What to Do About Underperforming Employees

Martin Lowenstein

October 5, 2022

Underperforming Employees

Managing underperforming employees is a tricky process. There are a number of things to consider. For instance, you should ask about work-life balance and regularly follow up on your employees. Similarly, you should be prepared to consider demotion or transfer of a position, if the need arises.

Work-life balance

Work-life balance is one of the most important concepts in business today. A healthy balance between work and personal life can make an employee more productive and motivated. However, not every work-life balance is created equal. The type of job that an individual has can have a major impact on their work-life balance. Some people prefer a routine job, while others prefer to have a challenging and creative role. Another factor that determines work-life balance is the amount of stress that an employee is exposed to at work. High levels of stress can lead to poor performance and reduced productivity.

It is important for employees to feel that they are achieving work-life balance, but this doesn’t mean that they need to sacrifice their family and personal life. The key to getting work-life balance right is to make sure that people get the rest that they need. Fortunately, there are a number of things that employers can do to encourage a better work-life balance. By providing resources to employees that promote work-life balance, companies can create a culture that encourages healthy choices for both themselves and their employees.

Demotion or job transfer

The decision to make a demotion or job transfer for an underperforming employee is an important one for the sake of the company. However, the process must be done according to company policy. In addition, the employee must be given the minimum amount of notice. Ultimately, a demotion should be used only as a last resort and not as a “Band-Aid”. It can do more harm than good for the company’s culture and team dynamics.

Before making a demotion or job transfer, employers should consult with the affected employees or relevant representatives. Then, they should explain the proposed changes and seek input from them. They should also look into other possible solutions to the problem. For example, they may want to consider redeployment options and offer the employee a trial period to see if he/she would be happy with a lower role.

Often, an organization will make a transfer when an employee is underperforming. This will free up the position for someone who is better-suited to the new position. Furthermore, a transfer can help the company hire someone with more significant skill sets and enhance employee satisfaction.


When it comes to terminating underperforming employees, employers must ensure that the termination is justified. A termination must be based on work-related reasons and cannot be the result of a lawsuit or violation of the law. In addition, employers must provide sufficient documentation to support their decision. They should also be mindful of their binding employment contracts.

Employers must document any disciplinary actions they take against underperforming employees. A progressive disciplinary procedure must be followed to minimize problems and demonstrate that employers have tried to make the situation work. However, if this doesn’t work, termination may be the only viable option. In such a case, a documented procedure is important so that the employee understands the decision.

An employee’s termination can be difficult, but if done correctly, it can be a smooth process. The key to a successful termination is to remain respectful and objective. The employee should be informed and be provided with the tools needed to improve. While this may seem like a hassle, the extra time and effort will be worthwhile if it results in a change in the employee’s behavior.