How to Handle Underperforming Employees

By greytHR
5 minute read ● August 22, 2024
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How to Handle Underperforming Employees

One of the biggest assets a company has is its employees. They are the ones who help the company grow and develop. So it's important for you, as the HR, to keep this asset always on the top of its game. But, what if one day suddenly it becomes a burden?

As per research, the number of underperforming employees in an organization ranges anywhere between 0-20% with the median being 4%. These employees can become a liability if they aren’t taken care of properly. So what exactly can be done to help such employees? Let’s find that out. But before that, you should understand what is considered underperforming in a workspace.

While certain metrics can measure the performance of an employee, they don’t always show the complete picture. Underperforming employees also include those who fail to meet the company’s expectations and those who may lack the skills to work as a team. An underperforming employee can become a burden on the rest of the team and this can create a domino effect that negatively impacts the company's overall performance.

Employee looking at their screen with hands on their head and a worried look

Reasons Behind an Employee Underperforming

  • In some cases, the employee might need more skills and time management strategies. If such employee is put into a role that isn’t their strength, a loss of productivity could be observed in them. It’s also possible that the employee isn’t happy with the task given to them. Personal issues or boredom from a mundane routine could also affect the employee’s performance and behavior.
  • Employees expect a straightforward, simple onboarding experience where every part of their role is made clear. If not done well, it may also lead to confusion
  • Incompatibility with the company's work culture can also be one of the reasons for underperformance. Such employees find it difficult to fit in with others and this can lead to many other problems.

How to Deal with Underperforming Employees?

Having underperforming employees is a solvable problem if you take the appropriate measures.

1. Spot the Issue

Keep an eye out for such employees who may be disassociating with their tasks and responsibilities. Look for signs that may show a lack of output and quality work. Once spotted, start acting on them immediately. Document these observations with examples where they haven’t met their expectations. This also includes details of inappropriate behavior, if any. As soon as these records are ready, conduct a one-on-one session with the employee to take their perspective into account.

2. Clarify Why the Employee Is Underperforming

It won’t be fair on your part to not take into account what the employee has to say about their performance. Ask the correct questions to get to the bottom of this issue. Conduct the meeting in a room where your conversations remain confidential. Remain neutral throughout the meeting so the employee doesn’t feel threatened. Give specific examples of the issues to the employee and explain how they affected the outcome of the task.

3. Provide Clarity

Clearly state what standards they need to maintain, what is expected from them, and the areas they need to work on. For example, show the employees how they’ve failed to follow the deadlines with proof so they know where they need to improve.

According to research done by Effectory, almost 50% of employees from different sectors lack clarity about their role in the workplace. Having this clarity would reduce the stress of trying to figure out their job responsibilities. Try using an HRMS, like greytHR, which will smoothen the entire onboarding process for you and the employee. It can help your employees understand their roles and responsibilities in just a few clicks. greytHR also provides employees direct access to colleagues, so they can clear up any work-related doubts and confusion quicker.

4. Manage Their Expectations

An employee might expect a certain salary, multiple perks, quick career advancement, etc., from their job. If these expectations aren’t met, they might not feel like performing at the highest level. You need to figure out what they exactly want from this job and if there is anything that your company can do for them.

5. Conclude Mutually

Once you’ve heard their end, try to develop an action plan together to resolve this issue. Suggest a few ideas that you may have for the situation and also take their suggestions. If the issues are personal, you can suggest they take a few days off. In the end, you should have a proper timeline for performance improvement. Provide them with material that could help them achieve their goals and get clarity whenever needed for both parties.

6. Give Constructive Feedback

While giving feedback, ensure that you don’t overburden them with negative critiques. Keep the feedback system open throughout the process and give constructive criticism. Encourage them to keep their efforts up and tell them how they are making a difference in the team’s productivity to boost their confidence. This not only helps them see their progress but also be mindful of the areas that they need to improve.

HR trying to help out an employee

7. Regularly Follow Up and Check In

This process won’t be over in just one meeting. You’ll have to give time to the employee to make massive improvements. But keep track of their progress and schedule follow-up meetings regularly. Keep giving them enough opportunities to test if they are improving their performance.

Consider using an HRMS, like greytHR, as it comes with a comprehensive performance management system. It helps you set goals, customize clear performance parameters, provide upskilling opportunities, and keep track of the employees' output. This ensures clear expectations, allows objective assessments, promotes open communication, and facilitates feedback and training. All of this keeps the employee in check and accountable. It’ll also make the employees realize that you genuinely want to help them grow.

8. Take Tough Decisions

Sometimes, even after every effort, things don’t work out as planned. However, other employees might feel disappointed if the underperforming employee is let off the hook without any repercussions. At this point, you’ll have two options: either reassign them to a different role or terminate them. Two tough decisions, but necessary ones in the grand scheme of things.

Take Tough Decisions

Summing Up

People are the most important part of any company, and sometimes they need help to do their job right. Underperforming employees could be turned into valuable assets if they are handled properly in their tough times. Helping them could be difficult for you at times but having a set plan of action in place can make things better.

FAQs

How Do You Deal with an Underperforming Worker?

First, you need to recognize the issue with the employee. Then, you must gather enough information on where and how they are lacking. Next, understand their perspective on the issue, resolve it mutually, and track their progress.

How Do You Motivate Underperforming Employees?

There are several ways to motivate underperforming employees. Set goals, encourage a healthy work-life balance, develop an action plan, offer rewards, and consider the personal issues of the employees to motivate them more.

How Do You Encourage Employees to Open Up?

Employees need a safe work environment to feel comfortable expressing themselves. Encouraging teamwork and open dialogue makes them more likely to engage and share their ideas. Creating a culture of trust and transparency through candid conversations and valuing feedback can further motivate employees to open up and contribute fully to the team.

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