What are the impacts of poor employee performance?
One of the challenges in remaining competitive in your industry is addressing employees who are not performing at their best. Addressing poor performance or underperformance early is vital, as it can significantly impact the productivity and morale of other employees and, ultimately, the success of your business.
Poor performance or underperformance can manifest in various ways, including:
- Failing to fulfil the duties of the role or meet the required standards.
- Non-compliance with workplace policies, rules, or procedures.
- Displaying unacceptable behaviour at work.
- Engaging in disruptive or negative behaviour that adversely affects co-workers.
How can you deal with poor performance?
Clear and detailed job descriptions are crucial. They ensure employees understand what is expected of them in their roles. Regular appraisals are essential to monitor their achievements and identify areas for improvement.
If a new employee's performance is poor, they might not be suited for the job, or perhaps they require additional training to enhance their skills or confidence. For long-term employees who have previously performed well, poor performance might be due to deeper issues. It's important to have a conversation to explore potential causes, such as personal difficulties or discomfort with new technologies, and to take appropriate action.
Regardless of the reason for poor performance, options include retraining the employee to improve their performance or finding an alternative role within the organisation that better matches their skills and abilities.
If an employee's performance does not improve despite retraining or other efforts, it's time to initiate the formal performance management process outlined in your employee handbook.
At Employment Compass, we offer expert advice on enhancing performance in the workplace or managing employees effectively, including employee relations support. For guidance and support, call our 24/7 HR advice line on 1300 144 002 for free initial advice.
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Frequently asked questions
What are the impacts of poor employee performance?
Poor performance can lead to decreased productivity and morale, affecting overall business success. It manifests as failure to meet standards, non-compliance with policies, unacceptable or disruptive behaviour.
How should employers address poor performance?
Address poor performance by providing clear job descriptions and regular performance appraisals. For new employees, consider additional training and for long-term employees, explore underlying issues and offer support.
What steps can be taken if performance doesn't improve?
If performance doesn’t improve despite support and interventions, initiate a formal performance management process as outlined in your employee handbook or performance management policy.
What if poor performance is due to personal issues?
If poor performance is linked to personal issues, have a supportive conversation to identify the causes and explore possible solutions or adjustments. Mitigating factors should come into play when determining next steps.
General information only
This content is general information about Australian employment law, current at the date it was last reviewed. It does not take your circumstances into account and is not legal advice. For advice about your situation, call Employment Compass on 1300 144 002.
Last reviewed: October 2026