Underperformance is one of the most common people issues managers have to deal with, and often one of the most uncomfortable.
It rarely starts with a dramatic failure. More often, it creeps in over time. Deadlines begin to slip, standards dip, confidence drops or output becomes inconsistent. Managers can usually see that something is not quite right, but many hold back, hoping the issue will improve on its own.
Most of the time, it does not.
Handled well, underperformance can often be addressed before it becomes a bigger problem. Handled poorly, it can lead to frustration, grievances, absence issues or formal disputes that could have been avoided.
Why managers often get stuck
A common misunderstanding is that performance issues must either be ignored for a while or moved straight into a formal process.
In reality, most cases should start with informal action. Clear feedback, realistic support and agreed expectations are often the right first step. The real risk usually comes from doing nothing and allowing the problem to drift without any clarity or evidence of what has been discussed.
That can be difficult for the employee and risky for the employer.
Why early action matters
Addressing underperformance early tends to lead to better outcomes for everyone involved.
For managers, it creates the chance to clarify expectations, identify what may be getting in the way and provide support before confidence drops further. For employees, those early conversations are usually less daunting than a formal process and give them a real opportunity to improve without feeling they are already at the final stage.
It also means there is a clear record of concerns if further action does later become necessary.
What informal performance management should look like
Informal performance management still needs to be clear and purposeful. It is not about vague chats or hoping someone takes the hint.
A good informal approach should include clear feedback linked to the role, examples of where standards are not being met, agreed actions and sensible timescales for review. There should then be follow up conversations so progress can be discussed properly.
Many performance issues can be resolved at this stage if the conversation is honest, constructive and followed through.
When informal support is no longer enough
There are times when informal support does not bring about the improvement that is needed.
That may be because the employee has had support already and standards still are not being met, the issue has become ongoing, or the role involves a level of responsibility where performance needs to be more tightly managed.
At that stage, a more structured process may be appropriate. In many cases, that means moving to a performance improvement plan.
What is a performance improvement plan
A performance improvement plan, or PIP, is a formal way of setting out what needs to improve and what support will be given.
It should not be treated as a punishment or as a shortcut to dismissal. Used properly, it is a structured support tool that gives both sides clarity.
A well handled PIP should set out the areas requiring improvement, what acceptable performance looks like, the objectives that need to be met, the support available and the points at which progress will be reviewed.
That structure is important because it reduces confusion and helps make expectations more transparent.
Why performance improvement plans sometimes go wrong
A PIP can fail for all sorts of reasons, and it is not always because the employee has not tried.
Problems often arise where objectives are vague, unrealistic or not properly linked to the role. In other cases, support is promised but not really delivered, review meetings are inconsistent or the process is treated as though the outcome has already been decided.
Once that happens, trust falls away quickly.
If a PIP is going to be fair, it needs to feel like a genuine opportunity to improve, not a paper exercise.
What fair performance management looks like
A fair approach to performance management means being honest from the outset, setting expectations clearly and following the process through properly.
Employees should understand what improvement looks like, how it will be measured and what support is available to help them get there. They should also understand what may happen if the required improvement is not achieved, but that should be explained clearly rather than used as a threat.
For managers, consistency matters. Review points need to happen when they are supposed to happen, outcomes need to be documented and the message needs to stay clear throughout.
Why getting it wrong creates wider risk
Poorly managed performance issues often do not stay as performance issues for long.
They can develop into grievances, stress related absence, capability disputes or claims that the process was unfair. That is especially true where an employee feels they were not given clarity, support or a fair chance to improve.
A clearer and more proportionate approach puts employers in a much stronger position if decisions are later challenged.
Support with the process
Performance issues are often more manageable when they are picked up early and handled with a bit of structure.
That may mean helping managers have more effective conversations, deciding when a matter should remain informal and when it needs to move into a formal process, or making sure a PIP is realistic, properly documented and followed through consistently.
The aim should always be to give the employee a genuine chance to improve while protecting the business if improvement does not happen.
If you are dealing with underperformance and want support with the right next step, Shrewd HR can help. We work with employers to manage performance concerns fairly, give managers practical support and make sure processes are clear, proportionate and well handled. Get in touch to speak to the team.
