Managing poor performance is one of the toughest challenges a leader faces, but is also inevitable.
When an employee underperforms, the instinct can be to wait and hope things improve. But delaying is dangerous, as it can blindside an employee when you finally speak up and signals to your high performers that mediocrity is acceptable.
Unaddressed performance issues, whether missed deadlines or negative attitudes, drag down the entire team. In this guide, we will walk you through a clear, 6-step framework to manage poor performance with confidence and fairness.
What is Managing Poor Performance?
Managing poor performance is the proactive process of identifying and addressing situations where an employee’s work falls below the expected standards of their role.
This process is led by managers (often with HR support) to help an employee improve or, if improvement doesn't occur, to take appropriate corrective steps.
The goal of managing a poor performer is not to punish them. It’s to coach the employee back to acceptable performance through clear communication, support, and structured follow-up.
This process is crucial for maintaining fairness across the team and protecting the organization by documenting issues, which is vital if termination becomes necessary.
Whether your team is in-person, remote, or hybrid, the fundamentals of poor performance management remain the same. Set clear expectations, give honest feedback, and follow through consistently.
6 Steps to Manage Poor Performance
Navigating performance issues can feel daunting, but having a structured approach makes all the difference. We have broken this down into 6 steps to help you move from identification to resolution.
Step 1: Decide to Act Fast
The first step is taking action as soon as the problem becomes evident.
We know it’s uncomfortable. Nobody wakes up excited to have a difficult conversation with their direct reports. But ignoring the issue will only make matters worse. Do not let poor performance fester. By deciding to act, you signal to the employee (and the rest of the team) that standards matter.
Waiting too long can lead to 3 consequences:
- The employee is blindsided: When you finally have the "real" conversation, they feel shocked because they thought everything was fine.
- High performers disengage: Your top talent sees the standard you are tolerating, which is demotivating and can lead to a culture of mediocrity.
- Resentment builds: If one person isn't pulling their weight, the rest of the team has to pick up the slack.
Addressing the situation promptly is ultimately kinder and fairer.
Effective managers don’t feel “guilty” about intervening; they understand that part of their role is to give honest feedback and not shy away from tough conversations. - Mark Horstman, author of Effective Manager.
How to prepare:
Before you have the conversation, gather specific examples of the poor performance (missed targets, errors, specific incidents). Be ready for an emotional response. Defensiveness, being upset, or anger can all happen. Plan how you will handle these reactions with empathy.
Remember, you are there to help them improve, not to berate them.
Step 2: Diagnose the Root Cause of the Poor Performance
Once you’ve decided to act, you need to understand why the underperformance is happening. Poor performance is often just a symptom of an underlying problem. Before jumping to solutions, we need to diagnose the root cause by looking at 3 distinct parts: the manager, the direct report, and the environment.
Part A: Is it actually you?
Six times out of ten, when managers bring up a "poor performer" in our coaching sessions, the issue actually lies with them. Ask yourself:
- Have you set clear expectations?
- Have you gotten out of their way?
- Have you given enough encouragement and timely feedback?
Part B: Have they really understood the feedback?
Sometimes we think we’ve been specific, but we haven't detailed how the behavior needs to change. For example, telling someone they "aren't thinking strategically" is vague. You need to communicate exactly what strategic thinking looks like in their role so they can change.
Part C: What else could be going on?
Are they dealing with a health issue or personal problem? Are they in the right role? Are they being challenged enough? Creating a safe space in your 1:1s to ask, "How are you feeling about work at the moment?" can uncover hidden blockers.
Part D: Is a belief blocking them?
Psychologists call this a competing commitment. For example, if someone isn't rolling up their sleeves, they might believe, "This work is beneath me." Or if they are slow to output, they might believe, "If it's not perfect, I can't share it." Uncovering these hidden beliefs is key to unlocking change.
Step 3: Develop a Performance Improvement Plan (PIP)
After identifying the root cause, the next step is to collaborate on a Performance Improvement Plan (PIP).
