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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

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Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

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MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

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Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

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Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
NewslettersFortune CHRO

How to handle underperforming employees according to top HR executives

By
Azure Gilman
Azure Gilman
and
Emma Burleigh
Emma Burleigh
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By
Azure Gilman
Azure Gilman
and
Emma Burleigh
Emma Burleigh
Down Arrow Button Icon
August 14, 2024, 8:21 AM ET
Worker lays out and naps during work.
Leaders can deal with underperfomers with these tips and tricks. Getty Images
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Good morning!

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HR leaders are in charge of all sorts of things, from digital transformations to succession planning. But CHROs are also famously—or infamously—tasked with taking on and managing underperforming employees. 

The problem of a struggling staffer is eternal, but there are certain extenuating factors right now that may be making matters worse for the workforce as a whole: a mental health crisis, widespread feelings of disconnect, and a dawning awareness that most people are operating on the brink of burnout.

My colleague Emma Burleigh reached out to more than a dozen top career experts and people leaders from companies including Microsoft, Salesforce, and EY, to get their advice on how to handle staffers who are struggling in their current role. 

“We don’t need to prevent underperformance. The reality is it can happen,” said Ginnie Carlier, vice chair of talent for EY Americas. 

Experts delivered some evergreen advice that many managers are familiar with, including setting crystal clear expectations about what the job involves, and being consistent with follow up conversations about how the employee is doing. But they also recommended that CHROs lean more towards the carrot than the stick when it comes to leading people. 

That includes creating growth opportunities for employees who may have lost sight of their career path at the company, figuring out a different role that the employee might be better suited for, and above all, interacting with empathy. Employees are often doing their best with invisible weights tied around their legs, and people leaders need to be mindful of the different challenges workers are up against. 

“By building empathy with the employee, you develop an understanding of the full scope of what might be affecting their work, including stress, burnout, or personal concerns,” says Denis Hickey, VP of total rewards at Wellhub, a corporate wellness platform. “You can collaboratively develop a plan that addresses both performance and their wellbeing.”

Azure Gilman
azure.gilman@fortune.com

Today’s edition was curated by Emma Burleigh.

Around the Table

A round-up of the most important HR headlines.

After getting hit with charges of unfair labor practice, Amazon is accusing the National Labor Relations Board of violating the constitution. The Guardian 

Paramount will lay off about 15% of its staffers, as the company seeks to cut costs by $500 million and prepare for a merger next year with Skydance. New York Times

The United Auto Workers union has filed federal labor charges against Donald Trump and Elon Musk for supporting the practice of firing workers who threaten to strike against their companies. NBC News

Women who have recently graduated college are persistent in their job search, even accepting part-time work or roles they’re overqualified for, while their male counterparts are taking a break. Bloomberg

Watercooler

Everything you need to know from Fortune.

Unexpected. The U.K.’s unemployment rate has dipped slightly as companies have increased hiring, signaling that there is more strength in the labor market than what forecasters anticipated. —Tom Rees, Andrew Atkinson, Bloomberg

Buying barriers. General Motors is cutting research and development staffers in China as the country’s COVID restrictions and a more competitive electric vehicle market has affected the business landscape. —Lionel Lim

Blame game. Google's former CEO Eric Schmidt blames the company's work from home policy on it failure to gain a competitive advantage in the AI race. —Orianna Rosa Royle

This is the web version of CHRO Daily, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.

About the Authors
By Azure GilmanDeputy Leadership Editor
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Azure Gilman is the former deputy editor for the Leadership desk at Fortune, assigning and editing stories about the workplace and the C-suite.

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Emma Burleigh
By Emma BurleighReporter, Success

Emma Burleigh is a reporter at Fortune, covering success, careers, entrepreneurship, and personal finance. Before joining the Success desk, she co-authored Fortune’s CHRO Daily newsletter, extensively covering the workplace and the future of jobs. Emma has also written for publications including the Observer and The China Project, publishing long-form stories on culture, entertainment, and geopolitics. She has a joint-master’s degree from New York University in Global Journalism and East Asian Studies.

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