Understanding Employee Underperformance
Understanding Employee Underperformance
Employee underperformance occurs when a staff member fails to meet the standards, objectives, or behaviours expected in their role. This can manifest in various ways, such as consistently missing targets, producing work of poor quality, failing to follow procedures, or displaying a negative attitude that affects team morale. It’s important to distinguish between a one-off mistake and a pattern of ongoing performance issues. Underperformance may be linked to a lack of skills, unclear expectations, personal difficulties, or even workplace culture.
Addressing underperformance early is crucial for both the business and the employee. From a business perspective, unresolved performance issues can affect productivity, team dynamics, and overall organisational success. For employees, early intervention provides an opportunity to understand what is expected, receive support, and improve before issues escalate. Timely action helps maintain a positive working environment and can prevent the situation from deteriorating into disciplinary proceedings or dismissal.
Employers must be mindful of both legal and ethical considerations when managing underperformance. UK employment law requires fair and reasonable procedures. For example, the Advisory, Conciliation and Arbitration Service (ACAS) Code of Practice on Disciplinary and Grievance Procedures sets out best practice for addressing performance concerns, including the need to investigate issues, communicate clearly with the employee, and give them a chance to improve. Employers should avoid making assumptions and ensure that any action taken is non-discriminatory and based on objective evidence.
It’s also important to consider the employee’s rights under the Equality Act 2010. If underperformance is related to a disability, employers have a legal duty to make reasonable adjustments. Similarly, performance management processes should not disadvantage employees based on protected characteristics such as age, gender, race, or religion.
For a broader overview of how underperformance fits into the overall process of managing staff, see our guide to Employee Performance Management. If you want to understand more about the legal framework surrounding employee management, our section on Managing Employees provides further insights into your obligations as an employer.
Step 1: Set Clear Performance Expectations
Setting clear performance expectations is the essential first step in addressing underperformance in the workplace. Without a shared understanding of what is required, it is difficult for employees to meet standards or for employers to fairly assess performance. Here’s how UK employers can ensure expectations are clear, documented, and communicated effectively.
The Importance of Clear Job Descriptions and Measurable Goals
Start by reviewing the employee’s job description. This document should outline the core duties, responsibilities, and required competencies for the role. A well-drafted job description serves as a reference point for both the employer and the employee, making it easier to identify where performance may be falling short.
Next, set measurable performance goals. These should be specific, achievable, relevant, and time-bound (often referred to as SMART goals). For example, instead of stating “improve customer service,” a measurable goal could be “respond to all customer enquiries within 24 hours for the next three months.” Measurable goals make it easier to track progress and provide objective feedback.
Documenting and Communicating Expectations
It is crucial to document all performance expectations, including any updates or new targets. This documentation can take the form of written objectives, appraisal forms, or performance improvement plans. Clearly written expectations not only help employees understand what is required, but also provide evidence that can be referred to if performance issues persist.
Once expectations are set, communicate them clearly to the employee. Arrange a meeting to discuss the job description, goals, and any specific standards relevant to their role. Encourage the employee to ask questions and clarify anything they are unsure about. Providing written copies of expectations helps avoid misunderstandings and demonstrates that you have acted fairly and transparently.
Regular Check-ins and Ongoing Communication
Setting expectations is not a one-off event. Schedule regular check-ins – such as monthly or quarterly one-to-ones – to review progress, answer questions, and address any barriers the employee may be facing. These meetings offer an opportunity to reinforce expectations, provide feedback, and support the employee’s development. Keeping a record of these discussions is good practice and may be important evidence if formal action becomes necessary later.
Legal Considerations
Under UK employment law, employers are expected to act reasonably when managing performance. The Advisory, Conciliation and Arbitration Service (ACAS) Code of Practice on Disciplinary and Grievance Procedures recommends making sure employees know what is expected of them before taking any formal action. Failing to set or communicate clear expectations can undermine any subsequent performance management process and may expose employers to claims of unfair dismissal if the process leads to termination.
