Staying Silent on Underperformance is Costing Your Business
In New Zealand workplaces, addressing underperformance is often sidestepped, with many employers hesitant to initiate constructive conversations or implement exit strategies. This reluctance can be attributed to cultural tendencies favouring harmony and a general discomfort with confrontation. However, avoiding these discussions can have detrimental effects on team dynamics and overall productivity.
The Impact of Underperformance
Underperforming employees can significantly hinder organisational efficiency. Their inadequate output often necessitates that colleagues compensate for the shortfall, leading to increased workloads and potential resentment. This imbalance not only affects morale but also contributes to a decline in overall productivity. Notably, New Zealand experienced a 0.9% decrease in labour productivity in the year ending March 2023, highlighting the pressing need to address performance issues proactively.
Legal and Wellbeing Considerations
When managing underperformance, it's crucial to navigate the process with a clear understanding of legal obligations and a commitment to the individual's health and wellbeing. The Health and Safety at Work Act 2015 mandates that employers ensure the safety and welfare of their employees, encompassing both physical and mental health aspects.
Additionally, the Human Rights Act 1993 requires employers to make "reasonable accommodations" for employees facing mental health challenges, ensuring that performance management practices do not exacerbate existing issues.
Overcoming the Fear of Difficult Conversations
The aversion to addressing underperformance may stem from a fear of conflict or potential legal repercussions. Behavioural theories suggest that this avoidance is linked to the discomfort associated with cognitive dissonance—the mental strain experienced when one's actions are inconsistent with their beliefs or self-image. In this context, managers might avoid performance discussions to evade the discomfort of potential confrontation or the challenge to their self-perception as compassionate leaders.
Strategies for Effective Performance Management
To navigate underperformance constructively and compassionately, consider the following steps:
Early Intervention: Address performance issues promptly to prevent escalation and demonstrate a commitment to the employee's success.
Clear Communication: Clearly outline performance expectations and provide specific examples of where improvements are needed. Seek to understand what might be going on for the individual by asking open-ended questions and remember you don’t have to answer or solve anything in the moment.
Documentation: Maintain detailed records of all discussions, performance metrics, and any support provided. This not only ensures transparency but also serves as evidence if formal action becomes necessary. Get a running file note happening, send a follow-up email and document, document, document - start to build a case
Support and Resources: Offer training, mentoring, or counseling services to assist the employee in meeting performance standards and/or to support the Manager in having the conversations and running the process.
Seek Professional Advice: Consult with human resources professionals or legal advisors to ensure that any actions taken are compliant with employment laws and consider the individual's wellbeing.
Follow a Structured Process: Implement a performance management plan that includes regular reviews and clearly defined consequences if improvements are not achieved. Or, don’t be afraid to have an open and transparent conversation in search of a soft landing!
The Cost of Inaction
Failing to address underperformance can lead to a toxic work environment, decreased employee engagement, and increased turnover. Moreover, it can perpetuate a culture of mediocrity, where high performers feel undervalued and may seek opportunities elsewhere. Proactively managing performance not only mitigates these risks but also fosters a culture of accountability and continuous improvement.
In conclusion, while initiating conversations about underperformance can be challenging, they are essential for maintaining a healthy and productive workplace. By approaching these discussions with empathy, clarity, and a structured plan, employers can support their employees' development and uphold organisational standards.
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