How to Deal with an Underperforming Employee

Jan 6 / Language of Leadership
Dealing with an underperforming employee is one of the most challenging aspects of leadership. Whether it’s an issue of missed targets, poor attitude, or unproductive habits, addressing underperformance directly can make or break a team’s success. Underperformance isn’t just a challenge—it’s an opportunity for growth, both for the employee and the leader. How you handle these situations can strengthen your team culture and productivity.

Studies show that disengagement caused by underperformance can lead to a 20% decrease in overall team productivity, which in large corporations may translate to millions in lost revenue annually. The ripple effects—lost revenue, reduced morale, and higher turnover—can be devastating if left unchecked. By identifying and addressing underperformance early, leaders can save time, improve team dynamics, and ultimately, boost results.

This article will help you identify underperformance, engage employees in meaningful conversations, and develop actionable plans to improve. Let’s dive into strategies that not only tackle the problem but also foster growth and accountability.

Signs of an Underperforming Employee

Underperformance can manifest in many ways, from tangible results to qualitative aspects of behavior and attitude. Identifying it early is critical to creating an actionable plan.

  • Performance Gaps: Missing key metrics, deadlines, or outcomes.
  • Negative Attitude: Unprofessional behavior, poor communication, or bringing down team morale.
  • Inefficient Habits: Sloppiness, lack of attention to detail, or repeated errors in work.
  • Toxic Perceptions: Assuming roles are unimportant or spreading negativity about customers, peers, or leadership.
  • Manager’s Hunch: Often, underperformance starts as a gut feeling that needs to be validated through data, feedback, or patterns of behavior.

In roles with clear metrics—like sales or customer service—underperformance is often easier to spot through measurable outputs. However, in roles without direct feedback loops, managers may need to rely on qualitative insights from peers or customers. A “gut feeling” of underperformance is common but must be validated through evidence, such as patterns of missed deadlines, repeated complaints, or visible behavior changes.

Managers should also remain aware that some employees can “slide under the radar,” avoiding detection due to the absence of structured systems or feedback. While this article focuses on obvious cases of underperformance, it’s important to develop tools and processes that prevent unnoticed underperformance over time.

How to Discuss Poor Performance with an Employee

Approaching an underperforming employee is a pivotal moment in leadership. A poorly handled conversation can lead to defensiveness or disengagement, while a structured discussion can set the stage for meaningful change.

Start with Self-Reflection

Before approaching the employee, assess whether expectations were clearly communicated and consistently enforced. Leaders often discover that unclear or inconsistent expectations have contributed to the problem. Resetting expectations may be the first step before addressing underperformance.

Key questions to ask yourself:

  • Have I communicated what is expected of this employee?
  • Have I enforced these expectations consistently?

Related Resource: For tips on setting and communicating clear expectations, check out our blog post on setting clear employee expectations.

It’s important to differentiate between unclear expectations and an employee’s failure to meet reasonable standards. If peers in the same role are performing well under similar conditions, it’s likely fair to hold the underperformer accountable. On the other hand, if expectations were poorly set or inconsistently applied, addressing this foundation first is crucial.

Use an Enrollment Statement

Initiate the conversation with an empathetic and constructive tone that highlights the employee’s potential while directly addressing the gap in performance. Examples include:

  • “I want to help you qualify for the next promotion, but right now you’re not meeting expectations.”
  • “I’d like to see you earn your next bonus, but here’s what needs improvement.”

By framing the discussion around the employee’s growth and opportunities, you create a collaborative environment for addressing performance issues.

Bring Evidence

Providing concrete examples is key to avoiding defensiveness and keeping the conversation objective. Examples of evidence include:

  • Data from systems or tools (e.g., CRM, project management software).
  • Feedback from peers or customers.
  • Observations of unprofessional behavior or inefficiencies.

When presenting evidence, focus on specifics rather than generalities. For instance, instead of saying “You’ve been sloppy,” refer to missed deadlines, errors in reports, or negative feedback from clients.

Clarify Expectations

Ensure the employee understands the gap between their current performance and what’s expected. This might involve resetting expectations or revisiting job responsibilities. Make expectations explicit and measurable to avoid ambiguity moving forward.
Underperforming Employee

Questions to Ask an Underperforming Employee

The questions you ask can make or break the conversation. Open-ended, constructive questions encourage self-reflection and ownership, helping the employee recognize their path forward. Examples include:

  • “What do you think you need to improve on?”
  • “Who can you go to for help when challenges arise?”
  • “How will you prioritize tasks to meet deadlines?”
  • “What resources or processes could help you perform better?”

These questions shift the focus from assigning blame to finding solutions. They also encourage the employee to take ownership of their improvement plan.

Questions to Avoid

Avoid asking questions that place responsibility back on you as the manager, such as:

  • “What do you need from me?”
  • “How can I support you?”
  • “What reminders or check-ins do you want me to provide?”