Explore Further
For a broader look at managing workplace performance, including legal obligations and best practices, see our guide to Employee Performance Management.
Setting clear, documented expectations – and keeping the lines of communication open – lays the foundation for fair and effective performance management, helping both employers and employees succeed.
Step 2: Identify Causes of Underperformance
Identifying the underlying causes of underperformance is a crucial step before taking any further action. Understanding why an employee is struggling helps ensure your response is fair, supportive, and legally compliant.
Common Causes of Underperformance
There are many reasons why an employee might not be meeting expectations. Some of the most common include:
- Lack of skills or training: The employee may not have received adequate training, or the role may have changed in ways that require new skills.
- Unclear expectations: If objectives, responsibilities, or standards have not been clearly communicated, employees may be unsure of what is required.
- Personal issues: Problems outside of work – such as caring responsibilities, bereavement, or financial worries – can impact performance.
- Workplace environment: Factors like poor management, lack of resources, or conflicts with colleagues can affect motivation and productivity.
- Health concerns: Physical or mental health problems, including stress, anxiety, or depression, often play a significant role.
Opening Supportive Conversations
To identify the root cause, arrange a private, informal meeting with the employee. Approach the conversation with empathy and openness, making it clear that the aim is to support, not to blame. Ask open-ended questions and give the employee space to share their perspective. For example:
- "Is there anything affecting your ability to perform at work that you’d like to discuss?"
- "Are there aspects of your role or workload you’re finding particularly challenging?"
It’s important to listen carefully and avoid making assumptions. In some cases, employees may be reluctant to share personal or health-related issues, so reassure them about confidentiality and your willingness to help.
Considering Mental Health and Wellbeing
Employers have a legal duty under the Equality Act 2010 to make reasonable adjustments for employees with disabilities, including many mental health conditions. Being proactive in considering mental health is not only best practice but also helps you meet your legal obligations.
If mental health is a potential factor, discuss what support or adjustments might help. This could include flexible working, changes to workload, or access to counselling services. For further practical advice, the Mental Health Foundation provides a helpful resource: Mental Health at Work: A Guide for Employers.
You can also find more information on supporting employees with mental health conditions and understanding your legal responsibilities in our guide to Mental Health and Work: Your Rights.
Recording and Reviewing
Keep a written record of conversations and agreed actions. This documentation will be important if you need to follow formal procedures later on and demonstrates that you have acted reasonably and supportively.
Next Steps
Once you understand the causes, you can tailor your approach – whether that means providing extra training, making adjustments, or offering support. For further guidance on managing employee performance more broadly, visit our Employee Performance Management page.
Step 3: Provide Support and Training
Supporting an underperforming employee goes beyond simply highlighting areas for improvement. Employers have a legal and ethical responsibility to provide meaningful opportunities for the employee to develop their skills and address any barriers to good performance. Here’s how you can offer effective support while meeting your obligations under UK employment law:
Offer Relevant Training and Mentoring
Start by identifying the specific skills or knowledge gaps contributing to underperformance. This may involve reviewing recent work, gathering feedback, or discussing challenges directly with the employee. Once you have a clear understanding, consider:
- Training courses: Provide access to internal or external training programmes tailored to the employee’s needs. For example, if time management is an issue, a workshop on prioritisation techniques could be beneficial.
- Mentoring: Pair the employee with a more experienced colleague who can offer guidance, share best practices, and help them navigate workplace challenges.
- On-the-job support: Arrange for regular check-ins or shadowing opportunities so the employee can observe effective techniques in action.
Document any support offered, as this demonstrates your commitment to helping the employee improve and is important evidence should further action become necessary.
Adjust Workload or Working Conditions
Sometimes, underperformance is linked to factors such as workload, working hours, or the work environment. Consider whether reasonable adjustments could help the employee perform better. For example:
- Reducing workload temporarily to allow time for training or to focus on key tasks.
