Underperformance is one of those topics every manager knows they’ll have to deal with.
Handled badly, it can spiral into legal and compliance risk, damaged morale, and months of awkward conversations. Handled well, it becomes a fair, structured process that helps people improve, protects the business, and keeps teams moving forward.
The reality that most managers avoid? Most underperformance issues don’t start with poor effort or bad intent. They start much earlier, with unclear expectations, vague roles, missed feedback, or a lack of direction.
By the time performance becomes an issue, the real causes have usually been present for months, quietly compounding in the background.
This guide breaks how to deal with underperformance into three clear stages: preventing issues before they arise, handling underperformance constructively when it appears, and making tough decisions when improvement doesn’t happen.
It’s designed for UK employers and managers who want to do the right thing (for their people and the business) without turning every conversation into a headache.
Before performance slips: how managers can prevent underperformance
Provide clear targets and instructions from day one
Underperformance often starts with ambiguity. If employees aren’t clear on what’s expected (priorities, standards, deadlines), it’s hardly surprising when results fall short.
Clear targets and practical instructions set direction by removing guesswork. Ask yourself: would two different people interpret this in the same way? Of course not.
Make sure job descriptions are genuinely clear (and up to date)
A job description should be more than an onboarding checklist. Set a benchmark by providing clear performance, accountability, and development. If it’s vague or outdated from what the role actually involves, you’re setting both manager and employee up for a difficult conversation later…
Clear role definitions create fairness, and they give you solid ground to stand on if performance ever dips.
Identify skills gaps early and support them with the right training
Many performance issues are talent gaps you didn´t recognise. Do you understand and analyse which skills your employees need to succeed and where the gaps are?
Addressing those gaps early and agreeing (together) on a development plan shows commitment and builds trust. It also shifts the conversation away from blame and towards improvement, which is exactly where it should be.
Give regular feedback (not just an annual review meeting)
If feedback only happens once a year, you’re already too late and way behind the problem. A one-year performance review is rarely enough to manage performance effectively.
Regular check-ins, one-to-ones, and informal feedback keep expectations aligned and issues away. No employee likes nasty surprises (especially when they could have been avoided months earlier).
Address underperformance early (but don’t jump straight to discipline)
Spotting underperformance and doing nothing is a classic HR nightmare. Issues rarely resolve themselves. That said, first-time or early underperformance shouldn’t automatically become a disciplinary matter.
So, under the ACAS Code of Practice, employees should be informed of performance concerns and given a fair opportunity to improve. Early conversations should focus on support, clarity, and improvement.
Have clear written disciplinary and performance procedures
Finally, don’t rely on “common sense” alone. Written disciplinary rules and performance procedures create consistency, confidence, and compliance.
They help managers know how to act, reassure employees that they’re being treated fairly, and protect the organisation if issues escalate.
When everyone understands the process, managing performance becomes far less daunting and far more effective.
Get these elements right, and you’ll prevent many underperformance issues before they ever reach your desk. That’s not just good HR practice. It’s a smart, scalable way to protect performance across the business.
When you have to address the issue, handle it carefully and constructively
Hold the conversation in a private, quiet setting
Where the conversation happens sets the tone. Performance discussions should always take place in a private, distraction-free environment. This signals respect, protects confidentiality, and helps employees feel safe enough to engage honestly, which is essential if you want a productive outcome.
Clearly explain what happened
Be factual and specific. Outline what occurred, why it didn’t meet expectations, and what needs to change going forward. This isn’t about revisiting mistakes for the sake of it. It’s about creating clarity. Employees can’t improve if they’re unsure where the line is.
Use one-to-one meetings to create open dialogue
One-to-one meetings create space for real conversation rather than defensiveness. They allow you to address concerns calmly, ask questions, and keep the discussion focused on improvement rather than escalation.
Ask for their perspective (and listen carefully)
Ask the employee how they see the situation and listen carefully to their response. You may uncover blockers, conflicting priorities, or support gaps that weren’t previously visible.
Understand their goals and manage expectations
Sometimes performance dips because employees don’t see how they can grow within the business. Explore what they want to achieve and how their role fits into that journey. Managing expectations around development, progression, and opportunity can be key to re-engaging performance.
Create a clear, actionable roadmap for improvement
Improvement plans work best when they’re collaborative. Develop a clear roadmap that sets out expectations, actions, timescales, and support. Make sure it’s mutually agreed. Shared ownership makes progress far more likely.
Keep the focus on improvement, not blame
Blame switches people into defence mode and stalls progress. A constructive approach keeps the conversation productive and reinforces that the goal is improvement (not punishment). That mindset alone can make a significant difference to outcomes.
When there is no progress
When all else fails: reassignment or dismissal
Sometimes, despite clear expectations, support, feedback, and time, performance simply doesn’t improve. When you reach that point, there are usually two realistic options left on the table: reassignment or letting the employee go.
Neither is easy, and neither should come as a surprise if performance has been managed properly up to this stage.
Before jumping to dismissal, it’s worth asking an important question: is this a role problem, rather than a performance problem? An employee may be underperforming because the role no longer plays to their strengths.
In some cases, they could be a better role within the organisation, with different responsibilities, expectations, or pressures.
Reassignment won’t always be possible, but where it is, it can be a pragmatic solution that retains experience and avoids unnecessary churn.
If reassignment isn’t viable (or hasn’t worked), dismissal may become your last option. This is never the ideal outcome, but in some situations it is the most realistic and fair solution for everyone involved, including the wider team.
Persistent underperformance can drain morale, slow delivery, and create resentment if left unresolved.
From an HR perspective, this is where evidence matters. Simply approaching HR with an email or a call saying “this isn’t working” is unlikely to get you very far. HR teams need to see that the organisation has acted reasonably and consistently.
FAQ
What does underperformance mean?
In simple terms, underperformance is when an employee’s performance doesn’t meet the expectations of their role. That might relate to output, quality of work, behaviour, or results.
That’s why many employers use a ranked or structured performance system. When performance is measured against defined criteria, it becomes much easier to identify underperformance early and address it without ambiguity.
What causes employees to underperform?
Underperformance is rarely about a lack of effort alone. More often, it’s driven by structural or managerial issues, such as unclear goals, vague or outdated job descriptions, or leadership that doesn’t provide direction or support.
Personal issues can also play a role, particularly when employees don’t feel able to raise concerns or ask for help. Understanding the root cause matters, because the response depends on why performance has dropped, not just the fact that it has.
Can you fire an employee for underperforming in the UK?
Yes, but only if you follow a fair and well-documented process.
In the UK, you can lawfully dismiss an employee for underperformance, as long as you have clear reasons and follow a fair process.
That means setting expectations, raising concerns, giving the employee a genuine opportunity to improve, and documenting every step. If you fail to do this, you risk an unfair dismissal claim.
This is especially important now. Recent changes mean employees can bring an unfair dismissal claim after six months’ service, not two years as before. Starting in 2027.
Previously, dismissing someone within their first two years was relatively low risk. That is no longer the case. The bar for process, evidence, and fairness is much higher.
