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The CEO Institute

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Straighten Up And Fly Right

There's nothing more frustrating than a star staff member whose performance suddenly deteriorates. Restoring them to their previous stellar productivity may not be as hard as it seems.

One of the most critical mistakes you can make in your business is to underestimate the impact of an employee who is beginning to underperform. People are the backbone of any business, and an ineffective team member can cripple the entire business. So what should you do when you know one of your employees can do better?

The effect of an underperformer extends beyond the individual and their productivity. While they might have the best intentions, their lack of quality work will have a spill-on effect for those around them who have to pick up the slack. Sadly, there are employees who will also purposely avoid responsibility at the expense of their more efficient, hard-working coworkers. As a result, they drag down the morale and overall performance of the entire team.

There are many dangers associated with leaving an underperformer unchecked. In addition to lost productivity, it creates a culture in which underachievement is acceptable. You may lose your hard workers when they get fed up carrying the underperformer and being held back.

Team members, management and the underperformers all stand to lose in this situation. But bringing an underperformer back to their full potential will build your credibility and draw respect from other staff. Everyone wants to have a manager who takes action rather than one who sits and hopes that problems will go away.

Doing so also means you will not lose the valuable experience of the employee or be forced into a prolonged and costly recruitment process. And it sends a clear message that you are willing to invest in your staff rather than simply letting them go when the going gets tough.

There are several steps you can take to start to turn around an underperformer.

  • Do some research

    Start with a clear and unbiased mind and try to substantiate your assumptions about the employee in this situation. Discreetly source feedback from relevant managers and team members.

    Organise your thoughts and feedback and define exactly how the worker is underperforming in relation to their job responsibilities. Itemise possible workplace issues which could have caused a slump in their motivation, and what their strengths and weaknesses have been in the past. Assess whether their current job responsibilities are suited to their strengths. You can also review the employee's job description to evaluate where the performance gaps are, and make sure you take note of any positive feedback you received.

  • Conduct a performance review

    Your next step should be to conduct a thorough performance review with the employee. An open, two-way dialogue is essential to turn around performance issues fairly and effectively.

    The best way to get honest feedback is to ask the employee to complete a written questionnaire prior to the review. If you do not already have this as part of your procedure, it may be best to conduct a company-wide employee satisfaction survey, so as not to make one person feel singled out. These documents, along with your initial analysis, will form a good foundation for your discussions.

    Once you are in the meeting room, keep in mind the individual may have no idea they are underperforming. Ensure that they understand why and in which areas it is happening, and reinforce your commitment to helping their performance improve. Whenever you provide constructive criticism, start and finish with a positive statement.

    Going back through their job description together and detailing where shortcomings are is the most effective and painless way to do this. Remember to also go through any positive feedback with your worker, because it is important to balance the negative whenever possible. You need to let the employee know that you value their contribution and believe in their potential.

    During your discussion, seek to get to the bottom of the reasons behind their lack of motivation.

    • Is the employee interested in what they are required to do?
    • What do they see as their strengths and weaknesses?
    • Do they feel their best talents are being utilised?
    • How would they rate their overall contribution to their team's performance?
    • Can they pinpoint any factors that impact their performance?
    • Do they have any comments concerning your management style?
    • Are there any changes that should be made to their working arrangement?

    The ultimate goal should be to agree on any desired changes and to develop a set of key performance objectives, which can be revisited periodically.

    Document the plan in detail and make copies for each party. Remember to include a date for your next review.

  • Develop a plan

    Work out a plan together with the employee to ensure objectives and responsibilities are clearly outlined and understood. For the employer, this may involve changes to working arrangements; restructuring the employee's job position; making changes to the teams and/or clients they work with; and providing access to a mentoring or executive coaching program.

    An employer may do everything they can to help a worker, but ultimately it is in the worker's hands. A commitment from the employee towards making the necessary changes is essential. This means accepting their employer's suggestions for change and initiating ideas for improvement. Possible options could be participating in professional courses or programs and writing down a plan for self-improvement.

    One avenue gaining popularity and momentum is executive coaching. Many people seek coaches to improve other aspects of life or pursuits such as sport, music or acting. So why not do the same when it comes to career counselling? Like any coach, executive coaches analyse a worker's ability and strengths, and work closely with them to keep their career in shape. They help their clients to unlock their potential, and to focus time, talents and energy on achieving important goals.

  • Follow through

    Make sure you follow up on your actions and hold periodical review sessions to evaluate progress.

  • Document everything

    While your intentions are good, you will not be able to bring all employees back to the fold and sometimes you are left with no other option but to pursue redundancy. If you face this situation, you will need to ensure it is totally compliant with employment laws. You therefore need to know the appropriate steps.

    You should also keep extensive logs of all conversations in case the situation becomes escalated to a wrongful dismissal claim.

    The employer/employee relationship is a two-way street and staff underperformance can be just as much a reflection of your commitment and investment in their development as it is in their quality of work.

    Like all facets of your business growth, staff development will only be achieved with careful and structured planning and nuturing.



DBM is a human capital management services firm with 38 years' experience providing transition management services globally, across industry sectors, in private and public companies, not-for-profits and governments. DBM assists organisations execute transformational transitions (mergers, strategic restructurings); organisational improvement transitions (consolidations, off-shoring, efficiency improvements); and capability transitions (on-boarding, internal role changes, retirement planning and talent development). Specifically, DBM offers individuals outplacement, transition advice and business coaching. We take great pride in making a measurable difference to the business of our client organisations and to the careers and performance of individuals. For further information contact: Rod Watson, President Asia Pacific - (02) 9806-0939
First published: 12 October 2006.
Last updated: 12 October 2006.