Addressing — or failing to address — underperformance has a significant impact on the productivity of an organization or work community. According to workplace studies, around 10–15% of employees feel they are unable to perform at their desired level or that their contribution does not bring value to the organization. Managers, on the other hand, estimate that 5–10% of staff consistently perform below expectations. This is a widespread phenomenon that should be tackled boldly and early in a way that strengthens rather than harms. By reading our blog’s six perspectives, you’ll learn how to address underperformance in a human-centered, respectful, yet firm manner.
A Clear Job Description Is the Foundation for Addressing Underperformance
If expectations and defined outcomes related to a role are vague, productivity cannot be assessed. The manager is responsible for having conversations with the employee to clarify core tasks (what to focus on) and goals (what needs to be completed and by when). In addition, other expectations related to the work should be discussed together. A clearly defined job description is also critical from a career leadership perspective. In work ability negotiations, the aim is to find solutions when an employee’s capacity is temporarily or permanently reduced. A clear job description helps determine whether the employee can still perform in their current role or whether individual adjustments, such as modified duties or part-time arrangements, are needed.
Address Underperformance Without Delay
Managers should intervene at the first signs of underperformance. Delaying action rarely improves performance. However, this is easier said than done. Management may be distant from the daily realities of employees and the workplace, where expectations are either met—or not. Signs of underperformance can be hard to detect, especially in expert roles. Sometimes a supervisor may hesitate to bring up the issue, even when goals and deadlines are consistently missed. They may avoid or postpone the conversation. Helpful mindsets for anyone in a leadership role include:
- I’ll bring this up right now.
- This will only take a moment.
- Delaying this will only cause me more trouble and work later.
In our experience, timely intervention actually frees up energy for other leadership tasks. The mental burden of avoidance disappears. Lowering the threshold for intervention could significantly boost productivity at individual, organizational, and societal levels.
Identify Root Causes and Have a Constructive Conversation
When preparing to address underperformance, gather observed facts in relation to the job description. What is “enough,” and can the employee meet that standard? If you lack concrete facts, performance management can also be approached proactively by exploring themes such as: Does the employee have the necessary skills and knowledge? Do they feel committed, motivated, and rewarded by their work? Or are structural barriers—tools, processes, leadership—hindering good performance?
When initiating the conversation, these elements support constructive dialogue:
- A private and respectful meeting
- Referencing facts or examples, e.g., “In the past three weeks, four deadlines have been missed.”
- Focus on actions, not personality
- Use open-ended questions to encourage reflection, e.g., “What is currently preventing you from reaching your goals?”
- Agree on next steps
The goal is to reach a mutual agreement. This isn’t always easy. The situation may involve defensiveness, feelings of unfairness, or even excuses. The employee may also be dealing with personal challenges that haven’t surfaced before. Based on our experience, empathy, listening, patience, and determination help move toward agreement. This includes:
- Clearly defined expectations and indicators of progress
- A set follow-up period, typically 30–90 days
- Support offered, such as coaching, mentoring, or guidance
- Agreed follow-up meetings and documentation
Agree on Performance Management Follow-Up
A good follow-up method is regular one-on-one meetings, perhaps weekly at first. Feedback is also important. Give space for the employee’s sense of capability to grow. Even small improvements in performance can create momentum.
In follow-up discussions, it’s useful to talk about obstacles. How do rest, focus, external distractions, or home stress affect work? External coaching has its place, but should only be used if internal and one-on-one measures aren’t progressing. A supervisor’s own busyness is not a valid reason to outsource. Performance management and follow-up are ultimately the responsibility of the immediate supervisor. Addressing underperformance also requires firmness. If performance does not improve, the employer has the right to issue warnings and, if necessary, terminate employment.
Modify the Work When Necessary
If underperformance is due to a confirmed decline in work ability, the job should be individually tailored. The “Ratko model” helps break down tasks and align them with the employee’s current capacity. Reviewing workflows together with the team supports organizing work in situations where individual adjustments must be balanced with team needs. The Ratko model enables effective task division and ensures sufficient staffing and well-being. By agreeing together, work can flow smoothly.
