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Dear All,
We have a sales manager who has been a bad performer since the day he joined. We are paying him a very high salary since he came from a good company. But he has not brought any business to the company. so the management decided to pay him only half of his salary and the rest has been retained. now he is demanding his full salary and still no improvement in his work.
what should be our next step...???
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Even I am intpo the same problem. Atleast you took a step, we are only paying him. I will give this option to mgmt. I have given him a month to prove. Lets c.
But plz put all these things on mail to have a proof of material in future.
Hello Jyoti,
First of all, as per my knowledge NO company has a right to retain their employees salary. Even in the case of under performance.
You need to keep the employee in Action plan with appropriate time scales. You can give 3 written warnings with regards to his poor performance.
One thing you need to mention clearly in the action plan is that if he doesn't show any improvement within agreed timescales, the company can ask him to leave the job or else the company can terminate on the clause of non-performance.
Let me know if you need more help.
I am aware that it is not the right thing to do.. But he has been an absolute non performer even after being given tons of warnings over the months.... no amount of action plan can work for this guy and we are thinking of terminating him.. but do we have to pay him the retained salary..??? what is the right way to go about all this..??
i fully agree wid mr madhav..n i think co. not judge employees performnce in short period (2-3 months) give time to prove himself or u can discuss with him about company's expectation from him....if no improvement .... say gudbye to him on grounds of non-performance...thx
Dear Ms. Jyoti,
This is surprised to that you need the advice on such a matter, well all these out come has to be foreseen before making his joining your co. you could/ can took the following step;
1. For Sales force his salary has to linked on performance basis, and has to be carefully watched his performance, and before completion of prohibitive period of 90 days? and after 60 days a show cause notice has to be served him and after 15~21 days his service has to be terminate w.o. any further reason!!
2. Well if in case his desired performance has not been highlighted in his appointment order, then he is deserved his due salary, his salary can be holds if his services is under suspension, for ongoing inquiry of his act and his deeds.
3. Now the better to get rid from him as soon as possible, maximum he can ask for one month notice pay if his tenure has crossed the prohibition period,
Please do write if you do looking more advice,
Thanking you, Adarsh Kumar Jain

its not an issue ofwarnings.because u told that he is from a good company.If he is so then u should have a discussion about why he is becoming a non-performer,whats all the problems he is facing in the market and so on.Actually he needs a proper training then he might perform.
Hi Jyothi & Neha,
To my knowledge, the Organization doesn't have any right to discount the salary, except mentioned in the offer letter.
The only thing we can do is to give him a goal sheet for a specific period (discussing with concerned department) and take a letter of acceptance from him, that he would achieve the goal sheet conditions or else he would resign himself, instead of termination. Thats all...
And one more thing... Good company or sick company background doesn't matter. Only performance speaks.
Good luck...

Dear Jyoti:
I am indeed flabebrgasted on this issue of non performance by Sales Manager who has worked with reputed firm.
Neither morally nor legally you can reduce the salary of this employee. Inspite of several warnings by you (hope it was in writing) if there is no output - then you can very well terminate the service of this person but will have to pay the salary as agreed by you.
Hi Neha,
As you mentioned Sales person has come from very reputed compnay and he has not brought any business from the day he joined.
First, you verify his performance & achivement in earlier compnay,
Secondly, if he is on probation period you can terminate his services on the ground of poor performance as per you company terms & conditions mentioned in Probation letter.
Don't retain his part Salry it will give bad affects within the organization and out side too.
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