A critical project is nearing its deadline, but one team member’s repeated delays and inconsistent performance begin to take a toll. Tensions rise as other team members step in to cover gaps, sacrificing their own priorities to keep the project moving. The ripple effects are undeniable—missed targets, strained relationships, and declining morale.
Addressing underperformance is not just a managerial task; it’s a strategic imperative. Left unresolved, it jeopardizes team cohesion and organizational goals.
This guide outlines a structured approach to managing nonperforming employees effectively, enabling managers to foster improvement, maintain team morale, and safeguard overall productivity.
Step 1: Identify the root cause of underperformance
Before addressing underperformance, it’s crucial to uncover its root cause. Begin by observing the signs: missed deadlines, incomplete tasks, or subpar work quality. But don’t jump to conclusions—external factors or systemic issues could contribute.
Common causes of underperformance:
- Inefficient processes: Are they bogged down by endless meetings with no time for meaningful work?
- Lack of support: Was their onboarding limited to policies, leaving them without the tools or guidance to succeed?
- Monotony: Performing the same tasks daily can lead to disengagement, especially with no incentive or growth opportunity.
- Skill gaps: Does the role demand expertise in tools or leadership that they lack?
- Personal challenges: They may be dealing with personal hardships affecting their focus.
Action tip: Show compassion. If personal issues are involved, consider temporarily reducing their workload and extending deadlines to give them space to recover.
Document observations meticulously to create a foundation for addressing the concerns constructively.
Step 2: Have a one-on-one conversation
Once the root causes are identified, engage the employee in a private, focused discussion. This is not about blame—it’s about understanding and collaboration.
Best practices for the conversation:
- Prepare ahead: Share the agenda beforehand to avoid surprises.
- Ask open-ended questions: Encourage the employee to share their perspective.
Example: “You recently worked with Susan on the ABC project. Did you encounter any challenges?” - Provide constructive feedback: Clearly communicate your observations.
Example: “Last week’s report lacked key data, which delayed the timeline.” - Listen actively: Avoid assumptions and dig deeper.
Example: “What’s been your biggest roadblock lately?” - Reassure and support: Frame the conversation as an opportunity for improvement, not punishment.
Example: “I’m confident we can tackle these challenges together and get back on track.”
Action tip: Use insights from this dialogue to build a personalized action plan. You can incorporate strategies from effective one-on-one meetings to make these conversations even more impactful.
Step 3: Set clear expectations and goals
Unclear expectations can hinder even the best employees. After identifying the issues, set well-defined objectives using the SMART (Specific, Measurable, Achievable, Relevant, Time-bound) framework.
Action tip: Clearly articulate expectations.
Example: “Submit the monthly report by the 5th of each month, including detailed financial insights.”
Track progress regularly to reinforce accountability.
Step 4: Develop a Performance Improvement Plan (PIP)
If performance issues persist, formalize the approach with a Performance Improvement Plan (PIP).
Key elements of a PIP:
- Measurable goals: Define specific targets the employee can work toward.
Example: “Achieve 100% report accuracy by the end of the month.” - Regular check-ins: Schedule weekly or biweekly sessions to review progress and provide feedback.
- Feedback focus: Highlight what’s working and areas needing improvement.
Example: “You’ve met the deadline perfectly—great job! Let’s focus on improving data accuracy next.”
Action tip: Document every interaction for clarity and accountability.
Step 5: Offer training and development opportunities
Underperformance often stems from skill gaps rather than lack of effort. Targeted development can help bridge those gaps.
Action steps:
- Identify skill needs: Craft a focused development plan addressing the employee’s weaknesses.
- Pair with a mentor: Assign a mentor who can provide guidance and model best practices.
Example: “Shadow Jane during the next reporting cycle to learn her approach to creating client-ready reports.” - Encourage self-development: Provide tailored learning resources such as courses, workshops, or e-learning tools.
Example: “This advanced Excel course will enhance your data analysis skills for upcoming reports.”
Ensure the mentor has the capacity to dedicate time to this initiative.
Action tip: Set measurable goals for the training period and schedule a follow-up to review progress.
Example: Complete the advanced Excel course by the end of the month, and let’s meet to apply your new skills to a sample project.
Step 6: Monitor progress and offer continuous feedback
Regular check-ins are vital for tracking improvement, addressing challenges, and reinforcing progress.
Best practices:
- Establish a routine: Schedule brief, solution-focused sessions.
Example: “Let’s meet every Friday for 15 minutes to review progress and discuss any roadblocks.” - Celebrate wins: Acknowledge achievements to keep morale high.
Example: “Your accuracy has improved significantly. Let’s now refine the presentation format.” - Adjust goals if necessary: Flexibility prevents employees from feeling overwhelmed and helps them stay on track.
Action tip: Use a feedback tool or platform to document progress and key takeaways after each check-in. This ensures alignment, tracks milestones, and provides a reference for future discussions.
Example: Log your weekly accomplishments and challenges in Jira before our Friday check-in.
Step 7: Evaluate the outcome and next steps
At the end of the PIP, objectively evaluate the employee’s progress.
If improvement occurs:
- Acknowledge their efforts.
Example: “Fantastic progress! Let’s assign you a leadership project to continue your growth.” - Set new, actionable goals to maintain momentum.
If progress Is minimal:
- Reassess and consider additional interventions.
Example: “You’re improving, but we need to focus more on meeting deadlines consistently.”
Action tip: Document the evaluation process and share a clear summary with the employee, outlining the next steps and expectations.
Example: Following our discussion, I’ll provide a summary of your progress and our agreed goals so we have a clear roadmap.
Step 8: Know when to let go
When all efforts fail, assess whether the role fits the employee well.
Consider role reassignment: Explore whether another position better aligns with their strengths.
Example: “Would a customer-facing role better fit your skill set? Let’s explore this possibility.”
Handle termination with empathy: Be clear, compassionate, and constructive.
Example: “You’ve made efforts, but this role may not align with your strengths. Let’s discuss how we can support your transition.”
Provide transition support: Offer resources, recommendation letters, or career counseling to help them move forward.
Managers can foster a culture of accountability, growth, and mutual respect by addressing underperformance proactively and empathetically.
Action tip: Prepare a tailored transition plan before the discussion, outlining available resources and next steps.
Example: I’ve compiled a list of career support resources, including potential roles within the company and external job placement services, to help you navigate this transition effectively.
Taking charge: Unlocking potential through performance management
Managing underperformance is less about “fixing” someone and more about helping them reach their potential. It starts with open, honest conversations and continues with clear, actionable SMART goals, targeted training, and ongoing mentorship.
Consistency is key—regular check-ins, constructive feedback, and a willingness to adapt keep progress on track. Empathy and patience also play vital roles; improvement is a journey that requires effort from both manager and employee. Tools like UpRaise for Employee Success can streamline this process by allowing you to define and track objectives and key results, ensuring alignment and measurable progress.
Every employee has untapped potential waiting to be discovered. By addressing challenges proactively, you’re not just improving performance—you’re fostering growth, confidence, and professional well-being.
Take the first step today and transform underperformance into success.
