It’s a disease — one that quietly spreads throughout a company. While underperformance may begin with one person, it quickly infiltrates other aspects of the company and can infect entire teams. And while you may have the urge to hand out a bevy of pink slips, underperformance in an organization is sometimes less about one individual’s lack of motivation and more about how structural issues or processes are leading the entire company toward inefficiency.

Self-Preservation in a Time of Instability

As managing partner at gothamCulture, I know that being an underperformer is not usually a conscious decision. Most people don’t want to be disengaged or produce subpar work; something else in the organizational system has caused the problem. Perhaps changes in the organization’s structure have made them uncertain about their roles and responsibilities. If your company has endured a leadership change, pivoted its mission, or changed a person’s job duties, this can make any dedicated employee question his job, security, and even passion for the vision of the company.

When people find themselves in a situation where their basic needs aren’t being met, they will spend more time and energy protecting themselves than contributing to the organization’s goals. No matter the reason for their underperformance, the only way to effectively improve long-term performance is to uncover the root cause of the behavioral issue or issues.

Look at the problem of underperformance from a psychological perspective: It’s widely accepted that if a child is misbehaving at school, it’s far more effective to identify and deal with the core cause of the outbursts than it is to simply punish the child. Not only will this approach provide longer-term results, but it will improve the relationship between the child and the teacher. Though organizational underperformers are adults, we need to approach the issue with the same mindset.

Try using these six steps for turning underperformers into top performers:

1.       Identify the Root Cause: The first step to improving performance is to identify the core issue. Only then can you work with the employee to develop an effective plan of action moving forward. As leaders, we must make the time to get to know our teams and understand what motivates — and what harms motivation for — each person.

2.       Link Productivity to the Big Picture: Many underperformers feel like a cog in a machine. They don’t strive to be top performers because they don’t feel as if their work really matters. Help employees understand the direction of the company and how their day-to-day performance contributes to the organization’s success.

3.       Set Clear Expectations: An employee simply cannot perform if he doesn’t understand what is expected. Set clear expectations about the person’s role and responsibilities. Provide him with specific feedback about how his underperformance is impacting the team and the organization.

4.       Provide Tools and Skill-Building Opportunities: Both leaders and employees need tools and skills to improve performance. Not every leader has the innate ability to effectively manage underperformers. Provide them with development opportunities so they can learn how to identify and correct underperformance quickly and effectively. Establish tools and formal performance management processes to ensure leaders are assessing and talking with their employees at regular intervals to foster honest dialogue about performance.

In addition, underperformers should be given the tools to succeed in their duties. Employees may want to perform, but any number of organizational roadblocks may be pushing against them.

5.       Develop a Clear Accountability Plan: Employees need to be held accountable for their performance. For underperformers, an annual performance review is simply not enough. If someone is not meeting expectations, talk about it early and often and provide him with a direction for success.

6.       Encourage Repeat Performances: Whether the employee has improved or not, you need to uphold the values you’ve established. If the underperformer has become a performer, keep him on the right track by providing rewards and recognition that fit his individual needs. This involves genuine listening and real, face-to-face interaction. In addition, remember that sometimes honest, sincere appreciation can go a long way.

On the other hand, if you’ve done everything you can to help the employee perform and he still hasn’t improved, it’s time to part ways. You’re running a business, and you need people who are ready, willing, and able to help make the organization successful.

It might be true that there are just some individuals who aren’t the right fit for your organization, but for most, underperformance is a symptom of a larger issue. If you treat the person’s lack of performance as a simple case of laziness or lack of drive, you will miss out on a much larger opportunity — one that teaches you how to make your entire company, not just one individual, a high-performing entity.


Chris Cancialosi earned a PhD in Organizational Psychology. He is also the founder and managing partner at gothamCulture. The team at gothamCulture focuses on identifying the underlying causes of organizational obstacles and assisting leaders in developing and executing breakthrough strategies to elevate performance. The team provides critical, thought-provoking insights to leaders who desire to use organizational culture and leadership as key drivers of performance.