Managing Disengaged Employees: When to Coach and When to Let Go
Here’s this week’s question:
“How do you handle disengaged team members? How much time and energy do you spend hearing them out or trying to change their perspective? Or is there a point where you decide it’s just not worth the effort?”
The agency owner who asked this question provided some context that was unique to her situation. She validated her concerns by conducting an employee survey, which revealed low engagement scores. Her "Negative Nellys" became a problem because their attitude started to affect those around them.
When going through this situation, it’s tough to know whether to double down and try to win people over or cut your losses and move on. For many of you, your persistence (which is an entrepreneur's gift) means you tend to lean toward trying to win over people even though they may not be a good fit for your business.
Knowing this, I’m going to be a bit prescriptive in my answer because it’s important to have a framework for handling these situations. This ensures your instincts don’t get the best of you, and you approach these moments with a deliberate, intentional mindset.
Step 1: Identify the Root Cause
Have direct, open conversations to explore their concerns. Disengagement often stems from feeling undervalued, poor communication, or missed opportunities for growth and development. Before assuming that an employee is a "wet blanket," dig deeper into why they feel disengaged. This leads us to the next step.
Step 2: Avoid Labels
An agency owner once referred to one of her employees as a "wet blanket," and soon everyone in her inner circle started using that term. No one could deny this employee’s unbelievable talent as a designer, but her attitude often changed the mood of the room. The problem with labels is that we start viewing people as problems to fix rather than individuals needing support. Sometimes, what seems like resistance is actually a cry for recognition or more support.
Step 3. Regular Feedback Meetings
Here’s what I often notice—you’re not meeting with your team members enough. That’s a blanket statement, but it’s true for most. Regular, meaningful feedback is key to keeping employees engaged. This goes beyond annual reviews or employee surveys—feedback needs to be a two-way street where employees feel heard and involved. Use these meetings to understand their motivations, career goals, and challenges at work. These check-ins are also a good time to subtly remind your people how their role fits into your vision. When employees feel their work matters and they understand the company's direction, it can reignite their sense of ownership and engagement.
Step 4. Evaluate Fit—Do They "Get It, Want It, Have the Capacity"?
The GWC tool, part of the Entrepreneurial Operating System (EOS), assesses an employee’s alignment within their role. Do they Get it (understand their role), Want it (are motivated to do the job), and Have the Capacity (skills and mindset) to succeed? If someone is disengaged because they’re in the wrong role or no longer have the capacity due to the role expanding, it might be time for a change—either within the company or outside of it. If they don’t want it or aren’t aligned with your agency’s values, sometimes it’s best for both parties to part ways.
Step 5: Know When to Walk Away
There comes a point when you have to start managing someone out for the good of the team. Spending too much time trying to re-engage employees who fundamentally don’t fit the role or culture can drain resources and hurt morale. If after honest conversations and coaching, the employee is still toxic, resistant, or unmotivated, it’s time to let them go—especially if their behavior is affecting team morale or business outcomes.
Key Takeaways
There’s no magic bullet for re-engaging employees, but listening, understanding, and acting on their feedback is a great place to start.
When an employee is no longer a cultural fit or simply doesn’t want to be there, it’s time to let them go for the good of your team and the business.