How to Have Tough Conversations at Work: A Three-Step Framework for Small Business Owners
Oct 23, 2025
How to Have Tough Conversations at Work: A Three-Step Framework for Small Business Owners
If you have ever dreaded walking into a difficult conversation with an employee, you are not alone. Many small business owners avoid tough conversations altogether, worried about conflict, legal risk or damaging relationships. Yet avoiding these discussions often makes problems worse, not better.
In this episode of The HR Link: People-First Conversations, Amy Christopherson, founder of Grounded HR, shares her simple three-step framework that makes difficult conversations less daunting and more productive. With the right preparation and mindset, these moments can strengthen trust, not break it.
Why Avoiding Tough Conversations Creates Bigger Problems
Tough conversations are uncomfortable, but they are also inevitable. Whether it is about performance, conduct, restructuring or redundancies, leaving issues unaddressed allows frustration to grow on both sides.
Avoiding these conversations can lead to:
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Ongoing underperformance or poor behaviour
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Low morale among the rest of your team
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Increased compliance risks
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Loss of trust in leadership
The key is not to avoid these discussions, but to approach them with clarity, kindness and confidence.
The Three-Step Framework for Handling Tough Conversations
Amy’s framework helps small business owners approach tough conversations with professionalism and humanity.
The steps are simple: Prepare, Communicate and Follow Up.
Step 1: Prepare
Preparation is what sets you up for a calm, confident conversation. Before you meet, take time to:
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Gather the facts – Be clear about what has happened and what evidence supports your concerns.
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Clarify your outcome – Decide what you want to achieve from the conversation, such as improvement, awareness or a clear next step.
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Review your policies and processes – Check any internal procedures or Fair Work requirements that apply.
Always go in with empathy. Ask yourself what your employee will want to know and how the conversation might affect them.
Step 2: Communicate
This is the conversation itself. It should take place one-to-one in a private setting.
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Offer a support person: Let your employee bring someone along to observe and provide emotional support.
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Lead with kindness and clarity: Speak directly but respectfully. Being honest about expectations is not unkind; in fact, it shows care for the person and their success.
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Stay calm: If emotions run high, it is okay to pause the meeting and return when both parties feel ready.
As Amy explains, “When we communicate constructively, we are actually showing kindness. It is unkind to avoid conversations that could help someone improve or find clarity.”
After the meeting, provide a written summary of what was discussed. This ensures clarity, supports compliance and gives the employee something to refer back to later.
Step 3: Follow Up
This step is often missed, but it is where trust is built. If you promise to provide support, a check-in or next steps, make sure you follow through.
Following up shows integrity and reinforces accountability. It also turns what could have been a tense situation into an opportunity for stronger relationships.
“These conversations can be turning points, not breaking points. When you handle them well, you build confidence and trust in your leadership.”
Record Keeping and Compliance
After every difficult conversation, document what was discussed, who was present and what outcomes were agreed. This protects both you and your employee and ensures you are meeting your Fair Work obligations.
Even a quick email or diary note is enough to keep a clear record. Over time, this builds a valuable reference for future decisions or performance management.
Turning Challenge into Opportunity
Handled well, tough conversations can transform your workplace. They create clarity, set boundaries and show that you value open, honest communication. Employees learn that feedback is part of growth, not punishment.
By leaning into these conversations with empathy and structure, you can create a culture where honesty and care coexist.
Support for Small Business Leaders
If you are finding it hard to prepare for these conversations, Grounded HR’s People First Performance Pack can help. It includes templates, scripts and checklists to guide you through performance discussions, improvement plans and employee communication.
You can also explore The HR Link, Grounded HR’s flexible HR support service designed for small business owners who want professional HR advice without the cost or commitment of a full retainer.
Free Resources for Small Business Owners
Grounded HR offers a range of free tools to help you get started:
Learn more about how to lead with a people first approach to HR through our The HR Link: People-First Conversations Podcast is available on Spotify, Apple Podcasts, and YouTube.
Follow Grounded HR for more people-first HR insights:
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