It’s a challenge that many small business owners and managers would rather simply wish away, but in my experience as an HR Consultant and Coach, addressing underperformance directly and constructively is essential for a healthy and productive workplace.

Ignoring it doesn’t make it disappear; in fact, it usually festers, impacting team morale, increasing workloads for others, and ultimately, hurting the bottom line.

I’ve seen countless situations where a reluctance to tackle poor performance has led to frustration and resentment among other team members, reduced team productivity, and led to open conflict that impacts on other areas of the business.

Conversely, when poor performance is managed effectively, it can turn around an individual’s performance and improve team dynamics.

So, how do I help my clients move from avoidance to proactive management of these critical situations?

1. Define clear expectations: In my experience, a significant portion of performance issues stem from a lack of clarity.

That’s why I always advise clients to ensure job roles, responsibilities, and performance standards are crystal clear from day one. I help them develop position descriptions and performance indicators which clearly define what success looks like in the role. This, together with clear processes, sets a foundation for accountability.

1. Act promptly and gather specifics: I encourage managers to address concerns as soon as they arise, rather than letting them build up.

Before any discussion, we gather concrete examples of the underperformance to ensure we have objective data.

So, instead of saying to the employee “You don’t complete your work on time”, we can provide specific examples. This preparation ensures the conversation is factual and focused, rather than vague.

1. Understand and follow legal processes: When managing underperformance with my clients, it’s crucial to ensure we follow a clear, legally defensible process.

Before taking any action, we check employment legislation, awards, agreements and policies. I provide clients with templates and checklists to ensure we cover all requirements. 

1. Plan the conversation: Using a template that includes role expectations as well as the areas of underperformance allows us to clearly articulate the performance gap.

I coach managers to open the conversation by stating the observed performance gap in a non-judgmental way, then shifting to an inquisitive approach. “I’ve noticed X, Y, and Z. Can you help me understand what’s happening?”

Our aim is to understand the root cause – is it a lack of clarity of expectations, training needed, a resource gap, low motivation, or perhaps personal issues?

1. Collaborate on a solution and action plan: Vague requests for “improvement” don’t give the employee enough information about what they need to do differently.

I work with managers to define clear goals; identify any support, training or resources needed; and confirm a fair and reasonable timeline for improvement.

1. Document and follow-up: Documenting the meeting confirms our commitment to improving the employee’s performance, provides them with a record of the meeting outcomes, and is essential if we need to escalate performance improvement action in future.

Equally important is scheduling a follow up meeting. In my experience, failing to follow up sends a message that underperformance is acceptable, and just prolongs the issue.

When underperformance is actioned early and with the genuine intention of supporting the employee to improve, it can help an employee improve and succeed in the role.

However, if the issue has been allowed to fester, the employee often decides it’s easier to leave than to continue the performance process.

And that’s OK. This can create an opportunity (and budget) to bring on a team member with the skills and motivation to get the job done; to change the team structure or outsource the responsibilities.

Either way, addressing underperformance early will give your business a better outcome than ignoring it and hoping it will disappear.

For help managing an underperforming employee, call me for a free 15 minute consultation.