Don’t Ignore the Dangers of Underperforming Employees

Learn the dangers of underperforming employees and the top 10 causes of underperformance and how to detect underperforming employees.

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Estimated reading time: 7 minutes

Underperforming Employees are in every workplace. Let’s take a scenario! Your team is struggling to meet deadlines, the quality of work is suffering, and morale is at an all-time low. As a leader, it’s your responsibility to find the root of the problem and take action.

But what if the culprit is right under your nose? Underperforming employees can be a ticking time bomb for any organization, yet we overlook or ignore them. 

A common unsaid reason is that underperforming person is one of our friends!

underperforming
Underperforming Employee Illustration – Photo by Icons8 Team on Unsplash

Who is an Underperforming Employee?

An underperforming employee is someone who is not meeting expectations.

In a global survey by Gallup, only 21% of employees reported feeling engaged at work in 2022. 19% reported feeling disengaged actively. Disengaged employees are your main reason to underperform.

An underperforming employee can cost you money in lost productivity, recruitment, and training costs. They can also lead to stress in the workplace and create an ill work environment. It leads to performance issues from other employees too.

With this, an underperforming employee also damages team morale and cohesion. So, it is important to find and resolve any issues as soon as they arise.

By doing so, you can help your underperforming employees improve their performance and achieve their full potential.

What are the top 10 causes of Under Performance?

It is straightforward. Here is what employees experience and underperform. We also mention the main contributor to each cause.

  1. Lack of skills or training – Management
  2. Insufficient motivation or engagement – Self
  3. Personal or emotional issues – Self
  4. Health problems or physical limitations – Self
  5. Poor working conditions or lack of resources – Management
  6. Miscommunication or unclear expectations – Management
  7. Micromanagement or lack of autonomy – Management
  8. Burnout or fatigue – Management
  9. Distractions or interruptions – Self
  10. Ineffective leadership or management – Management

How to detect Underperforming Employees?

Time needed: 5 minutes

Below are some proven ways to detect underperformance. 

Make sure to be honest with the workforce when you navigate the below activities. 

How many of these have you already implemented to find performance problems?

  1. Monitor attendance and punctuality.

    Look for absenteeism signs! Employees can be struggling with motivation or personal issues.

  2. Track productivity and quality.

    Implement measures to track employees’ productivity and quality. First Time Right (FTR) metrics etc.

  3. Listen to feedback from colleagues and customers.

    Look for complaints and red flags against management.

  4. Conduct regular performance evaluations.

    Schedule regular check-ins with employees to discuss their progress and find areas for improvement.

  5. Observe their behavior and attitude.

    Look for negativity, low morale, or a poor attitude. That can be the reason for underperforming.

THREE dangers of Underperforming Employees when they overstay.

There can be many factors that impact the company when underperforming employees overstay. Here are 3 key dangers to sum it up.

  1. Reduced productivity: Underperforming employees can’t finish tasks efficiently, leading to missed deadlines, incomplete work, and lost productivity for the organization.
  2. Damage to customer relationships: If underperforming employees are in customer-facing roles, their poor performance can damage the your reputation.
  3. Cost to the organization: Underperforming employees need more supervision, training, or coaching to improve their performance, leading to increased costs. In some cases – it is cost-effective to let go an underperforming employee and hire someone new.

Is it possible to improve employee underperformance?

Yes, absolutely!

Underperformance is due to unresolved issues with the employees. It mostly is personal or professional.

Once you answer these issues, underperformance will automatically resolve itself.

A leader can use the above detectors to find ways to help the employee.

If there is no change, letting go is the best way to save your team and their employee performance. Use this as last resort.

Underperformers always stay for extended periods. Keep an eye out there.

Are there any tools to coach underperforming employees?

Every organization with more than 100 employees must have these tools in place.

