How to handle underperforming employees according to HR leaders from Salesforce, EY and Microsoft

Emma Burleigh

HR managers are tasked with all kinds of things, from <a href="https://fortune.com/2024/07/19/microsoft-crowdstrike-outage-employee-payroll-fears/">payroll</a> and <a href="https://fortune.com/well/2024/03/06/kpmg-launches-well-being-initiative-workers-risk-burnout/">PTO</a>, to <a href="https://fortune.com/2024/05/16/hr-leaders-track-wellbeing-programs-big-productivity-win/">well-being</a> and <a href="https://fortune.com/2024/01/02/hr-leaders-committed-to-diversity-initiatives-dei-programs-in-2024/">inclusion efforts</a>. But one responsibility is infamous for consistently coming across the desk of the CHRO: <a href="https://fortune.com/2022/07/19/goldman-sachs-performance-reviews-job-cuts/">how to handle staffers</a> who <a href="https://fortune.com/2022/07/01/facebook-warns-staff-not-expect-big-budgets-new-hires-be-prepared-to-work-harder/">aren’t hitting the mark</a>.&nbsp;<div class="paywall-selector"></div><div class="paywall">



There are all sorts of reasons why employees may <a href="https://fortune.com/2022/08/03/goldman-sachs-bringing-back-infamous-performance-reviews-experts-say-poor-management-strategy/">not be living up to</a> workplace expectations.&nbsp; On top of evergreen management challenges, a new generation of workers <a href="https://fortune.com/2024/02/10/millennial-burnout-happiness-at-work-gen-z-middle-management/">isn’t interested in</a> climbing the corporate ladder at all costs, and employees are suffering from a surging <a href="https://fortune.com/2024/08/06/glassdoor-burnout-reviews-record-high-faith-lost-in-workplace/">mental health crisis</a>. Workers are also feeling disconnected, and nearly 82% <a href="https://fortune.com/2024/03/14/employees-at-risk-burnout-disconnect-bosses-well-being/">are at risk of burnout</a> this year, according to a recent Mercer <a href="https://www.mercer.com/insights/people-strategy/future-of-work/global-talent-trends/">report</a>. All of that can add up to a workforce in crisis—and a perfect storm for business leaders.&nbsp;



Fortune spoke with a dozen HR executives and workplace experts, including the people leaders of <a href="https://fortune.com/company/microsoft/" target="_blank">Microsoft</a>, <a href="https://fortune.com/company/salesforce-com/" target="_blank">Salesforce</a>, Indeed, and <a href="https://fortune.com/company/ey/" target="_blank">EY</a>, to hear what they think it takes to get workers who are falling behind and get them up to speed. They say that by setting clear expectations, engaging in consistent conversations, and pivoting when necessary, bosses can help unproductive employees get out of their slump.



“We don’t need to prevent underperformance. The reality is it can happen,” said Ginnie Carlier, vice chair of talent for <a href="https://fortune.com/company/ey/">EY</a> Americas. “In fact, it is often the pain point for an individual that catalyzes growth and learning.”



<h2 class="wp-block-heading">Set clear expectations</h2>



One of the first steps to take with an underperforming worker is to sit down and communicate clear standards and goals.&nbsp;



“Set expectations, show them what’s missing and where they can elevate,” says Dan Kaplan, senior client partner for <a href="https://fortune.com/company/korn-ferry/">Korn Ferry</a>’s CHRO Practice. “Many—certainly not all—will.” 



Fiona Harewood, senior director of talent acquisition at Nordic Global, a global health consulting firm, agrees. She points out that bosses can often fumble communicating what they expect from workers, leaving employees in the dark or unprepared on how they’re supposed to meet their metrics.



“In analyzing the situations, you must determine whether the issues are due to a lack of ability or some other reason. You need to properly set the employee up for success,” she says. “It&#8217;s a good idea to pause and ask yourself questions like: ‘Did I give the employee clear project directions? Did I provide the employee with all the necessary resources to complete the project on time? Did we ever agree upon a clear and reasonable deadline?’&#8221;



Megan Smith, head of HR for <a href="https://fortune.com/company/sap/">SAP</a> North America, a software company, suggests that managers go into the initial meeting with four clear topics to nail down: what the employee is doing today, what they need to be successful and why, what the gap is between those two elements, and how everyone should move forward as one team.



“Too frequently, people managers only share part of the picture, leaving employees either unaware of the actual concern, or feeling confused and unsure of how to improve. Covering these four elements upfront sets the stage for a productive conversation,” she says.



<h2 class="wp-block-heading">Consistency is key</h2>



A large part of setting clear expectations for underperformers is consistently following up on how they’re doing. Managers shouldn’t expect to resolve an underperformance issue after one conversation—experts say there should be an ongoing dialogue to keep workers sharp and make them feel cared for.&nbsp;



“Feedback isn&#8217;t just a formal, scheduled event but part of everyday interactions,” says Tanya E. Moore, chief people officer at <a href="https://fortune.com/company/west-monroe-partners/">West Monroe</a>, a management consulting company. “Co-create a plan of action and schedule regular check ins with plenty of opportunity to answer questions. The idea of co-creation is key. Using ‘we’ language shows support and collaboration.”



