Managing Underperforming Employees: A Practical Guide

The Uncomfortable Truth About a Star Player’s Slump

Let’s be real for a second. You have a team member—let’s call him Alex—who used to be a rockstar. Reliable, creative, always hitting his targets. But for the last few months… something’s been off. Deadlines are slipping. The quality of his work has dipped. His engagement in meetings has gone from insightful to silent. Your gut is screaming that there’s a problem. This scenario is one of the most challenging and, frankly, universal headaches a manager can face. The process of managing underperforming employees isn’t just a box-ticking exercise for HR; it’s a genuine test of your leadership, empathy, and strategic thinking. It’s an art.

Ignoring it is tempting, isn’t it? We hope it’s a blip, a temporary phase that will fix itself. But hope isn’t a strategy. The longer you wait, the more the problem festers. Team morale can start to tank as others pick up the slack, and your own credibility as a leader comes into question. The good news? Handling this situation effectively can be one of the most rewarding parts of your job. You have the chance to help someone get back on track, to rebuild their confidence, and to make your team stronger than ever. But it requires a plan, not just a reaction.

Key Takeaways

• Diagnose Before You Prescribe: Don’t jump to conclusions or a formal plan. First, investigate the root cause—is it a skill gap, a will issue, or an external factor?
• Conversation is a Tool, Not a Weapon: Structure your feedback conversations around specific, observable behaviors and their impact. The goal is a two-way dialogue, not a monologue.
• A Good PIP is a Roadmap, Not a Punishment: A Performance Improvement Plan should be a supportive document with clear, measurable goals, resources, and a defined timeline for success.
• Consistency is King: Regular, documented follow-ups are non-negotiable. They keep the employee on track and demonstrate your commitment to their success.
• Know When to Let Go: Sometimes, despite best efforts, the role is not the right fit. Handling this conclusion with dignity is the final step in responsible management.

The First Step Isn’t a PIP—It’s a Diagnosis

Before you schedule a single ‘serious chat’ or draft a Performance Improvement Plan (PIP), you need to play detective. Launching into a formal process without understanding the why is like a doctor prescribing surgery without an X-ray. It’s reckless and likely to fail. Your first job is to understand the nature of the problem, and that usually boils down to a fundamental question.

Is It a Skill Issue or a Will Issue?

This is the classic management fork-in-the-road. They are completely different problems with completely different solutions.

• A Skill Issue (Can’t Do): This is about capability. The employee lacks the necessary knowledge, training, or tools to do the job successfully. Maybe the role evolved, a new technology was introduced, or they were simply promoted into a position without adequate support. This is, in many ways, the easier problem to solve. It’s a training issue. You can provide resources, coaching, mentorship, or courses. The solution is tangible.
• A Will Issue (Won’t Do): This is about motivation, attitude, or engagement. The employee has the skills but isn’t applying them. The reasons can be complex: burnout, feeling undervalued, personal problems bleeding into work, a conflict with a coworker, or a fundamental disagreement with the company’s direction. This is much trickier. It requires you to tap into your emotional intelligence and coaching skills.

Confusing one for the other is a critical error. You can’t train your way out of a motivation problem, and you can’t inspire someone who simply doesn’t know how to use the required software. You have to get this part right.

Digging for the Root Cause

Once you have a hypothesis (skill vs. will), you need to dig deeper. Think about what might be going on behind the scenes. Could it be:

• Unclear Expectations? Have you actually been crystal clear about what ‘good’ looks like? Sometimes what we think is obvious is anything but.
• Burnout? Is the employee overloaded? Have they been sprinting for too long without a break? Look at their workload and recent projects.
• Personal Issues? We are all human. Health problems, family stress, or financial worries can have a massive impact on performance. You’re not their therapist, but showing basic human empathy can open the door to a solution, like a temporary flexible schedule.
• A Bad Fit? It’s a tough pill to swallow, but sometimes the person is simply in the wrong role for their strengths. Are they a brilliant analyst stuck in a client-facing role they hate?

Gather data, but do it with an open mind. The goal isn’t to build a case against them; it’s to understand the full picture so you can help solve the puzzle.

The Art of the Difficult Conversation

Okay, you’ve done your homework. Now it’s time to talk. The mere thought of this meeting can fill even seasoned managers with dread. But if you frame it correctly, it can be a constructive, positive turning point. How you approach it makes all the difference.

