12 BEST Tips for Managing Underperforming Employees

In the corporate landscape, employees can either serve as an organization’s most valuable asset or its most significant liability, contingent upon their execution of responsibilities. It is worth noting that underperforming employees have the potential to erode the overall performance of your company. To effectively address this concern and enhance productivity, it is essential to understand the root causes of employee underperformance and implement strategies for managing and boosting their output.

What is underperformance?

Underperformance in the workplace refers to a decline in the quality of an employee’s work falling below the established standards. The characteristics and severity of underperformance can vary, but the following behaviors commonly indicate this issue:

1. Failure to fulfill job duties up to expected standards.
2. Display of disruptive, negative, or unacceptable behavior.
3. Decreased adherence to organizational rules, procedures, or policies.

The Importance of Addressing Underperformance: Efficient and effective employees are indispensable for any organization’s sustained success. Conversely, underperforming individuals can exert adverse effects on various aspects of your company, including:

1. Reduced Productivity: Underperforming employees fail to deliver the expected output for their roles, leading to delayed or incomplete work and necessitating others to compensate.
2. Lowered Work Quality: Employees performing at a subpar level produce work of inferior quality, negatively impacting the company’s reputation in the eyes of customers and stakeholders.
3. Eroded Morale and Team Collaboration: Poor performance by one individual can foster resentment and frustration, undermining teamwork and overall employee morale.

Recognizing and Addressing Underperformance: Every employer will encounter fluctuations in employee performance, but genuine underperformance must be addressed diligently. Leaders must be adept at identifying struggling employees and addressing the root causes of their underperformance.

What Contributes to Employee Underperformance?

Employee underperformance can stem from various factors. Let’s explore some of these contributing elements:

1. Lack of Skills: When employees are placed in roles for which they lack adequate skills or confidence, underperformance may result. Additionally, some may possess the necessary technical abilities but struggle with effective time management.
2. Unclear Expectations: If job standards and organizational goals are not clearly defined, employees may not have a precise understanding of what is expected of them.
3. Job Dissatisfaction: When the actual job does not align with an employee’s expectations, disappointment can set in, leading to a lack of motivation and effort.
4. Poor Culture Fit: Some individuals may not feel a connection to the company culture or team dynamics, especially if these aspects do not align with their work style and values.
5. Stressful Work Environment: High-pressure work settings or conflicts with coworkers can generate work-related stress that impairs overall performance.
6. Inadequate Training and Development Opportunities: Without the chance to acquire new skills or advance, employees may become stagnant and lose motivation. A clear path for career development can be a significant motivational factor.
7. Lack of Variety: Repetitive tasks can lead to monotony, causing employees to lose interest in their work and lack the inspiration to excel.
8. Insufficient Onboarding: Effective onboarding is essential for acclimating and engaging employees in their roles. When this process is neglected, employees may find themselves ill-prepared for their responsibilities.
9. Personal Issues: Personal challenges and difficulties in employees’ lives can divert their focus from work tasks, impacting their ability to perform effectively.

Effective Strategies for Managing Underperforming Employees

Dealing with underperforming employees is a routine challenge across various organizational levels, each case having its distinct nuances. Employing a uniform approach to address these issues is pivotal in safeguarding your team’s productivity. Here are the steps to effectively manage workplace underperformance:

Step 1: Acknowledge the Issue

Demonstrate sensitivity to circumstances and behaviors that may indicate performance-related challenges. Underperformance often becomes apparent through specific actions and attitudes. Recognizable signs of underperformance encompass:

1. Disengagement from Responsibilities: Demonstrating a lack of involvement in tasks and duties.
2. Diminished Output and Work Quality: Producing work that falls below the expected standards.
3. Frequent Tardiness or Absenteeism: Consistently arriving late or being absent from work.
4. Demoralized Attitude or Unprofessional Behavior: Displaying a discouraged demeanor or engaging in conduct that is unbecoming of a professional setting.
5. Reduced Interaction with Colleagues: Becoming less communicative and collaborative with team members.

Once you become aware of an employee’s underperformance, it’s imperative to take action promptly. Begin by documenting specific instances where their work has not met the established standards, including any concerning behaviors you’ve observed. Subsequently, arrange a private, one-on-one meeting with the employee to address the situation and gain insight into their perspective.

Step 2: Initiate a Constructive Discussion to Identify Underlying Causes of Underperformance

It’s crucial not to presume you already have a full understanding of the reasons behind an employee’s reduced performance. To unearth the actual underlying causes, it’s essential to establish an appropriate atmosphere during your meeting and pose pertinent inquiries.

