Addressing underperformance is a frequent and complex responsibility for any leader. This guide provides a step-by-step framework for managers to handle performance issues constructively. It is designed to move from understanding the problem to implementing a solution, ensuring every stage is handled with clarity.
Identify the Root Cause of Underperformance
Before taking action, a manager must diagnose the reason for an employee’s poor performance, as assumptions lead to ineffective solutions. The root causes fall into several categories:
- A gap in skills or knowledge. This can happen if a role has evolved, new technology has been introduced, or the employee was not adequately trained. In these cases, the employee may be willing but lacks the capabilities to meet expectations.
- A lack of clear expectations. Employees may underperform if they are unsure about their specific duties, goals, or how their work is evaluated. This can stem from incomplete onboarding or inconsistent communication from leadership.
- Motivational issues. This can be caused by factors including burnout from an excessive workload, a lack of recognition, or a negative work environment. An employee who feels disengaged may lose the drive to perform at their best.
- Personal problems. Issues outside of work, such as health issues or family responsibilities, can significantly impact an employee’s focus and energy, leading to a temporary drop in performance.
Prepare for the Conversation
Once potential causes have been considered, prepare for a direct conversation with the employee. Thorough preparation is necessary for a productive, fact-based discussion that avoids personal opinions. This involves gathering specific, objective examples of underperformance. For instance, instead of saying “your work is sloppy,” document that “the report submitted on October 15th contained a 10% error rate.”
This documentation should include dates, measurable data, and the specific impact of the underperformance on the team or business, such as missed deadlines or customer complaints. Having these facts on hand helps ground the conversation in reality and prevents it from becoming a subjective argument.
Preparation also involves anticipating the employee’s perspective. A manager should consider what the employee might say and be ready to listen without judgment. The goal is to be prepared for a two-way dialogue, not to follow a rigid script. This includes thinking about potential questions and being ready to discuss available support.
Conduct the Initial Performance Discussion
The initial meeting sets the tone for the improvement process and should be a supportive, problem-solving session. Hold the meeting in a private space to ensure confidentiality. Start the conversation by stating its purpose calmly, such as, “I’d like to discuss some challenges with your recent performance and work together on a solution.”
Next, present the documented examples of underperformance in a neutral, non-emotional tone. Focus on the behavior and its impact, not the person. For instance, “In the last quarter, you missed five project deadlines, which delayed the team’s progress.” This factual approach minimizes defensiveness.
Dedicate a significant portion of the meeting to listening to the employee’s perspective. After presenting the facts, ask open-ended questions like, “What are your thoughts on this?” or “What obstacles are you facing?” to uncover the root cause. Practice active listening by reflecting back what the employee says to ensure understanding. The objective is to reach a mutual agreement that a performance issue exists and must be addressed collaboratively.
Create a Performance Improvement Plan
After the initial discussion, formalize a plan for improvement. A Performance Improvement Plan (PIP) is a document that outlines the steps an employee must take to get their performance back on track. A PIP is a supportive framework to guide the employee toward success, not a punitive measure.
An effective PIP is built around S.M.A.R.T. goals (Specific, Measurable, Achievable, Relevant, and Time-bound). For example, instead of “improve communication,” a S.M.A.R.T. goal would be: “For the next 60 days, provide a weekly project status update by Friday at 4 PM.” The plan must also describe what successful performance looks like so the employee understands the standard.
The PIP should detail the support the company will provide, such as additional training, coaching from a senior team member, or adjustments to their workload. It must also include a schedule for regular check-in meetings to monitor progress. Finally, the PIP must state the consequences if performance does not improve by the specified timeline, which could include disciplinary action or termination.
Provide Ongoing Support and Follow-Up
A PIP’s effectiveness depends on the manager’s active engagement and support. The scheduled check-in meetings are a priority and provide a dedicated time to review progress against the plan’s goals. These meetings should not be rescheduled unless absolutely necessary.
During these follow-up conversations, provide specific and balanced feedback. Acknowledge small wins to keep the employee motivated, but also address any continued areas of concern constructively. Use these meetings to ensure the employee is using the provided resources and to ask if additional support is needed.
This ongoing dialogue fosters a partnership and demonstrates the manager is invested in the employee’s success. Regular communication helps identify and resolve roadblocks quickly, giving the employee the best chance to meet performance standards. The manager’s role during this phase is to be a coach, offering guidance while holding the employee accountable for progress.
Determine Next Steps After the Plan
At the end of the PIP period, a final meeting is held to review the overall outcome. Using the documentation from the follow-up meetings, you will determine if the employee has met the plan’s objectives. There are two primary paths forward at this stage.
If the employee has successfully met the PIP’s goals, the plan can be formally concluded. The manager should acknowledge the employee’s hard work and improvement. The conversation should then focus on maintaining this momentum, making it clear that the improved performance is the new standard.
If the employee has not met the plan’s objectives, the manager must proceed with the consequences outlined in the PIP. This may involve termination or, in some cases, reassignment to a more suitable role. This conversation must be handled with professionalism, clearly explaining the decision by referencing the unmet goals. It is often advisable to have a human resources representative present to ensure alignment with company policy.