Effective management of underperforming employees is crucial for maintaining organisational productivity, morale, and a positive work environment. Employee performance issues can stem from various factors, including lack of skills, unclear expectations, personal challenges, or disengagement. Employee Relations (ER) Specialists play a vital role in implementing structured and fair performance improvement measures to enable employees to reach their potential and ensure organisational goals are met.
Understanding Underperformance
It is common for HR departments in companies to assess poor performance standards from a legal perspective, essentially, how does the Labour Relations Act address the matter? This approach, although correct, may not facilitate an understanding of the cause of the underperformance. A holistic approach is recommended, as the problem may not be solely the employee’s fault. Therefore, before initiating corrective actions, it’s essential to understand the root causes of underperformance:
- Skill Gaps: Employees may lack the necessary skills or training.
- Lack of Clarity: Expectations and goals might be unclear.
- Motivational Issues: Personal or work-related dissatisfaction.
- External Factors: Personal circumstances impacting work.
- Workplace Environment: Poor management, toxic culture, or lack of support.
Identifying the cause allows for tailored interventions that effectively address the specific issues.
Step-by-Step Performance Improvement Measures
- Initial Assessment and Documentation
Poor performance arises in different circumstances; it may be a new hire trying to figure out what is required, it may be an employee struggling to adapt to new systems or simply an employee who has become demotivated. Whatever the circumstance, an initial assessment should consider all eventualities.
It is HIGHLY recommended to keep a written record of all meetings and correspondence between HR and the employee during the performance enquiry process.
- Conduct a thorough review of the employee’s performance records.
- Gather feedback from supervisors and colleagues.
- Document specific instances of underperformance, including dates and impacts.
- Ensure consistency with organisational policies and legal considerations.
- Clear Communication and Expectations
When embarking on the process, HR should plan an appropriate course of action before commencement. Both parties should have a clear understanding of what the process entails, and their respective expectations should be well-defined.
Often, employees are tasked with implementing improvement measures. Unfortunately, the HR department may not have considered their objectives, which could result in arbitrary outcomes.
- Meet with the employee in a private setting.
- Clearly outline areas requiring improvement, supported by documented examples.
- Set specific, measurable, attainable, relevant, and time-bound (SMART) goals.
- Discuss the expected timeline for improvement.
- Development of an Action Plan
Once the expectations have been considered and the initial meeting has begun, develop an action plan that takes the performance concerns into account. Ensure the under-performing employee understands the action plan and agrees thereto.
- Collaboratively create a Performance Improvement Plan (PIP).
- Specify actions, resources, training opportunities, and support mechanisms.
- Define check-in points and progress measurement criteria.
- Ensure the employee understands the consequences of continued underperformance.
- Providing Resources and Support
Leaving the employee to improve on their own may not produce the most efficacious result. The employee must be supported as much as possible throughout the process.
- Offer relevant training, coaching, or mentoring.
- Adjust workloads or responsibilities temporarily if appropriate.
- Provide constructive feedback and encouragement regularly.
- Address any personal or external issues if possible and appropriate.
- Monitoring and Follow-up
There is no limit on the number of meetings required to ensure a fair process. This may vary from company to company. The employee’s position may have a further bearing on this. Generally, the more senior the employee, the fewer meetings and follow-ups are required.
Regardless of the number of follow-up meetings, the employee should have a clear understanding of what is required to meet the expected standard of performance. If the employee is not aware of the expected standard of performance, the process will yield minimal results.
- Schedule regular follow-up meetings.
- Review progress against the goals outlined in the PIP.
- Reinforce positive changes and address ongoing issues.
- Document all interactions diligently.
- Evaluation and Final Decision
If the above process is adhered to, there is no reason for HR to consider termination of employment if the required standard is not met, even if some improvement is observed. The employer enjoys the discretion to set standards of performance, as long as they are not unreasonable or unattainable.
- After the review period, assess if goals have been met.
- If substantial improvement occurs, formally acknowledge and close the performance plan.
- If insufficient progress is made, consider further disciplinary actions or termination, following organisational policies and legal guidance.
Best Practices and Considerations
- Fairness and Consistency: Apply measures uniformly across employees to avoid discrimination claims.
- Legal Compliance: Ensure adherence to local employment laws and policies.
- Employee Engagement: Engage the employee actively in the process to foster ownership.
- Supportive Environment: Create a culture that encourages open communication and continuous improvement.
- Documentation: Maintain comprehensive records to protect both the organisation and the employee.
Addressing employee underperformance requires a strategic blend of clear communication, targeted support, consistent monitoring, and fair evaluation. ER specialists are pivotal in designing and executing performance improvement measures that benefit both the employee and the organisation. A structured, empathetic, and legally compliant approach can lead to successful employee development, reduced turnover, and improved organisational climate.
Article by Stephen Kirsten
Provincial Manager at Consolidated Employers Organisation (CEO SA)