When Promoted Talent Underperforms: Should You Continue Developing Them or Replace Them?

Developing employees is the responsibility of every manager. However, there are times when you find yourself in a situation where you’ve invested a lot of time and energy into grooming a promising subordinate, but their performance continues to fall short of your expectations.

At this point, you're feeling frustrated and uncertain about what to do next.

You may want to continue developing them but fear that it could be a waste of time. On the other hand, replacing them feels like a risky decision—what if you miss out on untapped potential?

So, what should you do? Continue developing them or replace them?

Let’s dive into this topic today.

Developing People is a Manager’s Responsibility

Over the years, in my consulting experience, I’ve frequently observed this phenomenon: many managers are highly capable but fail to develop their team, leading to a talent gap within the company.

Why do some managers hesitate to develop people?

First, they lack the awareness of how important development is. After transitioning into management, they become focused solely on results and tasks, neglecting the growth of their team.

For instance, some “caretaker-type” managers don’t delegate enough, constantly stepping in to fix issues for their team members. They end up overworked while raising a batch of "giant baby" employees who can't stand on their own.

Second, they're afraid the people they develop might leave. These managers worry that after investing significant resources into developing talent, the person will leave, essentially gifting their efforts to another company.

In my view, developing talent isn’t just an essential duty for managers, it’s a lifelong commitment for any business.

Develop or Replace? Here are Three Key Considerations

While developing talent, no matter how promising they seem, you will occasionally misjudge their potential. So, what should you do when that happens?

Jim Collins, in Good to Great, mentions that in a study of 10 company leaders, half leaned towards developing underperformers, while the other half preferred replacing them.

Even those who leaned toward development wouldn't let things slide indefinitely—when the situation became critical, they decisively replaced the individual.

In my opinion, every manager is accountable for results. If you're developing someone who consistently fails to deliver, you should consider replacing them.

Sometimes, your leniency only makes matters worse, so it’s essential to act swiftly and decisively.

However, you shouldn’t make the decision to replace someone lightly. Here are three criteria to consider before making that call:

First, is it their problem or yours?

Reflect on whether you’ve placed the right person in the right role. Is there a misalignment between the person and the position?

Through thorough analysis and reflection, find the answer. If the issue lies with your management approach, you need to adjust accordingly, offering the individual more room and opportunity to grow. However, if it’s their issue, then it’s time to replace them.

Second, will replacing them benefit the company's growth?

Talented individuals attract other talented individuals. If an underperformer is apathetic or fails to take responsibility, top talent within your team may not tolerate this and could leave.

When an employee becomes a hindrance to the team and no longer adds value, it's time to replace them.

Third, will replacing them benefit their personal growth?

Sometimes, despite your best efforts, they see your guidance as a chore. They may lack the willingness to change, preferring to coast along.

If they’ve lost the motivation to improve and are unwilling to adapt, it's in their best interest to leave.

When the time comes to part ways, remember to act decisively yet compassionately. Being firm in your decision doesn't mean being cold or unkind—ensure they exit with dignity. Replacing them doesn’t always mean firing; it could involve finding a better-fitting role within the organization.

How to Increase the Success Rate of Employee Development?

Developing someone does not guarantee they will reach their full potential. So, how can you increase the success rate of employee development? Here are two essential strategies:

First, choose the right person for development.

In management workshops, I often say that selecting the right person is more important than development itself. If you choose the wrong person, development efforts are futile. Only when you’ve selected the right person does your training and development investment pay off.

What kind of person is worth developing?

First, they must have good values and character. If someone lacks integrity and is willing to use unethical means to achieve goals, they shouldn’t be hired or developed. The greater their abilities, the more damage they can cause in the long run.

Second, they must have big aspirations. They should not only focus on short-term gains but also have the vision to look far ahead.

We need to develop people who have dreams—only those with aspirations can be self-motivated.

Finally, they must be diligent. While having grand ambitions, they must also be willing to focus on and execute the small details of everyday work.

Second, provide collective coaching to improve success rates.

When developing talent, don’t just focus on one individual. Provide collective coaching to a group of people, as this significantly increases the chance of success.

One-on-one mentoring has a success rate of about 5%, while group coaching raises that to 80%.

Your energy is limited. If you only mentor one person and they turn out to lack the necessary aptitude or perseverance, your efforts might be wasted. But when you coach a group, even if some people fall short, a few exceptional individuals will likely rise to the top.

So, don’t just focus on one—focus on a group. Conduct collective coaching and add 20% personalized mentorship to address individual needs.

When developing people, it’s essential to create a competitive environment, a “horse race” where the best emerge victorious.

Conclusion

People are a company’s greatest asset, and developing talent is an inescapable responsibility of every manager.

However, talent development is not guaranteed to succeed.

To improve your odds, start by selecting the right individuals. Without the right person, development is futile.

Then, combine collective coaching with personalized guidance.

Through structured competition and development, you’ll ensure that the best rise to the top, solidifying your company’s future！