Employee performance issues
Performance Is Not Improving
You have had the conversations. Given feedback. Maybe even issued a warning. And nothing has really changed. The rest of the team is noticing and you are not sure what to do next.
This is what it usually looks like
You raised the issue months ago. There was a temporary improvement. Then it slipped back.
You are not sure whether the problem is capability, motivation, or something else entirely. You do not want to be unfair, but you also cannot carry this indefinitely.
In the meantime, other people are compensating. Team morale is starting to feel the strain. And you are spending more time managing one person's performance than running the rest of the business.
The risk with performance issues is that without the right process in place, even a clearly underperforming employee can bring a successful unfair dismissal claim. The law is not unsympathetic to employers here, but the process still has to be right.
What usually happens if this gets left
- The standard becomes accepted and harder to address retrospectively
- Other employees lose motivation when they see poor performance going unchallenged
- The relationship with the employee deteriorates without any clear framework
- When formal action is eventually taken, there is no documented process to support it
- Dismissal without proper procedure results in a tribunal claim
- Capability and conduct become confused, making the process harder to run correctly
Practical steps in plain terms
- 1
Be specific about what the issue is
Vague feedback does not support a formal process. The performance issue needs to be clearly defined, measurable, and documented. What exactly is not meeting the standard, and what does good look like?
- 2
Have a formal meeting and set clear expectations
A structured meeting with a written record, clear targets, a timeline, and what support will be provided. The employee should understand what is expected and what happens if it does not improve.
- 3
Provide genuine support
Training, supervision, regular check-ins. The process needs to demonstrate that the employer gave the employee a realistic chance to improve, not just went through the motions.
- 4
Follow the formal stages
If performance does not improve after a fair opportunity, a formal capability process must be followed before any decision about the employment. This includes hearings, the right to be accompanied, and a right of appeal.
Common questions
Questions business owners ask about this
Can a small business dismiss an employee for poor performance?+
Yes, but only if the right process has been followed. This means clear expectations have been communicated, support has been offered, there has been a formal improvement plan, and the employee has had a fair opportunity to improve. Dismissing without this can result in an unfair dismissal claim.
What is a performance improvement plan and do I need one?+
A performance improvement plan sets out specific, measurable targets with a timeline and support structure. It is not always legally required, but it is almost always the sensible approach before any formal action. It demonstrates that the employer acted fairly.
How long should I give an employee to improve before taking formal action?+
There is no fixed rule. The right timeframe depends on the role, the nature of the performance issue, and what has already been tried. Generally, a few weeks to a couple of months is typical. It should be long enough to be fair, but not so open-ended that the situation drifts.
What is the difference between capability and misconduct?+
Capability is about whether the employee can do the job. Misconduct is about whether they are choosing not to follow rules or standards. The distinction matters because they require different processes. Getting this wrong from the start creates problems later.
When should a business owner get HR advice about a performance issue?+
As early as possible. The earlier you get clarity on the right approach, the more options you have. Waiting until the situation has deteriorated, or until you have already taken steps without a proper process, limits what can be done fairly.
You might also be dealing with
These situations often come up alongside each other.
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