Poor performance in the workplace can impact team morale, productivity, and your bottom line, but jumping straight to formal warnings or termination can create unnecessary legal risk. The best approach is to first manage performance informally and constructively, giving employees a fair opportunity to improve.
Step 1: Identify the Issue Clearly
Performance concerns should be based on objective evidence, not assumptions. This may include:
- Missed deadlines
- Poor-quality work
- Repeated mistakes
- Feedback from clients or coworkers
Avoid vague labels like “bad attitude” and instead, describe the specific behaviours affecting performance or the business.
Step 2: Have an Early, Informal Conversation
A private, respectful conversation can often resolve issues before they escalate. This is not a disciplinary meeting, but an opportunity to:
- Highlight your concerns
- Ask if there are underlying issues (e.g. training needs, personal stress)
- Reaffirm expectations
Be clear but supportive. This sets the tone for collaboration, not confrontation.
Step 3: Set Clear Expectations and Timeframes
After your initial conversation:
- Reiterate what needs to improve
- Implement ways to monitor improvement and clarify expectations (e.g. “Submit reports by COB Friday each week”)
- Set a realistic timeframe to review progress (e.g. 2–4 weeks)
Consider following up in writing with a summary of what was discussed- this isn’t a formal warning, but it shows due process and gives clarity to the employee.
Step 4: Provide Support
Underperformance isn’t always due to lack of effort. Consider what support the employee may need:
- Training or mentoring
- Adjusted duties or workload
- Regular check-ins during the review period
Employers have a duty to provide a safe and supportive work environment, including fair performance management processes.
Step 5: Monitor and Document Progress
Keep brief notes of:
- Conversations
- Feedback given
- Any agreed timeframes or outcomes
If performance improves, acknowledge it. If not, you’ll be in a stronger position to begin a formal performance improvement plan (PIP) or disciplinary process if required.
Why Process Matters
Under the Fair Work Act, employees are entitled to a fair process. Rushing to formal warnings or dismissal without taking reasonable steps to help them improve can lead to:
- Unfair dismissal claims
- General protections claims
- Damage to workplace culture
The Fair Work Ombudsman, AHRI (Australian HR Institute), and Safe Work Australia all recommend a staged, supportive approach to performance management.
Need Guidance?
Every situation is different. If you’re unsure how to approach underperformance in your business, contact us for tailored support and practical HR advice on 08 9316 9896 or enquiries@processworx.com.au. Also watch an Introduction to ProcessWorx.
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