Our employers have regular discussions with employees about performance. They set clear goals and provide feedback and support to help employees perform at their best. If underperformance occurs, they take steps to manage it appropriately, sensitively and promptly.
Every workplace can enjoy the benefits of taking a best practice approach to managing underperformance. These may include:
- a more harmonious, high performing workplace
- maximising an employee’s individual performance
- building a culture of continuous skill development and improvement
- higher levels of employee engagement
- avoidance of legal disputes, such as unfair dismissal or bullying claims.
Understanding underperformance
Underperformance or poor performance can include:
- not performing duties, or not performing them to the required standard
- displaying negative or disruptive behaviour in the workplace
- failing to comply with workplace policies, rules or procedures.
Underperformance doesn’t just affect the output of an individual employee – it can also impact co-workers, customers and business productivity.
There are many reasons why an employee might perform poorly. Some common reasons include:
- the employee doesn’t know what’s expected of them because goals and standards are unclear
- the employee may not have the knowledge or skills to do the job
- the employee is unsure if they are meeting requirements
- low personal motivation or confidence
- personal issues such as family stress, physical and/or mental health problems, or problems with drugs or alcohol
- low morale in the workplace and/or a poor work environment
- interpersonal differences or cultural misunderstandings
- workplace bullying.
Underperformance isn’t the same as serious misconduct
Serious misconduct includes deliberately unprofessional, dangerous or unlawful behaviour, such as theft, fraud, sexual harassment or assault, which may warrant instant dismissal.
Employers should seek specific legal advice when ending employment because of serious misconduct.
Using best practice to manage underperformance
Best practice doesn’t look the same for all employers. The way to achieve best practice will vary because of things like the number of employees, industry and the business environment.
Implement a performance system
A performance system provides employees and managers with a framework for goal setting, constructive feedback, continuous skill development and regular discussions about performance. This helps reduce the chance of underperformance occurring.
A performance system doesn’t have to be complicated or time-consuming. To implement best practice in your workplace you could consider:
- expectations – discuss your performance system during induction, training and in staff communications – this will help make performance a regular part of workplace conversations
- performance agreement templates – create a simple performance agreement template for your workplace
- discussions – meet with employees to set clear performance expectations, discuss and record their individual performance goals and training needs
- feedback – monitor employees’ performance and provide regular, specific feedback, in a timely manner, about things they do well and things they can improve on
- training – support employee’s skills and performance through training, coaching and mentoring
- review – conduct performance reviews every few months. Track employee performance against the agreed goals and set new goals
- self-review – ask employees to complete a short self-review ahead of the performance review – this helps employees feel more involved with and committed to the process
- reward – recognise and reward employees who do a good job. This doesn’t have to be a financial reward. Many employees appreciate a simple acknowledgement of their effort or achievements.