Dealing with Underperforming Staff - Don’t Let Fear Hold Your Business Back
I was struck recently while working with a client who runs a successful business with over 20 employees that despite their success, they were almost paralysed when it came to addressing an underperforming staff member. Their concern? Taking the wrong step and ending up in a grievance over a “process flaw” that could cost, in their words, “three months’ salary.”
That fear was real and it was stopping them from acting. The result? Ongoing underperformance that was impacting the business, customers, and the wider team. The reality is, many businesses simply can’t afford that cost, so the issue goes unaddressed.
Yes, you must follow a fair and proper process. But when you get the fundamentals right, performance management becomes far more straightforward, and far less risky.
Here are the key foundations:
1. Clear expectations
Every role should have a well-defined job description and measurable KPIs. If expectations aren’t clear, performance becomes subjective and difficult to manage.
2. Regular review and feedback
Build a process and timing for formal and informal check-ins. Share feedback openly, agree on improvements, and document those discussions. A well-maintained record is critical.
3. Address issues early and professionally
Don’t let concerns drift. Deal with them promptly, using evidence and focusing on the performance gap and not the person. Keep communication calm, factual, and respectful.
4. Provide targeted support
If someone is struggling, ask why. Training, mentoring, or clearer direction can often turn things around. Do what you say you are going to do to help them.
5. Seek advice early
Don’t wait until things escalate. Early guidance can help you stay on track and avoid costly missteps.
If you follow these principles and work through a fair verbal and written warning process, you can act with confidence. If performance doesn’t improve, you are entitled to make tough decisions, without fear of a costly grievance.
Your goal should always be improvement. But if that’s not achievable, don’t shy away from doing what’s right for your business, your customers, and your team.
Avoiding the issue only compounds the problem.