I recommend that you have a formal performance management meeting with the employee to inform them that you are considering issuing him a formal warning. You need to discuss with the employee what the company's concerns are, listen to the employee's responses to your claims, inform the employee of the compay's expectations and whether his response is sufficient excuse for your points of concern. If they are not sufficient, you state that you will be issuing the warning, what that means (i.e. employment in jeopardy) and the steps you expect the employee to take to improve his performance. The employee needs to be present so that he can give his response to your claims and so that you can communicate the reason for the warning and the expected performance from now on.
I hope that helps.
P.S. Remember to inform the employee that they have the right to bring a support person to that performance management meeting.
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