Ensure the one-on-one meeting takes place in a location free from interruptions and distractions, where privacy is maintained. Start the discussion by presenting specific instances of the employee’s underperformance and elucidate how it impacts both the team and the organization, all without adopting an accusatory stance.

Subsequently, transition to a constructive exploration of what factors might be contributing to the underperformance from the employee’s perspective, as well as any role that you as their manager or the company may play in the situation.

Here are some sample questions designed to gain insight into the employee’s perception of the circumstances:

1. What aspects of your role do you find most enjoyable and motivating?
2. Are there any aspects of your job that you find frustrating or where you feel inadequately equipped?
3. Do you believe you’re effectively leveraging your strengths in your current position, or do you encounter substantial learning curves?
4. How do you perceive your ability to manage your current workload?
5. Can you identify areas where your performance could be enhanced?
6. Do you recognize the ways in which your work contributes to the organization’s success or benefits others?
7. Are there external factors outside of work that might be impacting your job performance?
8. Do you maintain a positive outlook regarding your future within the company?
9. Is there anything else you’d like to share with me?

Additionally, these questions can help gauge the impact of the work environment on the employee’s performance:

1. Are the expectations regarding tasks and quality levels clearly communicated to you?
2. Have you ever felt that you were set up for failure due to unrealistic expectations?
3. Do you have access to the necessary tools and resources to excel in your role?
4. Do you feel you are allocated enough time to accomplish your tasks effectively?
5. Do you understand the value your work brings to the company and who benefits from it?
6. How does my communication and management style resonate with you? Does it inspire your best performance?

During this discussion, maintain an attentive and empathetic demeanor, actively listening to the employee’s responses and posing follow-up questions as needed to gain a deeper understanding and convey your genuine interest in their perspective.

Step 3: Reinforce Clear Job Expectations

It is crucial to ensure that the employee comprehends your expectations and the areas requiring improvement. Clearly articulate the duties encompassed by the role and the standards to which they should adhere. Provide documented evidence of performance targets and any instances where the employee has fallen short, leaving no room for misinterpretation. In essence, precise delineation of job requirements helps direct the employee’s focus toward their objectives.

It’s worth noting that new hires are often the ones who may lack awareness of specific expectations. This can occur when the responsibilities of the role are not adequately communicated during the hiring process. Additionally, shifts in business dynamics that introduce new expectations can bewilder a newly onboarded employee who is unfamiliar with the organization’s operational context.

Step 4: Align Employee Expectations

When an employee’s expectations regarding their job are not met, it can hinder their performance. They may have specific desires related to compensation, career advancement, organizational values, job security, and more, which they believe are not being realized.

It’s essential to uncover the employee’s expectations and assess whether they are realistic. Determine if there exists a disconnect between what they anticipate and what the organization can provide. This provides an opportune moment to engage in a conversation about whether the employee can modify their expectations to align with the organization’s capabilities and offerings.

Step 5: Collaborate on an Action Plan

Following a discussion about the causes of underperformance, both you and the employee can jointly craft an action plan aimed at resolving the issues. In this collaborative effort, you can offer suggestions to address the problems and encourage the employee to establish their own goals and propose solutions.

Depending on the underlying reasons for underperformance, consider options such as job redesign or providing retraining or reskilling opportunities. In cases where the issues are personal in nature, offering the employee the option to take some time off to address them might be appropriate.

The action plan should encompass the following aspects:

1. Assigned Responsibilities: Clearly delineate the actions that each party (both the employee and the manager) is accountable for.
2. Timeline: Set specific timeframes for achieving performance improvements, and establish potential consequences for addressing more severe issues.
3. Support and Resources: Specify the support and resources to be provided, which could include training, mentoring, adjustments to job duties, or approved time off, depending on the circumstances.

Step 6: Establish Regular Check-Ins and Follow-Up

Resolving an underperformance situation typically requires more than a single conversation, and it’s essential to grant the employee a reasonable amount of time for improvement. Schedule periodic meetings, whether daily or weekly, to assess the employee’s progress regarding the action plan and to foster continued development. These meetings should provide ample opportunities for the employee to discuss their evolving work ethic and any persisting challenges.

These regular check-ins serve several purposes. They hold the employee accountable for their performance, allowing you to reiterate performance objectives and provide ongoing training and support as needed. Moreover, they demonstrate your genuine commitment to assisting the employee in their improvement journey.

Once the employee’s performance reaches an acceptable level, acknowledge their success and engage in a dialogue on how to sustain this level of work quality.

