How to have “that” conversation

We hire people because of many reasons, it doesn’t usually come down to one key factor. Your latest hire probably landed the role because of a mixture of their achievements, skills, experience and team fit. So, it’s never easy to see that that person is underperforming in some way. Perhaps their work is slipping, they’re showing up late or missing deadlines, or they’re making the same mistakes over and over again. It’s your role as a leader to step in and have that difficult conversation, in the hope that you can support them back to being a top performer.

There’s no denying that it’s one of the more difficult things to do as a leader, and frankly, nobody enjoys it. But if you don’t handle it properly, it could backfire on yourself, your team, and your organisation. Nor are you doing the employee any favours by ignoring the concerns rather than tackling the difficult conversation with them.

So, here’s how you can approach underperformance and turn challenging conversations into opportunities for development whilst avoiding legal disputes, such as unfair dismissal or bullying claims:

#1 Preparation is Key

Before initiating any conversation about performance, plan your approach carefully. Outline the discussion points, and choose a setting that ensures privacy and minimises stress for the employee. Before you decide to schedule a meeting you should have confirmed how serious the problem is, how long the problem has existed, and what is the gap between what’s expected and what’s being delivered. You must then gather specific details of when this is happening and why it’s a problem, along with evidence.

When it comes to scheduling this meeting, timing is crucial – avoid periods just before leave or deadlines. For sensitive conversations, the end of the day might allow the employee some personal space afterward.

#2 Clarity and Specificity

Avoid vagueness or “sugar coating” the difficult feedback, even though it may feel kinder. Be clear and specific about where the performance is lacking and what ‘good’ looks like. Use objective, evidence-based examples to illustrate your points. Remember, feedback should be constructive and aimed at improvement, not criticism for its own sake.

Ahead of any disputes employees should have clear targets, responsibilities, and goals to reference and work towards. Have this documented on both ends so you both have a clear benchmark for success. This will not only help you navigate underperformance conversations but also gives both parties clear signs of when the employee should be rewarded, promoted, retargeted etc. It’s generally good practice and keeps everyone on the same page.

A top tip from the Fair Work Australia ‘Managing Underperformance’ guidelines:

‘Use everyday language to avoid alienating both managers and employees. For example, if terms such as ‘KPIs’ (Key Performance Indicators) aren’t part of everyday language in your workplace, don’t use them in performance agreements or discussions.’

#3 Fairness and Openness

Listen actively to the employee’s side of the story. They might reveal underlying issues affecting their performance, such as personal struggles, workplace bullying, low confidence, health issues, low morale, or lack of skills/knowledge for their role. An open dialogue ensures fairness and can uncover solutions that might not have been apparent initially.

Remember that the purpose of this conversation is to get to the root of the problem and rebuild from there, if that involves changes to management style or team dynamics then you’re just as responsible to make those changes as the underperforming employee. Don’t go in with your walls up expecting one single outcome.

#4 Document Everything

Keep detailed records of all performance discussions and agreed-upon action plans. These records are crucial for tracking progress, making further decisions, and protecting both parties in case of disputes.

#5 Seek Expert Advice

Managing underperformance can be difficult, especially when there’s a risk of legal repercussions. We would always recommend that you seek advice from HR professionals experienced in performance management to ensure you’re following best practices and protecting your organisation from potential claims.

Developing and maintaining essential skills in performance management is a key responsibility of any leader. We offer bite-sized learning courses on many essential training areas including Crucial Conversations and Performance Management.

These compact, 1-hour sessions are designed to deliver concentrated and practical insights on various topics, making professional development accessible and manageable, even for the busiest teams. Alternatively, for tailored advice you can chat with one of our HR consultants here.

#6 Regular Check-ins and Feedback

While some employees thrive under autonomy, others may need more guidance and support, particularly on the back of a performance management process. Tailor your management approach to individual needs, ensuring that each team member feels valued, understood, and motivated. Autonomy doesn’t mean isolation. Regularly check in with your team, offer constructive feedback, and adjust strategies as needed. This creates a supportive environment where employees feel confident to tackle challenges and take ownership of their growth, whilst also avoiding ‘out of the blue’ disputes and sudden decline in performance. Communication really is key.

By following these steps, leaders can effectively manage underperformance, turning difficult conversations into constructive pathways for improvement. Embrace the opportunity to support your team’s development and create a culture of accountability and continuous learning in your organisation. At every stage keep in mind that the goal is to support the employee back to peak performance, not to replace them. This will save you tenfold in hiring and onboarding, not forgetting that you can’t put a price on the culture win for an organisation that shows it genuinely cares about its employees.

For more insights and strategies on performance management or crucial conversations, explore our tailored training solutions or consult with our HR experts.