Instead, emphasize the employee’s role in identifying solutions. While support is critical, employees should own the improvement process and not rely on constant managerial intervention.

Coaching an Underperforming Employee

Coaching bridges the gap between where an employee is and where they need to be. It isn’t just about addressing the gaps; it’s about empowering employees to develop skills that will benefit them long after they’ve turned their performance around.

A survey found that, If employees could choose, 94% would want feedback and development opportunities daily, or in real-time. Consistent check-ins and coaching not only address performance issues but also build trust and engagement, creating a supportive foundation for improvement.

Guide Through Questions

Effective coaching relies on asking thoughtful, open-ended questions that encourage critical thinking. Examples include:

  • “Who do you need to partner with to succeed?”
  • “What resources could help you overcome this challenge?”
  • “How will you address foreseeable obstacles?”
  • “When will you prioritize this task in your calendar?”

By asking these questions, managers help employees reflect on the steps required to close performance gaps while fostering self-sufficiency.

Proactive Updates

Shift accountability to the employee by requiring proactive updates. For example:

  • “By Wednesday, send me an update on your progress toward 60% completion.”
  • “Share a status report outlining what’s been completed and what remains.”

This approach ensures employees take responsibility for tracking and communicating their progress rather than waiting for reminders. Check out our blog post on holding people accountable without micromanaging for more tips and strategies. 

Check-Ins with Purpose

Check-ins should focus on tracking progress, not reminding employees to start tasks. For instance:

  • “Let’s review your progress on Wednesday and discuss any roadblocks you encountered.”
  • “During our next check-in, we’ll evaluate how the new approach is improving your workflow.”

Proactive, purposeful check-ins reinforce accountability and demonstrate the seriousness of the improvement plan.

For more in-depth strategies on guiding employees through challenges, explore our blog post on employee coaching strategies.

How to Motivate an Underperforming Employee

Motivating underperformers isn’t about cheerleading—it’s about helping them see the value of their contributions and the opportunities ahead if they meet expectations. It’s also about uncovering the root causes of their struggles and framing solutions in ways that resonate.

Set Achievable Goals

Break larger expectations into manageable milestones. For instance, if an employee struggles with deadlines, set interim targets like, “Complete a detailed outline by Tuesday,” or “Submit a partial draft by Thursday.” These smaller wins create a sense of progress, building the confidence needed to tackle larger challenges.

Highlight Opportunities

Frame improvement as a gateway to rewards or personal growth. For example:

  • “Improving your output on these projects positions you well for leadership roles.”
  • “Consistency in meeting deadlines will make you eligible for quarterly bonuses.”

Linking performance to tangible outcomes motivates employees by connecting their efforts to personal and professional benefits.

Build Confidence

Reinforce strengths and acknowledge progress, no matter how small. Positive feedback like, “I noticed how much more detailed your reports have become—great work!” helps underperformers focus on their potential rather than their shortcomings. Confidence grows when employees feel seen and supported in their efforts.

Start with Assumptions of Good Intentions

Most employees want to do well, succeed, and be respected by their peers. By starting from this assumption, managers can create a more supportive and collaborative tone. For example:

  • “I believe you’re capable of achieving this—it’s just a matter of working together to remove the barriers in your way.”

This shifts the conversation from frustration to constructive engagement.

Setting a Turnaround Plan for Underperformers

Even the best turnaround plan won’t succeed without clear expectations and consistent follow-through. Creating an actionable plan requires specificity and structure. Here’s how to build an effective turnaround strategy:

Define Outcomes

Make expectations explicit by identifying measurable deliverables. For example:

  • “Submit error-free reports on time for the next three weeks.”
  • “Increase project completion rates to 90% within one month.”

The more specific the outcome, the easier it will be to track progress and hold the employee accountable.

Set Deadlines

Tie each milestone to a specific timeframe. A deadline creates urgency and ensures tasks don’t fall by the wayside. For example:

  • “By Friday, submit a first draft of your report for review.”
  • “Complete client follow-ups for this week by end of day Thursday.”

Deadlines should be realistic but firm to instill a sense of responsibility.

Identify Support

Determine what tools, mentors, or processes the employee needs to succeed. For instance, pairing them with a skilled peer or providing access to training materials can bridge skill gaps. Asking, “Who could you collaborate with to improve your process?” can help the employee identify resources they might not have considered.

Anticipate Obstacles

Proactively discuss potential challenges and solutions. Ask questions like:

  • “What challenges do you foresee, and how can we address them?”
  • “Are there time constraints or skill gaps we need to tackle?”

Collaborating on solutions builds trust and ensures obstacles don’t derail progress.

Implement Proactive Check-Ins

Shift responsibility for updates to the employee. For example:

  • “Set a calendar reminder to send me a progress update every Friday.”
  • “Let’s schedule a 15-minute check-in next Wednesday to discuss your progress.”

