Making Tough Decisions: The Power of Second Chances at Work

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Written by: Tobias Günther

“Should I fire him… or give him a second chance?”

That’s the question a founder recently asked me for advice on.

One of his employees had made a pretty big mistake. Not just a small blunder, but a serious mistake. I understood why the founder was torn. What’s the right decision in this case? Fire that person — or give them a second chance?

There Are No Easy Answers

To say it right away: there are no easy answers. These situations are tricky and complex and muddled… So please don’t take what I write here as “all-purpose advice.”

Sometimes, making a “clean cut” and firing someone is really the best choice. But often, giving a second chance is the better option. Here’s why it can be a powerful opportunity.

(1) Second Chances Can Be Wake-Up Calls

Giving an employee a second chance can be a crucial turning point.

If you — as their leader or manager — help them understand the severity of the situation, it can become a wake-up call for them. They see that their current level of performance / diligence / motivation isn’t nearly enough to earn them a long-term seat at this table.

In this sense, a second chance can have a positive long-term effect — not only on their performance, but also on their loyalty and commitment.

(2) Second Chances Send a Message to the Rest of the Team

The employee in question isn’t the only one who’s affected by your decision. It will inevitably influence the rest of your team, too. If you intend to or not, you are sending one of two possible messages.

(a) If someone is getting fired instantly, without being given a second chance…

…then fear and caution will creep into your culture. People will start playing it safe. They won’t take creative risks. Because, well… they might get fired!

But a team has to take a certain level of risk. If it doesn’t — if courage, ownership, and drive have withered away — you’ll see mediocre results, at best.

(b) If, on the other hand, someone gets a second chance…

…then the rest of the team sees that making mistakes is dealt with gracefully and productively. People feel safe to open up, exchange candid feedback, and admit mistakes.

This creates an environment that’s not only healthier, but one that also fosters higher performance. It increases the level of “psychological safety” in your organization — an incredibly important resource, proven by numerous scientific studies to be a prerequisite for high performance.

Seen from this angle, giving someone a second chance can be a powerful opportunity not only for them — but for an entire organization.