Managing underperformance is one of the most common — and most frequently mishandled — HR challenges. Get it right and you can turn a struggling employee around. Get it wrong and you risk unfair dismissal claims, damaged morale, and costly tribunals.
Step-by-Step Approach
1. Identify the Root Cause
Before taking action, understand why performance is below par. Common causes include:
- Lack of training or unclear expectations
- Personal issues (health, family, mental health)
- Poor management or inadequate support
- Mismatch between the role and the employee's skills
- Workplace issues (bullying, harassment, overwork)
2. Informal Discussion
Start with a private, honest conversation. Explain the gap between expected and actual performance, listen to the employee's perspective, and agree on next steps. Document the discussion.
3. Set Clear Objectives
Use SMART objectives so the employee knows exactly what's expected. Provide training, mentoring, or other support.
4. Monitor and Review
Schedule regular check-ins (weekly or fortnightly) to review progress. Document all feedback — positive and negative.
5. Formal PIP
If informal steps haven't worked, move to a formal Performance Improvement Plan with clear targets, timescales, and consequences.
6. Capability Hearing
If the PIP is unsuccessful, you may need to hold a formal capability hearing. Follow the ACAS Code of Practice throughout. The employee must have the right to be accompanied and to appeal any decision.
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