The only thing that I'd add to this list from CareerJournal on how to handle sticky employee situations is "Know where the boundaries are."
For example, since a manager or supervisor is not a personal counselor, he or she should not venture into areas that may result in too much information being disclosed.
If it appears that an employee may have a significant personal problem, referring the person to a professional counselor via an employee assistance program can make enormous sense. The problem is addressed and management doesn't need to know the terrible details.
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