Managing Poor Performance: Employer's Guide

Managing underperformance is one of the most common challenges employers face. Done well, it improves or resolves the situation. Done poorly, it leads to claims.

Performance vs Conduct

Performance (Capability)

• Not meeting required standards
• Despite trying
• Due to ability, skills, or aptitude
• Requires support and training
• Use performance management process

Conduct (Misconduct)

• Deliberate misbehaviour
• Negligence or carelessness
• Breaking rules
• Requires disciplinary process
• Different legal considerations

Overlapping Issues

Sometimes behaviour looks like both:

• Persistent lateness (conduct or performance?)
• Careless errors (negligence or inability?)

Consider the real reason - is it "won't" or "can't"?

Identifying Performance Issues

Signs of Underperformance

• Missing targets or deadlines
• Quality problems
• Customer complaints
• Errors and mistakes
• Inability to learn new tasks
• Failure to meet job requirements

Before Acting

Check:

• Are expectations clear?
• Have they had proper training?
• Do they have the resources needed?
• Are there external factors?
• Is the standard reasonable?

The Performance Management Process

Stage 1: Informal Discussion

Purpose: Address issues early.

Approach:

• Private conversation
• Explain concerns clearly
• Listen to their perspective
• Agree what needs to improve
• Offer support
• Set review date

Document: Note of discussion, but not formal warning.

Stage 2: Formal Performance Review

If informal approach doesn't work:

Meeting:

• Give notice of meeting
• Right to be accompanied
• Explain concerns with specific examples
• Give opportunity to respond
• Consider their explanation

Outcome:

• First written warning (if appropriate)
• Improvement plan
• Support measures
• Review period
• Consequences of no improvement

Stage 3: Final Written Warning

If insufficient improvement after first warning:

• Further formal meeting
• Review progress (or lack of)
• Final written warning
• Clear statement that dismissal may follow
• Further review period

Stage 4: Dismissal Meeting

If still no improvement:

• Formal meeting
• Right to be accompanied
• Review all stages of process
• Consider their representations
• Make decision
• Right of appeal

Performance Improvement Plans (PIPs)

What to Include

1. Specific areas for improvement

   • Clear, measurable objectives
   • Current performance level
   • Required performance level

2. Support provided

   • Training
   • Coaching
   • Resources
   • Regular check-ins

3. Timescales

   • Review dates
   • Overall PIP length
   • Milestones

4. Consequences

   • What happens if improvement achieved
   • What happens if not

Example PIP Objectives

Vague: "Improve customer service skills."

Better: "Achieve customer satisfaction score of 80%+ (currently 65%). Complete customer service training by [date]. Reduce complaint rate from 5% to under 2% by [date]."

PIP Duration

Typical durations:

• Simple role: 4-8 weeks
• Complex role: 2-3 months
• Senior role: 3-6 months

Factors to consider:

• Nature of performance issues
• How long performance has been poor
• Time needed to demonstrate improvement
• Training requirements

Support During Performance Management

Types of Support

• Training (specific skills)
• Coaching or mentoring
• Regular feedback sessions
• Reduced workload temporarily
• Additional resources
• Changed responsibilities

Why Support Matters

For fairness: Shows you gave them chance to improve.

For defence: Evidence you acted reasonably.

For outcomes: Support may actually fix the problem.

Documentation

What to Record

• Performance concerns (specific examples)
• Meetings held (notes of discussions)
• Expectations communicated
• Support provided
• Progress reviews
• Warnings issued
• Final decision

Why It Matters

Good records:

• Show fair process followed
• Evidence expectations were clear
• Demonstrate support was given
• Defend against unfair dismissal claim

Common Scenarios

Scenario 1: New Starter Struggling

Three months in, new employee not meeting standards.

Approach:

• Extend probation if contract allows
• Provide additional training
• Clear feedback on gaps
• Regular reviews
• Consider if role is right for them

Scenario 2: Long-Serving Employee Decline

Previously good performer, now struggling.

Consider:

• Has something changed?
• Health issues?
• Personal problems?
• Changed job requirements?
• Offer support before formal process

Scenario 3: Attitude Problem

Employee capable but unwilling to try.

Consider:

• Is this really conduct, not capability?
• Address underlying issues
• May need disciplinary approach if deliberate

Scenario 4: Performance Across Team

Several team members underperforming.

Consider:

• Is the problem management or training?
• Are standards realistic?
• Consider team-wide approach
• May not be individual failure

Dismissal for Poor Performance

Fair Dismissal Requirements

1. Genuine capability issue: Real performance shortfall
2. Warnings given: Employee knew consequence of no improvement
3. Opportunity to improve: Reasonable time and support
4. Fair procedure: Meetings, right to be accompanied, appeal
5. Reasonable decision: Dismissal in range of reasonable responses

What Makes Dismissal Unfair

• No warning that dismissal was possible
• Inadequate time to improve
• No support or training offered
• Procedural failures
• No opportunity to respond
• Inconsistent treatment

Alternatives to Dismissal

Consider before dismissing:

• Demotion (with agreement)
• Transfer to different role
• Reduced responsibilities
• Further extension

But don't keep someone indefinitely who can't do the job.

Appeal Process

Right of Appeal

Employee should have right to appeal dismissal.

Appeal Hearing

• Different manager than original decision-maker
• Review process and decision
• Consider new information
• Can uphold, overturn, or modify

Legal Considerations

Unfair Dismissal

After 2 years' service:

• Capability is potentially fair reason
• Must follow fair process
• Tribunal tests reasonableness

Discrimination

Watch for:

• Performance issues linked to disability (need adjustments)
• Different treatment of protected groups
• Performance management as cover for discrimination

Constructive Dismissal

Avoid:

• Humiliating the employee
• Setting impossible targets
• Treating them differently without reason
• Creating hostile environment

Tips for Managers

Do

• Address issues early
• Be specific about problems
• Give clear expectations
• Offer genuine support
• Document everything
• Be consistent
• Allow sufficient time

Don't

• Ignore performance issues
• Set people up to fail
• Be vague about expectations
• Rush the process
• Humiliate or embarrass
• Make assumptions
• Skip procedural steps

Checklist

Before Starting Formal Process

• Have you addressed informally first?
• Are expectations clear and documented?
• Has training been provided?
• Are there other factors (health, personal)?
• Is standard reasonable?

During Performance Management

• Written notice of meetings
• Right to be accompanied offered
• Specific examples given
• Opportunity to respond
• Support and training offered
• Clear improvement plan
• Regular reviews
• Warnings at each stage
• Documentation throughout

Before Dismissal

• Fair process followed
• Employee knew consequences
• Sufficient time to improve
• Support was provided
• Decision is consistent
• Appeal right offered