Helping Underperforming Employees: How to Turn Struggle into Strength

Every manager has been there: you notice an employee who isn’t quite hitting the mark. Maybe deadlines are slipping, the quality of work isn’t what it used to be, or engagement seems low. It’s easy to feel frustrated, but the most effective leaders see these moments not as failures, but as opportunities, to support, coach, and ultimately help an employee succeed.

Spotting Underperformance Early

The first step is awareness. Underperformance can take many forms. You might notice repeated missed deadlines or a sudden dip in quality. An employee who once took pride in their work might seem disengaged or hesitant to contribute in meetings. Perhaps they’re struggling to understand expectations or withdrawing from team interactions.

Underperformance doesn’t just affect the individual, it impacts the team. Colleagues may pick up the slack, stress levels can rise, and morale often takes a hit. In fact, research shows that only 32% of U.S. employees feel fully engaged in their work, meaning the majority of employees may not be performing at their full potential. When underperformance is left unchecked, it can ripple through the team, creating frustration and disengagement.

Why Employees Underperform

It’s important to approach underperformance with curiosity, not judgment. There’s rarely a single cause, and understanding the “why” is crucial.

Some common reasons include:

• Role misalignment: Sometimes a position simply doesn’t match an employee’s strengths or interests.

• Unclear expectations: Without clarity on goals, priorities, or standards, employees can’t perform to the best of their ability.

• Lack of support or development: They may need additional training, mentoring, or resources to succeed.

• Motivation or engagement issues: If an employee doesn’t see the purpose in their work or feels disconnected from the team or company mission, performance can suffer.

• External factors: Life stressors, health challenges, or burnout can all reduce capacity.

• Systemic or process issues: Even the most skilled employees can struggle in an environment with broken tools, unclear processes, or unrealistic workloads.

Recognizing the root cause is half the battle. Once you understand it, you can take meaningful action.

The Real Cost of Underperformance

Underperforming employees affect more than just their own output. Teams often take on extra work, and morale can drop when colleagues feel fairness is compromised. Organizations feel it too: delayed projects, lower productivity, and sometimes even customer dissatisfaction. Gartner reports that 59% of employees are not performing optimally, potentially contributing up to 25% less value to their organizations.

Beyond numbers, letting underperformance linger can subtly erode culture. Teams start to normalize mediocrity, engagement drops, and turnover can rise as high performers seek environments where standards are clear and expectations are met.

Turning Underperformance Around

The good news? Underperformance is often fixable, especially when approached thoughtfully and collaboratively. Here’s how HR professionals and managers can help employees regain their stride.

1. Start with a supportive conversation. Sit down with the employee privately. Instead of focusing on blame, ask questions: “I’ve noticed some challenges in [specific area]. What’s been going on?” Listen actively and empathetically. Often, just being heard can reduce stress and build trust.

2. Clarify expectations and goals. Make sure the employee understands what success looks like in their role. Together, define measurable, achievable objectives and milestones. Clear goals provide direction and remove ambiguity that can be a source of underperformance.

3. Identify obstacles and provide resources. Ask what’s standing in the way. Is it skill gaps, lack of tools, unclear processes, or workload issues? Once identified, provide support, whether that’s training, mentoring, or adjusting responsibilities temporarily.

4. Create a development plan. Frame it positively, emphasizing growth and support rather than punishment. Set realistic timelines, offer frequent check-ins, and celebrate small wins. These early successes help rebuild confidence and momentum.

5. Provide regular feedback and recognition. Feedback shouldn’t wait for annual reviews. Short, consistent check-ins build trust and keep employees on track. Recognize improvements, however small, acknowledgment can reignite motivation.

6. Consider role alignment if needed. Sometimes, the best solution is to adjust responsibilities or explore a different role that better fits the employee’s strengths. This isn’t a failure, it’s strategic talent management.

7. Know when to take further action. Monitor progress, but if improvement isn’t occurring despite support, be prepared to make tough decisions. Prolonged underperformance can harm the team and business.

   

Building a Culture That Prevents Underperformance

Finally, prevention matters. Companies that emphasize clarity, development, and purpose see higher engagement and better performance. Gallup found that employees who know what is expected of them are more likely to perform well (source). Regular feedback, transparent goals, and supportive leadership foster an environment where employees can thrive before issues arise.

Conclusion

Underperformance is not a reflection of failure, it’s a signal. For HR leaders and managers, it’s an opportunity to coach, develop, and transform. By approaching the situation with empathy, clarity, and structure, you can help employees regain confidence, contribute fully, and ultimately strengthen the entire team. In other words, a little attention and collaboration can turn potential into performance, and challenges into growth.