Dear Denise – Your HR Agony Aunt | Edition 10: When Does Poor Performance Become a Formal Issue?

When an employee who normally performs well suddenly starts struggling, it can be difficult for employers to know whether to address the issue formally or give them some time and space.

This month’s Dear Denise – HR Agony Aunt from BeyondHR looks at how employers should approach a sudden drop in performance, why an informal conversation should usually come first and when it may be appropriate to move to a formal performance process.


Dear Denise,

One of our long-standing employees has always performed well, but over the past few weeks we have noticed that their performance has dropped.

We have not addressed it yet because it is out of character, and we have heard there may be some problems at home, although the employee has not mentioned anything to us directly.

We do not want to ignore the issue, but we also do not want to make things more difficult if they are going through a difficult time personally.

What is the best way to approach this, and when should it become a formal performance issue?

Business Owner, Renfrew


Dear Business Owner,

When someone who normally performs well suddenly begins struggling, I would not recommend jumping straight into a formal performance process.

The issue should still be addressed, but your first step should usually be an informal conversation to understand what has changed and whether there is anything affecting their ability to do their job.

Start With an Informal Conversation

Arrange a private meeting and explain the changes you have noticed, using specific examples such as missed deadlines, increased errors or a drop in productivity.

Avoid mentioning rumours about problems at home. Instead, explain that their performance is normally strong, you have noticed a recent change and you wanted to check whether everything is okay.

This gives the employee an opportunity to explain what may be affecting them without feeling pressured to discuss their personal life.

Consider What Support May Help

There could be many reasons for a change in performance, including personal difficulties, health concerns, workload pressures, unclear expectations or a need for additional support or training.

If the employee tells you they are going through a difficult period, consider whether reasonable temporary support could help. This might include:

• Reviewing their workload or priorities.
• Providing additional training or supervision.
• Offering some temporary flexibility.
• Agreeing regular check-ins.
• Providing access to an Employee Assistance Programme, if available.

Being supportive does not mean ignoring poor performance. You can recognise an employee’s circumstances while still being clear about what the business expects.

Set Clear Expectations

Even if you keep the matter informal, the employee should understand what needs to improve.

Explain:

• The performance concerns.
• The standard expected.
• What improvement is required.
• What support will be provided.
• When you will review their progress.

Keep a brief note of the conversation, including any support agreed and the review date. This can help avoid misunderstandings and provides a record if the issue later needs to become formal.

What If They Mention a Health Condition?

If the employee explains that a physical or mental health condition is affecting their performance, take additional care.

A health condition may amount to a disability under the Equality Act 2010, which could mean you have a duty to consider reasonable adjustments.

Depending on the circumstances, you may also need to obtain medical or occupational health advice before taking further action.

When Should It Become Formal?

Formal performance action may become appropriate where:

• The employee has been made aware of the concerns but performance has not improved.
• They have been given a reasonable opportunity to improve.
• Appropriate support or training has been provided.
• Clear expectations and timescales have been set.
• Informal discussions have not resolved the issue.

At that stage, you should follow your organisation’s formal performance procedure and policy and clearly explain the concerns, required improvements, support available and possible consequences if improvement is not achieved.

It is also important to distinguish between poor performance and misconduct. Poor performance is generally a capability issue where someone is struggling to meet the required standard, whereas misconduct may involve deliberately failing to follow instructions or workplace rules.

Do Not Leave It Too Long

While you do not need to move straight to a formal process, avoid allowing the situation to continue without addressing it.

An early, supportive conversation gives the employee the opportunity to understand your concerns, explain what may be happening and improve before the issue becomes more serious.

Agree a reasonable time to review their progress. If their performance returns to its usual standard, no further action may be needed. If it does not improve despite clear expectations and appropriate support, you can then consider moving to a formal performance process.

In your situation, I would start with a private, informal conversation focused on the change in performance you have observed, rather than what you have heard about their personal circumstances.

Give them an opportunity to explain, consider what support may be appropriate and set clear expectations for improvement.

Denise
Your HR Agony Aunt at BeyondHR

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