Managing underperforming employees

Before you take action

Before engaging with an employee regarding their underperformance, make sure you have as much information as possible at your disposal with a view to creating a positive outcome.

Have you been tracking performance against measurable goals?
Are you aware of any issues in their personal life which may be impacting their ability to deliver?
Were there any issues raised in your previous meeting that haven't been addressed ?
Ensure you give the employee ample time to prepare for a meeting
Come up with ideas around areas for improvement and goals to set which can be agreed with the employee, and be prepared to listen and take feedback

Moorepay's HR Services Director, Michelle Hobson, suggests that if your business has an annual performance review process, then it's key not to wait until then to bring up underperformance. Difficult situations can arise if there has been no communication regarding poor employee performance in the build up to the review.

The underperformance process

Identification

If you notice an employee is underperforming, sit them down for an informal one-to-one. A setting like this better helps find what the underlying issue is, such as a health problem or a personal issue. They might worry that telling you will affect their future in the company.

Encourage open communication with your employees by having an open-door policy. Reassure staff that anything they share with you is confidential. Provide constructive feedback and solutions to performance issues.

Performance improvement plan

Create an improvement plan that clearly outlines what an employee needs to improve on, how to do it, and when this needs to happen by.

Keep checking in with them to see how they’re getting on. When you regularly evaluate your employee’s progress, it’ll motivate them to work harder.

Give the opportunity to share any issues they might be having on their journey. You can adapt the plan around your employee, so you avoid the risk of overwhelming them.

Resources and training

Is your employee struggling to work because they don’t have the resources? Do they not feel they’ve received enough training? Ask them what they need and take note if they say they need more support.

Investigate these claims. Your staff might point the finger at colleagues or lack of support before accepting personal blame. But being willing to make changes and invest in resources shows you care. Plus, it shows that you’ll do what it takes to support your employees in their roles.

The underperformance process continued

Capability procedure

If an employee's performance improvement plan is bearing no fruit and your other efforts are in vain, it could be time to seriously evaluate whether they are capable of fulfilling their role.

A formal policy is needed that lays out exactly how you deal with performance issues when the informal approach does not work.

This may result in formal warnings so always take HR advice first.

Change of role?

If you want to keep your employee in the company, you could offer a different role that suits their skillset, or a less senior position with fewer responsibilities.

Offering alternative employment could help your case in an unfair dismissal claim. It shows you explored every avenue to keep your employee.

If you decide to give your employee a new role, this may mean offering them a new employment contract or amending their current contract. Prepare for the fact that your employee can refuse this.