May 2024

Managing Under Performing Employees in Your Businesss

Many managers and business owners find managing an underperforming employee very challenging, especially without the guidance and support of a dedicated HR team to help. Addressing underperformance can be challenging, and, if not dealt with, it can affect the morale of the underperforming employee and their colleagues. 

You can however create a productive work environment that fosters growth with the right strategies and support. Here are some practical tips for managing poor performance in your business:

As soon as you notice poor performance in your team you should address it immediately. You can start by assessing the root cause of the issue. 

For example:

• does the employee have a clear idea of your expectations of them in their role?

• do they have the right skill set for the role?

• have they received enough training?

• are they having personal challenges that might be affecting their performance?

Meeting with the employee and identifying the core issues will help you develop a targeted approach that addresses the underlying problems rather than just ignoring the issues and hoping they will eventually improve.

A structured plan can give you peace of mind and help you understand the issues the employee is facing and how to address them.

1. Clear Expectations and Communication

• Ensure employees understand their roles and performance expectations. Regular feedback and 1-2-1’s can help identify issues early on and address them before they escalate.

• Address the issues through a Performance Improvement Plan (PIP) and set your employee specific, measurable goals, so that they have a structured path to follow and a good understanding of the improvements they need to make. Offer any support that is identified to help the employee improve.

2. Consistent Documentation – Audit Trail

• Document all discussions related to performance issues, including informal conversations, to maintain an accurate record, and share with the employee as this gives you both something to refer to constantly and a thorough audit trail of all discussions. In the unfortunate circumstance that formal action is required, you will need a thorough audit trail of all discussions that have taken place.
  Using an HR system such as Staff-Central  can help you manage this process, storing records, logging performance issues, and setting reminders.

3. Regular Performance Reviews

• Conduct regular reviews; monthly or quarterly, that go beyond annual appraisals to ensure consistent feedback is being given to employees. Performance reviews can uncover any underlying issues and offer an opportunity to reinforce positive behaviours.

4. Training and Development

• To help develop your employees into better performers, invest in their development and offer training to address any skill gaps and enhance performance. A focus on development can boost morale and employee productivity, it is a good attraction and retention tool and can reduce or eradicate the likelihood of persistent underperformance.

5. Clear Performance Management Policy and Procedures

• Having a Performance Management Policy in place will establish clear procedures for addressing persistent poor performance, ensuring fairness and transparency. This clarity helps employees understand the process involved when being put on performance management and gives them a clear understanding of the potential consequences if they continue to underperform and can help with encouraging improvement.

6. Supportive Environment

• Create a supportive culture where employees feel safe to express concerns and seek help. Addressing well-being and workload issues can significantly impact performance.

7. Seek Expert Advice

• Consider engaging an HR professional to offer tailored advice on complex performance management issues. Specialists such as our HR Consultant Tina Holt and the HR team at RfM Transform offer HR Support under its retained package. So, for as little as £65+vat a month you can get expert advice and be guided through the intricacies of managing poor performance in your business without the need for a full-time HR department.

Effectively managing poor performance is crucial to the success of your business and maintaining a productive and harmonious workforce. Implementing clear processes, training, regular feedback, and seeking expert support will help you navigate these challenges successfully.

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