Every business has them - problem employees who suck up a great deal of a managers time and energy trying to achieve better performance and results.

In the good old days it was easy to rectify the problem, just terminate the employee and get on with business. In todays business world, labor laws have become much more employee friendly which has increased the challenges to managers as to how to deal with these individuals.

So how does a manager handle such employees effectively to achieve a win / win resolution. Unfortunately most managers focus all their efforts in trying to get rid of the problem rather than taking a step back and planning a strategy to give the employee a chance to become an asset to the business.

In order to deal with a problem employee it is important to be able to pinpoint where the true problem lies. The good news is that you only need to focus on three areas to find the answer.

If you follow these three areas in order you will find where you will need to focus your efforts to turn your problem employee into a productive member of your team.

The first area to look at is training. Has the employee been trained properly? Does he or she know what is expected of them? Was their training period adequate? Do they perform their duties within the guidelines set forth by the company?

If you can answer yes to all of these questions then training is not the issue, then you need to move to the next area. On the other hand if you answer no to any of the above, it is time to set aside some time to re-train the individual.

The second area is the environment. Is there something in the employees work environment that may be affecting their performance? There may be a possibility that the employee may have developed an allergy to the equipment they work with, or there may be something in the air that is causing the employee problems getting the job done.

In casinos, table games dealers have developed allergies to the dust that the table felts produce. Nurses have developed allergies to the powder used inside latex gloves.

If the environment is the cause of the problem it will be in the managers best interest to try to find an alternate job within the company that will provide a better climate for the employee to work in.

If the environment is not the problem then the only other option is the employees behaviour. This is by far the most difficult to deal with as people in general get very defensive and offended when they are being talked to about their conduct.

When speaking with an employee about their behaviour it is important to be up front with the issue. There is no reason to beat around the bush. You have to ask questions and let the employee say everything they have to say. The employee may have personal problems that are affecting their duties, they may hate the job or are having problems with someone they work with.

Once you have found the root of the problem then it is important to offer solutions. It may be counseling, a mediated meeting with another employee, or maybe the offer of a leave of absence from work to get their affairs in order.

Once the discussion has neared the end you must inform the employee of your expectations as their direct report and how they are expected to behave at work.

By following the above steps you as a manager will be able to improve performance and production from the most difficult employee. As you gain experience, the process will become easier each time.