5 Reasons to Manage Employee Performance

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5 Reasons to Manage Employee Performance

Why managing poor performance is a good idea and how it leads to better performance

Most people are clear that managing staff or employee poor performance is difficult, but many wonder how it relates to everything else in the organisation, including your performers. There are a multitude of reasons to manage staff performance, and it is as important in a small business as it is in a medium or larger business. Here we delve into 5 reasons to manage poor performance and how it’ll impact your business – for the better.

It’s sets the scene

Managing poor performance will set the standards and scene for other employees. There are a number of reasons for staff underperforming, either work related or personal issues and often other staff will suffer the consequences of poor performers, as they pick up the workload, make excuses for others. Underperforming staff might show in different ways, not doing work at all, poor quality of work, not meeting deadlines or poor attitude and below the line behaviours. Picking up another employee’s work will increase stress levels and decrease satisfaction. By managing underperformance you’ll set the scene for others and this’ll go a long way to improving culture. 

Improve your culture

When staff see that other employees can ‘get away with’ not doing performing they might react in a number of different ways. Some will pick up the additional work, review and edit the underperforming staff member’s work, make a resolve themselves to drop their own performance or develop negative attitudes and behaviours.  If you start to tackle below the line behaviours in the workplace you’ll create a good culture by drawing a line in the sand. Start with having everyone attend the same training, building a common language and empowering staff to call out bad behaviours.

Improve team and organisational outcomes

If you don’t start to manage poor performance team productivity and organisational outcomes will suffer. I’ve often asked the question of managers, ‘will the situation improve if you don’t do anything?’ Their answer is always no, but it doesn’t mean the process is easy. Managing performance through training and support, performance improvement plans or going through a more formal HR performance management processes or warnings will either improve staff performance or manage the staff member out. Read more here for our tips and tricks to getting this right!

Gain trust

Similar to improving culture, a manager or small business owner who manages staff performance will build trust from other staff members as they’ll see something being done where there is a problem. Be mindful of confidentiality and not shouting from the rooftops that you’re managing Sally’s performance, but where staff have raised an issue it’s ok to tell them you’re managing it. Building trust leads to a more close knit team and loyalty.

Improve staff retention rates

Staff who feel valued and connected to the business mission and values stay longer and are happier and more productive at work.

By showing you are serious about performance and outcomes you’ll send a good message to high performing staff, they’ll feel more valued rather than devalued by picking up other people’s slack.


As always, if you need some help, get in touch.