Every manager, at some stage, faces the challenge of an underperforming team member. It’s uncomfortable, it’s risky—but when handled with care, it can become a pivotal moment for growth—for both the employee and the business. Over my years of coaching, I’ve helped clients shift underperformance into performance, and here’s the approach I use and teach.
Recognise the Problem Early
Too often, underperformance is ignored until it becomes glaringly obvious. According to AIHR, managers should watch for signs like declining output, missing deadlines, reduced quality, disengagement, increased absenteeism, or disengaged interaction with colleagues AIHR.
When you spot these red flags, it’s critical to act quickly—delay only allows the issue to fester.
Hold a Private, Honest Conversation
You must approach the employee with empathy and clarity. Schedule a one-on-one in a private environment, and present specific examples of performance gaps—not generalisations. Then, ask open questions:
- “Which tasks are giving you trouble?”
- “Are there barriers preventing you from doing your job well?”
- “Do you feel supported or trained enough?”
AIHR recommends avoiding assumptions—listen first, then diagnose AIHR.
Create a Tailored Performance Improvement Plan (PIP)
A PIP is not a punishment—it’s a structured roadmap to improvement. The plan should:
- Identify clear metrics and goals
- Set realistic timelines for improvement
- Provide training or resources
- Include regular check-ins for accountability
When drafting a PIP, make sure it’s fair, transparent, and framed as a development tool, not a disciplinary weapon.
Provide Mentoring, Feedback & Support
You can’t just hand over a plan and walk away. To help the employee succeed, offer:
- Regular coaching or mentoring
- Opportunities to shadow high performers
- Clear feedback (positive and corrective) in real time
- Training to close skill gaps
The ongoing feedback loop is essential. In many organizations, performance management is most effective when it’s continuous—not just annual reviews—helping catch and correct issues early.
Monitor, Adjust or Decide
Over the period you’ve agreed on, track progress against the plan. At each check-in, evaluate whether improvement is happening. If the employee is making steady gains, continue supporting. If performance remains poor despite effort, you may need to consider reassignment or even termination. Transparency and consistency are key to maintaining morale and fairness.
Importantly, PIPs can carry negative perceptions, so present them in a way that emphasises support and growth rather than blame.
Why It Matters (And What Happens If You Don’t)
Left unaddressed, underperformance drags down morale, reduces team productivity, and can lead to turnover. Conversely, turning around one employee can reclaim capacity, restore culture, and even prevent losing someone who had potential. I’ve helped clients rebuild their teams this way—turning what looked like a liability into a success story.
Ready to Improve Employee Performance at Your Business?
If dealing with an underperformer feels daunting, or you want to ensure your approach is strategic, fair, and growth-oriented, that’s where People by Design steps in. Our Employee Development & Engagement service helps business leaders create systems, tools, and coaching to guide employees back to peak performance.
👉 Learn more about how we can support you: People by Design – Employee Development & Engagement