Understanding underperformance - a core management skill

The importance of managing underperformance

Performance management is one of the most important responsibilities for any manager. Doing it well means two things:

• Engaging each individual and the entire team in achieving results.
• Developing the skills needed for long-term success.

The time and energy a manager invests in supporting team members will vary depending on their experience, confidence, and the challenges they face. For most people, planning annual goals, reviewing progress, and offering coaching and feedback is enough.

But sometimes, despite your support, a team member doesn’t meet expectations. In these cases, identifying and addressing underperformance early is critical. It rarely fixes itself—and the longer it lingers, the more impact it can have on others, the team, and the company.

Why underperformance matters

When someone underperforms, work may be delayed, incomplete, or shifted onto others. This creates an uneven workload, lowers morale, and drains the team’s energy. It also affects the team member directly—preventing them from growing and succeeding in their role.

That’s why managing underperformance isn’t just about discipline—it’s about fairness, development, and protecting the health of the whole team.

Roles in managing underperformance

Clear responsibilities help create a fair and supportive performance culture:

• Managers define performance expectations and give ongoing feedback. When someone falls short, they must address it constructively—and take formal steps if needed.
• Team members are responsible for their own development and improvement, staying open to feedback and willing to grow.
• HR provides the guidance, tools, and policy support to help resolve issues in a fair and legally sound way—especially early in the process.

Together, these roles create a shared, proactive approach to performance.

What managers are responsible for

If a team member isn’t meeting expectations, managers must take action—early, fairly, and with documentation. The official guidance must be followed, and performance concerns should be discussed with your HR as soon as they arise.

If termination is being considered, HR must consult with the Senior Leadership or Legal Department, several months before the intended end date, depending on the type of employment contract.

When performance falls short

There are different performance scoring frameworks in the corporate world. Here’s how you can spot underperformance in any of them, depending on how serious the issues are:

Partially Meets Expectations

The person is competent in most areas but needs development in 1–2 key aspects—such as quality, quantity, or core behaviors. This may be temporary (e.g., someone new to the role) or a signal of ongoing challenges.

Examples:

• Mostly meets goals, but key results or behaviors fall short.
• Needs extra support and coaching.
• Shows awareness and willingness to improve.
• Behaviors occasionally misaligned with company values.

Manager actions:

• The person can continue under their current agreement, usually with written approval from the Senior Leadership and the involvement of HR.
• Two consecutive ratings of “Partially Meets” require termination consideration.

Below Expectations

Performance is consistently below standard in multiple key areas. The quality or execution of work is not acceptable and hasn’t improved despite support.

Examples:

• Work often late, incomplete, or low quality.
• Needs constant supervision beyond what’s normal for the role.
• Limited knowledge of role or unwillingness to grow.
• Behaviors consistently misaligned with company values.
• Lack of ownership or motivation to improve.

Manager actions:

• Immediately involve HR.
• Begin formal performance improvement steps.
• Clearly document actions and support provided.
• Prepare por potential termination action.

Conclusion

Managing underperformance can feel uncomfortable—but it’s a key part of responsible leadership. When done early and fairly, it protects your team’s motivation, workload, and trust. It also gives the individual a real chance to succeed—or clarity when it’s time to move on.

Main takeaways

1. Underperformance rarely improves without action—early support is essential.
2. Managers, HR, and team members each play a role in addressing it fairly.
3. Two official performance ratings help guide the right next steps.
4. Documentation and HR consultation are required before contract decisions.
5. Addressing performance issues early protects the team and builds trust.

Further Reading: [Identifying performance issues]