How HRBPs and Managers Should Address

Underperformance Before It’s Too Late

Published 17 October 2022 - ID G00777448 - 9 min read
HR Practitioner Research Team

Turning around a single employee’s underperformance can

improve an entire team’s performance. HR professionals should
help managers identify underperformance early, provide tools to
diagnose its causes and collaborate to create effective
performance improvement plans.

Underperforming employees negatively impact not only their manager but also their
teams. The employee, for example, produces poor-quality outputs that require rework by
others, distracts colleagues with excessive demands for support or fails to contribute to
others’ performance with ideas and skills. In addition, the failure to manage
underperformance can cause disengagement on teams whose members become
frustrated with underperformers or dissatisfied with management support.

Underperformance: An assessment of an employee’s performance that consistently and

significantly does not meet standards (i.e., employee behaviors and outcomes that
repeatedly fall significantly short of the expectations set for the employee’s role)

Some organizations, especially during periods of transformation or due to external

factors, may experience higher levels of underperformance. Most HR business partners
(HRBPs) do not report high levels of underperformance. On average, 5% of employees in
HRBPs’ business units are underperforming. 1 Similarly, 41% of CHROs report that 6% or
more of their workforce underperformed in the most recent performance cycle. 2

HRBPs should support managers throughout the entire process of addressing employee
underperformance:

■ Educate managers to identify early underperformance signals. Only 29% of

managers can effectively identify the performance of employees who are
underperforming. 1 HRBPs should explain how to evaluate the consistency and
severity of employees’ behaviors.

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■ Provide managers with tools to diagnose underlying causes of performance. Few
managers (13%) can effectively improve the performance of employees who are
underperforming. 1 HRBPs should work with managers to take the critical step of
understanding what’s causing the underperformance.

■ If underperformance continues, collaborate with managers to design and

implement performance improvement plans (PIPs). Employees may not be able to
turn around underperformance after the manager’s initial interventions. HRBPs
should recommend PIPs only after other options have been exhausted.

Educate Managers to Identify Early Underperformance Signals

If managers notice a pattern in these underperforming behaviors quickly, they should act
to correct employee underperformance before it becomes a larger problem for the team
and organization. Identifying early signs of underperformance is not always easy, as one
moment of poor performance does not necessarily reflect an underperformance problem.

HRBPs should educate managers to accurately identify the severity of underperformance

early by regularly evaluating employees against set expectations for outcomes and
behaviors. Managers should consider two key questions to evaluate the severity of
underperformance:

■ How pervasive or consistent is the observable behavior?

■ How far from standard expectations is the performance?

Based on this assessment, HRBPs should help managers plot the observable behaviors to
understand if they have correctly identified underperformance and its severity (see Figure
1).

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Figure 1. Plot of Observable Behaviors to Determine Severity of Underperformance

Provide Managers With Tools to Diagnose Underlying Causes of

Performance
Most organizations (68%) provide managers with guidance on how to communicate
underperformance to employees during formal performance reviews and informal
meetings. 1 However, less than half (39%) of organizations provide managers with
guidance on how to identify the root causes of employees’ underperformance. 1 Once
managers are sure the employee is underperforming, they should not make immediate
recommendations; instead, they should work with the employee and HR to properly
diagnose what is causing the performance problem. While some managers might hold
back from doing so, they should understand that timely and accurate diagnosis is
essential to avoid prescribing ineffective solutions.

Because diagnosing underperformance in real-life challenges is complex and can have

far-reaching implications for employees’ jobs and careers, HRBPs should partner closely
with managers to ensure accuracy. HRBPs can prepare managers in two key areas.

Equip Managers With a Conversation Guide

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A conversation guide helps get the employee’s perspective on reasons for
underperformance (see Table 1). These conversations should be conducted with utmost
care without overstepping boundaries. For instance, an employee’s underperformance
could be attributed to a sudden increase in care-giving responsibilities or deteriorating
well-being. Managers need to lead these conversations with empathy so employees
understand the purpose of the conversation is to provide support, not reprimand.

Table 1: Feedback Conversation Guide to Understand Reasons for Underperformance

Feedback Components Scripting Guide to Gather Reasons on

Underperformance

Problem/Example “I wanted to discuss your project

management skills. Your last two
deliverables were a week late and you didn’t
let me or your teammates know about
possible timeline extensions beforehand.”

Impact “The slow turnaround of the deliverables

caused one of your teammates to work
beyond office hours twice last week.
Repeated actions like this can hurt your
professional reputation and detract from the
good quality of your work.”

Contribution “I think the main problem here is a lack of

effective communication and focus. What do
you think is contributing to your actions? Is it
your co-workers, a lack of resources or the
work environment?”

Invitation “I’d love to hear your perspective and discuss

next steps.”

Source: Gartner

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Underperformance may stem from mental health challenges, and in these instances it
should be approached as a matter of employee well-being. HRBPs and managers should
encourage employees in these circumstances to take advantage of the organization’s
mental health benefits, if applicable, and give them the opportunity to address the
underlying condition before turning to performance management. When doing so, HRBPs
and managers should be mindful of applicable privacy and anti-discrimination laws that
limit employers’ ability to ask employees about their mental health or require them to
provide reasonable accommodations.

Help Managers Analyze the Underperformance Challenges

Once initial information is collected from the employee, HRBPs should ask targeted
questions to ensure managers identify the challenge thoroughly and without bias. Enable
managers to arrive at a holistic assessment of employee underperformance by
categorizing the potential root causes in the four focus areas outlined in Figure 2. While
pressure-testing the root causes, HRBPs and managers should go beyond using the
reflective questions provided in Figure 2 and think of reasons the employee may be
struggling (e.g., care-giving responsibilities, financial anxiety).

