People Management & HR

What can you do to address an underperforming employee?

  • 4 min Read
  • January 19, 2022

Author

Escalon

Table of Contents

It is never easy having to deal with underperforming workers, but left unattended, their presence can have a damaging effect on employee morale and company culture, as well as set a bad example for others in the organization. 


Decreased employee productivity, diminished quality of work or repeatedly missing deadlines often demonstrate underperformance at work, although the severity of these situations may vary. 


That said, by putting the right steps in place, leaders can manage their employees with greater confidence and deal with underperformance productively and tactfully. 


Let’s first look at eight reasons why employees underperform:


1. Lack of skills

– Every role demands a specific skill set, and if employees lack those skills, they are likely to lose confidence and perform poorly. Also, employees who have technical abilities but lack time management skills are less productive.


2. Lack of motivation

– Employees who lack the motivation to perform their duties or bring out the best in them usually underperform. 


3. Unrealistic expectations

– If the job responsibilities are not what the employees anticipated or were not properly mentioned in the job description, they may feel disappointed, dissatisfied or lack the enthusiasm to perform better. 


4. Lack of recognition

– If staff members are not appreciated for their performance, their productivity and zeal to work may decrease significantly. 


5. Workplace stress

– Stress due to a poor working environment and burnout can also reduce employee morale and productivity. 


6. Inadequate training and growth opportunities

– Due to lack of on-the-job resources and opportunities to learn new skills or career advancement within the company, employees may feel stagnant and are likely to underperform.


7. Lack of variety

– When their jobs become monotonous, employees may lose interest in their work and deliver low-quality results. 


8. Personal issues

– Challenging circumstances in employees’ personal lives can seriously affect their ability to concentrate or perform day-to-day tasks, thus decreasing their productivity.



7 steps to improve employee performance




Sometimes, even the most dedicated employee’s work performance decreases due to personal issues or job dissatisfaction, among other reasons. However, you can handle these situations with a consistent approach and by following these seven basic steps.


Step 1: Recognize signs of underperformance



Look for signs that imply underperformance and document specific examples of how an employee’s work has suffered. Next, find out the contributing factors to their underperformance.


Step 2: Conduct one-on-one meetings with employees 



To find out the actual reasons for an employee’s underperformance, you must ask them the right questions, in the right tone. Schedule a one-on-one meeting to ask the underperformer the reasons behind their lack of motivation and reduced productivity. 


You need to listen actively to the employee’s responses to better understand their perspective. To ensure that they understand the job expectations and areas that require improvement, ask them how clear they are regarding their goals and tasks. 


Step 3: Develop an action plan together 



Once you identify the reasons behind a worker’s underperformance, devise an action plan to improve productivity. Ask the employee if there are areas where they may need training and then jointly establish a time frame for when you would like to see an improvement in their performance. If they have personal issues, you can propose taking time off.


Step 4: Schedule regular follow-ups to discuss progress



Give your underperforming employee enough time to reflect on the improvement areas. Set up daily, weekly or monthly meetings to monitor their progress on the action plan. Use this time to discuss challenges as well as find and fix roadblocks. You can also use these meetings to identify whether the staff member needs any training or support from your end.


Step 5: Give constructive feedback



Providing proper and timely feedback to an employee and striving to improve their performance is essential to their growth. Explain to your underperforming employee where they are lacking and appreciate their efforts. This way you can help them see their progress and identify specific areas that require more attention. 


Step 6: Recognize progress



As the underperforming employee starts showing improvement, appreciate their efforts, referring to what they have accomplished and its positive impact. This recognition increases employee confidence and will inspire them to achieve the ideal performance level. 


Step 7: Keep everything in writing



After each discussion, email the employee a summary of any planned action, their achievements and areas of improvement. Don’t forget to include suggestions from them. This is a good way to track their progress in writing while keeping their underperformance confidential.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More
Accounting & Finance

M&A Readiness: How to Prepare Your Financials for a Successful Acquisition or Sale 

Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...

Read More
Accounting & Finance

Optimizing Working Capital: Strategies to Maximize Liquidity Without Raising Funds 

Working capital: The difference between your current assets and your current liabilities. It’s a key barometer of financial health.  While...

Read More
Accounting & Finance

Outsourcing vs. In-House: A Strategic Guide for Growing Companies

Expanding your team and capabilities is critical to sustaining growth—but the question often arises: Should you build an in-house department...

Read More
Accounting & Finance

The CFO’s Role in Driving Operational Efficiency in a Mid-Sized Company 

A Chief Financial Officer (CFO) isn’t just a numbers person anymore. Modern CFOs play a pivotal role in shaping strategy,...

Read More
Technology & Security

What Every $10M+ Business Should Know About Data Privacy Laws 

Once your annual revenue surpasses $10 million, you attract more attention from regulators, partners, and customers, especially regarding data privacy....

Read More
People Management & HR

The Cost of a Bad Hire: How to Improve Your Recruiting Process

Hiring is one of the most pivotal processes in any organization, particularly for a medium-sized business looking to scale. Yet...

Read More
People Management & HR

Key Insights from the 2025 CBIZ Not-for-Profit Pulse Survey 

At Escalon, we are committed to keeping our clients informed about the latest trends, challenges, and opportunities across the industries...

Read More