Identify the Root Cause of the Performance Issue
Before taking action on an employee’s performance issue, you need to sit down and figure out exactly what’s going on. A knee-jerk reaction-like immediately writing them up-can backfire if you don’t first understand the cause.
Performance issues don’t always stem from laziness or lack of effort. Sometimes, personal struggles, unclear expectations, or even workplace obstacles are the real issue. For example, if an employee is quiet, disengaged, underproducing, or snapping at coworkers, you might assume they have a bad attitude. But if you take the time to talk with them, you may discover they just lost a loved one, are struggling with health issues, or are dealing with personal stress.
Jumping straight to discipline without understanding the situation can damage trust and morale. Instead, have a conversation first. Ask questions like:
- Is there something affecting your work that we should be aware of?
- Is there anything we can do to support you?
- Do you understand the expectations for your role, or do you need more clarity?
In some cases, a small adjustment-like allowing an extra break, a sick day, or more support-can help get the employee back on track. If the issue is deeper or recurring, then it’s time to move into corrective action.
Set Clear Expectations and Provide Support
Performance issues often start before an employee even begins struggling-when expectations weren’t clearly communicated in the first place.
This process starts at hiring. Make sure you’re bringing in the right person for the job by using an accurate job description that outlines exactly what the role entails. From there, proper onboarding and training set employees up for success.
To ensure employees fully understand their responsibilities:
- Provide structured training. Use a buddy system, detailed training guides, or interactive courses to reinforce key concepts.
- Certify employees before assigning tasks. If a job requires a certain level of skill or knowledge, create a process where employees must complete training steps and pass assessments before working independently.
- Offer ongoing support. If an employee is struggling to reach the next level, make sure they have access to the right mentors, training materials, and check-ins to help them improve.
If expectations and training aren’t crystal clear, you can’t expect employees to perform well. Set them up for success from day one, and when they do struggle, ensure they have the tools to get back on track.
Address Issues with Direct but Constructive Feedback
When addressing employee performance issues, your approach makes all the difference. If feedback is too harsh, employees may become disengaged, defensive, or even look for another job. But if you avoid the issue altogether, nothing improves.
The key is to provide direct but constructive feedback. You’re not attacking the person-you’re addressing the issue. A good way to frame the conversation is:
- Start with the issue: ‘We have a challenge that needs to be addressed.’
- Explain why it matters: ‘This impacts productivity, teamwork, customer experience, etc.’
- Offer a path forward: ‘Here’s what we can do to fix it and how I can support you.’
It’s important to avoid making it feel personal. Yes, the conversation involves their individual performance, but you’re discussing the work, not attacking them as a person. If employees feel disrespected or overly criticized, they’ll shut down instead of improving.
To encourage real improvement, follow these best practices:
- Be respectful and to the point. Don’t sugarcoat, but also don’t repeat yourself excessively.
- Balance criticism with praise. Acknowledge what they’re doing well and frame the conversation around improvement rather than failure.
- Give actionable steps. Instead of just saying, ‘You need to do better,’ provide specific guidance on how they can improve.
If handled the right way, feedback can motivate employees to grow instead of making them feel like giving up. The goal isn’t to punish-it’s to help them succeed.
Create a Performance Improvement Plan (PIP) When Necessary
If an employee consistently underperforms-whether it’s due to a poor attitude, lack of teamwork, or failure to meet expectations-a Performance Improvement Plan (PIP) can help them get back on track.
Before implementing a PIP, you should have already:
- Had a direct conversation about the issue.
- Ensured personal struggles aren’t affecting performance.
- Set clear expectations on what needs to change and why.
- Provided support and resources to help them succeed.
- Implemented corrective actions such as a Performance Improvement Plan (PIP).
A PIP should include:
- The specific performance issue and when it was previously discussed.
- What needs to change and the measurable expectations for improvement.
- A timeline for improvement.
- Regular check-ins to discuss progress.
- Resources and support available to help the employee improve.
A PIP isn’t just a step toward termination-it’s an opportunity for employees to correct their performance and succeed. It gives them a clear roadmap and the necessary resources to improve while ensuring management is actively supporting their progress.
Know When It’s Time to Let an Employee Go
One of the hardest decisions a business owner will face is determining when to terminate an employee. It’s not a decision to take lightly, nor is it always predictable. However, when an employee’s continued presence negatively impacts productivity, morale, or workplace safety, termination may be the best option for the business and the team.
Before reaching this point, you should have taken every reasonable step to support the employee’s improvement. This includes:
- Having direct conversations about the issue.
- Ensuring personal struggles aren’t affecting performance.
- Setting clear expectations for improvement.
- Providing support and resources to help them succeed.
- Implementing corrective actions such as a Performance Improvement Plan (PIP).
If the behavior continues despite proper warnings and support, termination becomes necessary. Documentation is key-every conversation, warning, and corrective action must be documented.
When letting someone go:
- Be direct and professional. Clearly explain why the decision is being made.
- Remain calm and respectful.
- Follow legal requirements for final pay and any necessary paperwork.
Terminating an employee is never easy, but when done correctly, it ensures the business remains strong, fair, and legally protected.