Janeen Speer, the chief people officer for <a href="https://fortune.com/company/benevity/">Benevity</a>, a corporate philanthropy software company, says that the first conversation will set the tone in dealing with underperformers. From then on, further discussions can help bosses get to the root of the issue.&nbsp;



“If we can determine the ‘why’ behind the performance issues, we are better positioned to make an appropriate game plan for getting them back on the right path,” she says.



<h2 class="wp-block-heading">Create career growth opportunities</h2>



Managing underperformers shouldn’t just be about criticism and highlighting what&#8217;s going wrong. An important part of helping someone get back on track is reminding them of how successful they can be at the company. 



Gabrielle Davis, a career expert for <a href="https://fortune.com/2024/04/02/hiring-ai-artificial-intelligence-indeed-job-hunting-recruiting/?utm_source=search&amp;utm_medium=suggested_search&amp;utm_campaign=search_link_clicks">Indeed,</a> says that managers should promote advancement opportunities during one-on-one discussions in order to show that the organization is dedicated to the employee&#8217;s growth and success. “Encourage both short term and long term goal setting, as well as incentives for high performance and career pathing,” she says.



Setting out career roadmaps for employees can not only improve their work, but the positives also trickle down into their loyalty and enthusiasm as a staffer.



“We can create opportunities for feedback, continuous learning, and career growth,” says Lori Castillo Martinez, EVP of talent growth and development at <a href="https://fortune.com/company/salesforce-com/">Salesforce</a>. “By doing this, we not only accelerate performance but also increase employee engagement and retention.”



Career pathing for employees also helps employees understand how they fit into the bigger business picture. Neil Morrison, chief people officer at Staffbase, an HR software company, explains that a struggling worker may be falling short because they need to be re-energized. 



“Far too often, underlying causes of underperformance stem from low motivation and a lack of purpose, from an individual’s disconnect from the overall company vision. The employee may lack understanding of how, why—and even if—their contributions matter,” he says. 



“Employees who can connect or reconnect with the sense that they are learning, growing, contributing will be more motivated,&#8221; he adds. &#8220;A community will always report significantly higher levels of intrinsic motivation which in turn translates to a more sustained and higher performance.”



<h2 class="wp-block-heading">Consider finding a different role for the worker</h2>



Sometimes a worker simply isn’t right for their assigned job, or they don’t have the resources they need to succeed.&nbsp;



Bosses should avoid burying their heads in the sand, and take the initiative to put underperformers on the right course with intention. Carlier recommends that managers help employees pivot to a job they would be better suited for, in lieu of axing staffers. 



“Not everyone is right for every role. In cases like this, be in dialogue to ‘fail forward;’ help the individual springboard to a new role within or outside your organization,” she says. “At the end of the day, our role as leaders is to invest in the lifecycle of our people’s careers, while they are with us and when they move on.”



<h2 class="wp-block-heading">Remember to lead with empathy</h2>



In many cases, HR is notified about a struggling employee well into their lackluster work performance. But the underperforming employee may have a lot more going on than what meets the eye. 



If an employer rules with an iron fist without considering personal problems that may be affecting an employee, they’re only putting themselves at a disadvantage. 



“By building empathy with the employee, you develop an understanding of the full scope of what might be affecting their work, including stress, burnout, or personal concerns. You can collaboratively develop a plan that addresses both performance and their wellbeing,” says Denis Hickey, VP of total rewards at Wellhub, a corporate wellness platform.



Conversations with an underperforming employee can often be tense, and there has to be a healthy equilibrium of human understanding and critique. Nick Hedderman, senior director of modern work at Microsoft UK, says managers need to ride the line to be firm while also caring.



“It’s all about striking the right balance between being constructively honest to help the employee to improve and empathetic of their given situation. It takes practice to do this effectively,&#8221; he says. 



Managers should also keep in mind that many employees are struggling with mental health problems right now. A recent report shows that nearly eight in 10 white-collar workers say their jobs <a href="https://fortune.com/2024/07/25/loneliness-epidemic-us-workers-job-isolation/">make them lonely</a>—an emotion that can bleed into their work ethic. 



“HR professionals should consider how loneliness might be affecting underperforming employees before they sit down for a conversation with the employee,” says Natalie Lupiani, VP of BSG, a research firm. To counteract this, she advises that managers check in with workers with genuine intention. That can include comprehensive “360 reviews,” or encouraging staffers to take a step away from the office to clear their heads.&nbsp;



“Ask them [what] support would be most helpful, and consider whether there are introductions that could be helpful to this employee in righting the ship,” she says. “Encourage the employee’s leadership to consider ways that they might be able to facilitate togetherness on their team.”</div>

Executives from Salesforce, EY, SAP, and Microsoft advise improving talent strategies and reengaging company culture

How to handle underperforming employees according to HR leaders

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