Every manager will face underperformance at some point. With the right mix of empathy, clarity and structure, you can turn a challenging situation into a chance for growth — for both the employee and the business.
🚩 Spot the Signs Early
Underperformance can build gradually or happen suddenly. Common signs to look out for are:
- Missed deadlines or KPIs
- Frequent lateness or absences
- Declining work quality
- Team tension or complaints
“It’s important to recognise the underlying factors so you can tailor your approach,” says Justine Alter, organisational psychologist and Co-Founder of Transitioning Well.
🧠 Understand the Cause
Performance issues are often about context, not capability. Common causes include unclear roles, skills mismatch, heavy workload, low motivation, or personal challenges.
🤝 Support, Don’t Blame
Start with a clear and respectful 1:1 conversation. Then, tailor support such as:
- Clearer KPIs or expectations
- Training or mentoring
- Adjusting workload
- Recognition or flexibility
If cultural issues are at play, involve HR.
📈 Use a PIP When Needed
If informal steps don’t work, a Performance Improvement Plan (PIP) can create structure.
“Set clear goals, timeframes, and expectations — and support them to succeed,” says Andrew Jewell, Principal at Jewell Hancock Employment Lawyers.
⚖️ Know the Legal Basics
Employers must give fair warning and a chance to improve before dismissal.
“Anti-discrimination protection also applies,” says Jewell.
Learn more at Fair Work.
🚪 If Performance Doesn’t Improve
Options may include further warnings, role changes, or termination. But exploring support first often leads to better outcomes for everyone.
Read more:
- Tips on delivering negative feedback
- How to check in with an employee
- How to make performance reviews work for you and your employee
This article provides general information only and is not legal advice. Seek specialist HR or legal advice for your circumstances.
Source: Source: Adapted from SEEK – “How to manage an underperforming employee”
