Best Practices for Managing an Underperforming Employee

Employees often are a company’s biggest asset. But an employee who fails to perform according to expected standards for quality, conduct, or performance can be a significant liability. A single underperformer can effect an entire company’s morale and productivity. Having guidelines in place for handling and documenting poor performance ensure that such situations are managed efficiently—and protect the company’s legal interests. Consider these best practices as you develop yours.

Set clear expectations from the beginning.

At hiring, provide each employee with a written job description, including duties and responsibilities. Then clearly state, also in writing, the performance standards required for job success. Knowing what employers expect can greatly reduce underperformance problems.

Address performance deficiencies quickly.

As soon as you recognize a performance problem talk to the employee about it. Unless the matter is something serious enough to warrant an immediate write-up, have an informal, friendly discussion with them first. This gives the employee a chance to answer the concerns, explain the cause—whether job-related or personal—and set goals for improvement. Follow up with an informal email to the employee summarizing the conversation. If that approach is not successful, begin the formal reprimand process.

Prepare a formal reprimand letter:

• Document the problem.

  Keep a record of every interaction with the employee regarding performance issues as a basis for the written reprimand letter. This information will make clear that the employee was well-informed and provide documentation in case of legal action against the company.

• Include clear examples of underperformance.

  The official reprimand is not only a general statement of the problem, but contains specific examples of performance deficiencies and any applicable impact on the workplace. Outline a formal plan for improvement with performance goals and timeline—ensuring feedback along the way—and offer management support and tools the employee needs to succeed.

•  State consequences for failure to reach performance goals.

  While approaching the issue in a collaborative, solution-oriented way, be clear about the repercussions of not meeting the job’s required standards of performance within the stated timeline. If your company has a policy of progressive discipline, explain the process and what to expect.

Provide ongoing feedback.

During the set timeline for improvement, follow up on your commitment to support performance improvement by scheduling regular progress meetings. Provide feedback and address any frustrations or concerns expressed by the employee.

Keep the company’s human resources department fully informed.

Provide written records of performance deficiencies, copies of documentation, and summaries of communications with the employee. Human resources will provide guidance on how to address performance issues and maintain compliance with company policies.

Managing employees can be extremely rewarding, but it is never easy. And disciplining employees is as tricky as it is difficult, especially when labor and employment legislation is in flux. Whether your human resources function is handled by a department or one person, keeping up with changes is a daunting task. The best way to protect your company is frequent consultation with an employment attorney. Keeping abreast of evolving law and assisting companies stay in compliance is what we do. And of course, we are always ready to help.