In this guide to underperforming employees, we cover everything including: Why employees may be underperforming, what to do at specific, sensitive times and how HR can tackle employee underperformance more generally. Show
Download our guide to Performance Management today. How Is Underperforming Defined?Underperformance means performing less well than expected. In a business context, when an employee doesn’t do their job the way you expect them to or doesn’t do it at all, that’s underperformance. Employee underperformance might involve failing to meet an acceptable standard of work, not complying with work policies and procedures, or demonstrating behaviour that impacts others negatively (like gossiping, showing up late, or not letting others know if they can’t complete work on time). What is Underperforming at Work?Employees underperform at work when they don’t do the job that’s required of them. But underperformance doesn’t just mean providing an unsatisfactory work performance. Other signs of underperformance can include not working well with others, showing signs of inappropriate, negative, or destructive behaviour, antagonism, a failure to meet acceptable standards or violation of rules and regulations. What Are the Top Reasons for Underperformance?Not all employee underperformance is intentional or vindictive. Employees might be rebelling, or behaving in lazy, insubordinate, or disrespectful ways because of reasons which you can (and in many cases – are legally required to) address. Employees might show signs of underperformance because:
In many of these instances, it’s possible to turn employee underperformance around. But if their ability simply doesn’t match the role’s requirements, formal steps must be taken to improve performance or consider dismissing the employee. Focus on Talent With Strategic Performance ManagementWhether running automated performance cycles, sharing feedback or tracking goals, Personio offers a single place to focus on your most important resource: talent. How Do You Identify Employee Underperformance?There are two major types of underperformance: Competence-related underperformance, and motivation-related underperformance. You can usually identify both of them by spotting behaviour change, or by observing signs that an employee isn’t getting the job done. A good manager will notice when deadlines are being missed, work quality has declined, or they’re not meeting objectives. Signs like mood changes, low motivation, persistent lateness, or repeated absenteeism can be signs of an underperforming employee. While a good team can often cover for employees who are having an off day, if customers start to complain, employee underperformance must be addressed immediately. What’s The Cost Of Not Dealing With Underperforming Employees?Employee underperformance affects their line manager and their colleagues who have to deal with the consequences of their lack of performance. It creates bad team morale which, in turn, can decrease the whole team’s productivity and increase sickness or absence, especially if their lack of performance is associated with negativity, dishonesty, harassment or bullying. Underperforming employees can also negatively impact customer satisfaction by not helping them or being unpleasant. If you keep an underperforming employee for too long then fire them without following the due process they could even sue you for wrongful termination, which could cost a lot in legal fees alone. Underperforming employees can also cause damage to your brand – particularly if you don’t handle their underperformance sensitively. They may bad-mouth your company to others, or take it to social media. But the consequences of underperformance go even further: When employees underperform, a business can’t operate at its full capacity. As customers look elsewhere to get their problems solved, revenue falls. If left to fester, underperformance can seriously hurt your bottom line. How Can HR Tackle Underperformance?Often, the staff handbook is a good place to start when tackling employee underperformance, as it lays out examples of what ‘good’ looks like, and outlines the basic rules. But when the rulebook isn’t enough, HR needs to step in. Communication is key: Start with an informal chat. Explain the issues that have been observed. Give examples. Listen to their response carefully and thoughtfully and try to figure out a solution to any problems. The best way of improving underperformance is by identifying its root cause. It’s important to do this in a non-judgmental way by seeking to understand the issues behind their underperforming, rather than blaming them, or behaving antagonistically. You might discover:
At the end of the meeting make sure everyone is clear about your expectations of their future behaviour. Explain where they are not performing, remind them about the goals/targets (they may have forgotten) and make sure they have all the resources, tools, and training (or learning from other colleagues) about how to make sure they can improve their performance. Providing good, constructive feedback is an art form. Help them get better. Agree on an action plan – often known as a performance improvement plan (PIP). Set SMART (specific, measurable, achievable, realistic, and time-bound) objectives and agree on a timeline for when these goals will be met. These must be fair and reasonable – not just because it’s the right thing to do, but because it’s an important part of the dismissal process if you end up needing to go this route. Then monitor their performance. Acknowledge their efforts. Positive feedback, a kind word saying thank you, and congratulations on a job well done can make a massive difference to any employee – it may even turn an underperforming employee into a positive and productive one. All Your People Data to Power DecisionsRun custom reports on your entire workforce with Personio, That way, you can keep track of top performers and identify underperforming employees. Click below to see it in action. When Underperforming Is at Its TrickiestEmployee underperformance can be an issue at any time during the employee lifecycle, but there are a few key times to watch out for…
What Can You Do If Underperformance Continues?Once you’ve followed our advice above and the requirements laid out by the UK government for dismissing staff and followed a fair procedure, as laid down in the acas Code of Practice, it’s time to consider letting them go. Before showing them the door, make them aware that disciplinary action can be taken. Document everything in writing. And keep evidence of their poor performance, making sure they have the opportunity to defend themselves. Remember: If their underperformance qualifies as gross misconduct, there is no need to go through the previous steps. In cases of fraud, physical violence, gross negligence, or serious insubordination, you may be able to dismiss an employee without notice or payment in lieu of notice (PILON). Can You Improve Employee Underperformance?Often, yes, it is possible to turn an underperforming employee’s behaviour around, especially when their behaviour is indicative of a larger business problem. In some instances, an underperforming employee can be like a canary in a coal mine: An indicator that something is wrong. When addressed sensitively, employee underperformance may even help you identify issues in your business that, when addressed, can improve the employee experience across your organization. By clearly communicating expectations in a non-antagonistic way, allowing them to improve, putting a PIP in place, listening to their frustrations, and finding ways to help them do a better job and feel proud of doing it, not only do you set up underperforming employees for success, you can possibly even help improve their lives for the better. How Can HR Software Help With Underperforming Employees?There’s no magic bullet to identify underperforming employees. But being aware of general trends, and having appropriate documentation, and accurate records can help address employee underperformance more easily. Hopefully, terminating underperforming employees is the last resort. But sometimes, sadly, it does become necessary. When the facts are at your fingertips, processes are laid out, and evidence of non-performance (for example, the easy review of employee timesheets) is easily available, it becomes easier to remove non-performing employees from your organization. That’s when an HR software like Personio can help. Get in touch with us to try a free demo of Personio. Our product experts will guide you through the solution and answer any questions you have. What would you do if you notice that an employee is consistently underperforming at their job answer?12 ways to help an underperforming employee. Take action as soon as you notice underperformance. ... . Send out a training survey. ... . Meet with the underperforming employee. ... . Establish the cause of underperformance. ... . Establish long-term goals. ... . Schedule regular meetings to provide feedback. ... . Encourage continuous learning.. How do you treat an underperforming employee?How to Manage an Underperforming Employee. Make sure your expectations are clear. ... . Draw up a roadmap to improvement. ... . Provide ongoing, constructive feedback. ... . Pay attention to your own management behavior. ... . Make sure employees have the tools they need to succeed.. How would you address the issue of consistently underperforming employees?Active listening. This is one of the simplest ways to deal with underperforming employees. Listen attentively to the issues they face, ask questions and then work with them to provide the support and knowledge to help them succeed. Also ask yourself what more you can do to support them achieve their goals.
What to say to an employee who is underperforming?Explain exactly what you're observing, how the team's work is affected, and make clear that you want to help. Manzoni suggests the conversation go something like this: “I'm seeing issues with your performance. I believe that you can do better and I know that I may be contributing to the problem.
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