Poor performance in the workplace doesn’t just affect individual productivity—it has ripple effects. When performance is poor, teams can feel frustrated, workloads become imbalanced, and a sense of inequity may emerge. For managers and leaders, handling poor performance requires a thoughtful, consistent, and fair approach—one that prioritises accountability while offering support and clarity.

In this guide, we’ll walk through a structured process for managing poor performance, from informal conversations to formal actions, like a Performance Improvement Plan (PIP). Our aim is to help you turn challenges into growth opportunities—for both the employee and your business.

Understanding Poor Performance

First, it’s crucial to differentiate between performance and conduct. Performance refers to how well someone carries out their job duties—completing tasks on time, meeting goals, and producing quality work. Conduct, on the other hand, relates to behavior—attendance, attitude, respect for others, and adherence to company policies.

The steps in this guide specifically address poor performance situations, rather than behavioural or disciplinary issues.

The Impact of Poor Performance

Unchecked, poor performance can quietly erode a company from within. High performers may become demoralised when they see colleagues underperforming without consequences. Managers may spend disproportionate time supporting struggling employees, drawing focus away from strategic goals. Ultimately, the culture can suffer, affecting retention and reputation.

That’s why dealing with poor performance promptly, empathetically, and effectively is essential.

Step 1: Identify the Performance Gap

Before taking any action, clearly identify where performance is poor. Is the employee missing targets, failing to meet deadlines, or delivering low-quality work? Gather objective evidence, including metrics, project outcomes, and feedback. Avoid generalisations like “You’re not doing well” and instead point to specifics: “Your last three reports were submitted late and lacked the required analysis.”

Ask yourself:

• Are expectations clear?
• Has the employee received the necessary training and support?
• Could external factors (e.g., health, personal challenges) be affecting performance?

Answering these questions ensures your approach is both fair and constructive.

Step 2: Start with an Informal Conversation

Many performance issues can be addressed early through a private, informal chat. This isn’t a disciplinary meeting—it’s a chance to express concern, ask questions, and listen.

Key tips for the conversation:

• Be specific: “I’ve noticed your sales numbers have dipped below target for the last two months.”
• Show empathy: “Is there anything that might be affecting your performance?”
• Collaborate: “Let’s talk about what support or adjustments could help you get back on track.”

Often, simply showing that you’ve noticed and care can reignite motivation and signal that expectations matter.

Step 3: Set Clear Expectations and Goals

Clarity is your best ally in handling poor performance. If expectations weren’t clear before, now is the time to set them.

Establish SMART goals—Specific, Measurable, Achievable, Relevant, and Time-bound. For example:

• Increase client outreach by 15% over the next month.
• Submit weekly reports by Friday at noon with all required data.

Communicate how success will be measured and what support is available. When employees understand what’s expected, they’re more likely to succeed—or recognize when they’re not meeting the mark.

Step 4: Monitor Progress and Provide Feedback

Once expectations are set, regularly check in. Offer constructive feedback and acknowledge any improvement. Use these meetings to reinforce goals, provide encouragement, and address new challenges.

Remember, managing poor performance isn’t about catching someone out—it’s about building a path to success.

Keep records of conversations, goals, and progress. This documentation will be vital if the situation escalates and formal steps are required.

Step 5: Implement a Performance Improvement Plan (PIP)

If informal efforts don’t lead to sustained improvement, it may be time to initiate a Performance Improvement Plan (PIP). A PIP is a structured, time-bound document that outlines:

• The specific areas where performance is poor
• Clear expectations and improvement goals
• Resources or support provided
• Check-in dates and review milestones
• Consequences of not meeting the goals

A typical PIP lasts 30 to 90 days. It serves as both a final opportunity for improvement and a transparent process for the company.

Be transparent with the employee: “This plan is designed to help you succeed, but we also need to see consistent performance in these areas.”

Step 6: Make a Decision Based on Outcomes

At the end of the PIP, evaluate whether the employee has met the goals. There are generally three outcomes:

1. Performance has improved – Formally close the PIP, and continue to support growth.
2. Some progress, but not enough – You may choose to extend the PIP or consider redeployment options.
3. No significant improvement – If performance remains poor, it may be time to exit the employee from the role.

Ending employment is always difficult, but when done with fairness, documentation, and empathy, it’s a responsible and sometimes necessary step.

Best Practices for Managing Poor Performance

• Document everything: Keep written records of conversations, goals, and support efforts.
• Stay objective: Focus on facts, not opinions.
• Act early: The longer poor performance is allowed to continue, the harder it becomes to correct.
• Balance empathy with accountability: Support doesn’t mean tolerating underperformance indefinitely.
• Be consistent: Treat similar situations with a similar process to maintain fairness and trust.

Final Thoughts

Dealing with poor performance is one of the toughest aspects of leadership—but it’s also one of the most impactful. A structured, empathetic approach not only supports struggling employees but also protects team morale, company culture, and overall productivity.

By identifying gaps early, having honest conversations, setting clear goals, and following through with consistency, you can turn poor performance into a growth opportunity—or make the tough calls with integrity when needed.

When done right, managing poor performance is about building a culture where accountability, support, and excellence go hand in hand.

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