Managing underperformance in the workplace requires a structured, empathetic, and proactive approach. A well-handled performance issue not only benefits the employee in question but also safeguards team morale and overall productivity. Below, we outline key strategies to address underperformance while maintaining a positive workplace culture effectively.
Identifying the Problem
The first step in managing underperformance is identifying and documenting specific issues. This includes noting behaviours, actions, or outcomes that fall short of expectations and assessing their impact on the team or organisation. Underperformance can take various forms, such as failing to meet deadlines, demonstrating poor work quality, or displaying disruptive behaviour. Understanding the root cause is crucial—sometimes, performance issues stem from unclear expectations, skill gaps, personal struggles, or workplace dissatisfaction.
Employers should gather concrete evidence, such as work samples, customer feedback, or performance metrics, before approaching the employee. This ensures that conversations are based on facts rather than assumptions.
Addressing the Issue with Empathy and Clarity
Once the issue is identified, a private meeting should be scheduled with the employee to discuss concerns. It is important to inform them in advance about the purpose of the meeting and offer them the opportunity to bring a support person if needed. This step fosters transparency and allows the employee to prepare.
During the meeting, managers should:
- Clearly outline the performance concerns with specific examples.
- Explain the impact of underperformance on the business, team, or clients.
- Encourage the employee to share their perspective and any challenges they may be facing.
- Maintain a constructive tone, reinforcing that the goal is improvement, not punishment.
One effective communication strategy is the “counselling sandwich” (also known as the “sh*t sandwich”). This involves starting the conversation with positive feedback, addressing the issue in the middle, and concluding with an optimistic outlook. This approach helps the employee feel supported rather than attacked.
Collaborating on a Solution
To foster commitment, employees should be actively involved in devising solutions. This could include:
- Setting clear expectations – Defining performance standards and responsibilities.
- Providing support – Offering training, mentoring, or flexible work arrangements to help the employee improve.
- Establishing measurable goals – Outlining specific, achievable targets within a set timeframe.
A Performance Improvement Plan (PIP) can be useful for tracking progress. This document should detail expected improvements, available support, deadlines, and follow-up review dates. Keeping written records ensures accountability and can serve as legal protection if further action is needed.
Monitoring and Providing Feedback
Improvement does not happen overnight. Regular follow-ups and feedback sessions are essential to keep employees on track. Managers should:
- Recognise and acknowledge improvements, even small ones, to reinforce positive change.
- Offer constructive feedback when progress is lacking and adjust support mechanisms if necessary.
- Keep a written record of all discussions and performance reviews.
If underperformance persists despite support, further steps, such as formal warnings or disciplinary actions, may be necessary.
Establishing Rewards and Consequences
To motivate improvement, clear incentives and consequences should be established. This may include:
- Rewards for progress, such as bonuses, promotions, or public recognition.
- Consequences for continued underperformance, including written warnings or, in extreme cases, termination.
A fair and transparent process is crucial. Employees must understand that repeated failure to meet expectations, despite adequate support and time, could result in dismissal. However, termination should always be a last resort, following due process to avoid legal repercussions.
When to Let Go
If all efforts to improve performance fail, businesses may have to consider termination. Before taking this step, managers should ensure they have:
- Given clear expectations and sufficient opportunities for improvement.
- Issued formal warnings, documenting all discussions.
- Followed company policies and labour laws to avoid unfair dismissal claims.
Letting an employee go can be difficult, but sometimes, it is necessary to protect the productivity and morale of the broader team.
Conclusion
Effectively managing underperformance is about balance—offering support while holding employees accountable. A proactive and structured approach ensures that struggling employees have the opportunity to improve while maintaining a high-performance culture within the workplace. By setting clear expectations, providing the right support, and following best practices, managers can turn underperformance challenges into opportunities for growth and development.