Preparation is Everything

Don’t you dare walk into this meeting unprepared. Winging it is a recipe for disaster. Before you sit down, you need to:

1. Gather Specific, Factual Examples: Vague feedback like “you need more attention to detail” is useless. Instead, use something concrete: “On the Q3 report you submitted Tuesday, there were three data errors that I had to correct. This impacted the finance team’s forecast.” Be specific. Be objective.
2. Define Your Desired Outcome: What do you want to achieve with this conversation? Is it to understand their perspective? To agree on a problem? To set a clear expectation for improvement? Know your goal.
3. Check Your Emotions: If you’re frustrated or angry, take a walk. Go into the conversation with a calm, supportive, and problem-solving mindset. Your tone will set the tone for the entire interaction.

A Framework for Constructive Feedback

A great model for structuring your feedback is the Situation-Behavior-Impact (SBI) model. It removes judgment and focuses on observable facts.

• Situation: Set the context. “In yesterday’s team meeting…”
• Behavior: Describe the specific, observable behavior. “…when Sarah was presenting her update, you were looking at your phone and interrupted her twice.”
• Impact: Explain the consequences of their behavior. “The impact was that it broke the flow of the presentation and appeared disrespectful to the team, which can affect our collaborative culture.”

After you’ve stated the SBI, the most powerful thing you can do is stop talking and ask a question. “What’s your perspective on this?” or “Can you help me understand what was going on?”

The goal of the first conversation is not to solve the entire problem. It is to create a shared understanding that a problem exists and a mutual commitment to addressing it.

This is their turn to speak. And you need to truly listen. You might learn about a misunderstanding, a hidden obstacle, or a personal struggle you were completely unaware of. This is the moment a monologue becomes a dialogue, and it’s where real progress begins.

Building a Performance Improvement Plan (PIP) That Doesn’t Suck

The term ‘PIP’ often feels like a death sentence—the final bureaucratic step before being fired. It’s time to reframe that. A well-constructed PIP isn’t a weapon; it’s a rescue mission. It’s a formal, written commitment from both you and the employee to get things back on track. It’s a roadmap to success, not an exit ramp.

The Core Components of an Effective PIP

A generic, vague PIP is worthless. A strong one is a masterpiece of clarity. It must include:

1. A Clear Statement of the Problem: Reference the specific performance gaps you discussed, using the same objective language. No surprises here.
2. Specific, Measurable, Achievable, Relevant, Time-bound (SMART) Goals: This is the heart of the document. Don’t say “Improve communication.” Say “Provide a written weekly status update every Friday by 4 PM, with no more than one follow-up prompt required from me per week.”
3. Actions and Resources: What will the employee do to improve? What will you do to support them? This could include additional training, weekly coaching sessions with you, access to a mentor, or specific software resources. This shows it’s a partnership.
4. A Clear Timeline with Check-in Cadence: A typical PIP lasts 30, 60, or 90 days. Crucially, it must specify when you will meet to discuss progress (e.g., “We will meet every Monday at 10 AM for 30 minutes.”).
5. The Consequences: This is the direct part. It must clearly state the outcome if the goals of the PIP are not met. This often includes a phrase like, “Failure to achieve and sustain satisfactory improvement may result in further disciplinary action, up to and including termination of employment.” It’s tough, but it’s necessary for clarity.

When you present the PIP, walk through it together. Give them time to read it and ask questions. Acknowledge that it’s a serious document but frame it positively: “My goal here is to see you succeed, and I believe this plan gives us a clear path to get you there. I am here to support you through this.”

The Power of Consistent Follow-Up in Managing Underperforming Employees

You can’t just launch a PIP and then disappear for 60 days, hoping for the best. The plan is the starting pistol, not the finish line. The period during the PIP is where your management skills are truly tested. Your consistent engagement is what makes or breaks the entire process.

The Non-Negotiable Check-In

Those weekly (or bi-weekly) check-ins you scheduled in the PIP? They are sacred. Do not cancel them. Do not reschedule them unless absolutely necessary. These meetings are your primary tool for monitoring progress, offering support, and making course corrections. In these meetings, you should:

• Review the specific goals from the PIP.
• Ask the employee to share their progress and any roadblocks.
• Provide your own observations and feedback—both positive and constructive.
• Reconfirm the expectations for the week ahead.

Give Real-Time Feedback

Don’t save everything for the formal check-in. If you see the employee doing something great that aligns with their PIP goals, praise it on the spot! “Hey Alex, I saw the detailed project plan you sent out. That level of clarity is exactly what we were talking about. Great job.” This positive reinforcement is incredibly powerful. Conversely, if you see a misstep, address it quickly and quietly. “Let’s chat for two minutes. I noticed in that email you didn’t include the data we discussed. Can we make sure that’s in there next time?” Quick, private corrections prevent small issues from snowballing.

