Understanding and Preventing Underperformance in the Workplace

What is Underperformance?

Underperformance occurs when an employee is not meeting the reasonable expectations of their role. It can present in many ways, such as:

• Not achieving agreed targets or KPIs

• Consistently missing deadlines or producing low-quality work

• Showing poor attitude, lack of effort or disengagement from the team

• Failing to follow workplace policies or procedures

• Reduced productivity or negatively affecting team morale

It’s important to distinguish between underperformance and misconduct.

• Misconduct involves deliberate or serious breaches of workplace standards (such as theft, fraud or bullying).

• Underperformance is usually about an employee not meeting expected work standards. This can stem from a lack of skill, confidence, motivation or other factors.

  
  

Why Underperformance Matters

If left unaddressed, underperformance can significantly affect a business. Key impacts include:

• Reduced Productivity

  Tasks take longer to complete, mistakes increase, deadlines slip and overall output declines.

• Financial Costs

  Underperformance can result in lost revenue, time and money spent correcting errors and in some cases, the need to hire additional staff.

• Lower Team Morale

  High-performing employees may become frustrated or demotivated when they see colleagues underperforming without intervention. This can create resentment, disengagement and even lead to higher turnover among top talent.

• Damage to Reputation

  If underperformance impacts client work or customer service, your business’s reputation may be at risk.

These impacts highlight why it’s far better to prevent underperformance before it becomes an issue.

How to Prevent Underperformance

Managing performance effectively from the start reduces the likelihood of underperformance arising later. It also saves your business time, money, productivity and reputational risk.

Here are some practical strategies:

1. Establish Clear Expectations

   Be clear about what success looks like in each role. Employees should understand their responsibilities, targets and how their performance will be measured.

2. Hold Regular Feedback Meetings

   Frequent check-ins help identify challenges early and allow both sides to raise concerns. Open communication builds trust and creates opportunities for improvement.

3. Encourage Interests and Passions

   Where possible, align tasks with employees’ strengths and interests. Employees who feel valued and engaged are more motivated and productive.

4. Support Training and Development

   Invest in upskilling your employees. Professional development not only benefits individuals but also strengthens your business capabilities.

Prevention is always better than cure. By setting clear expectations, fostering open communication, supporting development and keeping employees engaged, your business can minimise underperformance and build a stronger, more motivated team.