- Flexible working arrangements, such as altered start or finish times, remote working, or changes to responsibilities.
- Providing additional resources or equipment if needed.
If the employee has a disability, you are legally required under the Equality Act 2010 to make reasonable adjustments to support them at work. Some employees may have specific needs related to neurodiversity – see our guidance on Managing Neurodiverse Employees for tailored advice on supporting those with conditions such as autism, ADHD, or dyslexia.
Foster a Supportive Learning Environment
Create a culture where employees feel comfortable asking questions and seeking help. Encourage open communication by:
- Setting up regular one-to-one meetings to discuss progress and address concerns.
- Providing constructive feedback and recognising improvements, no matter how small.
- Making it clear that the aim is to support, not punish, the employee.
A positive and supportive approach not only helps the individual but also signals to your wider team that development and improvement are valued.
Legal Considerations
UK employment law expects employers to act fairly and reasonably when managing underperformance. ACAS guidance recommends that employers give employees the opportunity, support, and time to improve before considering disciplinary action. Failing to provide adequate support could make any subsequent dismissal unfair, potentially leading to claims at an employment tribunal.
For a broader overview of performance management obligations and best practices, see our section on Employee Performance Management.
By investing in support and training, you not only help underperforming employees reach their potential but also protect your organisation from legal risks and foster a more engaged, capable workforce.
Step 4: Monitor Progress and Provide Feedback
Once you have set clear expectations and offered support, the next step is to monitor your employee’s progress and provide ongoing feedback. This stage is crucial for helping the employee understand how they are performing and what further improvements are needed. It also demonstrates that you are following a fair and reasonable process, as recommended by the ACAS Code of Practice on Disciplinary and Grievance Procedures.
Set a Reasonable Timescale for Improvement
Start by agreeing on a realistic timescale for improvement. The length of this period should reflect the nature of the performance issues and the employee’s role. For example, you might set a review period of four to twelve weeks, depending on how long it should reasonably take to demonstrate progress. Make sure the timescale is clearly communicated and documented, so both you and the employee know what is expected.
Regularly Review Progress
During the review period, schedule regular meetings with the employee to discuss their progress. These meetings provide an opportunity to:
- Assess whether the employee is meeting the agreed targets or objectives
- Identify any ongoing challenges or obstacles
- Offer further support or training if needed
It’s important to keep these meetings constructive and supportive, focusing on solutions rather than simply pointing out shortcomings.
Provide Constructive, Specific Feedback
When giving feedback, be specific about what the employee is doing well and where further improvement is required. For example, instead of saying “your work needs to improve,” highlight particular tasks or behaviours that have changed for the better, and explain where expectations are still not being met. Constructive feedback helps employees understand exactly what actions they need to take, making it more likely they will succeed.
Document Meetings and Feedback
For transparency and legal compliance, it’s essential to keep accurate records of all meetings, feedback, and decisions. Documenting these steps can protect your business if the process leads to disciplinary action or dismissal, and may be required as evidence in the event of an employment tribunal. Records should include:
- Dates and summaries of meetings
- Details of feedback given
- Any agreed action plans or support offered
- Notes on the employee’s responses and progress
Storing this information securely is also important for data protection compliance.
Why Monitoring and Feedback Matter
Consistent monitoring and feedback demonstrate that you are giving the employee a fair chance to improve, which is a key requirement under UK employment law. Following these steps can help prevent misunderstandings and reduce the risk of claims for unfair dismissal.
If you’d like to explore broader strategies and legal considerations for handling performance issues in the workplace, visit our Employee Performance Management page for more guidance.
Step 5: Use Informal Resolution and Mediation if Needed
Before moving to formal procedures, it’s often best to address underperformance through informal resolution and mediation. This approach can help resolve issues quickly, maintain positive working relationships, and avoid unnecessary escalation.
