How to handle an underperforming employee

Author: Darren Newman

Summary

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• Do not allow concerns about legal risk to prevent effective management of poor performance.
• Provide clear, prompt and constructive feedback where an employee is underperforming.
• Address any barriers to effective performance.
• Set a standard for the employee to meet and allow a reasonable opportunity for improvement.
• Invoke a formal procedure where the employee fails to improve.
• Hold a stage one formal performance management meeting, unless the underperformance is serious enough to justify skipping to stage two of the procedure.
• Decide on the appropriate outcome of the meeting, which could be to issue a first written warning.
• Hold a stage two formal performance management meeting if the employee fails to reach the required standard within the period set out in the first written warning.
• Decide on the appropriate outcome of the meeting, which could be to issue a final written warning.
• Hold a stage three formal performance management meeting if the employee still fails to reach the required standard.
• Consider redeployment as an alternative to dismissal.
• Consider whether dismissal is appropriate.
• Keep in mind the option of a settlement agreement.
• Put extra effort into helping an employee reach the required standard if there has been a failure to address underperformance in the past.
• Revert promptly to the formal procedure where an improvement in performance is only temporary.