Watt about underperformance in your business?

Claire Watt
Sep 15
2 min read

Underperformance costs your

business more than you think.

It's not just about one person missing targets. It's the knock-on effect across your team, the projects that slip, the clients who notice, and

the time you spend fixing problems instead of growing your business.

The key is acting early and looking at the whole picture. This guide shows you how to spot underperformance before it escalates, understand what's really causing it and build systems that prevent it from happening again.

What does underperformance look like?

While the results can be obvious (think missed deadlines, poor quality work, complaints from colleagues or customers), underperformance often starts a lot sooner and more subtly than that.

Look for these early warning signs:

Someone who used to contribute ideas becomes withdrawn
A reliable team member starts making small errors
Slower response times to requests or completing tasks
Reluctance to take on new tasks or responsibilities
Increased tension with colleagues

Use some simple data to confirm what you're seeing:

How many tasks are they finishing on time and to standard?
Are they calling in sick more often or arriving late?
What are customers saying about their service?
How do their results compare to what you agreed they'd deliver?

Regular one-to-ones are essential. They help you to spot changes in how engaged or capable someone is before they become bigger problems.

Why performance drops

Performance declines rarely start with the individual. Often, the real issue lies elsewhere.

Common causes include:

Role confusion:
Someone was hired for one job, but the role has evolved and expectations aren't clear.
Poor systems:
Unclear processes, inadequate tools or hard-to-access information make even good people
underperform.
Skills gaps:
The job someone did well two years ago might require different capabilities now. They need development, not discipline.
Personal circumstances:
Family issues, health problems or financial stress can temporarily impact someone's ability to deliver their best work.
Hiring mistakes:
The person has the right attitude but lacks the core skills for the role. Or they have the skills but don't fit your culture.
Cultural issues:
No clear accountability means poor performance goes unchallenged and standards drop across the team.

Take action

To manage underperformance effectively, you need to look at the whole business, not just the individual. That means reviewing your culture, systems, clarity of roles and how performance is tracked and supported.

Do you need help with putting the right HR metrics in place and building a clear plan of action to improve performance across your business?

Let's discuss how to create systems that support consistent performance and growth.