Managing Poor Performance at Work – Guide for Employers
Managing poor performance at work is one of the more challenging aspects of running a business. As experienced employment law specialists at EBS Law, we understand the importance of addressing performance concerns legally, fairly, and sensitively. In this guide, we explain how employers, managers, and business owners can tackle performance issues confidently while protecting their business interests.
Why Managing Poor Performance at Work Matters for Your Business
Poor performance can damage productivity, staff morale, customer satisfaction, and your company’s reputation. Addressing issues quickly and fairly can:
- Improve employee engagement and output
- Reduce the risk of tribunal claims
- Promote a positive workplace culture
By managing poor performance at work effectively, you demonstrate fairness and strengthen your organisation’s overall health.
Steps for Managing Poor Performance in the Workplace
Recognising the Early Signs of Poor Performance
The first step is to identify when performance falls below expected standards. Common signs include missed targets, declining quality of work, frequent mistakes, or complaints from colleagues or customers. However, it is important to distinguish between misconduct (such as lateness or rudeness) and capability issues (such as struggling to meet job requirements).
Investigating Underlying Causes When Managing Performance Issues
Understanding why performance has dropped is crucial. Factors may include:
- Lack of training, tools, or support
- Personal issues or health problems
- Unclear expectations or changing role requirements
Having an open and honest conversation with the employee can often reveal underlying problems that, once addressed, can quickly lead to improvement.
Setting Clear Expectations to Improve Poor Performance
When managing poor performance at work, clarity is key. Set out clear, measurable goals and a timeline for improvement. Agree an action plan in writing and schedule regular review meetings. Support the employee with any necessary training or adjustments to give them the best chance of success.
Formal Procedures for Managing Poor Performance at Work
Holding a Formal Performance Review Meeting
If informal efforts do not lead to improvement, you should move to a formal capability procedure. Invite the employee to a meeting in writing, giving reasonable notice. Inform them of their right to be accompanied by a colleague or trade union representative. Discuss the concerns, present evidence, and give them the opportunity to respond.
Issuing Warnings During the Poor Performance Process
If the meeting confirms poor performance, a formal written warning should be issued. The warning must include:
- Clear expectations for improvement
- A timescale for review
- Possible outcomes if performance does not improve (including further warnings or dismissal)
Follow your internal disciplinary or capability procedure carefully and ensure the employee understands the consequences of not meeting the agreed standards.
Dismissal for Poor Performance: Managing Risks
Dismissal should only ever be a last resort after providing full support and reasonable opportunities for improvement. To fairly dismiss for capability reasons, you must show that:
- A thorough and fair process was followed
- The employee was given a fair chance to improve
- Dismissal was a reasonable decision based on the circumstances
Managing poor performance at work incorrectly can lead to claims for unfair dismissal. Always seek legal advice before proceeding with a dismissal for capability reasons. At EBS Law, our team offers specialist advice to guide you through the process. Learn more about our employment law services for employers.
Common Mistakes Employers Make When Managing Poor Performance
Ignoring Performance Problems Until It’s Too Late
Allowing poor performance to continue unchecked can worsen the situation and make formal action more difficult later. Address issues early with supportive conversations and documentation.
Failing to Follow Fair Procedures When Managing Poor Performance
Even if an employee is underperforming, employers must follow a fair, transparent process. Deviating from procedures could result in tribunal claims for unfair dismissal or discrimination.
Not Keeping Clear Records Throughout the Process
Maintain accurate notes of meetings, action plans, reviews, and warnings. Good records provide evidence that you acted fairly and can be vital if a claim arises.
Expert Support for Managing Poor Performance at Work
Managing poor performance at work can be stressful, but with the right approach and professional advice, you can protect your business and achieve better outcomes. Whether you need assistance with drafting documents, holding formal meetings, or defending a tribunal claim, EBS Law can help.
Contact us today for expert support:
Call us on 01625 874400 or email enquiries@ebslaw.co.uk.
Useful External Resources
For additional advice, visit the ACAS Performance Management Guide.