Encourage Informal Discussions
Start by having a private, constructive conversation with the employee. Explain your concerns clearly and give specific examples of where performance is not meeting expectations. Ask for their perspective – there may be underlying reasons such as unclear instructions, lack of resources, or personal challenges. The ACAS Code of Practice on Disciplinary and Grievance Procedures highlights the importance of attempting to resolve issues informally wherever possible before turning to formal action.
During these discussions, focus on support and improvement rather than blame. Agree on practical steps to help the employee get back on track, such as additional training, mentoring, or clearer objectives. Keep a brief record of the conversation, but reassure the employee that this is not part of a formal disciplinary process.
For more on how informal approaches can resolve workplace issues, see Common Informal Resolution Methods.
Utilise Mediation for Conflict or Misunderstandings
If the issue involves conflict or a breakdown in communication – perhaps between the employee and their manager or colleagues – mediation can be a valuable tool. Mediation involves a neutral third party helping those involved to find a mutually acceptable solution. This process is confidential and voluntary, aiming to rebuild trust and understanding.
Employers are not legally required to offer mediation, but ACAS guidance strongly recommends it, especially in cases where relationships are strained. Mediation can prevent minor issues from escalating and demonstrates your commitment to fair and reasonable management.
Managers can play a key role in this process. For practical guidance on how to mediate effectively, see Manager Mediation Tips.
Promote Open Communication to Rebuild Trust
Open, honest communication is essential for resolving underperformance. Encourage regular check-ins and feedback, and make sure the employee feels listened to and supported. This helps to rebuild motivation and trust, making it more likely that performance will improve.
By prioritising informal resolution and mediation, employers can often resolve underperformance issues swiftly and fairly, reducing the risk of formal disputes or claims. If informal efforts do not lead to improvement, you should then follow your formal capability or disciplinary procedures, ensuring you comply with employment law and best practice.
Step 6: Follow Formal Performance and Disciplinary Procedures
If an employee’s performance does not improve after informal support and feedback, it may be necessary to move to a formal process. Formal performance and disciplinary procedures should only be considered when all reasonable steps to help the employee have not led to sufficient improvement, or if the issue is serious enough to require immediate action. It is crucial for employers to handle this stage fairly and in line with UK employment law to avoid claims of unfair dismissal or discrimination.
When to Begin Formal Procedures
Formal action is usually appropriate when:
- The employee has not met the agreed performance standards despite support and clear communication.
- There is a repeated pattern of underperformance.
- The issue is significant enough to impact business operations or colleagues.
Before starting formal procedures, ensure that the employee has had enough time and resources to improve. Employers should also check their own workplace policies and contracts, as these may set out specific steps to follow.
The Importance of Fair and Legal Process
Employers must follow a fair process, in accordance with the Acas Code of Practice on Disciplinary and Grievance Procedures. This code sets out the minimum standards for handling disciplinary matters and is recognised by employment tribunals. Not following the Acas Code can result in increased compensation for employees if a claim is upheld against the employer.
A fair process typically includes:
- Providing the employee with written details of the concerns.
- Giving the employee an opportunity to respond and present their case.
- Allowing the employee to be accompanied at formal meetings by a colleague or trade union representative.
- Considering any reasonable adjustments if the employee has a disability.
Performance Improvement Plans and Warnings
One common formal step is to implement a Performance Improvement Plan (PIP). This is a structured document that sets out clear objectives, timelines, and the support that will be provided to help the employee improve. Using a Performance Improvement Plan (PIP) Template can help ensure the process is consistent and thorough.
During this stage, it is also common to issue formal warnings (usually a first written warning) if the employee does not meet the required standards. The warning should explain what improvement is needed, the timeframe for improvement, and what may happen if performance does not improve.
Documenting Every Step
Accurate and detailed documentation is essential throughout the process. Keep records of:
- Meetings and correspondence with the employee.
