Top 10 tips for dealing with an underperforming employee

Poor employee performance affects both the worker and your wider business. Indeed, an underperforming employee can have a domino effect.

For example, when colleagues see one employee slacking, their own motivation could suffer. Another outcome could be when poor performance disrupts the work of the overall staff. Ultimately, this worsens team morale.

Underperformance can happen for a variety of reasons, due to capability or conduct. For instance, an employee may be genuinely trying but is simply not capable of hitting their targets or meeting your business’s standards. Meanwhile, other employees may be more than capable but lack the motivation to fulfil their duties.

So, how can you manage an underperforming employee? When taking decisions dealing with poor performance, it’s first crucial to fully understand the employee and the situation. You can start by following these ten steps…

10 steps for dealing with underperforming employees

1) Know what you want from the employee

If an employee is underperforming, you should first be clear about what level of performance you want. What’s more, you should consider if the relevant standards have been properly communicated to the employee. If either party isn’t aware of the required standards, it can be easy to get confused, which can make the problem worse.

2) Begin with an informal approach

When you’re addressing a performance issue for the first time, approach it informally by having a conversation with the underperforming employee. This doesn’t mean that the issue goes unaddressed; it simply means that no formal disciplinary action has yet been taken at this stage.

Then, when having the conversation itself, you should approach it with an open mind; if the employee is dealing with a personal issue, it’s important to empathise with them. Offer support if needed here.

3) Let the individual know that you have concerns

You should let your employee know that you have concerns about their performance in a private conversation. This isn’t a formal hearing, so there’s no need yet to formally invite the employee with notice. Again, it’s best to approach this conversation in a personal way.

4) Identify the problem

Learning the reason behind employee performance is crucial because it can help establish what subsequent action you need to take, if any.

For example, if they have the capacity to perform better but simply choose not to, then they should be told that they must improve. If their ability is instead causing the problem (they’re trying hard but still can’t perform well enough), then you should identify how you can help them, e.g., further training, supervision, and/or shadowing.

Meanwhile, if the reason is health-related, it may be necessary to obtain an expert medical opinion. And if they have a disability, reasonable accommodations to the workplace may need to be considered. Additionally, it’s always important to have a Sickness/Absence policy in place.

5) Refer to further consequences

At this point, you should still be working on addressing the issue informally. While talking to the employee, you should let them know that if they don’t show signs of improvement, you may need to begin a formal disciplinary procedure.

6) Monitoring

Next, you should keep tabs on your employee’s subsequent performance, although how closely you monitor it should be considered on a case-by-case basis. It’s often advised to handle this step sensitively, as an overbearing level of scrutiny may cause friction with the employee while they seek to improve.

7) Revisit

If the employee’s performance doesn’t improve, or there’s a temporary period of improvement followed by another dip, revisit the issue. Speak to the employee again, pointing out that your previous discussion and/or any help provided, doesn’t appear to have had the desired effect. Again, ascertain what the reasons are.

8) Formal procedure

If no sufficient improvement or explanation is provided, you should consider implementing a formal disciplinary/capability procedure with the employee. Any formal disciplinary process must follow the steps set out in your written policies, and it’s vital that this process follows fair procedures and the principles of natural justice.

Employees should be formally invited to these hearings and informed of their rights. These include the right to be accompanied, the right to state their case, and the right to appeal any decision that goes against them.

9) Complete the process promptly

In more general terms, you should deal with the process efficiently: don’t allow the issue to drag on. If there are prescribed timeframes in your procedures, stick to them.

10) Consistency

Act in accordance with previous cases of a similar nature to ensure a consistent approach. This can be in terms of any assistance provided, or, if appropriate, any sanctions issued.

Additionally, you also need to communicate clearly with any employee who is going through a disciplinary/capability process. It’s essential to keep good written records of all the steps you have taken to address the issue.

Managing Underperforming Staff guide

For expert guidance that you can access at any time, you can download our complimentary Managing Underperforming Staff guide which covers essential areas such as:

• Policies on managing performance. 
• Addressing underperformance with an employee.
• Proceedings you can take and how to conduct a capability hearing.

Download the free Managing Underperforming Staff guide today.

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