As a small business owner, you understand that each member of your team plays a critical role in driving your business forward. But sometimes, despite your best efforts, certain employees may fall short of expectations. Dealing with underperformance can be tricky, especially when you’re balancing multiple responsibilities. However, it’s crucial to address the issue quickly and effectively to prevent it from impacting your business. In this article, we’ll walk through a step-by-step approach to dealing with underperformance in a way that’s constructive and supportive.
Step 1: Identify the issue early
Underperformance often doesn’t happen overnight. It’s usually the result of a gradual decline in performance, which means you may notice early warning signs before things escalate. Pay attention to patterns such as missed deadlines, a drop in quality, or disengagement in meetings. If an employee who once contributed well is now lagging, it’s time to investigate.
Proactively identifying the problem allows you to address it before it becomes a bigger issue. The earlier you act, the easier it will be to manage and correct.
Step 2: Investigate the root cause
Once you’ve noticed underperformance, it’s important to understand the root cause. There could be many reasons for a decline in performance, including personal issues, unclear expectations, lack of motivation, or inadequate skills for the role. A one-on-one conversation with the employee can help you get to the heart of the issue.
During this conversation, approach the employee with empathy and a genuine interest in understanding their situation. Ask open-ended questions like:
- “Is there anything outside of work affecting your performance?”
- “Do you feel you have the support you need to succeed?”
- “Are there any obstacles preventing you from meeting your goals?”
This dialogue can reveal valuable insights into the underlying issues and help you determine whether it’s a temporary setback or a more systemic problem.
Step 3: Set clear expectations
One of the most common reasons for underperformance is a lack of clarity around expectations. If an employee doesn’t know what’s expected of them, how can they possibly meet those expectations?
Once you’ve identified the root cause, take the time to set clear, measurable goals. Make sure the employee understands their role and what specific outcomes are expected. Break down tasks into manageable steps and use the SMART goal framework (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure the goals are realistic and measurable.
It’s also important to clarify how their performance will be assessed and how you’ll track progress. A written action plan can be helpful in outlining these details, so the employee has something to refer to moving forward.
Step 4: Offer support and resources
Now that you’ve set clear expectations, it’s time to ensure the employee has everything they need to succeed. Offer support where necessary, whether it’s additional training, mentorship, or changes to their workload. Make sure they know that you’re invested in their success.
Sometimes underperformance can stem from a lack of confidence or skills. Offering opportunities for skill development or pairing the employee with a more experienced team member for guidance can provide the boost they need.
For example, if the issue is time management, offering a time management course or a more structured schedule can help the employee improve their productivity. Your goal is to make sure they feel equipped to meet the expectations you’ve set.
Step 5: Set regular check-ins
To ensure the employee stays on track, schedule regular follow-up meetings to assess their progress. These check-ins provide an opportunity for feedback, course correction, and additional support if needed.
During these meetings, be sure to focus on both what’s going well and what still needs improvement. Offer praise for any progress, no matter how small, to reinforce positive behaviour. If challenges persist, continue to explore solutions together. By providing ongoing feedback, you help keep the employee accountable and engaged.
Step 6: Be prepared for difficult decisions
Despite your best efforts, there may come a point where the employee is still unable to meet expectations despite receiving support and guidance. If underperformance continues, it may be time to consider more serious consequences. These could include reassignment to a different role that better fits their skills, or even termination if the situation doesn’t improve over time.
Before making any drastic decisions, be sure to document your actions and any conversations you’ve had with the employee. This documentation can be crucial for legal purposes and ensures that you have a record of your efforts to address the underperformance.
Step 7: Learn from the experience
Finally, use this experience to learn and grow as a business owner. Underperformance often reveals opportunities to improve your team’s communication, training processes, or leadership style. Reflect on what you could do differently to prevent similar issues in the future.
For example, it may be helpful to improve the onboarding process for new hires or provide more regular feedback to employees in general. By using underperformance as a learning opportunity, you can strengthen your team and prevent similar challenges down the line.
In conclusion
Dealing with underperformance doesn’t have to be a negative experience. By approaching the situation with empathy, clarity, and support, you can help your employee get back on track while also fostering a positive work environment. Remember, addressing underperformance early, setting clear expectations, offering resources, and tracking progress are all essential to helping your team succeed. And if things don’t improve despite your best efforts, taking difficult decisions in a fair and documented way ensures you protect the long-term health of your business.
With the right approach, you can turn underperformance into an opportunity for growth—for both your employees and your business.
If you’d like advice on dealing with underperformance, do get in touch.