Employee Not Performing? What Employers Should Do

The answer depends on what is causing the performance problem, what has happened so far, and the individual circumstances. Getting this wrong can turn a relatively straightforward performance issue into a formal grievance, discrimination allegation, or costly Employment Tribunal claim.

Nectar HR helps UK employers deal with performance problems practically, fairly, and with a legally robust plan.

My employee isn't performing. What should I do?

Start by identifying exactly what the problem is. Avoid broad, emotional statements such as “They're just not good enough”, “They aren't performing”, or “They're not right for the role”. Instead, identify the specific gap between the standard you reasonably expect and what the employee is actually delivering.

Evaluate these measurable indicators:

• Are critical deadlines regularly being missed?
• Is the quality of their work consistently below the required standard?
• Are they making repeated, avoidable errors?
• Are agreed targets, deliverables, or KPIs not being achieved?
• Are customers, clients, or team colleagues raising formal concerns?
• Are they struggling with a specific part of their role or newly introduced tools?
• Has their day-to-day performance recently deteriorated after a period of consistency?

Specific, documented examples make it significantly easier to conduct a fair, constructive, and productive conversation.

Is it poor performance or misconduct?

This distinction is critical under UK employment regulations:

Applying a disciplinary sanction to an employee with a genuine capability issue can damage tribunal defensibility. Correct diagnosis at the start ensures the proper HR procedure is adopted.

Speak to the employee (The Informal Conversation)

In most instances, the initial step should always be an informal, supportive performance discussion. Explain clearly:

1. What the precise concern or shortfall is.
2. The measurable standard expected of their position.
3. Specific, date-stamped examples where standards were not met.
4. The exact improvement and turnaround you need to see.

Always give the employee a genuine opportunity to respond. There may be workplace factors you are unaware of—such as inadequate onboarding training, changing role remits, excessive workloads, or personal circumstances affecting their focus. Never assume the cause prior to this discussion.

Give the employee a genuine opportunity to improve

If clear improvement is required, outline expectations transparently in writing. Depending on the scenario, practical support could include:

• Clear, realistic objectives and measurable milestones
• Targeted supervisory coaching or refresher training
• Structured weekly or fortnightly 1-to-1 review meetings
• Temporary adjustments to working arrangements where practical
• A reasonable, agreed timeline to demonstrate improvement

Always keep written, contemporaneous records of everything discussed, agreed upon, and reviewed.

Do I need a Performance Improvement Plan (PIP)?

Not every performance issue warrants an immediate formal Performance Improvement Plan. Frequently, structured informal management resolves minor snags without unnecessary formality.

However, if performance concerns persist despite informal support, a formal PIP becomes necessary. A legally defensible PIP must detail:

• The precise performance gaps and required benchmarks
• The objective measurement criteria (KPIs, deliverables, timelines)
• The active management support and training provided
• Fixed review intervals and final evaluation dates
• The clear potential outcomes if required standards are not met

“A PIP must represent a genuine opportunity for an employee to improve, rather than a tick-box paper exercise designed solely to justify a predetermined dismissal.”

What if their performance still doesn't improve?

If informal support and a structured PIP fail to produce acceptable standards, it may be necessary to transition into a formal capability procedure under your organisation's capability policy.

This path may involve formal capability hearings, written warnings, and potentially dismissal on capability grounds. An employer must be able to demonstrate both the shortfall and the comprehensive support provided before taking dismissal action.

Can I dismiss an employee for poor performance?

Potentially, yes. Capability is one of the five potentially fair reasons for dismissal under the Employment Rights Act 1996. However, whether a dismissal is legally fair depends upon the reasonableness of the procedure followed, the validity of evidence, and whether fair opportunities to improve were given.

For an in-depth breakdown of legal dismissal criteria, qualifying service rules, and protected exit routes, consult our complete guide on Can I Dismiss an Employee for Poor Performance? →

Five mistakes employers make with poor performance

When should you obtain professional HR advice?

We strongly recommend seeking professional HR counsel early if:

• You are actively considering dismissal or issuing a final written warning
• The employee has disclosed a physical or mental health condition
• The employee has submitted a formal grievance or cited discrimination
• Whistleblowing or statutory health and safety concerns have been raised
• The employee is pregnant or returning from family-related leave
• You are unsure whether the problem stems from capability or misconduct

Early intervention is far more cost-effective than attempting to remediate an unravelling tribunal process.