How to Manage Underperforming Employees

Published on
Mar 22, 2024
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As a manager, you want to have a high-performing team that consistently delivers great results. But what happens when one of your employees is not meeting expectations?

It can be a difficult situation to navigate, especially if you're not sure how to approach it.

In this guide, we'll discuss how to identify and address underperformance, the role of HR and managers in addressing underperformance, the consequences of ignoring underperformance, and more.

Identifying Underperformance

The first step in addressing underperformance is to identify it.

But what exactly is underperformance?

In general, it refers to a situation where an employee is not meeting the expectations set out for them. Signs of underperformance can include missed deadlines, poor quality work, lack of initiative, or negative attitude.

But it's important to remember that underperformance is not always a deliberate act. Sometimes, employees may not even realize they're underperforming, so it's important to approach the situation with empathy and a desire to help them improve.

The Role of HR and Managers in Addressing Underperformance

When it comes to addressing underperformance, HR and managers both play a crucial role.

HR can provide support to managers by offering training on how to identify and address underperformance, as well as providing guidance on legal and compliance issues related to performance management.

On the other hand, managers have a responsibility to set clear expectations, provide feedback, and take timely action to address underperformance.

The Performance Improvement Plan (PIP)

One effective tool for addressing underperformance is the performance improvement plan (PIP).

This is a formal document that outlines the specific areas where the employee needs to improve and the steps they need to take to get there.

It's important to communicate the PIP clearly and constructively to the employee, so they understand what's expected of them and feel supported in their efforts to improve.

It is equally important to continuously measure the employee's performance against the PIP and to set distinct timelines to review progress and make the ultimate decision of if they have successfully completed the performance improvement plan or not - and what the appropriate next step would be.

On a "frank" note, many companies suffer from wanting to remove an employee but are not able to do so without appropriate documentation in place.

Continuous Performance Management

One way to make the process of addressing underperformance and managing PIPs is to implement a system of continuous performance management. This involves ongoing feedback, coaching, and goal-setting throughout the year, rather than waiting until the end of the year for a formal performance review.

By having regular check-ins with employees, managers can identify underperformance more quickly and take action to address it before it becomes a bigger problem.

Regular feedback can also help to keep employees motivated and engaged, as they have a better understanding of how they're performing and what they need to improve.

Continuous performance management can also help to keep both the employee and the manager on the same page with regard to performance. By having regular discussions about goals, progress, and areas for improvement, there are no surprises at the end of the year.

Employees are more likely to feel supported and motivated when they know their manager is invested in their success.

underperforming-employee-working-on-computer-out-of-focus
Ignoring underperformance can have serious consequences for your team and your organization.

Addressing Root Causes of Underperformance

Sometimes, underperformance can be caused by underlying issues that need to be addressed.

For example, an employee may be struggling due to lack of training, unclear expectations, or personal issues outside of work.

It's important to identify these root causes and develop appropriate strategies for addressing them. Providing additional training or resources, clarifying expectations, or offering support through an employee assistance program can all be effective.

The Consequences of Ignoring Underperformance

Ignoring underperformance can have serious consequences for your team and your organization.

Underperforming employees can impact team morale, productivity, and customer satisfaction. They can also create a toxic work environment that can lead to high turnover rates and difficulty in recruiting new talent.

Furthermore, failing to address underperformance can create legal or compliance issues, which can be costly and damaging to your organization.

Approach Underperformance With Empathy and Honesty

Managing underperformance is a challenge that every manager faces at some point in their career.

While it can be a difficult and uncomfortable situation to deal with, it's important to remember that it's an essential part of managing a high-performing team. Addressing underperformance with empathy, honesty, and a desire to help employees improve can have a positive impact not just on the underperforming employee, but on the entire team.

By following the steps outlined in this guide, managers can identify and address underperformance effectively and efficiently. Whether it's through setting clear expectations, providing ongoing feedback and coaching, or involving HR, there are a variety of strategies that can be used to support employees who are struggling to meet expectations.

At the end of the day, managing underperformance is about helping employees reach their full potential and contributing to the success of the larger organization.

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