Document, Document, Document

After every single check-in meeting, send a brief email summary to the employee. It doesn’t have to be a novel. Just a few bullet points: “Great chat today. To recap, we discussed your progress on X, the challenge you’re having with Y, and our agreed-upon action for next week is Z.” This serves two critical purposes. First, it ensures you and the employee are on the same page, eliminating any chance of miscommunication. Second, it creates a formal, written record of your efforts to support the employee, which is crucial from an HR and legal perspective should things not work out.

The Final, Difficult Call: When to Part Ways

Let’s hope it doesn’t come to this. In many cases, a well-managed performance improvement process works. The employee rises to the occasion, rediscovers their motivation, and becomes a contributing team member again. That’s the win we’re all aiming for.

But sometimes… it doesn’t. Despite your best efforts, your support, and clear guidance, the performance just isn’t there. Recognizing when it’s time to stop the process is a difficult but necessary leadership responsibility.

Recognizing the Inevitable

The signs are usually clear. The employee consistently misses their PIP goals, they show a lack of ownership or effort, or perhaps they meet the bare minimum but you know it’s not sustainable. At this point, continuing the PIP is just prolonging the inevitable, which is bad for them, bad for the team, and bad for you. It’s draining for everyone. Holding onto an employee who is not a fit for the role ultimately does them a disservice. It prevents them from finding a job where they can truly thrive.

The Parting Conversation

If you’ve followed the process, this final conversation should not be a shock. Work closely with your HR department to ensure you handle the termination process correctly and legally. When you have the conversation, be direct, respectful, and compassionate. There’s no need to re-litigate the entire PIP. You can simply say something like, “As you know, we’ve been working together for the last 60 days to meet the performance goals we laid out. Unfortunately, we haven’t seen the progress we needed to, and so we’ve made the difficult decision to end your employment.” Keep it brief and focused on the facts. It is not a failure on your part or theirs; it’s a recognition of a mismatch between the person and the role.

Conclusion: Leadership in Action

Mastering the art of managing underperforming employees is one of the most profound skills you can develop as a leader. It’s a journey that moves from diagnosis to conversation, from planning to follow-up, and sometimes, to a difficult conclusion. It requires a delicate balance of clarity and compassion, of holding firm expectations while offering genuine support. It’s not easy. It’s not comfortable. But it is essential. When you handle these situations with integrity and skill, you not only give an individual the best possible chance to succeed, but you also send a powerful message to the rest of your team: that performance matters, and that people will be treated fairly and respectfully along the way. That’s the foundation of a healthy, high-performing culture.

FAQ

What if the employee gets defensive or emotional during the initial feedback conversation?

This is very common and completely normal. The key is to stay calm and not get defensive yourself. Acknowledge their feelings by saying something like, “I understand this is difficult to hear.” Then, gently steer the conversation back to the objective, factual examples you prepared. Avoid getting pulled into an argument about feelings or intentions. Focus on the observable behavior and its impact. If they are too emotional to have a productive conversation, it’s okay to suggest taking a short break or even rescheduling for later in the day, saying, “Why don’t we take 15 minutes and then pick this back up? I want to make sure we can have a productive conversation about this.”

How long should a Performance Improvement Plan (PIP) typically last?

There’s no single magic number, but most PIPs last between 30 and 90 days. The duration should depend on the complexity of the issue. A 30-day PIP might be appropriate for correcting simpler behavioral issues or closing a small skill gap. A 60- or 90-day plan is more common for roles that require a longer performance cycle to demonstrate improvement or for addressing more significant performance deficiencies. The key is that the timeline must be realistic for the employee to absorb feedback, take action, and demonstrate sustained improvement.

Can one underperforming employee really drag down the whole team?

Absolutely. It’s one of the biggest hidden costs of avoiding the problem. High-performing team members often become frustrated and disengaged when they see a colleague consistently failing to pull their weight without any consequences. They may have to redo the underperformer’s work, handle their missed deadlines, or deal with frustrated clients. This breeds resentment and can erode the team’s overall morale and productivity. Over time, you risk losing your best people because they don’t want to work in an environment that tolerates mediocrity. Addressing underperformance isn’t just about one employee; it’s about maintaining the health and standards of your entire team.