How to Sensitively Manage an Underperforming Employee: A Step-By-Step Guide for Small Business Owners
Struggling with an underperforming employee? Learn how to identify problems early, provide constructive feedback, and develop strategic improvement plans. Discover the importance of empathy, continuous support, and regular progress check-ins to foster a positive and productive work environment.
Managing an underperforming employee is one of the most challenging aspects of running a small business. Your team is your greatest asset, and every member's performance directly impacts the success of your operations. Addressing performance issues promptly and with sensitivity can help turn things around for both the employee and your business. Here’s a guide to help you navigate this delicate situation.
1. Identify the Problem Early
The sooner you recognise and address underperformance, the better the chances of rectifying the issue. Look for signs such as routine absences, missed deadlines, declining work quality, or negative attitude. Keep in mind that occasional lapses are normal, but consistent underperformance needs attention.
2. Gather Facts and Document Performance Issues
Before approaching the employee, gather all relevant information. Document specific instances of underperformance, including dates, tasks, and outcomes. This helps ensure your feedback is based on objective evidence rather than subjective opinion, and the employee will appreciate being provided specific examples.
3. Understand the Root Cause
Performance issues can stem from various factors, such as personal challenges, underdeveloped skills, ineffective leadership, or unclear (or unrealistic) job expectations. Have a private, one-on-one conversation with the employee to understand their perspective. Ask open-ended questions and listen actively. This not only shows that you care but also helps you identify any underlying issues.
4. Provide Constructive Feedback
When discussing performance issues, focus on specific behaviours and outcomes rather than personal attributes - it’s all how you say it. Use the SBI (Situation-Behavior-Impact) model:
Situation: Describe the situation where the underperformance occurred.
Behaviour: Explain the specific behavior that was problematic.
Impact: Discuss the impact this behavior had on the team and business.
For example, instead of saying, "you're always late," you could say, "I’ve noticed that over the past month, you have been late to work on five occasions. Is there anything you would like to share with me that might be contributing to this? As you know, when team members are late, it results in additional stress and workload for others.”
5. Develop a Performance Improvement Plan (PIP)
A PIP is a formal document outlining specific goals, actions, and timelines for improvement. It should include:
Clear objectives: Define what success looks like.
Action steps: Outline what the employee needs to do to improve.
Resources and support: Specify any training or resources you will provide.
Check-in dates: Schedule regular meetings to discuss progress.
6. Offer Support and Training
If you discover the reason for underperformance is a lack of skills or resources. Provide the necessary training and support to help the employee improve. This could include mentoring, workshops, or online courses. Demonstrate that you are invested in their success.
7. Monitor Progress and Provide Feedback
Regularly check in with the employee to review their progress. Provide ongoing feedback—both positive and constructive. Acknowledge improvements, no matter how small, to boost their confidence and motivation.
8. Be Patient but Firm
Improving performance takes time. Be patient and give the employee a fair chance to meet the expectations outlined in the PIP. However, if there is no significant improvement despite your efforts and support, you may need to consider more serious actions, such as reassignment or termination.
9. Document Everything
Keep detailed records of all interactions, feedback, and progress reports. This documentation is crucial if you eventually need to take formal disciplinary action. It also demonstrates that you have taken a fair and systematic approach to addressing the issue.
10. Reflect and Learn
After the situation is resolved, take some time to reflect on the process. Consider what worked well and what could be improved in your approach. Use this experience to refine your management practices and prevent similar issues in the future.
Conclusion
Managing underperformance is never easy, but with a sensitive and structured approach, you can help your employees improve and contribute positively to your business. Remember, the goal is to support and develop your team, fostering a productive and positive work environment.
