4 Steps For Managing Staff Underperformance

Underperforming staff can have a significant impact on staff morale, business productivity and eventually your bottom line. So how can you fix it? Try these four steps.

First, let’s define underperformance

Underperformance can be thought of as a spectrum: from poor quality work and mistakes; failure to perform the duties of the position; non-compliance with your company policies and procedures; or unacceptable or disruptive behaviour in the workplace. It stops short of misconduct, which can include theft or assault which may lead to instant dismissal.

But why does it happen?

Underperformance is unlikely to be a simple case of an employee being ‘lazy’ or ‘bad at their job’. Presumably you hired this person for a reason, and were confident they could perform in the way you needed. If you start to notice underperformance in a staff member, consider the following:

• Have you clearly communicated your workplace policies and standards?
• Is there a clear position description attached to the role so that the employee understands exactly what tasks are required of them?
• Does the employee have the skills and knowledge to do the job expected of them?
• Has the role changed recently? Have new responsibilities, projects or tasks been added?
• Is there a misunderstanding or other grievance between the underperformer and another staff member?
• Have you or their direct supervisor been providing regular feedback on their performance?
• Could this employee be experiencing personal issues such as family stress or physical and/or mental health concerns?

Whatever the reason behind the underperformance, there are a few steps you need to take. Throughout the following process, focus on building a relationship with the employee rather than treating them like a problem. Keep an open mind, and don’t pre-judge the outcome.

Step 1 — Assess and analyse the issue

Note down for yourself:

• how serious the underperformance is (is the impact localised, or affecting business performance?)
• how long it has existed, and
• how wide the gap is between what is expected and what is being delivered.

Seek input from other staff members if need be so you have a good understanding of how others see the problem — underperformance can often be quite situation-specific, and the employee may be performing very well in other contexts. Make sure you note down any examples of good performance as well.

Step 2 — Schedule a meeting

If possible, don’t suggest a meeting via email in the first instance: speak to the employee directly. It’s really important that you let them know what the meeting is about, although this can be a hard conversation. Perhaps start with ‘I’d like to have a chat with you about how you’ve been going over the last few months’. Follow up with an email to schedule the meeting at a time that works for the both of you.

• Make sure you meet in a quiet, private space, and allow enough time (at least an hour).
• Stay calm, and be encouraging — remember, if the underperformance is due to a misunderstanding, or a failure of the business to clearly outline expectations, you will need to own your side of the problem and maintain the goodwill between you and the employee.
• Take notes — encourage the employee to take notes too.
• Give the employee plenty of time to think and speak their mind.
• When you outline your concerns, be really specific about the problem, including the behaviour/ performance you do expect.

Step 3 — Action planning

Together, come up with a plan to improve the underperformance. Just 3–5 points may be enough, or you may want to pull together something more comprehensive. Regardless, schedule in a second catch up for 2–3 weeks’ time to see if the plan needs to be adjusted.

• Part of the plan may include offering further training, mentoring, flexible work practices or redefining roles and expectations. Where this requires additional resources or discussions with other staff, don’t delay in getting this underway.
• Include timeframes for improvement if necessary — the timeframe will vary depending on the cause of the underperformance and severity.

Step 4 — Performance monitoring

Check in regularly with the employee to provide feedback and encouragement, and reflect on your own management style to make sure you’re holding up your end of the deal. For example, do you need to set clearer expectations when assigning work? Have you organised the training that was agreed?

• Even if performance has improved, still hold the second meeting to talk things through: make sure any other concerns are aired and that the employee is feeling supported. Thank them for their efforts and agree to keep the lines of communication open should an issue arise in the future.
• If the performance has not improved, the second meeting will be a chance to discuss what’s been happening. Does the action plan need adjusting? Depending on the issue, you may need to step up the performance management and commence a more structured process (where this might lead to termination of employment, it is crucial you follow the dismissal arrangements applicable to your business: seek HR advice, or visit the Fair Work site — or equivalent in your country — for more details on this).

Underperformance can be a tricky tightrope to walk — and it would be a lucky business indeed who never had to deal with underperformance at one time or another. As difficult as these conversations can be, don’t leave the situation and hope it will resolve itself: act quickly, calmly and foster a culture of open communication and ongoing feedback, and all employees will benefit.