Poor performance at work can be difficult for employers to manage, especially where the employee is trying hard but not meeting the required standard. The problem may involve missed deadlines, poor quality work, lack of productivity, mistakes, customer complaints or failure to follow reasonable instructions.
Employers are entitled to expect employees to perform their role properly. However, poor performance should usually be handled differently from misconduct. In many cases, the safest approach is to explain the concerns clearly, give the employee a fair opportunity to improve, and keep proper records before taking formal action.
If the issue is handled badly, the employer may face a grievance, sickness absence, discrimination allegation or unfair dismissal claim. Therefore, it is worth taking care before moving too quickly to warnings or dismissal.
If you need practical guidance before taking action, you can visit our free initial employment law advice page. Early advice can help you decide whether the issue should be handled informally, through a performance improvement process, or as a formal capability matter.
Why poor performance at work should be handled carefully
Employers often become frustrated when an employee is not performing well. That frustration is understandable, especially if other staff are having to cover mistakes or customers are being affected.
However, poor performance at work is not always straightforward. The employee may not understand the required standard, may not have received proper training, may be struggling because of workload, or may have a medical condition affecting their work.
Before taking formal action, the employer should be clear about what the performance issue is, what standard is expected, and what support or guidance has already been given.
Poor performance at work or misconduct?
One important early question is whether the issue is poor performance or misconduct. Poor performance usually means the employee is not capable of meeting the required standard. Misconduct usually involves behaviour or conduct, such as refusing instructions, dishonesty, unauthorised absence or inappropriate behaviour.
This distinction matters because the process may be different. A poor performance issue may need coaching, targets, reviews and a reasonable chance to improve. A misconduct issue may need investigation and a disciplinary process.
If the position is unclear, employers should be cautious before labelling the issue incorrectly. For wider guidance on formal workplace processes, you may find our disciplinary procedures guide for employers useful.
Poor performance at work: what employers should do first
The first step is usually to identify the concern clearly. Vague criticism such as “not good enough” or “poor attitude” is unlikely to help. The employee needs to understand what the problem is and what must improve.
Employers should consider:
- what specific performance standard is not being met;
- whether the employee has been told about the concern before;
- whether training, support or clearer instructions are needed.
It is also sensible to check the employee’s contract, job description, policies, appraisal records and any previous warnings or performance reviews.
When an informal approach may be enough
An informal approach may be enough where the issue is minor, recent or capable of being corrected quickly. For example, the employee may need clearer instructions, extra training, or a conversation about priorities.
In those cases, a private meeting may be enough. The employer should explain the concern, give examples, listen to the employee’s response and agree what needs to improve.
Even if the discussion is informal, it is still worth keeping a short note. If the performance problem continues, that record may help show that the employee was given a fair opportunity to improve.
When a formal performance process may be needed
A formal process may be needed where the problem is serious, repeated, or has not improved after informal discussions. At that stage, the employer should usually set out the concerns in writing and invite the employee to a meeting.
The meeting should give the employee a fair chance to respond. There may be reasons for the performance problem that the employer needs to consider, such as lack of training, unclear instructions, excessive workload or health issues.
If the employer decides to issue a warning or start a performance improvement plan, the targets should be realistic, measurable and time-limited. The employee should know what improvement is required and what may happen if performance does not improve.
Performance improvement plans
A performance improvement plan can be useful where the employee needs a structured opportunity to improve. It should set out the concerns, the expected standard, any support being offered, the review period and the possible consequences if there is no improvement.
The plan should not be used as a box-ticking exercise where the employer has already decided to dismiss. If the process is challenged later, the employer may need to show that the employee had a genuine opportunity to improve.
Regular review meetings are also important. They help the employer track progress and give the employee feedback before a final decision is made.
Health, disability and stress issues
Employers should be especially careful if poor performance may be linked to health, stress, anxiety, disability or medication. In those cases, formal action may carry additional legal risk.
The employer may need to consider medical evidence, reasonable adjustments, temporary changes to duties, support, training or amended targets. This does not mean the employer has to accept poor performance indefinitely, but the process must be handled fairly.
If the employee has gone off sick or raised health concerns, the issue may need to be considered alongside sickness absence management before further formal action is taken.
Grievances during a poor performance process
Employees sometimes raise a grievance after performance concerns are raised. They may say the process is unfair, that a manager is targeting them, or that the standards being applied are unreasonable.
A grievance does not automatically stop the performance process. However, the employer should consider whether the grievance affects the fairness of that process.
If the employee alleges discrimination, bullying or unfair treatment, the business should take extra care. Practical support may be needed before deciding whether to continue, pause or investigate separately. You may also find our employment law help and assistance for employers page useful.
Dismissal for poor performance
Dismissal for poor performance may be fair in some cases, but it should usually come after a fair process. The employer should normally be able to show that the employee knew what was expected, was warned about the consequences, and had a reasonable chance to improve.
The business should also consider whether dismissal is reasonable in the circumstances. Relevant factors may include the employee’s length of service, role, previous record, training, support and the impact of the poor performance on the business.
Dismissing too quickly can create avoidable risk, especially where the employee has long service or has raised health, grievance or discrimination issues.
Final thoughts
Poor performance at work should be managed firmly but fairly. Employers should identify the issue clearly, give the employee a chance to respond, provide reasonable support where appropriate, and keep proper records.
Informal action may be enough for minor concerns. However, where performance problems continue, a more structured process may be needed. If dismissal is a possible outcome, the employer should take particular care before acting.
For wider support, visit our free employment law advice for employers page.
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