Poor performance and how to handle it

Life as a business owner would be so much simpler if you didn’t have to deal with poor performers. Dealing an employee whose work is not up to scratch can seem like an uphill battle to managers and businesses owners and it is sometimes uncomfortable to deal with things you would rather avoid. However, there is no advantage to delaying dealing with a performance issue. If an employee is not reaching the standards you expect in your company there are steps you can take to try to improve the situation.

What do I need to consider?

Good performance management helps everyone in the company. If your staff are working with an unmanaged poor performer it can affect morale.

Ask yourself if it is fair to ignore a performance issue. Are you managing poor performance fairly and consistently? Wouldn’t it be better to resolve a situation early rather than letting it escalate?

How to recognise a poor performer

The best source of information about performance is usually the person who directly manages the employee. Is the employee making more mistakes than other members of the team? Do they take up more management time? Do you suspect that they may not have the capability to do the job? If so, the employee may have a performance issue.

Possible causes

If poor performance is unusual for the employee, communication is the key. Regular appraisals can help to understand any issues, but a general culture of open communication is important. Does the employee have personal problems that are affecting their work? Are they under an unusual amount of pressure and unable to cope? Are they being bullied or have they recently been moved into a new role with isn’t right for them?

If you cannot resolve the poor performance by dealing with any of the issues already mentioned, it could be that the employee is unsuited for their job or your company.

Improving performance informally

Explaining to an employee that you are unhappy with the quality of their work is a difficult conversation to have so training in this area can be helpful.

Hold a meeting with the employee with the aim of setting targets and a reasonable time limit within which you expect improvement. Offer training, mentoring and support (as appropriate) to help the employee and detail the targets to them in writing. You should explain that disciplinary action may follow if there is no satisfactory improvement.

You must be able to measure and assess the targets you set to ensure that the process is fair. It is very important to be able to demonstrate that you have provided the necessary support to help the employee to improve.

Moving to a disciplinary matter

If everything else has failed then disciplinary action will be necessary. This can mean a first written warning if performance hasn’t improved following the first informal meeting. If the employee still doesn’t improve their performance then a final written warning may be given and ultimately there is dismissal as the last resort. Be careful to follow your disciplinary procedure and provide the necessary support to improve the employee’s performance throughout.

What do I do if I don’t want to go through a long, time-consuming process?

A settlement agreement can be an option. It is a legally binding voluntary agreement where the employee will waive their rights to make any sort of claim at the employment tribunal or in court. A settlement agreement usually involves a payment to the employee from the employer. Legal advice is essential.

It is important to note that however bad the employee’s performance is, if you don’t follow a fair procedure (plus your own procedures) this can risk backfiring on you and your organisation further down the line.