressive discipline policy helps you treat all employees fairly and consistently while remaining in compliance with all applicable employment laws. Follow our progressive discipline steps above to ensure your policy ultimately elevates your employees and your organization to new heights.
