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Performance & Appraisals
Kiljon Shukullari, HR Advisory Manager
(Last updated )
Kiljon Shukullari, HR Advisory Manager
(Last updated )
An underperforming employee can have a major impact on a business. If one of your workers isn’t doing their best at work, it can affect both your business’s revenue and reputation.
As an employer, it’s your responsibility to act on poor performance as soon as you become aware of it. By acting swiftly, you can avoid the negative consequences of poor performance in the workplace. Here’s everything you need to know about managing underperforming employees:
An underperforming employee is typically a member of your team that consistently produces substandard work. When an employee is underperforming, they’re usually not meeting the demands of their position.
It’s important that you deal with an underperforming employee as soon as possible. Besides not pulling their weight at work, their behaviour can be damaging to team morale and collaboration. Left unaddressed, poor performance in the workplace can further erode your business’s reputation and affect its bottom line.
Here are some common signs of an underperforming employee:
There are many factors that can contribute to poor employee performance. They may include:
An extremely stressful work environment and lack of support may cause an employee to underperform.
An employee who is placed into a work environment without adequate training or knowledge may be unable to meet the demands of their job or deal with their assigned tasks.
Employees who didn’t undergo a proper onboarding process may not have a clear understanding of how to carry out their responsibilities or handle everyday work situations.
Sometimes an employee simply isn’t a good fit for their role. In this case, you can consider upskilling them or giving them a different set of responsibilities. However, if an underperforming employee is truly unsuited to the position, you should carefully consider if termination is the best course of action.
Often, deeply personal matters may affect an employee’s performance and productivity at work. Depending on the situation, you can offer them Employee Assistance Programs (EAP) or reasonable accommodation.
To ensure that performance issues are dealt with as professionally as possible, you should create workplace policies on dealing with underperforming employees. Make sure these policies are included in the employee handbook and readily available in the company’s share folder/cloud storage.
Also, it’s important to review existing policies, update them regularly, and communicate the changes when necessary.
You or your managers should regularly monitor staff performance and be aware of identifiers of underperforming employees. By recognizing the signs of an underperforming employee early, you can take the appropriate actions to prevent problems from growing.
When dealing with an underperforming employee, you should first determine the root cause of the problem and then formulate an action plan to address it. The underperformance may be caused by a multitude of factors, including those that fall under the protected characteristics defined by human rights laws, such as substance dependency.
You can also implement a Performance Improvement Plan (PIP) to help the employee improve in their position and set clear goals and expectations for them to achieve.
When you have an underperforming employee, a PIP can be a valuable tool to help them get back on track. The aim should always be to support the underperforming employee in reaching their full potential and contributing positively to the organization. To do so, you should set clear expectations, action plans, goals, and timelines for the underperforming employee to follow through on.
Here is a guide on how to implement a PIP:
Start by reviewing the employee's performance history. Identify specific areas where they are falling short and have a clear understanding of the problem.
Set specific, achievable, relevant objectives for the employee, including a timeline for achieving them. These should align with your organization's goals and expectations.
Your PIP should include the following:
Addressing an underperforming employee about the need for a PIP can be a sensitive but essential conversation. Here's how employers can approach this discussion effectively:
Before the meeting, gather all the necessary documentation that supports the need for a PIP. Ensure that you have specific examples of the employee's performance issues and be ready to discuss these.
Select a private, quiet, and comfortable setting for the meeting to ensure confidentiality and minimize distractions.
Start the conversation on a positive note. Express your belief in the employee's potential and value to the organization. Then, shift the focus of the meeting toward the employee’s performance issues and the need for improvement. Clearly communicate what you’re expecting from the employee in their position and introduce the PIP.
Explain that you want to help the employee succeed and outline the PIP. Highlight that the plan is a constructive tool to help improve their performance. Let them know about the goals, expected outcomes, timeline, and any support or resources available to them during this period. You should also clarify what success looks like by using concrete examples.
Encourage the employee to ask questions or seek clarification. Ensure they understand the plan and their role in it. Reassure them that you’re there to support them throughout the process and that the PIP is a collaborative effort to help them succeed.
During the PIP implementation period, employers should check in with the employee regularly to ensure they’re following through with the plan.
Here is a checklist to help you ensure the PIP is on track:
There are three possible scenarios you can expect from the conclusion of a PIP:
If the employee meets the standards and expectation set by the PIP, then you should acknowledge their progress and transition them back to regular performance reviews.
If there is improvement but not yet meeting expectations, you can extend the PIP with adjusted goals or take other appropriate actions.
If there's no significant improvement, you may need to consider further actions, such as additional training, reassignment, or, as a last resort, termination.
Every employer should be cautious about terminating an employee for underperformance. Firing an underperforming employee without following the correct procedure may lead to legal repercussions. This could be lawsuits for wrongful termination and, in some cases, discrimination or constructive dismissal claims.
Before terminating an underperforming employee, you should have proof and documentation to support their performance issues. This includes their failure to meet the expectations set by the PIP and other corrective measures.
Let our HR experts help you develop a Performance Improvement Plan that complies with employment laws. We support employers by creating effective HR policies, employment contracts and documentation, and improving existing workplace procedures. Contact us today at 1 (833) 247-3652 to find out more about our services.
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