Figure 2. Performance Issue Root Cause Diagnostic

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With the root causes duly vetted, HRBPs and managers should ideate on possible
solutions that align with the employee’s needs and personal circumstances. Possible
solutions include:

■ Informal Development Plan (IDP) — An IDP is an informal, yet specific and

actionable plan to develop particular areas. Use this when an employee is starting to
trend below expectations.

■ Performance Improvement Plan (PIP) — A PIP is a structured, formal plan that

results in performance improvement or termination. Use this when the employee has
established a trend of not meeting expectations

■ Transition to Another Role — Use this option for employees who are a good fit for
the organization but whose skills are not aligned with their current role.

HRBPs may also have to supplement existing guidance for managers with new solutions
if the root cause exercise reveals an issue not addressed by the current guidance. For
example, only 29% of organizations provide managers with guidance on what strategies
to share with underperforming employees for more effectively working from home or in a
hybrid environment. 1 At organizations with a large remote or hybrid workforce, some
workflows may create unnecessary friction that impedes the employee’s performance.

Collaborate With Managers to Design and Implement Performance

Improvement Plans If Underperformance Continues
Underperformance is not always intentional, and disciplinary actions should be the last
resort. One solution HRBPs and managers may agree upon is curating a PIP that provides
employees with a set of actionable measures that they can take to improve their
performance. However, organizations should only use PIPs when employees have
established a trend of not meeting expectations, without observable improvements after
implementing other solutions.

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Nearly all organizations (97%) provide managers of underperforming employees with
PIPs. 1 At most organizations (78%), HR and the direct manager place the
underperforming employee on a performance improvement plan. 3 Only 8% of
organizations assist with separation but are otherwise not involved. 3 As a part of this
shared responsibility, HRBPs help design and document the PIP based on their
conversations with the manager and the organization’s policies. Most PIPs include a
summary of past performance, general expectations of future conduct, required goals and
milestones, resources to achieve those goals and milestones, and the consequences of
not meeting them (see Figure 3).

Figure 3. Common Components of Performance Improvement Plans

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HRBPs and managers should ensure timely communication and implementation of the
PIP through regular candid performance feedback conversations with the employee that
are open, honest and conducted in psychologically safe environments. Managers and
employees should schedule weekly check-ins to go over the employee’s performance
relative to the goals laid out in the plan for the past week. Managers may also want to
collect feedback from team members, or encourage team members to informally provide
feedback to the employee, keeping the PIP itself confidential. During the PIP timeline, the
HRBP and manager should also schedule meetings with each other to discuss how the
employee is or is not progressing.

At the end of the PIP time period, HRBPs should schedule a meeting with the employee
and manager to evaluate whether or not the goals of the PIP have been met successfully.

■ If the employee has not met the goals established in the PIP, the manager should
follow the guidelines for consequences laid out in the PIP, except for extenuating
circumstances. If there is some reasonable justification for not having met the goals,
this should be handled either on a case-by-case basis or according to company
policy.

■ If the employee meets the goals every week, then after the PIP timeline has ended,
the manager and employee should discuss which elements of the PIP, if any, might
be helpful to continue. Then schedule one final check-in a few weeks later to make
sure the employee hasn’t relapsed into poor performance. Managers should reinforce
positive behaviors across teams to sustain performance improvements over time.

Only when underperformance has a significant negative impact on the business or a

team’s performance and productivity should managers and HRBPs consider the option of
terminating employment. HRBPs and managers should ensure all steps to address
underperformance are based on their commitment to drive team engagement and
productivity.

Recommended by the Authors

Preparing for Virtual Performance Conversations and Year-End Reviews

Driving Feedback Using Psychological Safety

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Endnotes
1
2022 Gartner Performance Management Strategy Benchmarking HRBP Survey; n = 31
HR leaders and HRBPs. The 2022 Gartner Performance Management Strategy
Benchmarking HRBP Survey was conducted online from 27 June 2022 to 12 August 2022,
and had 31 HR leaders and HRBPS as respondents, with representation from various
industries across 12 countries. The survey was designed and developed by Gartner’s HR
Practice research team.

2
2022 Gartner Q2 CHRO Survey; n = 109 CHROs. The 2022 Gartner Q2 CHRO Survey was
conducted to understand current performance management priorities and career pathing
strategies of leading organizations around the world. The research was conducted online
from 27 June 2022 to 29 July 2022, and had 109 HR leaders as respondents, with
representation from various industries across 18 countries. The survey was designed and
developed by Gartner’s HR Practice research team.

3
2021 HRBP Performance Management Benchmarking Survey; n = 74 HRBPs. The 2021
Gartner Performance Management Benchmarking Survey for HRBPs was conducted
online from 4 May 2021 through 7 June 2021, and contains responses from more than 54
HRBPs across 15 countries and 18 industries. The survey design and development,
administration and data analysis was done by Gartner’s HR Practice Research Team.

Document Revision History

How HRBPs and Managers Should Address Underperformance Before It’s Too Late - 9
September 2021

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Table 1: Feedback Conversation Guide to Understand Reasons for Underperformance

Feedback Components Scripting Guide to Gather Reasons on Underperformance

Problem/Example “I wanted to discuss your project management skills. Your last two
deliverables were a week late and you didn’t let me or your teammates know
about possible timeline extensions beforehand.”

Impact “The slow turnaround of the deliverables caused one of your teammates to
work beyond office hours twice last week. Repeated actions like this can hurt
your professional reputation and detract from the good quality of your work.”

Contribution “I think the main problem here is a lack of effective communication and focus.
What do you think is contributing to your actions? Is it your co-workers, a lack
of resources or the work environment?”

Invitation “I’d love to hear your perspective and discuss next steps.”

Source: Gartner

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