What is an underperforming employee?
An underperforming employee is someone who fails to meet the expected standards of their role. This could mean not completing tasks on time, delivering poor-quality work, or demonstrating low levels of engagement and motivation. Inconsistent performance, missed deadlines or a lack of initiative can also be indicators of underperformance, particularly if they persist over time.
Underperformance can be temporary, causing a minor dip in productivity and morale, or ongoing, leading to more serious consequences for your business. If left unaddressed, ongoing poor performance can create frustration among colleagues, damage team morale, and ultimately hinder business growth. When figuring out how to deal with an underperforming employee, it’s important to assess whether the issue stems from the individual, external factors or workplace conditions.
Signs of an underperforming employee
Recognising the signs of an underperforming employee early can help employers to take corrective action before problems escalate.
Some common indicators include:
- Consistently missed deadlines or incomplete work
- A decline in the quality of work
- Increased absenteeism or lateness
- A disengaged or negative attitude
- Poor collaboration with colleagues
- Frequent mistakes or errors
- A lack of initiative or motivation
- Resistance to feedback or training
Causes of poor employee performance
Uncovering the reasons behind poor performance is essential for understanding how to deal with an underperforming employee. It’s important to address the deeper causes that lead to underperforming employees, so you can tackle them before they escalate.
Lack of necessary skills
Some employees may struggle due to a lack of skills needed for their role. This could be due to insufficient training or a mismatch between their abilities and job requirements. Upskilling staff can help you to bridge skill gaps and ensure that employees have the knowledge they need to succeed.
Unclear expectations
If employees don’t fully understand their responsibilities or performance expectations, they’re more likely to struggle. Clear job descriptions, regular feedback, and a thorough induction process for new employees can help to set clear expectations from the start.
Poor management
A lack of effective leadership can contribute to performance issues. Employees who feel unsupported or undervalued may struggle to stay motivated, while those who feel they lack autonomy due to excessive control may become disengaged or hesitant to take initiative. Encouraging leadership development and addressing micromanagers within the company can help to better guide employees towards success.
Toxic working environment
A negative workplace culture can lead to disengagement, stress and reduced productivity. Poor communication, office politics or a lack of inclusivity can make employees feel undervalued, so it’s important to keep an eye out for common signs of poor company culture. Taking the necessary steps to address them will help to foster a healthier working environment that encourages collaboration.
Feeling disconnected from colleagues
Employees who feel isolated from their colleagues may feel less motivated or struggle with collaboration, which can impact their performance. This is particularly common in remote or hybrid roles, where in-person contact is less common. Encouraging team bonding and embracing effective communication strategies can help employees to feel more connected, fostering a sense of belonging and improving collaboration.
Lack of variety or challenges
Repetitive tasks with little opportunity for growth can lead to boredom and disengagement. By incorporating variety and new challenges you can help to reignite employee motivation. While some roles may not be able to be made more engaging, offering training or career progression opportunities can foster a sense of value and development.
External factors
Not all of the signs of an underperforming employee are due to work-related factors. Personal stress, mental health challenges or family responsibilities can also impact an individual’s performance in the workplace. As an employer, you should be mindful of these factors and support employees with flexible working options and access to workplace mental health resources.
How appraisal software can support underperforming employees
Knowing how to deal with an underperforming employee is easier when there are structured performance tracking systems and review processes in place. Here are some of the ways that appraisal software can support underperforming employees.
Makes it easier to spot poor performance
Regular performance appraisals help to identify performance trends early. Appraisal software provides a structured way to document feedback, measure improvements and ensure that concerns are addressed before they escalate.
H3: Supports compliance with company policies and procedures
Fair performance management is essential for employee wellbeing and legal compliance. Appraisal software ensures that all actions align with HR policies and procedures, ensuring consistent processes for promotions, training, disciplinary actions and dismissals.
Helps to analyse ongoing performance
Tracking HR data is crucial when assessing performance. Appraisal software makes it easier to measure key HR metrics like productivity, engagement and attendance, allowing HR and management teams to make informed decisions regarding employee development.
Provides tangible evidence of performance
If underperformance continues despite interventions, employers may need to consider formal action. Appraisal software keeps records that support any necessary disciplinary procedures, ensuring that decisions are backed by evidence.
How to manage an underperforming employee
Tracking performance is only part of the process; employers need to take proactive steps to manage and support improvement. Let’s explore how to deal with an underperforming employee.
Commit to regular, ongoing communication
Clear, constructive communication helps employees to understand their progress and where improvements are needed. Regular one-to-one meetings are ideal for delivering feedback, as they can be short and informal while allowing leadership teams to provide guidance.
Clarify the expectations of the role
Employees need to know exactly what’s expected of them to succeed. Setting clear goals helps to build confidence and encourages autonomy at work, increasing engagement by empowering employees to take ownership of their roles and responsibilities.
Encourage a healthy work-life balance
Stressed or overworked employees are more likely to underperform, and their feelings can easily spread to their colleagues, creating a ripple effect that impacts team morale and productivity. Encourage a healthy work-life balance and reduce burnout by assessing workload distribution and taking steps to improve company culture.
Work together to create an improvement plan
A structured performance improvement plan helps employees to understand what success looks like and what will happen if improvements aren’t made. The plan should outline specific actions for development, measurable goals, and a performance improvement timeline to set clear expectations.
Recognise and reward progress
Positive reinforcement is a great way to keep employees motivated. Whether it’s verbal praise, incentives, or opportunities for career progression, recognising their efforts and actively working to motivate employees can encourage continued development.
Follow through with any consequences
Accountability is key to performance management. If improvements are made, employees should be rewarded appropriately. If not, further actions such as reassignment or termination may be necessary. Consistency in enforcing consequences helps set a clear standard across the organisation.
Help underperforming employees to succeed with People HR
Effectively managing underperforming employees requires a structured approach that includes setting clear expectations, maintaining ongoing communication, and using the right tools. Appraisal software is an ideal solution for helping businesses to track performance, provide actionable feedback and support employees in achieving their full potential.
With People HR’s performance appraisal software, you can streamline performance management, track progress and ensure that underperformance is addressed quickly and fairly. To see how this, or any of our other HR tools, can benefit your team, book a demo or contact us today.