- The support and training offered.
- Any agreed action plans or PIPs.
- Warnings issued and their outcomes.
This documentation will be vital if the situation escalates to further disciplinary action or dismissal, or if the employee challenges the process.
For a step-by-step overview of how to conduct disciplinary action fairly, refer to our guide on the Key Steps in the Employee Disciplinary Procedure. You can also find more detailed legal guidance in our Employee Disciplinary Procedure resource.
By following these formal procedures carefully, employers can address ongoing underperformance in a way that is fair, transparent, and compliant with UK employment law.
Step 7: Considering Dismissal as a Last Resort
When all reasonable steps to support and improve an employee’s performance have been exhausted, dismissal may be considered as a last resort. It is crucial for employers to approach this step with care, ensuring that the process is fair, transparent, and fully compliant with UK employment law.
When is Dismissal Appropriate?
Dismissal for underperformance should only occur after a thorough performance management process has been followed. This includes setting clear expectations, providing adequate support and training, giving the employee a reasonable opportunity to improve, and conducting regular reviews. Employers must be able to demonstrate that every effort was made to help the employee meet the required standards before contemplating dismissal.
Legal Requirements for Fair Dismissal
To lawfully dismiss an employee for performance-related reasons, employers must adhere to the principles of fairness set out in the Employment Rights Act 1996. The Act requires employers to have a valid reason for dismissal – such as capability or qualifications – and to follow a fair procedure.
Key steps include:
- Documenting the process: Keep detailed records of all meetings, action plans, support provided, and warnings issued.
- Following a fair procedure: This typically means providing written warnings, holding formal meetings, and allowing the employee to respond and be accompanied by a colleague or trade union representative.
- Considering alternatives: Before dismissing, consider whether redeployment or alternative roles within the organisation are possible.
Failure to follow a fair process can lead to claims of unfair dismissal, which can be costly and damaging to your business’s reputation. For further guidance on what constitutes a fair process, see The Fair Dismissal Procedure.
Seeking Legal Advice
Before making a final decision to dismiss, it is strongly advised to seek expert legal advice. Employment law is complex, and each case will have its own nuances. Professional guidance can help you avoid common pitfalls and ensure you comply with all legal requirements, reducing the risk of an unfair dismissal claim.
By treating dismissal as a genuine last resort and following the correct legal procedures, employers can manage underperformance issues fairly while respecting employees’ rights.
Additional Considerations
Treating employees with respect and fairness is essential throughout any performance management process. Addressing underperformance can be challenging for both employers and staff, but a fair and transparent approach helps maintain trust and reduces the risk of disputes or claims. Always ensure that any discussions or actions taken are consistent, unbiased, and well-documented, giving the employee the opportunity to respond and improve.
It’s also crucial to consider whether the employee has a disability or other protected characteristic that could impact their performance or the way you manage the process. Under the Equality Act 2010, employers have a legal duty to make reasonable adjustments for disabled employees and to avoid discrimination based on protected characteristics such as age, race, gender, religion, or neurodiversity. For example, if an employee is neurodiverse, you may need to adapt your approach or provide additional support to help them meet performance expectations. Failing to do so could result in legal claims for discrimination or failure to make reasonable adjustments.
In some situations, underperformance may be linked to more complex workplace issues. If you are dealing with an employee who is particularly resistant to feedback or support, you may find it helpful to review our guidance on Managing Difficult Employees. Similarly, if the employee works remotely, there may be unique challenges in monitoring and supporting their performance – see our advice on Managing Remote Employees for practical tips.
For a broader understanding of your responsibilities and options when managing staff, you can explore our section on Employee Performance Management. This resource covers best practices and legal requirements for supporting employees, addressing issues, and fostering a positive workplace culture.
By keeping these additional considerations in mind, you can approach underperformance fairly, legally, and with sensitivity to individual needs – helping both your business and your employees to succeed.
