How to Manage Poor Performance Fairly

Define the gap clearly

“Not good enough” is not a useful performance standard. Identify what the role requires, what the employee is currently delivering and the evidence that shows the gap. Use measurable outputs where possible, but include quality, behaviour and customer impact where those are genuinely part of the role.

If expectations have never been properly communicated, fix that before treating the issue as a formal failure.

Find out why performance has changed

Performance can fall because of skill gaps, unclear priorities, workload, poor supervision, health, disability, inadequate systems or conduct. The reason affects the response.

Acas distinguishes capability from conduct. Someone who cannot yet meet the standard may need training or support; someone who can meet it but refuses to do so may present a conduct issue.

Use an informal stage where appropriate

For many first-time or moderate issues, a private conversation is the quickest route. Explain the concern, listen to the employee, agree the required improvement and set a review date.

The manager should be specific about what support will be provided — for example coaching, training, clearer objectives, additional supervision or access to better resources.

Build a usable improvement plan

A performance improvement plan should not be a document designed only to justify a later dismissal. It should give the employee a genuine route to succeed.

Set the required standard, actions, support, timescale, review points and likely consequences if sufficient improvement does not occur. The timescale should make sense for the role and the nature of the gap.

Escalating to a formal capability process

If informal support does not work, or the issue is serious, a formal process may be appropriate. Follow your own procedure and the principles of the Acas Code where it applies.

Keep evidence of performance concerns, the support offered, review meetings and the employee’s responses. If dismissal is eventually considered, the history should demonstrate a fair opportunity to improve.

Health, disability and performance

Where health or disability may be affecting performance, employers should consider reasonable adjustments and appropriate medical or occupational-health information. A capability process should not ignore legal duties simply because a performance target has been missed.

Dismissal for capability can sometimes be fair, but it is a higher-risk decision when disability, long-term illness or insufficient support is involved.

The Guardian Forge view

Good performance management is not about catching people out. It is about making expectations unmistakable, addressing problems early and creating a defensible record of fair management.

Small businesses often benefit from a simpler process that managers will actually use rather than a complex corporate framework that sits unread.