What is Disciplinary Action? A Guide for Small Businesses

Building a team is incredibly rewarding, but it isn’t always smooth sailing. There will be times when an employee struggles to meet goals or acts out of step with your culture. When that happens, you need a way to address it that feels both fair and firm. This approach to guiding your team back on track is what we call disciplinary action.

A thoughtful approach clears the way for growth and makes it much easier to stay consistent when problems pop up. In this guide, we’ll explore what disciplinary action looks like in practice, how to set up your own policy, and the best ways to apply it fairly.

What is Disciplinary Action?

Disciplinary action covers the formal steps taken to handle performance issues or misconduct. Instead of serving as a penalty, it acts as a constructive guide to help your employees grasp expectations and get back on track. Some examples of this action include:

• A verbal or written warning for lateness or missed deadlines

• Training to improve specific skills or knowledge gaps

• A performance improvement plan (PIP) with clear goals and timelines

Importance of Creating a Clear Disciplinary Policy

You can often solve minor issues with a continuous performance management system that includes regular check-ins and coaching. For larger or more persistent problems, you should devise a clear disciplinary policy. It ensures that your employees are aware of expectations and that managers know what to do. A workplace disciplinary action policy should:

• Differentiate Between Minor and Serious Infractions: This helps set practical standards for conduct. For instance, occasional lateness may lead to a verbal warning. Repeated lateness could result in a written warning.

• Define the Steps: Laying out the process ensures consistency and clarity. One approach is to start with coaching for performance issues before moving to formal warnings.

• Explain the Role of Documentation and Communication: Proper recordkeeping protects both you and your employees. It may include recording the dates of conversations and sharing copies of written warnings with everyone involved.

• Make Room for Appeals or Employee Feedback: Give employees a voice in the process. You can provide them with a chance to respond in writing or request a follow-up meeting.

Steps to Implement Employee Disciplinary Action

The most effective disciplinary measures are built from early conversations to formal steps. They give employees a chance to improve along the way. Some practical tips include:

Give Warnings

A warning is often the first step. It may be verbal or written, depending on the issue, but it should be respectful. Keep it specific and focus on improvement. For example, a manager might discuss repeated lateness and explain the impact on the team. The goal is to set expectations, not intimidate.

Document Everything

Documentation tracks progress and preserves fairness. Record each step of the employee disciplinary action, including dates and details of the incident. Add which actions you're taking. Along with consistency, documentation provides a reference point for follow-ups. It keeps everyone aligned.

Suggest Corrective Actions

Corrective actions can help your employees succeed. They may include training or mentorship. You can also consider a performance improvement plan. These corrective measures outline specific goals and provide resources to achieve them. When employees see that support is part of the process, they are more likely to engage and improve.

How to Handle Disciplinary Issues Fairly

Fairness is at the core of disciplinary action. You should address issues quickly and apply policies equally. Clarity and consistency prevent misunderstandings and reinforce accountability across the board. Some practical ways to promote fairness include:

• Holding private discussions rather than addressing concerns in public

• Listening to the employee’s perspective before making decisions

• Using the same standards across teams and departments

When you demonstrate fairness and consistency, your employees are more likely to respect the process and view it as an opportunity for growth.

Best Practices for Compliance and Transparency

Employees tend to respect processes they understand. They want to know how you make decisions and why you take certain steps. At the same time, disciplinary action needs to comply with employment laws and company policies. When you combine compliance with transparency, you can create a strong workplace culture rooted in respect, rather than fear. Here are some best practices:

1. Set Expectations: Clearly explain disciplinary measures during the onboarding process so that your employees understand expectations from the outset.

2. Keep it Professional: Train your managers to handle conversations with respect and empathy. Consider yearly training to refresh their skills and address new regulations.

3. Evaluate and Update as Needed: Review disciplinary records regularly to check for consistency. Confirm that your current action plan aligns with the company policy and legal requirements.

4. Gather Feedback: Use anonymous surveys or exit interviews to collect feedback about the process. An open dialogue can build trust and improve procedures.

Managing Disciplinary Measures with Justworks

Disciplinary action holds employees accountable while giving them the space to improve. With a straightforward policy and consistent process, you can address challenges while supporting your team members.

The right tools and platforms can help. Justworks offers simplified HR, compliance support, free training resources, and 24/7 expert guidance. The platform's seamless integrations with leading employee management tools help you manage employee disciplinary action with less manual work. Get started with Justworks today.