Managing Poor Performance – 8 Step Checklist To Manage Poor Performance At Work

Addressing an employee’s poor performance in the workplace can feel overwhelming, especially for small and medium-sized businesses without dedicated HR support. Left unmanaged, underperformance can impact team morale, reduce productivity, and lead to costly turnover. So, how can you approach this effectively as a manager or business owner?

This article from The HR Consultants presents an 8-step checklist designed to guide you through the process of managing poor performance with confidence and clarity. Each step offers practical advice grounded in established HR practices, helping you create a structured, fair approach that supports both your business goals and your employees’ development.

Table of Contents

• Step 1: Identify the Performance Issues
• Step 2: Understand the Root Causes of Poor Performance
• Step 3: Set Clear, Achievable Goals
• Step 4: Develop a Performance Improvement Plan (PIP)
• Step 5: Provide Necessary Support and Resources
• Step 6: Schedule Regular Follow-Ups and Feedback Sessions
• Step 7: Monitor Progress and Make Adjustments
• Step 8: Decide on Next Steps
• The Last Word

 

Step 1: Identify the Performance Issues

Before you can address your employee’s performance, it’s essential to clearly identify and understand the specific issues at play. Pinpointing these problems can feel overwhelming, but breaking it down into manageable steps will make it more approachable. Start by asking: What exactly is falling short? Is it missed deadlines, reduced quality of work, or inconsistent attendance? Guidelines from the Chartered Institute of Personnel and Development (CIPD) cite common signs of underperformance often include lack of productivity, poor quality of output, and disengagement.

An objective approach is crucial here. Avoid letting personal biases or emotions cloud your judgement. Instead, focus on measurable indicators such as productivity data, feedback from colleagues, and observed behaviours. A simple checklist can also be helpful—note specific examples of underperformance, the frequency of issues, and any patterns.

For instance, if an employee has consistently missed project deadlines over the past month, document these instances. This evidence-based approach ensures clarity and fairness, laying a solid foundation for constructive conversations and solutions in the next steps.

Step 2: Understand the Root Causes of Poor Performance

Once you’ve identified specific performance issues, the next step is to understand why they’re happening. Underperformance can stem from a range of factors—personal issues, skill gaps, or unclear expectations, to name a few. A structured approach, such as the “5 Whys” technique or the Fishbone Diagram, can help you dig deeper into underlying causes. By asking “why” repeatedly, you’re more likely to uncover the real root of the problem rather than just addressing surface symptoms.

Distinguishing between capability issues and misconduct is essential here. If the cause relates to skills or knowledge gaps, your response will differ significantly from situations involving attitude or behavioural concerns.

If an employee fails to meet deadlines, a closer look might reveal they lack training in time management. On the other hand, frequent tardiness could indicate a motivational issue. Identifying these causes objectively enables tailored solutions that genuinely address the issue at hand.

Step 3: Set Clear, Achievable Goals

Goals provide direction, helping employees know exactly what’s expected of them.

Here’s how to apply SMART goals in managing your own performance:

• Specific: Define the exact task or behaviour needed (e.g., improving punctuality).
• Measurable: Include a quantifiable target (e.g., arriving on time for at least 95% of shifts).
• Achievable: Ensure the goal is realistic within their role and capacity.
• Relevant: Align the goal with both the employee’s responsibilities and team objectives.
• Time-bound: Set a timeframe (e.g., achieving punctuality over the next three months).

A SMART goal could be: “Attend all morning team meetings on time, at least 95% of the time, over the next three months.” This approach makes performance goals transparent, achievable, and easier to track, setting your employee up for success.

Step 4: Develop a Performance Improvement Plan (PIP)

A Performance Improvement Plan (PIP) is a structured approach that offers clarity and support, guiding underperforming employees towards specific improvement goals. Tailored to each individual’s needs, a PIP acts as a roadmap, breaking down the steps required to meet performance expectations.

Here’s a basic structure for creating an effective PIP:

1. Define Objectives: Specify the areas needing improvement (e.g., accuracy in reports).
2. Set Milestones: Break down goals into achievable steps with clear deadlines.
3. Identify Support: List resources, such as training sessions or mentorship, that will aid progress.
4. Schedule Performance Reviews: Arrange regular check-ins to monitor and adjust the plan as needed.

For example, a sales employee with declining numbers might have weekly coaching sessions to improve poor performance. With mutual commitment and consistent support, a PIP can not only enhance performance but also reinforce trust and accountability, benefitting both the employee and the business.

Step 5: Provide Necessary Support and Resources

As HR expert Dave Ulrich states on LinkedIn:

“Talent. It’s the lifeblood of every organization, yet harnessing its full potential remains an elusive goal for many.”

Offering the right support can be pivotal in turning around underperformance. Studies show that employees who receive targeted training and mentorship often improve faster, becoming more engaged and confident in their roles. In fact, according to Forbes, companies that invest in comprehensive training and development programmes see a 218% higher income per employee compared to those without formal training. This underscores how valuable support initiatives can be, both for individual growth and overall business success.

So, what kind of support could help your employee succeed? Start with training opportunities that address specific skill gaps. Online courses, workshops, or even short refresher sessions can help build the skills they need. For ongoing guidance, consider assigning a mentor—an experienced colleague who can offer insights, answer questions, and provide encouragement.

