My shop consists of myself and one employee. He's been working here for 3 years and he's been extensively trained over time and I consider him the best and most valuable employee I've ever had. He produces and contributes greatly to the shop output. But here's the rub... He's a moody guy and carries a chip on his shoulder. At times, it's difficult to approach the guy on matters because he wants to challenge or question my reasoning and he will sometimes snap back. His bad attitude generally pollutes the work environment on a daily basis unless he's in a good mood.
I'm at a point in my life where I want peace and tranquility in my life and I dread this kind of crap.
Not sure if I should keep the guy and deal with it or find a new employee and start all over again.
I'm looking for some sage advice from others who have been in similar situations.
I’m not walking in your shoes so don’t really know, and how do you analyze someone from a paragraph?….. but from what you wrote, I’m thinking “ Give your head a shake”.
When I read bad attitude, I thought, yeah, nothing worse than a caustic prick to hurt a culture. Then I read you had one employee! What? You’re the leader, the boss, the owner and are supposed to set the tone and rise above being brought down by negativity or letting emotions effect your work. So if you don’t include yourself, his bad behaviour/bad attitude is affecting a team of one?
Weigh that against the fact that he’s your best employee ever, is productive and trained. Would you rather have a yes sir no sir smiler who screwed up half the parts?
Being a manager is like coaching a kid’s team. You don’t get perfect kids or even get to pick them in many cases. But the winning coach's is the one can get the best out of each kid. So figure out how to get the best out of him.
I want employees who push back and argue. 10x better than a BDMF (Brian Dead Mother F…. and new acronym I’m trying to launch…please support the cause

) who doesn’t think or speak up. Has he ever had a good idea? Have you ever acknowledge it or said yeah lets try it that way?
Or instead of going to him and telling him how want something done, say “I need _____, what do you think?” or “how would you do it”. It’s a very effective tactic to make something the others person idea to get their buy in, sales 101 (and management is selling)
It might just be that he isn’t a BDMF and needs a bit of recognition for or inclusion in a discussion; might make him feel better about things. The truth is, no matter how much of a hard ass grumpy old school no BS sort of person one is, deep down, EVERYBODY wants to feel good about themselves and delivering on that, providing a workplace that delivers on that, can go a long toward bringing out the best in them.
If none of that works, who cares. You emotionally/mentally rise above it and there are no other employees to be negatively affected.