How to Manage Underperformance

Managing underperformance and performance management can be an extremely daunting and stressful experience. The process for performance management in the case of underperformance in most organisations is formal and involves evidence gathering, regular meetings and action planning with the employee concerned. Some areas of underperformance can be tackled or corrected quickly, whereas some underperformance cannot be resolved as easily and may involve managing the person out of the organisation through the performance appraisal process. Firstly before approaching the management of the issue, it is important to first identify what the source of underperformance is.

Capability or conduct?

Poor performance is usually the result of either:

· capability – an individual is incapable of doing their job for reasons outside of their control, for example:

• a lack of the necessary skills, experience, knowledge or qualifications to do their job
• ill health

· conduct – an individual fails to apply sufficient effort to performing their job to a satisfactory standard, for example:

• negligence
• attitude/disobedience

It is, therefore, very important to make sure that the causes of an individual’s poor performance are identified in order to seek the most appropriate remedy; either disciplinary action (in cases of misconduct) or a programme of support or training (in cases of capability).

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Step One: Identify and define the problem

Problem performance can manifest itself in a number of ways, including:

• inaccurate work, poor quality outputs
• low productivity, insufficient outputs
• poor timekeeping
• unauthorised short-term absences
• excessive longer term absence

At this stage, whilst the problem/effects of the problem may be evident, it is important not to pre-judge the reasons for the poor performance until you have investigated the matter further.

Step Two: Investigate and gather evidence

Having examples of an employee’s poor performance makes discussing the issue with them much easier. Presenting evidence provides a useful mechanism for explaining what is, and what isn’t, considered acceptable.

Evidence can take a number of forms:

Documentary evidence consists of paperwork or electronic recordings such as video or audio, including timesheets, production reports, photographs or CCTV footage.

Physical evidence consists of actual objects, such as an incorrectly assembled set of components.

Testimony takes the form of statements from witnesses who have observed what the employee has done or failed to do.

Hearsay is information that has been reported to you by a third party who was not a witness.

If possible, try to find documentary or physical evidence, as this is much harder to dispute than testimony or hearsay.

Evidence should be specific and relevant to the issue or incident in question. So ensure that dates and times are recorded where necessary. Evidence might also include details of the impact of the problem on others, for example customers, other team members and the organisation. Evidence might include missed deadlines, extra hours put in by others to cover work or costs incurred due to errors.

Before proceeding into any formal process, make sure that the individual in question has seen this evidence and been given a chance to contest it, explain it or rectify it. There should be no surprises in a formal process for either you or the employee.

Step Three: Consider evidence and decide course of action

Should the evidence clearly reveal at this stage that there is an issue with an individual’s performance on the grounds of conduct, you should refer to your organisation’s disciplinary procedure.

In cases of capability, or where the cause of the poor performance is still unclear, it is best practice to continue your investigation by discussing the matter with the individual. In the initial stages, or where the problem is fairly minor, this is often done informally.

Step Four: Meet to discuss the issue with the individual

The aim of the meeting is to determine the cause of the individual’s inability to do their job in order to find a solution that will bring about, or reinstate, full effectiveness.

The following top tips are designed to help you conduct a meeting that will encourage open and honest communication:

• Choose a venue that is private, free from distractions, but not intimidating e.g. a small meeting room rather than the boardroom.
• Make the individual feel at ease by setting out the room in a non-confrontational way and talking in a relaxed, open and friendly manner.
• Begin by describing what you have noticed or are aware of, using your evidence where appropriate, and explaining why this is unacceptable.
• Ask the individual for an explanation. Use open questions to explore the reasons they give if you are not fully satisfied.
• Be prepared for the unexpected. An individual may have significant personal issues or circumstances that contribute to the problem. They may reveal information about other people in the organisation who contribute to or cause the problem.
• Adjourn the meeting if you need time to think through the next steps or investigate the matter further.
• Ask the individual how they think the problem should be addressed.

Discuss any suitable options for resolving the problem, for example:

a) revising a job description to make responsibilities and requirement clearer
b) providing training or coaching to bridge any skill gaps
c) providing mentoring to develop knowledge and confidence
d) adjusting work load to alleviate pressures/stress
e) adjusting working hours to accommodate family or domestic responsibilities, or to facilitate a recovery period following an illness
f) involving occupational health professionals or consulting their GP for advice on dealing with medical problems

Step Five: Agree a course of action

Summarise the discussion by creating a plan as to how you jointly intend to address the issue(s). It might be useful to write some objectives or design a programme of activities. You should make it clear what is ultimately required, who is responsible for each action and set a date to meet again to review progress.

Step Six: Review progress

You should conduct an early, initial review of progress to determine whether or not the chosen resolution is the right one and is working. Also, it is important to check that the employee is taking joint responsibility for improving their performance by making a concerted effort to address the issue(s).

If, at a review meeting, it is clear that improvement is not being made or the individual is not responding to the encouragement and support being given, then the following options should be considered:

• Review the action plan – is the assistance being offered sufficient and appropriate, and are the time frames set realistic?
• Ask the individual to explain why progress is not being made. Are there other, previously undiscovered reasons why the individual isn’t performing well?
• Consider adjusting the individual’s role or offering them alternative work if the required standard cannot be reached.
• Deal with the problem formally. If an informal approach fails, you may have to address the problem formally which might ultimately lead to written warnings/dismissal.
• All organisations should have a documented formal process for dealing with poor performance that is subject to a statutory minimum requirement involving the following three steps:

1. Give written notification of the problem to the individual including copies of any evidence.

2. Invite the individual to a meeting at which they have the right to be accompanied by a colleague or trade union official.

3. Give the individual the opportunity to appeal against any decision taken in consequence of the meeting.

Conclusion

Managing underperformance is a long process and should be equally as supportive as it is punitive. If underperformance is identified and managed in the early stages it will be easier to correct. A personal piece of advice would be, know your own standards of what it unacceptable and stick to them. Try to be consistent, if you let poor performance go for a significant length of time and then try to manage it later, you will have a poorer case against you as a manager and a more difficult time trying to express to your employee the underperformance as well as getting them to recognise it.