Regular check-ins will help you assess whether additional support is needed, ensuring the resources provided align with their development goals. By providing these resources, you demonstrate a commitment to your employee’s success,

Step 6: Schedule Regular Follow-Ups and Feedback Sessions

Consistent feedback is essential for effective performance improvement, as it keeps employees on track and helps them feel supported. By scheduling follow-ups, you can address any challenges early on, celebrate progress, and ensure your team members feel encouraged rather than overwhelmed.

When providing feedback, aim to keep it constructive and balanced. Instead of focusing solely on areas for improvement, acknowledge achievements and steps forward. This approach builds morale and cultivates a productive atmosphere to improve performance. For instance, if an employee is working on time management as part of their Performance Improvement Plan (PIP), recognising their progress in meeting recent deadlines can motivate them to continue.

Consider adopting a standard schedule—perhaps weekly or bi-weekly sessions—to give structure to the feedback process. This regular engagement allows for mutual reflection and adjustment, empowering your employee to stay focused and make steady progress, ultimately leading to a positive outcome for both parties.

Step 7: Monitor Progress and Make Adjustments

Monitoring progress is key to ensuring your performance improvement plan is effective and keeps moving in the right direction. Regularly reviewing performance helps you spot any patterns or obstacles early, allowing you to adapt as necessary. Performance management software like Asana, Trello, or BambooHR can simplify this process by tracking tasks, deadlines, and progress—all in one place. With these tools, you gain a clear, real-time picture and can track employee performance instantly.

Sometimes, progress may be slower than expected, and that’s okay. Industry best practices suggest that adjusting goals to meet current realities is often more effective than sticking rigidly to initial targets. For example, if an employee is showing improvement but needs extra time to master a new skill, you could extend their deadlines or provide additional resources.

Making thoughtful adjustments as you monitor performance shows your commitment to their success. This flexibility creates a supportive environment, helping employees feel more motivated and engaged, which ultimately benefits both their personal growth and the company’s goals.

Step 8: Decide on Next Steps

After monitoring progress and providing support, it’s time to assess the outcomes and decide on the best path forward. If the employee has made genuine improvements, continued support or even new responsibilities could be the next step, recognising their effort and progress. However, if performance remains below expectations, you may need to consider alternative options, such as role adjustments or, in rare cases, termination.

When making these decisions, it’s essential to consider both legal and ethical aspects. The UK’s employment laws require fair processes, especially when dealing with performance-related issues. Always document your steps, providing clear reasons and following HR best practices.

In some cases, redeployment to a more suitable role can be a positive solution, allowing the employee to contribute effectively in a different capacity. You could move a sales employee into a customer support role after recognising their strong interpersonal skills but limited sales success.

These decisions can be challenging, but with a clear, supportive approach, you can make choices that balance business needs with fairness and respect.

The Last Word

Managing poor performance is never easy, but with a structured, compassionate approach, it can lead to positive outcomes for both your team and your business. By following this 8-step checklist, you’ll have a clear framework for addressing performance issues thoughtfully and effectively, ensuring that every employee has the opportunity to succeed.

Remember, the performance management process isn’t about punishment—it’s about support, guidance, and growth. Taking the time to understand the root causes, set achievable goals, and provide the necessary resources shows employees that they are valued members of your team. This approach fosters a culture of trust, transparency, and mutual respect, which can enhance morale and boost productivity across the board.

Ethics and empathy play a crucial role here. Fairness and open communication should underpin every step of the process, from setting expectations to making difficult decisions if needed.

If you’re managing poor performance within your team and need guidance, The HR Consultants are here to help. We bring a wealth of experience and a client-centric approach to every consultation, ensuring you feel supported every step of the way. Feel free to reach out with any questions or to discuss how we can support your business. Together, we can help a positive, productive workplace for you and your team.

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Frequently Asked Questions

Here are some common questions about managing poor performance at work.

What are the common causes of poor performance at work?

Poor performance can stem from several factors. Common causes include lack of clear goals, insufficient training, personal issues, and low engagement. Sometimes, unclear expectations or inadequate resources prevent employees from reaching their full potential. External factors, such as stress or personal challenges, can also impact productivity. Identifying the root cause is essential for effective management, helping to create targeted solutions that support employees in overcoming obstacles and improving their performance.

How do you manage a poor performing team?

Managing a poor performing team starts with identifying the underlying issues, whether they’re related to skills, communication, or resources. Set clear, achievable goals for improvement and provide regular feedback to keep everyone on track. Encourage open communication, ensuring team members feel supported and empowered to discuss challenges. Consider offering additional training or mentorship where needed. With a structured, empathetic approach, you can turn your wokforce into a more motivated, productive team that drives better results.

How often should I conduct follow-up sessions with an underperforming employee?

For optimal progress, conduct follow-up sessions weekly or bi-weekly. Regular check-ins provide an opportunity to discuss improvements, address challenges, and adjust goals if necessary. This consistent support helps employees stay focused and reassured, knowing they have guidance along the way. Tailoring the frequency to the employee’s specific needs and the complexity of their goals ensures the approach remains supportive and effective

When is it appropriate to consider termination for poor performance?

Termination should be considered only after all support avenues have been exhausted. If an employee shows no improvement despite clear goals, regular feedback, and sufficient resources, it may be necessary. Ensure a fair process, documenting all steps taken and complying with employment laws to protect both parties. Termination is a last resort and should be handled professionally and compassionately, reinforcing the importance of maintaining high standards within your team.