In dealing with unproductive employees, the employee's interest is the critical factor. Interest and enthusiasm is a wellspring of an employees continual productivity. It drives him to go the extra mile for productivity. Remuneration is not always the case. It might motivate him for a while but it will not inspire him forever. When an employee is inspired and motivated by interest, he will be self willing.
My candid advise on addressing an employee's loss of interest...
1. Re-interview him or her. But don't let it be with the motive of termination of appointment, so he or she won't be defensive. Let it be for re-positioning. Give him or her another position that suit his personality type. You can run a personality check if he is not sure of where his interest lies. but if he is sure, place the employee under a mentor in the new department to learn.
2. Or may be you need to do a 'Leadership Style X-ray'. Check your leadership style in the organization. Is it the type that allows for free initiative or do as i direct? Leadership style needs to be clearly checked. Personally i encourage the "i intend to" leadership style. This leadership style allows employees to not only own the problem but also the solution. This style gives them the mindset that they are a vital link in the chain of command. They think through the problem, build a solution and then come to you to inform you that i intend to do this to solve the problem. This style also gives them a sense of responsibility and ownership of the outcome of the solution proffered.
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