Managing underperformance doesn’t have to feel confrontational or complicated

Managing Employee Issues Without Making Things Worse

January 18, 20264 min read

A calm, practical approach to performance management.

Managing employee performance can sometimes feel tricky especially when you genuinely care about doing the right thing.

A lot of business owners tell me they hesitate when it comes to managing employee performance because they don’t want to:

  • Damage the relationship

  • Say or do the wrong thing

  • Be seen as unfair

  • Accidentally create risk

That hesitation is completely understandable. But when performance issues are left unaddressed, they rarely improve on their own and they often become bigger issues, and more stressful over time.

But managing underperformance doesn’t have to feel confrontational or complicated. With the right approach, it can actually be fair, supportive, and clear for everyone involved.

Let’s go through when to step in, what to document, and how to stay fair and compliant without making things worse.

When Should You Step In?

As a general rule, it’s time to step in when underperformance is:

  • Ongoing rather than occasional

  • Affecting work quality, clients, or the wider team

  • Creating frustration or tension

  • Something you’ve already noticed more than once

Stepping in early doesn’t mean jumping straight to formal action. In most cases, it starts with a simple, respectful informal conversation about expectations and what support might be needed.

Addressing things early is often the kindest option - it gives the employee clarity and a genuine opportunity to improve.

Why Avoiding the Issue Can Create Bigger Problems

It’s natural to hope performance issues will resolve themselves, but avoiding them can lead to:

  • Confusion about expectations

  • Frustration from other team members

  • Inconsistent standards across your business

Clear, timely conversations help protect your business and your people.

What Should You Document?

Documentation often sounds more daunting than it needs to be.

You’re not building a case against someone, you’re simply keeping a clear record of what’s happening and how it’s being managed. The objective is for the employee to improve their performance.

Helpful documentation usually includes:

  • What the performance issue is, based on facts

  • When it occurred and whether it’s ongoing

  • What expectations were explained

  • What support, training, or guidance was offered

  • What was agreed as the next steps

Good records show that you’ve acted reasonably, communicated clearly, and given the employee a fair chance to improve.

How Do You Stay Fair and Compliant?

Fairness isn’t about getting everything perfect, it’s about following a reasonable and consistent process.

To stay fair and compliant:

  • Apply the same approach to all employees

  • Focus on behaviours and outcomes, not assumptions

  • Give the employee an opportunity to respond

  • Allow reasonable time and support for improvement

  • Follow a clear, structured process

Even valid performance concerns can lead to claims if they’re not handled well. Having a clear framework removes a lot of uncertainty and stress.

A Clear, Supportive Way to Manage Underperformance

One of the biggest challenges for business owners is feeling like they’re making it up as they go and not knowing what they can and can't do.

That’s why the Performance Management Toolkit inside the My HR Partner HR Hub exists.

It’s designed to give you:

  • A step-by-step approach to managing performance issues

  • Guidance on what to say and what not to say

  • Practical templates and checklists for documentation

  • Confidence that your process is fair, reasonable, and aligned with best practice

It supports you to handle issues calmly and professionally.

HR Support That Fits Where You’re At

Every business is different, which is why there are flexible options:

You don’t have to do everything at once just take the next right step.

You Don’t Have to Avoid Performance Conversations

Being a good employer doesn’t mean avoiding difficult conversations.
It means handling them with clarity, fairness, and care.

👉 Explore the Performance Management Toolkit for practical, supportive guidance
👉 Or
subscribe to the HR Hub for ongoing HR support as your business grows

With the right tools, managing employee performance can feel far more manageable, and much less stressful.

Ready to Feel More Confident About HR?

You don’t need to navigate HR alone — and you don’t need to overcomplicate it either.

👉Explore the HR Hub and new toolkits to see what support looks like when it’s practical, calm, and genuinely helpful.
👉
Subscribe for full access, or choose the toolkit that fits your current challenge.

Sometimes, having the right resource at the right time makes all the difference.

For further expert advice on human resources or if you have any questions about anything HR related, get in touch.

Karen Hillen is your HR Partner, she helps businesses by providing HR support and advice services.

For the right HR support and advice, book a My HR Partner HR Advice call with Karen Hillen.

https://myhrp.com.au/hr-advice-calls

Tapping into more than 30 years’ experience in Human Resources, staffing & payroll, Karen loves helping you get the best out of your people while providing you, the business owner, with peace of mind.

Karen Hillen

Tapping into more than 30 years’ experience in Human Resources, staffing & payroll, Karen loves helping you get the best out of your people while providing you, the business owner, with peace of mind.

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