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Managing employee performance

As an employer, at some time or another you will be confronted with an employee who is underperforming.

Managing employee performance and undertaking disciplinary action against an employee can be a daunting task for employers.

However, a failure to address performance issues may have a negative impact on the productivity of your business.

Moreover, a failure to follow a fair disciplinary procedure may also lead to employees making claims of bullying and harassment or unfair dismissal.


What is unsatisfactory performance?

Unsatisfactory performance by an employee can be exhibited in a number of ways, including:

How to address underperformance in the workplace

Employers can foster a high performance culture by:

Where an employee’s work performance fails to meet a satisfactory standard, disciplinary procedures should be implemented to correct the behaviour.

Disciplinary procedures

As soon as issues with an employee’s performance appear, you should arrange a disciplinary meeting with the employee to discuss the employee's performance and to jointly devise a plan to resolve the performance issues.

As part of performance improvement plan, you may agree to provide an employee with additional training.

Written warning letter

If a reasonable amount of time has lapsed and it appears that the employee has not made satisfactory progress, you may issue a written warning letter.

A written warning letter should clearly define:


If the employee continues to underperform, you may consider taking further disciplinary action such as issuing a final warning letter or even proceeding to termination of employment.

If termination is being considered, you need to ensure the employee is not being unfairly dismissed otherwise the business may be exposed to an unfair dismissal claim.

How we can help

Rochforts has workplace relations advisors to assist employers in identifying the causes of unsatisfactory employee performance and implementing effective performance improvement strategies to address underperformance.

In situations where an employee exhibits continued unsatisfactory performance, our workplace relations advisors can provide guidance on implementing employee disciplinary procedures including advice on drafting warning letters and terminating an employee.


Get the right advice for your business. Contact us today for a free initial consultation!

 (02) 9810 4191