How to Improve Performance for Underperforming Employees

Underperforming employees can impact your team’s productivity and overall company morale. Research from CultureAmp, a company specializing in employee engagement, found that about 4% of employees in an organization are considered underperformers. Understanding the causes of underperformance and taking the right steps can help managers turn struggling employees into strong contributors.

Table of Contents

• Recruiting with Clarity to Prevent Underperformance
  
  

• What Causes Employee Underperformance?

• How to Address Motivation Issues

• Aligning Roles with Employee Strengths

• The Role of Management in Performance

• Using Performance Improvement Plans to Support Growth 

• Measuring Improvement and Setting Expectations

• Final Thoughts

• Frequently Asked Questions (FAQs) About Improving Performance for Underperforming Employees

Recruiting with Clarity to Prevent Underperformance

One of the most effective ways to reduce underperformance is to ensure new hires are a strong fit from the start. This begins with a careful evaluation of the role itself. Managers should clearly define the skills, experience, and traits needed to succeed and consider not only technical abilities but also how the candidate will align with team dynamics and company culture.

During the hiring process, ask questions like:

• Does this candidate have the skills to perform key responsibilities independently?
• Do they have a track record of success in similar roles?
• Will they thrive in our company culture and team structure?

Taking the time to match the right person with the right role can prevent frustration for both the employee and manager. Additionally, providing realistic role previews during recruitment and early onboarding ensures employees know what to expect and can engage fully from day one.

Using tools like Excelforce's HR Software for preboarding and onboarding can streamline this process, while using our Recruitment tool can help managers assess candidates effectively and ensure they meet role criteria before making an offer.

What Causes Employee Underperformance?

The CultureAmp study highlights three main reasons employees may underperform:

1. Lack of motivation due to unclear career paths

2. Roles that do not align with their strengths

3. Limited support from managers

Identifying the root cause is the first step to helping underperformers improve.

Check out: Quiet vs. Loud Quitting: Strategies for Employee Retention

How to Address Motivation Issues

Employees who are disengaged often struggle to see how their work contributes to company goals. Managers can improve motivation by clearly communicating objectives and showing how individual performance impacts the team and organization.

One effective strategy is to analyze the employee’s workflow to pinpoint areas where expectations are not being met. Pairing the underperforming employee with a high-performing colleague can help develop skills and confidence in those areas.

Regular check-ins are also essential. Asking questions like, “Do you feel your work aligns with your career goals?” can reveal barriers and spark productive conversations.

Aligning Roles with Employee Strengths

Sometimes underperformance occurs because an employee’s tasks do not fully align with their natural strengths or interests. When employees feel their role does not match what they expected or enjoy doing, engagement can drop. This often points to gaps in communication during hiring or onboarding, or a need to adjust responsibilities so employees can contribute where they perform best.

Managers can help by:

• Identifying the employee’s core strengths and interests

• Reassigning tasks to better align with their abilities

• Providing targeted training to fill skill gaps

This approach ensures employees are contributing where they are most effective and feel valued for their work.

The Role of Management in Performance

Management quality has a direct impact on employee performance. Poor management is frequently cited in exit interviews as a reason employees leave. If an underperformer struggles despite strong effort, the manager may not be providing the necessary guidance, feedback, or resources.

To address this, organizations can:

• Review feedback from other team members to identify patterns

• Offer leadership development programs for managers

• Reassign employees to different managers if interpersonal chemistry is an issue

Recognizing management gaps and addressing them benefits the employee, team, and overall organization.

Read: How to Resolve Intergenerational Conflict At Work

Using Performance Improvement Plans to Support Growth

When an employee consistently struggles to meet expectations, a structured approach can help guide them back on track. A Performance Improvement Plan, or PIP, is more than a formal document—it’s a roadmap for success that clarifies goals, outlines steps for improvement, and provides measurable benchmarks.

Key principles for implementing a PIP effectively:

• Focus on growth, not punishment. Frame the plan as a development tool, emphasizing skill building and career growth rather than disciplinary action.

• Set clear, achievable goals. Define specific tasks, timelines, and standards so the employee knows exactly what success looks like.

• Provide consistent support. Schedule regular check-ins, offer mentoring, and give feedback frequently to reinforce progress and address challenges early.

• Celebrate milestones. Recognizing small improvements encourages momentum and maintains motivation.

• Adjust roles if needed. Sometimes performance issues reveal a mismatch between strengths and responsibilities. A PIP can highlight areas where task adjustments or additional training could help.

Handled well, a PIP can transform underperformance into an opportunity for professional growth, protect team morale, and foster a culture of accountability and support.

Measuring Improvement and Setting Expectations

Tracking progress is key to ensuring interventions are effective. Set clear, measurable goals for underperforming employees and schedule regular follow-ups. Celebrate small improvements to reinforce positive behavior and encourage continued growth.

Final Thoughts

Underperformance is rarely a simple issue of employee effort. More often, it reflects a mix of misaligned roles, unclear expectations, and managerial gaps. Addressing these challenges proactively not only helps the individual employee succeed but also strengthens team dynamics, morale, and retention. Investing the time and resources to guide underperformers toward improvement creates a stronger, more resilient workforce and benefits the organization as a whole.

Read Next:

• How to Resolve Intergenerational Conflict At Work

• Quiet vs. Loud Quitting: Strategies for Employee Retention

• How to Create a Salary Policy That Promotes Pay Equity and Builds Trust

Frequently Asked Questions (FAQs) About Improving Performance for Underperforming Employees

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