How to Better Manage Underperforming Employees
What is the best course of action as a leader when you notice signs of underperformance? We know from people manager assessment center data that the ability to manage underperforming employees can be one of the most challenging tasks for leaders and managers. Poor performers negatively impact team dynamics and success. Addressing less than acceptable performance effectively requires a thoughtful and strategic approach that balances accountability with support.
What Signals Underperformance?
As a leader, there are a few warning signs that someone’s performance is slipping. We know from new manager training participants that all of the below symptoms signal it’s time for you, as a leader, to step in and help get things back on track.
- The person may appear apathetic or less motivated.
- They may seem overwhelmed or less confident about achieving their targets.
- Progress may be stalled.
- Their results may not meet agreed upon quality standards.
The 2 Most Common Mistakes
We know from performance management training best practices that the feaster you address underperformance, the easier it will be to get it right.
- Waiting Too Long
Too many managers fearing confrontation and ignore signs of underperformance — hoping that things will improve on their own. Ignoring performance issues will not make them go away. The longer you wait, the more the issues grow and impact team norms. - Not Balancing Performance Pressure with Enough Support
Another ineffective response to diminishing performance is to apply performance pressure and micromanagement without providing enough direction and support. Too much pressure or without the commensurate amount of guidance and support will not treat the underlying cause and could make matters worse.
Top Steps to Better Manage Underperforming Employees
To better manage underperforming employees:
- Identify the Root Cause of Underperformance
Before taking any action, it’s critical to find out what’s going on from their point of view. How do they see the situation? How are they feeling about it? Open-ended questions can help both of you determine reasons behind the setback. The objective is to determine if the issue is related to skills, motivation, or external factors?We know from organizational culture assessment data that common causes include:
Lack of Clear Expectations
Employees may not fully understand what is expected of them.Skill Gaps
The employee might lack the necessary training or expertise.Personal Challenges
External factors, such as health issues or family problems, can impact performance. Cultural Misalignment An employee’s values or work style might not align with the organizational culture. - Communicate Clearly and Constructively
We know from our situational approach to leadership experts that open and honest communication is the cornerstone of addressing underperformance. Schedule a one-on-one meeting to discuss the issue with the employee. Use a constructive tone to ensure the conversation is seen as an opportunity for alignment and improvement. Key points to cover include:The Situation
Specific examples of underperformance or misaligned behavior.The Impact
The impact of their actions on the team and organization.The Relevance
The importance of their role in achieving shared goals in a way that aligns with performance standards and core values. Encourage the employee to share their perspective and listen actively. This dialogue can provide valuable insights and demonstrate your commitment to their success. - Set Clear Expectations and Goals
We know from organizational alignment research that strategic clarity accounts for 31 percent of difference between high and low performance. We know from action learning leadership development programs that ambiguity often breeds workplace complacency and underperformance. Once the issue has been identified, work with the employee to set clear and agreed upon goals and accountabilities.You will know you are on the right path when your direct report has a clear roadmap for improvement with agreed upon benchmarks to track progress in a way that you both feel good about.
- Offer Targeted Support and Training
Underperformance due to skill gaps can often be resolved through a combination of customized training programs and targeted coaching that align with individual development plans and provide regular feedback to reinforce positive behaviors. Investing in an employee’s career development and growth not only improves performance but also strengthens employee loyalty and engagement.Are you assessing employee skill gaps and offering appropriate learning solutions to raise proficiency levels?
- Monitor Progress and Provide Feedback
Employee performance improvement doesn’t happen overnight. Regularly check in with the employee to evaluate their progress, celebrate small wins and milestones, provide constructive feedback, reassess goals, and adjust action plans as necessary. This iterative process helps ensure sustained progress and signals to the employee that their efforts are being recognized and supported. - Address Persistent Issues with Firmness
Despite your best efforts, some employees may not respond to interventions to change and improve. When performance issues persist, it’s essential to address them decisively. Document all steps taken, including conversations, goals set, and support provided. This record will be invaluable if more formal actions, such as reassignment or termination, become necessary.In high performance cultures, leaders are transparent about the consequences of continued underperformance, follow organizational policies and legal guidelines, and conduct all conversations with respect and empathy.
- Foster a Culture of Accountability
Having a workplace culture where accountability is the norm can reduce instances of underperformance. When employees see accountability modeled by their leaders and peers, they are more likely to take ownership of their roles. Otherwise, leaders risk a culture where people do not consistently do what they say they will do, one team member cannot depend upon another, targets are not reached, and constructive debate
The Bottom Line
Effectively managing underperforming employees requires a blend of empathy, communication, and strategy. By addressing root causes, setting clear expectations, and offering targeted support, leaders can turn underperformance into an opportunity for growth. In cases where improvement isn’t possible, decisive action ensures team and organizational goals remain on track. Ultimately, fostering a culture of accountability and support lays the foundation for high performance and long-term success.
To learn more about how to better manage underperforming employees, download Performance Pressure – The Science Behind Performance Expectations