Step 7: Acknowledge Advancements

When guiding an underperforming employee towards improvement, it’s crucial to demonstrate appreciation for their progress. Failing to acknowledge their efforts can leave them feeling isolated. As the employee begins to make strides, openly express your recognition of the positive changes you’ve observed. Applaud their hard work and provide specific examples of their accomplishments and the beneficial outcomes stemming from their actions.

This form of recognition plays a pivotal role in bolstering the employee’s self-assurance in their abilities and motivating them to further refine their progress. Simultaneously, it conveys your genuine appreciation for their strengths, reaffirming your commitment to their success and instilling confidence in their potential.

Step 8: Embrace Performance Coaching

Fostering continuous learning within the workplace, particularly through daily interactions, represents a highly effective means of enhancing performance. Integrating learning seamlessly into the natural cadence of everyday work, employing methods like microlearning, micro-mentoring, and performance coaching, stands as a leading trend in HR for 2023.

Managers proficient in performance coaching can leverage these skills to transform routine workplace conversations into valuable learning opportunities. Through this pragmatic guidance, employees can be steered toward innovative approaches to execute their tasks more effectively.

Step 9: Offer Constructive Feedback

Providing precise and constructive feedback to an employee actively striving to enhance their performance is paramount. Such feedback serves to highlight their progress while shedding light on areas that warrant further development. Ideally, this feedback should encompass a 360-degree perspective, drawing from insights gathered from individuals who regularly interact with the employee. These external viewpoints offer valuable insights into how the employee’s performance impacts others.

When delivering feedback, adhere to these guiding principles:

1. Focus on Specific Issues: Address one or two issues in each session to prevent overwhelming the employee.
2. Maintain Clarity with Positivity: Present critiques in a straightforward yet encouraging manner.
3. Highlight Positive Impact: Emphasize how the implemented changes are positively influencing team productivity.
4. Acknowledge Achievements: Commend the employee for their accomplishments to bolster their self-confidence.

Step 10: Maintain Detailed Documentation

As is the case with addressing any employee-related issue, it is imperative to maintain thorough documentation when dealing with an underperforming employee. A well-kept record of the entire process serves as a valuable resource, particularly if the situation remains unresolved and the employee contests the proceedings.

To ensure comprehensive documentation, follow these guidelines:

1. Preserve Initial Records: Safeguard records dating back to the initiation of the problem.
2. Take Comprehensive Meeting Notes: Maintain detailed notes of all subsequent meetings and conversations that transpire during the process.
3. Review and Update Action Plan: Periodically review the formal action plan and make necessary updates as required.
4. Email Summaries: After each discussion, send the employee a summary of what transpired and any planned action steps. Retain email responses and proposals from the employee as well.
5. Monitor Progress in Writing: Continuously track the employee’s progress in a written format, documenting any developments or changes over time.

Step 11: Make a Decision if Performance Remains Unsatisfactory

The performance of one employee who consistently falls short can significantly impact team morale and the overall work environment. Allowing ongoing underperformance to persist without consequences can breed resentment and demoralization among other diligent team members.

If, despite investing a reasonable amount of time in the action plan, the employee’s job performance fails to exhibit signs of improvement, it becomes essential to consider alternative courses of action. The two most prevalent solutions are reassignment and termination:

1. Reassignment: Exploring reassignment entails identifying a potentially better-suited position within the organization that aligns with the employee’s technical competencies and interpersonal skills. Such a move can rekindle their sense of fulfillment and productivity.
2. Termination: Regrettably, when all other avenues have been explored to no avail, termination may emerge as the last resort. While it is not the ideal resolution, it might be the most viable option for the collective well-being. The termination process is seldom straightforward and can involve complexities, necessitating strict adherence to all HR procedures and termination policies.

Step 12: Promote a Balanced Work-Life Integration

Promoting a balanced work-life integration stands as an effective approach to bolstering an underperforming employee’s advancement and preventing underperformance from arising initially.

Excessive work hours can lead to exhaustion, stress, and eventual burnout, typically resulting in diminished motivation and reduced performance. Encouraging employees to utilize their allocated time off and providing wellness benefits can play a pivotal role in helping them recharge, fostering a sense of refreshment, and ultimately enhancing productivity.

In conclusion,

while addressing underperformance can be a labor-intensive endeavor, the majority of underperforming employees are receptive to a collaborative approach that guides them toward improved job performance.

Once you’ve identified the root causes of underperformance, crafting an action plan to address them becomes possible. Maintaining regular communication and monitoring the progress of underperforming employees is the most effective strategy for transforming them into productive contributors to the team.