Managing underperformance

Underperformance is an underlying issue that greatly affects businesses operations. However, it is an issue that can be managed with an effective performance management system.

Underperformance may include:

• not performing duties, or not performing them to the required standards;
• displaying negative or disruptive behaviour in the workplace; and
• failing to comply with workplace policies, rules or procedures.

One of the most important things to note about underperformance, is that it does not just affect the output of an individual employee, it can also impact other colleagues, patients, and the productivity of the business.

Employees may be underperforming for a variety of reasons. Please find examples below. 

• The employee is unclear regarding what is expected of them because goals and standards are unclear.
• The employee may not have the required knowledge or skills to complete the job properly.
• The employee is unsure if they are meeting the correct requirements.
• The employee has low confidence, motivation or self-esteem.
• The employee may be experiencing personal issues such as family stress, physical and/or mental health problems, or problems with drugs or alcohol.
• The employee may be experiencing a low morale in the workplace, or a poor work environment.
• The employee may be suffering from interpersonal differences or cultural misunderstandings.
• The employee may be subject to workplace bullying.

To effectively manage underperformance within your business, it is best to address the issue straight away, minimising the risk of it developing into a more serious problem. The issue is unlikely to disappear on its own, and if not solved quickly, could lead to a decline in motivation in other employees.

Below is a five-step approach to assist managers and employers in managing the effects of underperformance. We cannot stress enough the importance of documenting steps three, four and five and communication in writing of notices and confirmations of discussions with employees in writing. Email is a preferred medium.    

1.    Identify the problem  

It is best to write the problem down, addressing examples of the behaviour or action causing issues, when it is occurring, why it is an issue, and specifically how the behaviour/action needs to change/improve.

2.    Assess and analyse    

In assessing and analysing the problem, the seriousness of the problem needs to be examined, how long the problem has existed, and the gap between what is expected and what is being delivered needs to be identified.

3.    Meet with the employee    

A meeting must then be arranged to discuss the issue with the employee. The employee should be notified the reason for the meeting in advance, to prepare if they need. The employee is permitted to bring a support person. The meeting must also be in private.

During the meeting, you should:

• clearly describe the problem and refer to specific examples of behaviour/actions;
• explain the impact of the issue on the business, the employee’s work or co-workers;
• explain the outcomes you want to achieve from the meeting;
• give the employee an opportunity to respond and give you their view of the situation;
• listen and ask questions to understand their response to the problem, and why it has occurred;
• if possible, refer to recent positive things the employee has done, to show them you also recognise and appreciate their strengths; and
• use a relaxed and encouraging tone and show confidence in the employee’s ability to improve.

4.    Agree on a solution    

After the meeting, both you and the employee should develop a solution to the problem together. If it is evident that employees are more likely to improve their performance if they feel included in the process.

When developing a solution, you should;

• ensure that the employee understands the change you require;
• explore ideas by asking open ended questions like ‘how could this be improved business operations in the future?’;
• suggest ways to solve the problem, and encourage the employee to make suggestions as well;
• offer support and assistance to the employee, such as training, mentoring, or modifications to the employee’s duties; and
• reinforce the importance of the role the employee performs.

The agreed actions should be recorded in writing in a performance improvement plan, clearly identifying the performance that needs to improve or the behaviour that needs to change. The performance improvement plan should also include an outline about how this will be done, the responsibilities of each party, a reasonable timeframe to improve performance, and a follow up meeting to review progress and discuss the employee’s performance against the agreement. In extreme cases of underperformance, it is also recommended to include the possible consequences if the employee’s performance does not improve. 

5.    Monitor and review    

Once a solution is in place, it is suggested that you:

• follow through with any training or other support you offered to the employee;
• check-in frequently with the employee to discuss how they are progressing; 
• continue giving feedback and encouragement to the employee; and
• have a follow up meeting at the agreed time (as per the performance improvement plan) to review their progress.

It is important to note that is often takes more than one conversation to resolve an underperformance issue. Follow-up meetings are a great way to recognise the employee’s development and focus on the necessary improvements.

It is also important that a performance improvement plan is updated reflecting the employee’s progress, if a plan was arranged in the first meeting with the employee. 

Once the employee’s performance has developed to an acceptable level, it is crucial that you acknowledge that the problem has been resolved, and talk with the employee about how the improvements will be maintained.

If an employee’s performance does not improve after a reasonable period of time, you may need to consider other options such as disciplinary action.

Please contact our Workplace Relations Team on (07) 3872 2222 or at workplacerelations@amaq.com.au, if you require support in managing the performance of employees in the practice and especially if you anticipate disciplinary action is necessary.