Managing Difficult Conversations: A Practical Guide for SME Line Managers

Why It Matters

In small and medium-sized businesses, every team member plays a vital role. When performance dips, behaviours shift, or tensions arise, the impact is felt more acutely than in larger organisations. Yet many line managers shy away from difficult conversations—whether due to fear of confrontation, lack of training, or concern about saying the wrong thing. Avoidance, however, rarely solves the problem. This Insight offers a practical, legally sound framework to help managers handle tough conversations with confidence, empathy, and professionalism.

Common Scenarios That Require Courage

Difficult conversations aren’t always about misconduct—they often involve nuanced, sensitive issues such as:

• Persistent lateness or absenteeism
• Declining performance or disengagement
• Inappropriate behaviour or language
• Personal hygiene or health concerns
• Pay disputes or contract misunderstandings

Each scenario requires a tailored approach, but the underlying principles remain the same: clarity, empathy, and action.

To support consistency and reduce anxiety, we recommend the CLEAR model:

C – Clarify the issue State the concern factually and without judgment. Use specific examples and avoid vague language.

L – Listen actively Give the employee space to respond. Resist interrupting and show you are genuinely open to their perspective.

E – Empathise appropriately Acknowledge emotions but stay focused on the issue. Empathy doesn’t mean avoiding accountability.

A – Agree actions Work together to identify next steps. Be clear about expectations, timelines, and support available.

R – Review and follow up Document the conversation and schedule a check-in. This reinforces accountability and shows commitment to resolution.

Manager Toolkit

To make this real-world ready, we suggest including:

• A pre-conversation checklist (e.g. facts, desired outcome, support options)
• Sample opening lines like: “I’ve noticed a change in your performance recently, and I wanted to understand what’s going on.”
• Common pitfalls to avoid: making assumptions, using accusatory language, or delaying feedback too long
• A simple template for documenting outcomes and agreed actions

Legal & Practical Tips

• Stick to objective facts and avoid speculation.
• Be mindful of language that could be discriminatory or insensitive.
• Ensure consistency across similar cases to avoid claims of unfair treatment.
• Know when to escalate to HR or move into formal procedures—especially if the issue persists or involves potential misconduct.

Bonus Resource

We can provide a downloadable handout summarising the CLEAR model, conversation tips, and documentation template. If you’d like sector-specific examples (e.g. handling lateness in hospitality or performance dips in education), we can tailor those too.

Need Support?

If your managers need help preparing for a difficult conversation, or you’d like bespoke training for your team, The HR Team is here to support you. We offer practical guidance, tailored resources, and expert advice to help you navigate sensitive situations with confidence and care.

Contact us today to discuss how we can help your business handle difficult conversations the right way.