How to Handle Underperformance in a Respectful, Productive Way

Underperformance is a challenge faced by nearly every organisation, and how you handle it can make or break the culture within your team. Addressing it effectively requires a balance of empathy, clear communication, and actionable plans. Particularly in smaller teams or tight-knit sectors like Peak Bodies, Memberships, and Associations, how leaders manage these situations can significantly impact morale and productivity.

The way underperformance is managed can set the tone for the entire organisation. Handling it poorly may lead to feelings of resentment or even loss of team members, while addressing it respectfully and effectively can build a culture of trust, growth, and continuous improvement.

Addressing these issues involves empathy, structured feedback, and clear communication – because at the end of the day, underperformance can often be a symptom of larger systemic issues, such as unclear expectations, lack of resources, or even a misalignment between the employee’s skills and the role.

Here’s how to approach underperformance in a respectful, productive way that supports both the employee and the organisation.

1. Create a Safe Space for Honest Conversations

The first step is to create a supportive environment where employees feel safe discussing their challenges. Schedule a one-on-one meeting, making it clear that the conversation is about collaboration and problem-solving, not blame.

Tip: Start the conversation by acknowledging their contributions and strengths before discussing areas of concern. This helps frame the discussion positively and reduces defensiveness.

2. Focus on the Issue, Not the Person

When discussing underperformance, it’s important to separate the person from the problem. Use specific examples of their work that didn’t meet expectations and frame these as areas for improvement, rather than personal failings.

Example: Instead of saying, “You’re not meeting deadlines,” try, “I noticed that the last few project submissions have been delayed. Can you share what’s been affecting your ability to meet the timelines?”

3. Set Clear, Achievable Goals

Establishing clear performance expectations and setting specific, measurable goals is key to improving performance. Make sure the employee understands what success looks like and the timeframe for achieving it.

• Define the standard: Clearly outline the performance standard and expectations.
• Set SMART goals: Goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.
• Regular check-ins: Schedule follow-up meetings to discuss progress and provide support as needed.

4. Offer Support and Resources

Sometimes underperformance is a result of a lack of resources, training, or support. Before jumping to conclusions, ask the employee if there are any barriers affecting their performance. It might be something as simple as needing extra training on a specific tool or more clarity in their role.

Preventative Measure: Provide ongoing training and development opportunities to ensure all team members have the skills and resources they need to succeed.

5. Create a Performance Improvement Plan (PIP)

If performance issues persist, consider implementing a Performance Improvement Plan (PIP). This document should outline the specific areas needing improvement, the actions to take, and a clear timeline. However, it’s crucial to approach this from a place of support rather than punishment.

A PIP can include:

• Objectives: Clear performance objectives.
• Support Offered: Resources and training that will be provided.
• Review Schedule: Dates for regular check-ins and evaluations.

6. Maintain Team Morale and Transparency

Handling underperformance in a small team can be particularly tricky because any perceived unfairness or lack of communication can have a ripple effect on morale. Be transparent with the rest of the team – without breaching confidentiality – and let them know you’re working to support the employee’s growth.

Tip: Encourage the team to offer peer support where appropriate. Often, team members can provide additional guidance and encouragement.

7. Know When It’s Time to Let Go

Despite best efforts, sometimes the employee isn’t the right fit for the role or the organisation. If you’ve provided support, resources, and a clear path forward but performance hasn’t improved, it may be time to discuss an exit strategy. Always handle these conversations with empathy and respect, ensuring the employee leaves with their dignity intact. People will always remember how you made them feel.

It’s never easy to address underperformance, but handling it with empathy, clear communication, and a focus on development can transform a challenging situation into an opportunity for growth. Remember, underperformance doesn’t have to be the end of the road – often, it’s the beginning of a new and more positive path forward for both the employee and the organisation.