How to Address a Problem With Your Daycare Employee

Dealing with a problem daycare employee is one of the hardest parts of running a childcare business. Whether you have been in the industry for a few years or a few decades, you will eventually hit a situation where a team member is struggling — or creating struggle for everyone else. How you handle that moment shapes your culture, your retention, and ultimately your margins. Here are seven practical steps to address it well.

Why a Problem Daycare Employee Hurts More Than You Think

Unresolved staff issues are expensive. Morale dips. Quality slips. Good teachers start updating their resumes. According to Gallup research, disengaged employees cost U.S. businesses hundreds of billions of dollars each year in lost productivity — and small teams feel it the fastest.

In a childcare setting, the stakes are higher. Your families notice tension. Your ratios tighten when one teacher checks out. Addressing the issue early is not just kinder — it is better business.

1. Address the Problem Early

When a problem surfaces, act quickly. Many directors watch an employee’s problem quietly turn into a problem employee in a matter of weeks.

Unresolved issues spiral. Team morale drops. Staff begin to question your leadership. Quality and productivity slide. To avoid that downward spiral, make it a priority to address situations as they arise.

The best first move is almost always the same: a direct, private conversation. The rest of this guide walks through how to run it well.

2. Focus on the Behavior, Not the Person

When you sit down with your employee, keep the conversation anchored on the specific behavior and on your commitment to help them resolve it. Avoid character statements. Stick to observations.

As a result, you signal that the two of you are on the same team, attacking the problem together. That framing diffuses tension and keeps the employee from going into defense mode. Harvard Business Review has long backed this approach — behavior-focused feedback is the only kind people can actually act on.

3. Identify What Is Really Going On

Most of the time, there is more to the problem than meets the eye. Your job is to understand the full picture.

For example, what looks like laziness may actually be burnout, a scheduling conflict at home, or a lack of clarity about expectations. What looks like attitude may be unaddressed stress from a tough classroom.

Ask clarifying, open-ended questions. Then listen — really listen. You are gathering facts before you design a solution.

4. Be Receptive to Constructive Criticism

As you dig in, you may hear something uncomfortable: that part of the problem starts with you. It might be a policy, a scheduling pattern, your management style, or the culture on the floor.

You do not have to agree with every point. However, you do need to listen. It takes real courage for an employee to tell their boss that the boss is part of the problem. Reward that courage with genuine consideration.

Reflect later. Decide what is actionable. Then share back what you plan to change and what you do not — and why. That transparency alone can reset a team dynamic.

5. Build a Plan Together

Once the issue is on the table and you both understand it, co-create a plan of action.

Be explicit: things need to change, and here is what “changed” looks like. Write the plan in specific, observable terms — not vague goals. Clarify what you will do to support them and what they own personally. Finally, schedule a follow-up meeting on the spot.

As a bonus, a written plan doubles as documentation (see the next step).

6. Document Everything

Whenever a problem arises, write it down. In detail. Every time.

Capture when the issue began, how and when you raised it with the employee, the agreed plan of action, and the outcome. Store notes somewhere secure and consistent — a folder in your HR system, not a sticky note on your desk.

Good documentation protects you if the situation escalates to a formal warning or termination. SHRM and the U.S. Department of Labor both emphasize that consistent, contemporaneous records are your best defense in an employment dispute. Keep good records — they are not optional.

7. Follow Up and Follow Through

Finally, close the loop. Meet on the date you set. Share what you have observed — improvements, repeats, or a mix.

Adjust the plan if needed. Remind both of you of your respective roles in the fix. Most importantly, follow through on consequences you already communicated. That might be a written warning, a missed promotion, a performance improvement plan, or termination if things have not changed.

When you follow up and follow through, you resolve the immediate issue and you model leadership for the rest of your team. Your staff is watching. Consistency is how you earn their trust.

Healthy Staff, Healthy Margins

Tough conversations are hard. However, they are the bedrock of a healthy center — and a healthy payroll line on your P&L.

Honest Buck Accounting is a full-service accounting firm dedicated to helping childcare business owners take control of the financial side of their business, optimize their accounting processes, and grow profitability. If staffing costs are eating your margins or you need help connecting HR decisions to the numbers, schedule a call with us to learn more about our professional financial services.