Underperforming employees can present a considerable challenge for management in any business. Whether an employee is having difficulties meeting expectations or is consistently failing to fulfil their duties, it is vital to adopt a proactive stance in identifying and addressing performance issues at an early stage.
Mishandling underperformance can result in various problems, such as low staff morale, reduced productivity, and, in the most severe cases, claims to employment tribunals. Therefore, it is essential to understand how to effectively manage underperformance in your workplace and to approach this matter with caution.
This month, we focus on understanding underperformance and its underlying causes, as well as outlining some essential dos and don’ts for employers who are dealing with underperforming employees.
What Constitutes Underperformance?
Underperformance or poor performance can show itself in different ways, including the following:
- Failing to carry out duties or meet required standards
- Exhibiting negative or disruptive behaviour within the workplace
- Not adhering to workplace policies, rules or procedures
When an employee isn’t performing at their best, it doesn’t just impact them- it can also affect their colleagues, customers, and the overall success of the business. Recognising this helps employers approach such situations with understanding and support, fostering a more positive and productive environment.
Similarly, identifying the root cause of underperformance will help you implement strategies to address it and foster a supportive environment where employees can thrive and perform at their best.
Many factors might contribute to an employee’s poor performance. These include the following:
- Insufficient Skills: Employees may sometimes be assigned to roles for which they are not fully prepared, which can impact their confidence. Conversely, they might possess the necessary technical skills but find it difficult to manage their time effectively.
- Ambiguous Expectations: When job standards are not clearly articulated and goals/objectives are not established, employees might be uncertain about what is expected of them.
- Poor Cultural Fit: Sometimes, individuals may not feel a connection to specific company cultures or teams as they do not align well with their values or work style.
- Personal Issues: Such as health worries or family problems, can greatly impact an employee’s ability to do well at work.
- A Stressful Work Environment or Problematic Relationship with a Manager: A personality clash with colleagues or a manager can lead to work-related stress that negatively impacts performance.
- A Lack of Training and Development Opportunities: This can lead to employee disengagement. Without opportunities to learn new skills, some employees may lose interest and see no reason to improve their performance. Additionally, if they do not see a clear path for growth and career progression, they may feel unmotivated.
Identifying performance issues promptly and addressing them in a structured and positive manner is essential for sustaining a motivated and productive team. Below, we outline some essential dos and don’ts for employers when tackling workplace underperformance.
Dealing with Underperformance Dos
- Do ensure employees understand what is expected of them. From the outset, make available detailed and well-defined job descriptions and establish targets and goals to prevent confusion and misunderstandings.
- Do recognise the problem as early as possible by consistently monitoring performance. Probationary policies, appraisal schemes, and capability procedures will help create a framework for providing feedback and regularly reviewing performance. Allocate time to offer regular, constructive feedback and support, as well as to provide training if necessary.
- Do calmly explain the issue at hand and the reasons you are bringing it to their attention. Focus on facts and avoid making it personal or subjective.
- Do provide concrete examples and evidence of the employee’s underperformance, clearly outlining the consequences of their behaviour, and what is expected of them moving forward.
- Do invite the employee to share their thoughts on the performance review and ask if they are experiencing any challenges or work-related factors affecting their performance.
- Do maintain a record of your conversations and follow up with an email or letter to the employee summarising the discussion and agreements made. Document the actions required in a performance improvement plan, including milestones and deadlines for further review.
- Do continue to monitor and support the employee to facilitate their improvement. If personal circumstances are hindering their performance, discuss potential external support options, such as referrals to professional services or counselling.
- Do treat dismissal as a last resort. If performance does not improve and you are considering dismissal, ensure that you adhere to proper procedures and maintain fairness, giving the employee a chance to respond to the reasons you believe justify dismissal before proceeding.
Dealing with Underperformance Don’ts
- Don’t shy away from difficult issues. Ignoring underperformance or minimising problems can foster a negative work environment and make the situation worse over time by increasing the shock when these matters are eventually uncovered.
- Don’t criticise publicly. Performance concerns should be addressed privately and respectfully to avoid embarrassment and maintain the employee’s dignity.
- Don’t blame the employee or act punitively. Instead, prioritise finding solutions and providing support rather than finger-pointing.
- Don’t forget that performance issues can be stressful for employees. Keep communication open, show understanding and offer support to reduce any stress or anxiety.
- Don’t be inconsistent – ensure your approach to performance management and disciplinary actions stays consistent.
- Do ensure you keep detailed records of the process, including the support provided. These records will serve as your main defence if any claims arise and can help demonstrate that performance appraisals were carried out fairly, without discrimination, and in line with the company’s relevant policies.
Here to Help
Handling underperformance is always challenging and requires careful management of a process that is both difficult and legally sensitive. Our employment lawyers are experienced in providing advice and support to employers on workplace performance, managing poor performance, and capacity-related dismissals, adopting a strategic approach to resolving complex performance issues.
If you have a question or would like support with managing underperforming employees, contact our team today on 0330 173 6983 or email us.
