HR Best Practice

✔ Address performance issues early and document consistently.
✔ Focus on objective, job-related expectations—not assumptions.
✔ Use informal supports (training, coaching, flexibility) before moving to discipline when appropriate.
✔ Apply standards consistently across employees to reduce legal risk.
✔ Maintain dignity—for all parties—throughout the process. 

Employee performance issues are a normal part of managing people. Expectations may not always be met, and when performance concerns arise, managers must address them promptly, fairly, and consistently. Doing so protects productivity, morale, and business outcomes—while also reducing legal risk.

Managers have several tools available to address performance concerns, ranging from informal support to formal corrective action. The right approach depends on the circumstances, including the nature of the issue, the employee’s history, and any applicable laws, contracts, or internal policies. Regardless of the path chosen, the starting point should always be understanding the root cause of the problem using objective, job-related criteria.

Step 1: Recognize and Assess the Issue

When a performance concern arises, the first step is identifying what is happening and why. Managers should clearly define the gap between expected and actual performance, how frequently it occurs, and its impact on productivity, teamwork, or business goals.

Objective data—such as deadlines, quality metrics, or key performance indicators—should be paired with direct observations and relevant feedback. Reviewing prior performance evaluations can also help identify trends or recent changes.

Importantly, managers must ensure their assessment is based solely on job-related standards and applied consistently. Assumptions tied to protected characteristics or uneven enforcement can expose employers to discrimination or retaliation claims.

Documentation is critical at this stage and throughout the process. Managers should keep clear records of observations, discussions, feedback, and agreed-upon next steps to support accountability and decision-making.

Step 2: Discuss the Concern with the Employee

Once the issue is assessed, managers should meet with the employee promptly to discuss the concern and understand the employee’s perspective. The goal is clarity—not discipline.

Managers should explain the performance gap and its impact, while inviting the employee to share any obstacles they may be facing, such as unclear expectations, insufficient training, workload challenges, or resource limitations. Open-ended questions encourage honest dialogue and problem-solving.

This conversation should also clarify what successful performance looks like and establish realistic, measurable goals. Managers should identify available support—training, coaching, or workload adjustments—and reinforce applicable policies and expectations. Feedback should focus on performance outcomes, not personal traits.

Step 3: Use Informal Improvement Measures When Appropriate

For many situations, informal steps can effectively correct performance issues, especially when the employee is receptive or external factors are involved. Common informal approaches include:

• Training: Appropriate when skill gaps or new responsibilities are contributing to underperformance. Follow-up is essential to ensure skills are applied effectively.
• Coaching: Useful for addressing work habits, judgment, or confidence through ongoing guidance and feedback.
• Flexible work arrangements: Adjusted schedules or remote work may help employees managing health issues, caregiving responsibilities, burnout, or long commutes—provided expectations are clearly defined.
• Employee Assistance Program (EAP): When personal or family challenges are affecting performance, EAPs can offer confidential support. Managers should raise this option with care and discretion.
• Reasonable accommodations: If performance issues relate to a disability or medical condition, employers may be required to engage in an interactive process under the Americans with Disabilities Act (ADA) or state law to identify accommodations that enable the employee to perform essential functions.

Often, a combination of these tools is most effective.

Step 4: Move to Formal Improvement Actions

If informal efforts have not improved an employee’s performance, a manager may need to move to formal disciplinary steps. When doing so, a manager needs to take a structured, transparent approach to ensure fairness and reduce the risk of discrimination claims.

The manager should first compile relevant documentation – performance reviews, prior conversations and written follow-ups – to establish a clear record of the issues and earlier attempts to resolve them. Then the manager and employee should meet privately, focusing on specific performance problems and the need for formal action. Ensure the communication is clear, objective, and focuses on performance rather than personal attributes.

For Bent Ericksen & Associates’ clients, this stage will typically involve using the Employee Counseling Memo from the HR Director platform. 

Step 5: Determine Whether Termination Is Necessary

When performance does not improve despite sustained efforts, termination may be the appropriate outcome. Some serious issues—such as unsafe or illegal conduct—may warrant immediate action without progressive steps.

Before finalizing a termination decision, managers should review the full record with HR or legal professionals in order to consider legal risks, including discrimination or retaliation concerns.

If termination proceeds, the meeting should be private, professional, and respectful. The explanation should rely on documented performance issues, avoid personal judgments, and provide information about final pay, benefits, and next steps. Maintaining dignity throughout the process is critical.