Managing Underperformance Guide
The initial informal approach to underperformance allows for open communication, gives the employee a chance to self-correct, and builds trust, creating an opportunity for improvement before formal performance improvement steps are necessary. Managing underperformance with informal steps involves addressing performance issues early in a supportive, constructive way. Points to include when having informal conversations can be:
- Including positive reinforcement, acknowledging strengths or past achievements.
- Describing the specific performance concerns with concrete examples.
- Focusing on behaviours or results, avoiding assumptions or personal criticisms.
- Encouraging the employee to share their perspective on the situation.
- Asking open-ended questions to explore potential barriers or challenges they are facing.
- Showing empathy and being open to factors you may not have considered, like workload or personal concerns.
Reiterate the expectations or goals they are expected to meet. Make sure they fully understand what is required and why it is important for their role and the team. Offer resources, training, or tools that may help them succeed. Suggest practical steps they can take to improve, such as focusing on specific tasks or adjusting their workflow.
Document any conversations that have been had. Whilst they are informal, it is important to keep note of any performance issues raised. Keep track of their efforts and progress informally to see if the issue resolves. Offer praise for improvements, and if issues persist, consider moving to more formal steps if needed.
If you have followed the informal steps and the employee’s performance has not improved it may be necessary to begin the formal process. The following document has been created to help you confidently plan and conduct a formal underperformance meeting with your employee and document the issue.
Before the meeting
- Arrange a time to meet with the employee in a place where you will not be interrupted, overheard or rushed. Consider having another member of the leadership team to attend as a witness and note-taker.
- Provide the employee with the Invitation to Formal Meeting letter.
- At least 24 hours notice must be given to the employee.
- This letter is to be sent via email for our records. You can verbally tell the employee that you would like to meet and follow up with the email.
- This letter states exactly why you want to meet with them and who will be at the meeting.
- The letter also alerts the employee to bring a support person* of their choice to the meeting if they would like to.
*See Performance Improvement Policy for the role of the support person
- Carefully plan what you want to say at the meeting using the Performance Improvement Plan (PIP) template. See Performance Improvement Guide for further guidance.
- Gather relevant evidence to have clear facts to deliver to the employee. These can include:
- the employee’s performance agreement
- position description
- policies and procedures
- any performance improvement plans
- any documents that demonstrate the underperformance eg. work examples or complaints.
The key to this stage is to base your conversation around the facts.
During the meeting
- Announce that this meeting will be recorded for documentation and reference purposes.
- Clearly explain why you have planned the meeting with the employee.
- Describe the underperformance issue and clearly explain why it is an issue using specific examples and focusing on facts.
- Set out any steps you have taken so far to resolve the issue (eg. feedback and warnings) as well as the support you have provided (eg. training).
- Invite the employee to respond to what you have said and to explain their performance and ask them what they think can be done to improve it.
- Consider what the employee has said. If you need more time to think about or look into what the employee has said, conclude the meeting and agree to meet again in a day or two.
- Decide on a way forward with the employee, including if you will provide any further assistance or support or make any adjustments to current practice. Record this using the Performance Improvement Plan.
- Will you be issuing a warning? Let the employee know. Provide them with a written warning using the Formal Warning template, or record a verbal warning.
- Explain what will happen next if the employee’s performance does not improve (eg. a further warning, termination).
- Ask the employee to sign the Performance Improvement Plan. If the employee refuses, make a record of the refusal.
After the meeting
- Follow up the outcome of the meeting via email, and invite the employee to respond. Include:
- Performance Improvement Plan, and any of the below that apply:
- What was discussed (including any issues raised by the employee).
- What the employee needs to do to improve their performance.
- Any support or assistance you’ll provide.
- Whether a verbal or written warning was, or will be, issued.
- What will happen next if the employee’s performance does not improve.
- Upload the meeting recording using the Meeting Log & Recording Form
- Upload to the employee’s Xplor profile (under "Performance) any:
- Notes of the meeting
- Documents, ie Performance Improvement Plan
- Copies of any letters, emails or warnings
- Give the employee a reasonable period of time to improve their performance - typically 2 - 3 weeks. Regularly check-in with the employee over that period to discuss how they are progressing.
- Formally meet with the employee again at the end of the period to review their performance. Provide them with Notice of Meeting, following required notice protocol.
- If the employee’s performance has improved enough, close the process. Follow up in writing and clearly explain that they must maintain the improvement.
- If the employee’s performance has not improved, consider taking further action.
End of Employment
When considering the end of employment following an unsuccessful Performance Improvement Plan, it is essential to approach the process with sensitivity, fairness, and adherence to legal matters and Woodlands policies. A structured approach ensures the end-of-employment process is handled fairly, professionally, and in compliance with relevant policies. This can also help minimise any potential risks and preserve a respectful relationship with the departing employee.
Steps for Considering End of Employment After Performance Improvement
Final PIP Review
- Schedule a final meeting to review the PIP outcomes with the employee, providing a summary of the goals set in the PIP and the progress (or lack thereof) toward those goals.
- Present specific examples of how the performance gaps have or have not been addressed, with documentation gathered throughout the PIP.
- Allow the employee to share their perspective on the PIP and any challenges they faced in meeting the goals. This ensures the process remains fair and transparent and that any unconsidered factors are addressed.
Consult with People and Culture
Before moving forward, consult with People and Culture to ensure that all processes align with Woodlands policies, employment laws, and any contractual obligations. Confirm that all documentation, including the original performance concerns, PIP records, and meeting notes, are complete and stored correctly.
Based on the PIP outcome and advice, decide whether termination is the appropriate step. Ensure the decision is consistent to maintain fairness.
- Complete the Termination of Employment with Notice Template that outlines the reason for the decision, referencing the unsuccessful PIP, and briefly summarising the performance concerns that led to this step.
- Plan a meeting with the employee, following notice period guidelines, to deliver the decision respectfully and provide any necessary information about their final pay, benefits, and next steps.
- In private, inform the employee of the decision. Clearly explain the reason for the termination, referencing the PIP process and the support provided.
- After the meeting, document the discussion and ensure that all related documents are filed appropriately in the employee’s record.
- Upload the meeting recording using the Meeting Log & Recording Form
Invitation to Formal Meeting Template
Performance Improvement Plan Template