Create a Proactive Culture and Leadership Models
Underperformance is often a symptom indicating that the foundations of work are not in place. Research shows differences in how staff and management perceive its root causes: employees emphasize workload, while management focuses on individual factors. Understanding these root causes is key to building a proactive culture. How can we influence work and goal achievement before problems arise?
In the bigger picture, it’s about maintaining high—or even peak—organizational performance and productivity. A leader cannot create this alone. Methods that involve the entire staff help. Open communication about goals, plans, and models supports the effort. At best, everyone cares about each other and performance—proactively.
Case Example: Addressing Underperformance
Kati had previously been a precise, efficient, and reliable colleague. However, something had changed in recent months. Small mistakes began to appear in her work. These initially went unnoticed—or rather, unspoken. A coworker noticed the deviations but didn’t bring them up or share their concerns with the supervisor. Only when the team began to feel overwhelmed by correcting Kati’s work and overall productivity visibly declined, was the issue finally raised. Management was caught off guard, unaware of Kati’s or the team’s situation.
Could Kati’s and the team’s productivity have been restored sooner with quicker action? How should leadership influence organizational practices to reduce the number of similar cases? What would have been the ideal solution in this scenario?
In the best-case scenario, the colleague would have casually asked Kati about any challenges at work upon noticing the change. The supervisor would have addressed the issue empathetically as soon as difficulties became apparent. Together, they would have reviewed Kati’s performance and explored ways to help her move forward. The supervisor would have offered support, and if needed, they would have adjusted the role to better align with Kati’s strengths.
Results would have been visible within a few weeks, just as agreed in the follow-up. Kati soon met her goals. The team no longer had to compensate for her work. Team spirit improved, and Kati’s sense of capability was strengthened. Ideally, the workplace culture would have evolved to one where proactive intervention is encouraged—using the tips from this blog. Supervisors and HR professionals could apply tools like the Ratko model in their own work.
What Are the Proven Benefits of Addressing Underperformance?
- Increased employee productivity
- Improved workplace atmosphere
- More sustainable career paths
- Strengthened leadership capabilities
Related Blog Posts
Performance Management – From Good to Great
Individualized Leadership – Why, How, and What Benefits?
Time for Leading People
Experts
Tapani Frantsi, D.Sc. (Econ.), Leadership Developer, Workplace Mediator (University of Helsinki)
Tapani is a fearless reformer of working life and an experienced leadership coach. He has trained both executives of listed companies and frontline supervisors. His expertise includes developing leadership teams, supporting supervisors in challenging situations, and workplace mediation. Tapani is passionate about porous career paths and building a sustainable working life.
Nuppu Forsman, Advisor, Career Leadership Specialist
Nuppu is an expert in work ability management and occupational health. She has worked in large Finnish organizations and listed companies as a developer of working life, creating HR strategies and business-driven metrics for well-being and work ability. Nuppu knows how to turn reactive into proactive—and costs into savings.
Antti Äikäs – CEO, Doctoral Researcher
Antti is an interdisciplinary developer of working life and an impact expert. His core competencies include designing strategic leadership and HR development processes, process management, and evaluating economic impacts.
About Freia
Freia is a sparring partner for leadership and work ability, delivering impactful solutions for both private and public sector organizations. Our mission is to create shared success.
References
- Järvinen, P. & Koivuniemi, J. (2015). Underperformance and the Demands of Working Life. Finnish Institute of Occupational Health.
- Aarnikoivu, M. et al. (2020). A Difficult Employee or a Challenging Situation? Finnish Institute of Occupational Health.
- Kukkonen, A. (2020). Underperformance in the Workplace. Case Osuuskauppa KPO, Northern Region S-Markets.
- Working Conditions Surveys (Statistics Finland, 2021).
- Ratko Model (THL, 2025).
- Pindek, S. (2020). Failing is Derailing: The Underperformance as a Stressor Model. Frontiers in Psychology, 11, Article 1617.
- Tan, K. H. (2025). Effective Management of Underperformance and Disciplinary Actions in the Workplace: A Comprehensive Approach. ResearchGate. Link
- Bhoir, M., & Sinha, V. (2024). Employee Well-being Human Resource Practices: A Systematic Literature Review and Directions for Future Research. Future Business Journal, 10(1), Article 382.