In a small business, each employee plays an important role, including the managers. But what happens when a manager, who may also be a high performer or long-time team member, is the source of workplace issues? It's a tough situation, but it’s not uncommon. Left unaddressed, it can lead to high turnover, low morale, and even legal risk.

Here’s how to spot the signs, respond appropriately, and create a healthier work environment for everyone.

Spotting the Red Flags

Bad management doesn’t always look like shouting or overt bullying. It can be subtle. Watch for:

• Consistent turnover on one team
• Employee complaints about communication, fairness, or respect
• Drops in productivity or engagement.
• A pattern of conflict or poor collaboration

If one or more of these issues pops up around the same manager, it’s time to take a closer look. Here are some clear steps to address the issue(s):

1. Identify the Problem

First, recognize the signs of a bad manager. Common issues include poor communication, micromanaging, inconsistent decisions, and failure to motivate. Once you identify the problem, assess whether it’s a one-time issue or a recurring pattern.

2. Encourage Team Feedback

Create safe, confidential ways for employees to share concerns, whether it’s through anonymous surveys, regular check-ins, or an open-door policy. Be sure to acknowledge their feedback. Avoid dismissing complaints as “personality clashes.” Dig deeper to understand the root causes.

3. Have a Constructive Conversation

Sit down with the manager privately to discuss the issue. Frame the conversation around improvement not punishment. Be specific about behaviors, not personal traits. Offer support and guidance on how they can improve, like providing communication tools or leadership resources. Approach this with empathy rather than criticism. Make it clear that improvement is expected, and offer support to help them get there.

4. Provide Training or Mentorship

Managers sometimes struggle due to lack of training or experience. Offer leadership training or mentoring to help them develop the skills they need. This will show that you’re invested in their growth and improvement. Small businesses often promote from within which is great, but not everyone starts with strong management training. Investing here can pay off long-term.

5. Set Clear Expectations

If the problem persists, set clear expectations for improvement. Outline specific goals and follow up regularly to monitor progress. If the manager can’t meet these expectations, it might be time to reassess their role.

6. Know When to Make a Change

If efforts to improve the manager’s performance fail, it may be necessary to make a tough decision. Sometimes, the best option is to let the manager go or reassign their responsibilities for the sake of the business.

7. Support Your Team Through Transitions

If you make a change, communicate openly with your team. Explain the decision respectfully and provide the support needed to help everyone adjust.

Handling a difficult manager can be challenging, but with open communication, empathy, and a clear plan, you can improve the situation and keep your business on the right track.