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What is Underperformance and Why It Matters

Underperformance is the gap between what an employee delivers in their role and what the company expects or needs from that role. You might notice this in their in output, behaviour, or attitude. Underperformance can stem from a lack of skills or capability, or from other factors such as unclear expectations, work overload, poor tools or processes, or even personal circumstances.

It’s important to address underperformance early as left unaddressed, it can affect team morale, productivity, and customer experience. Discussing underperformance will likely involve some difficult conversations but taking prompt action gives employees the clarity they need to improve and protects the business from long-term disruption.

From Uncertainty to Action – planning for success

Even experienced managers can find it hard to raise concerns in a way that feels constructive and fair. Our simple 3-step framework helps you to prepare a structured, confident approach – ensuring you give clear, actionable feedback and support improvement before things escalate.

It’s also a vital step in protecting your business, reducing risk of misunderstanding, formal grievances, or legal issues.

The 3-Step Framework – Diagnose, Act, Agree

By following this process, you will effectively carry out an informal performance improvement plan.
If no improvement is seen after your agreed review point, it may be time to consider a more formal process.

Step 1. Diagnose the root cause

Use the “CUBE” model to identify the issue

CapabilityDo they have the necessary skills or training?

Understanding – Do they know what’s expected of them?

Behaviour – Is effort, attitude or conduct part of the issue?

Environment – Are tools, systems or team factors contributing?

Step 2. Act early with clarity

  • Record specific examples that demonstrate underperformance, ensuring you include dates, outcomes and impact.
  • Stick to facts. Ensure you avoid blame or assumptions.
  • Arrange a private, focused conversation with employee to discuss your concerns and give them time to prepare for the meeting.

Step 3. Agree a way forward

  • Set SMART improvement goals for your employee.
  • Offer practical support or development where needed.
  • Schedule a follow up to review progress and stick to it!

Next Step – The Conversation

Once you’re properly prepared it’s time to have a conversation with your employee. If you’re worried about how to approach this our Guide to Managing Difficult Conversations has hints and tips to help you speak honestly and empathetically.

If you’re still finding it hard to address underperformance then Gooding People & HR can help. Our HR services are tailored to your unique needs, from providing support to acting as an impartial advisor we’re on hand to protect your business and your people.

Find out more and contact our team for a FREE, no obligation discussion.

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