Sometimes, despite our best efforts to build them up and encourage their success, employees do not perform as we expect.
Poor performance may go undetected for a while, but sooner or later, it will be noticed; whether through general negligence, corner-cutting, missed deadlines or lack of attention to detail.
It's not always easy to give negative feedback or have those difficult conversations with employees, but the ability to do so effectively is key to being a good leader. It's also essential to the success of your business because if underperformance goes unaddressed, it will impact the rest of your team and overall productivity. Escalation steps for managing employee underperformance must also follow a legally sound and consistent approach.
This blog post follows our post on managing employee performance and development and provides tools, techniques and tips for dealing with underperformance. We'll look at the distinction between underperformance and misconduct, how to set up performance improvement plans (PIPs) and what to do if there's still no improvement. We’ll also touch on the risks of mismanaging employees who don’t meet performance expectations.
Performance issues are best addressed early through informal discussions.
There is no room for dead weight in the workplace, especially in a smaller business that relies on everyone delivering on their KPIs, so you need to get on top of poor performance sooner rather than later. Nipping minor issues in the bud is also easier, quicker and cheaper to solve than problems that have grown and become established habits.
So don't wait for small matters to become big problems. Set expectations right at the beginning of the employment relationship and make sure you have a targeted, effective performance review system that can keep people on track or alert you to problems early on.
If you notice that someone is struggling to meet their goals, do not wait until the next performance review to address the problem, but deal with it as soon as possible.
Once you have identified the underperformance, the next step is to examine and understand what the issue is because that will determine how to respond. Is it a performance or a conduct issue? It can be useful to determine whether it’s a matter of skill or will.
A skill issue is where an employee doesn’t have sufficient skills or competency to be effective in the role, while a will issue is one where they are knowingly doing something wrong, which will generally lead to disciplinary action for misconduct.
If it’s a skill issue, work with the person to determine what the main contributing factors are. Are the performance goals unclear or the role ambiguous? Have they had adequate on-job training or support? Is there a lack of communication, stimulation or engagement? Are there personality clashes, conflict within the work environment, or poor workplace morale? Once you have identified the concerns, the employee may have a reasonable explanation or you can seek ways to improve.
Tip: Set aside any personal emotion about the situation as it will get in the way of your understanding of the facts and ability to find mutually-beneficial solutions.
Informal discussions are key when it comes to managing performance. People respond much better to a chat or something brought up in a regular catch-up rather than finding out in a formal performance review meeting a few months after the fact.
Again, set expectations early about what the goals are, how to expect and give feedback, when and how you will meet (face-to-face in the workspace, in a training room, or online), what support the employee can expect, timeframes, and how to know if goals or milestones have been met, or not.
Ask questions, listen, and provide strategic advice and counsel. Keep the focus on the issue rather than the person, and work on specific aspects that they need to improve or where they may need additional support or an adjustment of the role to better match their skills and motivations. Explain how their underperformance is affecting the business so they understand the wider impacts. Use workplace tasks and situations as learning opportunities, so the person can improve by doing, possibly under the supervision of an experienced colleague.
Identify specific action items for improvement in writing so everyone agrees on, and can refer to, what has been discussed and what the expected outcomes are.
The majority of instances of underperformance can be addressed by informal coaching, but sometimes you need more formal performance management tools.
Performance improvement plans (PIPs) are a structured process designed to improve underperformance or unsatisfactory workplace behaviour (again, we’re not talking about serious misconduct such as bullying, sexual harassment or theft that requires disciplinary action).
Get our performance improvement plan template.
PIPs are a good way to address under performance in a more formal way. They help set clear expectations and a timeline for improvement to occur. PIPs help set clear expectations and let the employee know that improved performance is necessary if the employee is to remain in their role. Discuss the reason for the PIP and agree on specific and realistic goals, any necessary training, reasonable timeframes, follow-up meetings, how performance will be reassessed at the end, and potential next step if the performance does not improve. E.g. termination
A PIP is best used as a way to formalise coaching conversations or letters of expectations.
Tip: Always document and securely store the PIP, as it records the business’ efforts to obtain improvement and the employee’s corresponding efforts. Include details of progress meetings and issues discussed. Also, give the employee a copy for their records.
Download our performance improvement plan template.
Usually, if you approach the PIP in a focused, considered, and respectful way, the employee will lift their performance, which is a win for both parties.
If performance does not improve, a well documented PIP with regular check-ins can lead to a dismissal with cause, depending on the length of employment, seniority of the employee and the amount of time and effort put into the performance improvement plan by the employer.
People often think disciplinary processes for poor performance are long and arduous, but they don't have to be. If you encounter problems with an employee early, document behaviour and expectations, and begin the disciplinary process as soon as those expectations are not being met. When a proper process is followed, it can be smooth and effective. It's important to allow employees to improve and ensure you are meeting any commitments for training and support.
Another common misconception is that you must give an employee three written warnings before you can dismiss them for poor performance, but there is no legislative requirement for this number.
There are, however, specific steps you need to take and Canadian employment law is very clear that employers must try to resolve performance issues in good faith and follow a fair process in doing so. This is why implementing a PIP is so effective in that it advises the employee of the issue, details the reason for the necessary improvement, and can warn them that employment is potentially at stake. A PIP also provides proof that the business has made efforts to remedy the situation, what the efforts were, and how the person has responded.
Ad hoc or rushed handling of performance management, disciplinary, or termination procedures could give the employee grounds to seek legal recourse for unjustifiable dismissal or discrimination, which will suck up valuable management time and attention, not to mention any legal costs you may incur.
That’s why you need to ensure your approach to managing underperformance and misconduct is fair and transparent, and that you treat each case without prejudice or predetermination of an outcome.
Sometimes it helps to have someone in your corner to bounce questions off of and provide you with sound processes for supporting underperforming employees and managing disciplinaries.
MyHR’s advisory team provides tailored support for Canadian employers dealing with a range of employee issues. We provide guidance and documentation to make those difficult conversations easier to handle - including advice, scripts for disciplinary meetings, templates, letters, and much more. Get in touch with our team to schedule your free platform demo today.