This approach avoids micromanagement while ensuring regular accountability.

Example Strategy: Structure a 30-day turnaround plan broken into weekly benchmarks. For example:

  • Week 1: Complete 25% of a key project and review progress during a check-in.
  • Week 2: Address identified challenges and move to 50% completion.
  • Week 3: Show measurable improvement in one key area, such as on-time task delivery.

This phased approach builds momentum while providing opportunities for mid-course corrections.

Managing Poor Performance After a Plan is Made

The success of any improvement plan depends on consistent follow-through. Employees often assume managers won’t maintain accountability, so it’s critical to demonstrate seriousness through regular engagement.

Consistent Check-Ins

Schedule structured progress reviews. Focus these discussions on results rather than reminders. For example:

  • “During Thursday’s meeting, we’ll review how your updated process impacted this week’s deadlines.”
  • “Let’s look at your progress on the specific goals we outlined and discuss any adjustments needed.”

Frequent check-ins reinforce accountability and show employees that improvement is a priority.

Accountability Systems

Establish systems where employees proactively report progress rather than waiting for reminders. For example:

  • “Add a calendar event titled ‘Progress Update’ and send me a summary before the next check-in.”
  • “Each week, email me an update outlining completed tasks and challenges faced.”

This structure keeps employees engaged in their own progress while reducing the burden on managers.

Track Final Outcomes

Evaluate whether the employee has met the agreed-upon goals. If progress stalls or the employee fails to meet expectations despite support, consider next steps:

  • Extended coaching for those showing effort but needing additional time.
  • Separation for employees unwilling or unable to meet performance standards.

When follow-through is consistent, employees see that underperformance isn’t ignored, and managers maintain the integrity of team standards.

For Co-Workers: How to Deal with a Team Member Who is Not Contributing

When underperformance affects the team dynamic, co-workers can play a role in maintaining harmony and productivity. Here’s how peers can approach the situation constructively:

Direct Approach

Initiate a private, non-confrontational conversation. Use an enrollment statement to open the discussion, such as:

  • “I’ve noticed you’ve been struggling with this project—how can I help?”

This approach encourages collaboration without creating defensiveness.

Escalate to Leadership

If the issue persists, bring specific examples to a manager. Avoid vague complaints by highlighting tangible impacts, such as missed deadlines or additional workload placed on others. For example:

  • “I’ve noticed we’re consistently picking up extra work on Project X. Could we address this with [team member]?”

Hold Leadership Accountable

Follow up with leadership if necessary. Peers can ensure their manager follows through by framing concerns as team-focused:

  • “Have there been any updates on how we’re addressing [team member’s] workload?”

This ensures the issue isn’t ignored without placing undue pressure on the peer.

Pro Tip: Avoid gossiping or venting about the underperformer. Focus on solutions that support both the individual and the team.
How to Discuss Poor Performance with an Employee

Action Plan for Non Performing Employee

An action plan for underperforming employees should be thorough and actionable. It must address every detail to eliminate ambiguity and set the employee up for success. Include the following elements:

  • Who: Identify collaborators, mentors, or resources.
  • What: Clearly define the tasks or outcomes. For example, “Submit a weekly progress report with no errors.”
  • When: Assign specific deadlines and schedule regular check-ins.
  • Where: Ensure the employee has access to necessary resources, such as software or peer support.
  • How: Outline actionable steps. For instance, “Follow SOP guidelines to complete reports” or “Meet with a mentor weekly for skill development.”

Adding a feedback loop where the employee proactively communicates progress ensures alignment and reduces the need for reminders. For example:

  • “Each Friday, send a summary of your completed tasks and next week’s priorities.”

This level of detail leaves no room for misinterpretation, empowering the employee to take ownership of their improvement plan.

Employee Management Coaching and Support

Long-term improvement requires consistent coaching and an environment that balances support with accountability. Here’s how leaders can provide meaningful support and guide their teams to success:

  • Empower Employees: Encourage employees to take ownership of their progress. Ask them to propose solutions and take responsibility for updates.
  • Avoid Common Pitfalls: Replace vague offers of help, like “What do you need from me?” with actionable, results-driven support. Instead, ask, “How will you address this challenge, and when can I expect an update?”
  • Create Proactive Systems: Use shared calendars or task management tools where employees log progress updates. For example, have them create calendar reminders titled “Progress Update” and notify you when milestones are reached.
  • Follow Through with Consistency: Regularly check in to review progress and refine strategies. Consistent engagement shows employees that improvement plans aren’t optional and builds trust across the team.

Final Thoughts on How to Deal with an Underperforming Employee

Underperformance isn’t a dead end—it’s a leadership challenge that can lead to growth and transformation. By addressing gaps with clarity, empathy, and accountability, you can turn a potential weakness into a win for your team and organization. With the right strategies, employees can rediscover their strengths, teams can rebuild morale, and leaders can drive sustainable success.

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