  1. Performance management software: It will help you track employee performance and collect data-driven insights on areas for improvement. Qualtrics can do the trick.
    • Qualtrics EmployeeXM: Advanced analytics for performance trends.
    • Lattice: Combines goal-setting, feedback, and performance reviews.
    • 15Five: Continuous performance tracking + 1:1 meeting tools.
    • BambooHR: Built-in performance management modules for SMEs.
  2. Employee feedback tools: Check for enterprise software for surveys, focus groups, or feedback forms. They help collect feedback from employees.
  3. Training and development programs: Offer training and development opportunities, say, for example, LinkedIn Learning.
  4. Coaching and mentoring programs: Mentoring employees can help them improve their overall performance. Find mentors within your organization. Accenture has an in-house mentoring model that is world-class.
    • MentorcliQ: Matches mentors/mentees based on goals and skills.
    • Torch: Leadership coaching + mentorship program design.
    • Acceleration Partners: Custom in-house mentoring models (like Accenture’s).
  5. Goal-setting tools: Goal-setting tools can help employees set specific, measurable, achievable, relevant, and time-bound (SMART) goals to improve their performance.
    • Asana: Track team goals with timelines and milestones.
    • BetterWorks: OKR-focused platform with progress dashboards.
    • Workday HCM: Integrates company-wide goals with performance data.
    • Trello: Visual goal boards for smaller teams.
  6. Time-tracking software: Though not a recommended method to implement for your employees. But in some cases, this comes in handy.
    • Toggl Track: Simple interface for project/time analytics.
    • Harvest: Combines time tracking with invoicing.
    • Time Doctor: Monitors activity levels + productivity reports.
  7. Performance improvement plans: These give specific actions and timelines for employees to improve their performance. Check with your HR – they are masters in creating one.
    • BambooHR: Pre-built PIP templates and documentation.
    • Workday: Streamlines PIP workflows with HR collaboration.
    • Zoho People: Customizable PIP modules for managers.

Frequently Asked Questions on Managing Underperforming Employees

1. How to handle underperforming employees?

– Find the root cause of underperformance by assessing skills, workload, and motivation.
– Give constructive feedback with clear examples of the issues.
– Set specific, measurable, achievable, relevant, and time-bound (SMART) goals.
– Offer support through training, mentoring, or reallocating resources.
– Check progress and have consistent communication.

2. What to say to underperforming employees?

– Start with positive reinforcement: “I appreciate your effort in [specific area].”
– Clearly tackle the issue: “I’ve noticed challenges in [specific area of underperformance].”
– Show support: “Let’s work together to improve this.”
– Set expectations: “Here’s what I need from you moving ahead.”
– End on a positive note: “I’m confident we can turn this around with the right steps.”

3. What is an underperforming employee?

– An underperforming employee consistently fails to meet job expectations, deadlines, or quality standards.
– They lack necessary skills, motivation, or face personal or professional challenges affecting their output.
– Underperformance can also result from unclear job roles or inadequate training.

4. How to discuss underperformance?

– Schedule a private meeting in a neutral setting to discuss the issue.
– Use specific examples to illustrate the performance gaps.
– Avoid blame; focus on solutions and collaboration.
– Listen actively to the employee’s perspective and challenges.
– Agree on an action plan and document the conversation for future reference.

5. How to coach underperforming employees?

– Build trust by showing empathy and understanding their challenges.
– Give regular, actionable feedback with clear examples of improvement areas.
– Create a development plan tailored to their needs, including skills training or mentoring.
– Celebrate small wins to boost morale and confidence.
– Have a supportive, non-judgmental approach while holding them accountable for progress.

Conclusion

Underperforming employees can significantly impact a company’s productivity, reputation, and overall success. 

Know the root cause of underperformance, whether it’s a lack of skills, motivation, or personal issues. 

When you check attendance, track productivity and quality, and conduct regular evaluations. Leaders like you can spot underperformance early on and give support to help employees improve. 

But, if underperformance persists, it is necessary to let go an employee to avoid long-term consequences. 

Leaders can leverage performance management software, employee feedback tools, and training and development programs. They can also use coaching and mentoring programs, goal-setting tools, time-tracking software, and performance improvement plans. 

By taking proactive steps to tackle underperformance, leaders can transform underperforming employees into valuable assets for their teams.


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