According to the CIPD (Chartered Institute of Personnel and Development) and People Management magazine, tackling poor performance is frequently cited as a top management challenge. This can be magnified in a small business, where the impact of poor or under performance is felt immediately: missed deadlines, customer complaints, or extra work silently piling onto other team members.
Yet many managers delay addressing poor performance because they fear the conversation will be awkward, confrontational, or demotivating. Unfortunately, unaddressed issues invariably become more uncomfortable and potentially more damaging.
However, poor performance conversations don’t have to be difficult. With the right planning, structure and practice, they can be constructive, fair, and confidence‑building for everyone involved.
Don’t delay
Poor performance rarely improves on its own. A soon as a pattern appears, whether it is repeated mistakes, missed deadlines or customer complaints, it should be addressed. A short, calm conversation early on will often prevent the need for longer or more formal ones later.
Be clear not critical
Understand the purpose of having the conversation. Use a clear and neutral opening to help diffuse tension, preventing the conversation becoming accusatory eg:
“I’d like to talk about some concerns with your recent performance so we can work together on improving it.”
Keep it factual
It is important to stay objective and use facts rather than opinions and labels. Giving specific examples, dates, times and observed behaviour can be helpful, particularly if an employee appears reluctant to co-operate.
Explain the impact on the business
In small workplaces, every task and every person matters. By helping an employee understand why the issue is important to their team and the wider business, the focus can shift to shared problem-solving.
Clarify expectations
Employees can’t improve if they don’t know what’s expected of them. So it’s important to not make assumptions and check with them that they understand relevant standards and expectations.
Actively listen to the explanation
Poor performance is rarely about a lack of willingness. It’s much more likely to be impacted by underlying factors such as gaps in training, personal pressures, or too much workload. Asking open questions invites an explanation from the employee and then allows an exploration of any contributing factors eg:
“How do you feel your performance has been recently?”
“What do you think is getting in the way?”
Agree clear changes together
Setting and agreeing specific and achievable actions together helps provide clarity and certainty.
Keep calm
Poor performance conversations can trigger a range of emotions from embarrassment and frustration, to denial and defensiveness. It’s important to remain calm and show empathy, using neutral tones, pauses and short clear sentences. Staying curious is much better than becoming defensive.
Follow up
Helping an employee improve their performance involves more than a single conversation. Documenting agreed actions and then following-up with regular check-ins can make a huge difference. If performance improves, timely acknowledgement can be given. If performance does not improve sufficiently, a more formal approach involving capability procedures and performance improvement plans (or PIPs) can then be explored and signposted.
With preparation, clarity and compassion, tackling poor performance conversations can be productive. Handled well, they can build trust, improve performance and strengthen relationships.