Poor Performance Counselling: A Practical guide for SMEs
I can’t work with this person anymore—they’re just not doing their job! Please get rid of the problem!”
Sound familiar?
As a business owner or manager, dealing with underperforming employees is never easy. But simply wanting to “get rid of the problem” isn’t the right approach. Instead, it’s your responsibility as a leader to manage performance issues in a way that is fair, reasonable, and in the best interest of your company and its people.
What is Poor Performance, Really?
Poor performance happens when an employee consistently fails to meet the expectations of their role. But before jumping to conclusions, it’s important to understand why someone is struggling.
Common causes of poor work performance:
- Lack of knowledge, skills or aptitude i.e. ability to attend to the details
- Not a good fit with the job or company- They might not be the right fit for the job or company culture.
- Lacks direction– Unclear expectations or insufficient guidance can lead to underperformance.
- No performance management system in place- If there’s no structured way to track and review performance, how can improvement happen?
- Lack of resources– Employees need the right tools and support to succeed.
- Inadequate equipment– Outdated or ineffective tools can hinder productivity.
- Changes in job or working environment – A shift in responsibilities or company structure may create confusion.
- Presenteeism– Just because someone is physically at work doesn’t mean they’re fully engaged.
- Company Culture -A toxic or unsupportive environment can lead to disengagement.
- Personality clashes – Conflict with colleagues or managers can impact performance.
So how do you manage poor performance?
Rather than treating poor performance as a problem to “get rid of,” think of it as an opportunity to understand and improve. The key is to follow a structured performance counselling process that helps both you and the employee identify the root cause and work towards a solution.
The poor performance counselling process to follow is a proactive one.
The Line manager is actively involved in exploring and understanding the causes of the employee’s failure to meet your required performance standards.
Both of you must actively seek ways to ensure that the required standards are met.
The number of counselling sessions you hold depends on your expectations and the job function.
The question to ask is “Is the process I am following REASONABLE and FAIR?
Step-by-Step Performance Counselling Guide
During the counselling session:
- Clearly explain the issue – Explain what you are concerned about and WHY you are concerned about it.
- Give the employee an opportunity to respond and explain why they are underperforming.
- Explore solutions together –Ask the employee what solutions they think will bring the desired expected performance standards.
- Agree on an action plan -Both of you should then agree on a solution to the problem and the steps you are going to take to resolve the problem.
- Set fair expectations– If the employee does not agree you may take reasonable and fair steps to address the problem.
- Allow time for improvement– It’s essential that you allow the employee a REASONABLE period within which to show improvement.
- Schedule a follow-up meeting -If your employee has still not met the required performance standards the Supervisor must schedule a FOLLOW UP meeting to consider the next steps.
When is Dismissal the Right Decision?
If, despite multiple counselling sessions and fair opportunities, an employee still fails to meet performance standards, it may be time to consider a performance hearing or incapacity inquiry. This gives them a formal opportunity to present their case before any final decision is made.
Before Making a Dismissal Decision, Ask Yourself:
- Has the employee genuinely failed to meet the required performance standard?
- Were they aware of the expectations OR could reasonably be expected to have been aware of the required performance standard and given a fair opportunity to improve?
- Have you followed a fair process and documented the under-performance objectively?
If the answer is yes to all the above, and performance has not improved despite support, then dismissal could be a fair and necessary step.
Final thoughts: “You Can Lead a Horse to Water…”
Dealing with poor performance takes time, patience, and a structured approach. You can provide guidance, training, and support, but ultimately, the employee must take responsibility for their performance.
Ignoring the issue only makes it worse. Taking proactive steps—from counselling to corrective action—ensures that you are leading fairly and making decisions that protect both your business and your team.