A PIP is a formal document that outlines exactly what the employee needs to do to improve and how you will support them. Think of it as a roadmap to get them from their current performance to the desired level. It also creates a documented record that the company made a good-faith effort to help.
When developing a PIP, include these key components:
- Specific Performance Areas: Clearly identify the exact aspects of the job that need improvement. Be specific. "Reduce coding errors by 50%" is better than "write better code."
- Measurable, Achievable Goals: Use SMART criteria. Goals must be realistic given the timeframe; setting impossible targets will doom the process.
- Defined Timeline and Milestones: Specify how long the PIP will run (usually 30, 60, or 90 days) and when check-ins will happen. Be upfront about the consequences if improvement isn't achieved.
- Support and Resources: Outline what the company will provide (training, coaching, or mentoring) to help them succeed. This demonstrates that the PIP is a genuine investment in their growth, not just a paper trail for termination.
- Agreed Reporting: Design a system for visibility so you don't have to "chase" them for updates. Agree on a cadence for progress reports to remove the need for micromanagement.
Finally, involve HR early. They can ensure the plan is fair, consistent, and legally sound.
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Step 4: Schedule Follow-Up Check-Ins in Advance
A PIP is not a "set it and forget it" document. Consistent follow-through is the engine that drives improvement.
You need to schedule your check-in points in advance and get them on the calendar immediately.
- Frequency: Weekly check-ins are common for most PIPs. This provides enough time for progress but ensures you catch issues before they derail the plan. Match the frequency to the intensity of support needed.
- Format: Face-to-face meetings (in person or video) are essential for open dialogue and reading non-verbal cues.
Prepare for every meeting. Review their recent work and self-reported updates beforehand. Have specific praise ready for improvements and specific questions for areas that are lagging. Treat these check-ins as coaching sessions, not just evaluations.
Research by the U.S. Office of Personnel Management emphasizes that frequent check-ins are crucial to keep employees on track. By honoring these meetings, you demonstrate your commitment to their success.
Step 5: Monitor Progress and Adjust as Needed
With the PIP in motion, you must actively monitor progress. Take notes after each discussion to build a factual record of what improvements are or aren’t happening.
Give real-time feedback. If you see positive change, recognize it immediately. "Great job meeting that deadline this week" goes a long way in boosting employee motivation. Conversely, if issues persist, address them promptly. Don't wait until the end of the PIP to say "you failed".
Be prepared to adjust. If obstacles arise (like a sudden workload spike or a personal issue), you may need to tweak the plan. You might extend the timeline if you see partial improvement, or refine goals if they were initially unrealistic.
Document everything. Having a paper trail protects both you and the employee, ensuring transparency and consistency.
Finally, balance accountability with empathy. Someone on a PIP is under significant stress. Remind them that the goal is to help them succeed, not to catch them out. If stress becomes unproductive, encourage them to use company wellness resources. You can hold high standards while still showing you care.
Step 6: Decide When Enough Is Enough
Not every poor performance management has a happy ending. Despite your best efforts, there are times when you will have to fire someone.
Deciding when "enough is enough" is a tough but necessary call. If you have provided clear expectations, offered support, held regular check-ins, involved HR and performance is still below standard, it is time to consider more serious action.
Termination can be the right choice. Keeping a persistently underperforming employee is unfair to the rest of the team and costly to the business. It is often miserable for the employee, too. A clean separation often allows the employee to find a role better suited to their skills.
When you communicate the decision, be direct and respectful. Briefly recap the process so the decision doesn't come as a shock. While difficult, handling this with professionalism reinforces that performance standards matter, but people are always treated with dignity.
Leadership is About Standards and Support
Managing poor performance is never easy, but it is one of the most important responsibilities you hold as a leader.
By diagnosing the root cause and providing a structured path to improvement, you’re giving your employees every reasonable chance to succeed. You also protect the culture of high performance you are building for the rest of your team.
Ultimately, this process is about combining accountability with fairness. It is about letting your team know that you will hold everyone to the same high standards, but that you will also support them when they struggle.
Whether the outcome is a turnaround or a respectful parting of ways, handling this process well proves that you are a leader who values both results and people.
