Every organization faces the challenge of dealing with underperformance at some point. Whether it’s missed deadlines, low productivity, lack of motivation, or poor teamwork, managing underperforming employees is critical to maintaining a high-performing workplace.
But how do you handle underperformance without demotivating the individual or disrupting the team? The key is to approach it strategically, with empathy, and with a clear action plan.
🚨 Identifying Underperformance: Key Signs to Watch For
Before addressing underperformance, it’s essential to identify it correctly. Some common signs include:
🔹 Declining productivity – Missing deadlines, producing low-quality work, or not meeting expectations.
🔹 Lack of engagement – Low participation in meetings, minimal initiative, or avoidance of responsibilities.
🔹 Poor teamwork – Conflicts with colleagues, lack of collaboration, or negative attitudes.
🔹 Frequent absenteeism – Increased sick leaves or unexplained absences.
🔹 Resistance to feedback – Difficulty accepting constructive criticism or showing no improvement despite coaching.
Once underperformance is recognized, the next step is addressing it constructively.
🔑 How to Manage Underperformers Effectively
1️⃣ Identify the Root Cause
Underperformance is often a symptom of an underlying issue. It’s important to diagnose the problem before jumping to conclusions.
🔍 Ask yourself:
✅ Is the employee lacking skills or training?
✅ Are there personal or health issues affecting performance?
✅ Is the employee unclear about expectations?
✅ Are there workplace conflicts or leadership issues?
Example:
A sales executive suddenly stops meeting targets. Instead of assuming laziness, the manager investigates and finds out the employee is struggling with personal issues. A temporary support plan helps them regain productivity.
2️⃣ Set Clear Expectations & Provide Feedback
Many employees underperform because they don’t fully understand expectations. Managers must communicate clear performance standards and goals.
✅ Have one-on-one discussions to set clear KPIs (Key Performance Indicators).
✅ Provide specific, actionable feedback instead of vague criticism.
✅ Use the SBI Model (Situation-Behavior-Impact) for effective feedback.
💬 Example Feedback Using the SBI Model:
❌ Bad Feedback: “You’re not doing a good job.”
✔ Good Feedback: “In last week’s team meeting (Situation), you didn’t contribute to the discussion (Behavior), which impacted our ability to finalize project plans (Impact). I’d like to hear more from you in future meetings.”
3️⃣ Offer Training & Development
Sometimes, underperformance is due to a skills gap. Instead of dismissing an employee, help them improve.
📌 Solutions:
✅ Offer mentorship or coaching.
✅ Provide online courses, training programs, or workshops.
✅ Assign them a buddy or mentor to help them adapt.
Example:
An IT employee struggles with coding assignments. Instead of letting them go, the manager enrolls them in a coding bootcamp—after which their performance improves significantly.
4️⃣ Use a Performance Improvement Plan (PIP)
A Performance Improvement Plan (PIP) is a structured approach to help underperformers set clear goals and track progress.
🔹 Define specific performance goals.
🔹 Set measurable milestones and timelines.
🔹 Provide continuous feedback and coaching.
🔹 Review progress regularly.
Example:
An HR executive struggling with recruitment deadlines gets a 60-day PIP, with weekly check-ins and training on time management techniques.
5️⃣ Keep Communication Open & Supportive
Many employees feel afraid or defensive when confronted about underperformance. A supportive approach encourages improvement rather than fear.
🗣 Best practices for communication:
✅ Focus on improvement, not punishment.
✅ Listen to the employee’s perspective.
✅ Offer emotional and professional support.
✅ Avoid public criticism—always discuss performance issues privately.
6️⃣ Recognize & Reward Improvement
If an employee makes progress, acknowledge their efforts! Recognition boosts confidence and reinforces positive behavior.
🎉 Ways to recognize improvement:
✔ A simple thank you or shoutout in a team meeting.
✔ Offering small incentives like flexible hours.
✔ Including them in important projects as a sign of trust.
7️⃣ Know When to Make Tough Decisions
If, after multiple efforts, an employee fails to improve, managers must decide whether to:
🔹 Restructure their role – Assign them tasks that align with their strengths.
🔹 Move them to another department – If another role is a better fit.
🔹 Let them go – If no improvement happens despite multiple interventions.
💡 Example:
A project manager consistently misses deadlines despite multiple PIPs and training. Eventually, the company transfers them to a support role, where they thrive with less pressure and structured tasks.
📊 The Impact of Managing Underperformance Well
💡 Studies show that organizations with structured performance management see:
✔ 21% higher profitability (Gallup, 2023)
✔ 30% increase in employee engagement
✔ 50% lower turnover rates
When managed effectively, underperformers can become top contributors rather than liabilities.
🔮 Final Thoughts: Turn Underperformance into Opportunity
Managing underperformers isn’t about punishment—it’s about coaching, developing, and unlocking potential. With the right approach, most employees can improve and become valuable team members.
💡 Have you ever dealt with underperformance? What strategies worked for you? Let’s discuss in the comments! 🚀
