Tied to candor is Welch’s 20/70/10 “differentiation” rule. The top 20% of performers should be promoted into jobs which are a good fit for their strengths, assist the next 70% to better meet their potential, and make it clear to the bottom 10% that their future lies elsewhere. Good communication will see these staff moving on to better pastures for themselves, failing that these staff must be fired.
As Welch would say “We made a mistake employing you, and you made a mistake accepting our job offer. Let’s work together to find you a job where your passions lie, where you will go to work with a spring in your step. In the meantime we expect you to put your best foot forward so we can be open and honest to your potential employer without compromising your chances.”
In a year or so they will come bouncing up to you in the supermarket and thank you. They will have found the right job for them and be flourishing.
Please read “winning” by Jack and Suzy Welch.
You may wish to read an extract from my Winning Leadership Whitepaper, this paper can be purchased from my website.