Every company wants highly motivated, high-performing, and productive employees – the reality, however, does not look quite so rosy: In every company there are so-called ‘low performers’ who endanger the company’s success. The Gallup Engagement Index, published annually, states that low performers cause economic damage of over 100 billion euros in Germany every year.
The main reason given for this is a lack of emotional attachment to the workplace or employer – but there are many more reasons behind it. However, one thing is clear: the success of a company stands and falls with its employees – which does not make dealing with low performers any easier.
The American top manager and author Jack Welch show how many low performers there are in companies. He developed the 20:70:10 rule and finds clear words for low performers in companies: Low performers are employees who are too expensive for a company even if they work without pay – for nothing, so to speak. The 20:70:10 approach assumes that performance potential is divided up among employees in a highly differentiated manner. 20 percent of all employees are top performers, ie ‘high potentials’ or ‘top performers’. In contrast, 70 percent do average work. 10 percent of all employees are so-called low performers, whose work performance is far below the company’s expectations.
But what exactly does the term ‘low performer’ encompass and when can one speak of ‘low performance’ by an employee? What are the causes of low performance and what strategies are there for employers to free an employee from it? In the following, we want to make it easier for you to deal with low performers in your company and present five measures for turning low performers into high performers.
Definition of ‘low performer’ – A clear demarcation is difficult
The term ‘performance’ comes from the English-speaking world and describes management as the “measure for the fulfillment of a given performance, e.g. the ratio of the turnover achieved to the desired turnover target for a period”, as it says in the Gabler Wirtschaftslexikon. Accordingly, a ‘low performer’ or ‘underperformer’ refers to an employee whose performance (‘performance’) is constantly below expectations and average performance values (‘low’). When an employee is considered an underperformer is not really defined either legally or legally.
The Federal Labor Court sees the term ‘performance’ as being very subjective: an employee is only obliged to “perform [the] performance that he is able to do with reasonable exertion of his mental and physical strength in the long term without endangering his health” ( BAG, NZA 2004, 784). The employer can only demand from a low performer that he exhausts his individual capacity, which means: he has to fulfill the obligations according to his employment contract – as best he can. Legally, the Federal Labor Court speaks of underperformance if the performance falls below the average by more than a third – i.e. when the performance and consideration are in an obvious disproportion.
However, low performance is not the same as low performance, because: there can be underperformance for various reasons, both behavioral and personal.
Wanting vs. being able: How behavioral and personal low performers differ
Underperformance can be due to various causes, which will be discussed later in detail. In general, however, low performers can be divided into two categories: Low performers who, accidentally or intentionally, perform poorly – i.e. ‘low performers due to behavior or personality. Person-related low performers can not perform better, although they want to, because they are unable to do so, for example, due to an illness or professional deficiencies. Behavioral low performance is when employees knowingly cause underperformance. They consciously hold back their own ability to perform and often show negligent behavior, for example by arriving late, leaving their work too early, or behaving in other problematic ways.
But how can you as a manager score points when dealing with low performers and turn them into high performers? For this, it is necessary to analyze why low performance can occur at all.
Why are there low performers?
From the employer’s point of view, there are numerous potential sources of error for a possible low performance of an employee, especially at the beginning of the cooperation between company and employee. As a manager, it is therefore essential for you to keep your eyes open as early as the recruiting process, because: If mistakes are made when recruiting new employees, they can become low performers and thus threaten the economic success of your company.
It is important to communicate your expectations of the new employee clearly from the start. Even an incorrectly assigned position in the company can turn your employees into low performers. Therefore, before the start of the new employment relationship, check all of your employees’ qualifications and suitability in order to allocate them a suitable task and position.
Nevertheless, the reasons for low performance are not only in your role as a manager but can also result from personal problems of your employee. It is important that you quickly recognize the development of a low performer and can intervene in good time.
Checklist for recognizing low performers at an early stage: You should pay attention to these indicators!
- High, above-average absenteeism over a long period of time
- Incorrect work, always the same error structures – even after thorough training
- Complaints about an employee are piling up: customer complaints, team members looking for a conversation, direct superiors complain
- A severe, unexpected drop in employee performance
- Inappropriate behavior in the company
- Uncooperative work behavior and lack of helpfulness
- Refusal to carry out work orders from the supervisor
- Unmotivated work behavior affects the performance of the entire team
Underperformance can be divided into three main groups: qualitative or quantitative underperformance and ‘non-performance’.
Non- performance is when the employee does not provide the contractually agreed services. These include, for example, unexcused absences, leaving too early without prior agreement, or taking breaks without being stamped. On the other hand, there is the qualitative inferior performance of a low performer: This occurs when the low performer works full time and meets his target in terms of quantity, but the quality of the services provided deviates significantly – especially in comparison with other employees.
One consequence of this is, for example, a high reject rate in production. The quantitative underperformance describes the situation in which an employee performs high-quality services compared to their colleagues during their working hours, but all in all, performs significantly less in comparison and thus has a lower production volume or contracts, etc.
If you have identified a low performer among your employees using our checklist, it is now important to act quickly. In the following, we will tell you how you as a manager should behave when dealing with low performers and what measures you can take to turn low performers into high performers.
Dealing with low performers: 5 measures to turn low performers into high performers
Many managers have never learned how to support weak employees and how to deal with underperformers. Therefore, they often react inappropriately to low performers in their own ranks. The first reaction to low performers is often a transfer or dismissal of the employee concerned – without much effect because shifting the problem does not combat the cause and reasons for low performance. Some superiors also try to postpone the ‘problem’ and ignore or tolerate the underperformance of an employee for many years.
A third no-go when dealing with low performers is the build-up of pressure on underperforming employees – this often results in serious bullying problems. All of these apparently reasonable measures are usually highly counterproductive for the working atmosphere and the company itself – and in case of doubt can lead to further underperformers in the team. It is much more important than you as a manager to enter into a dialogue with your employees, work out the strengths in each employee and create good professional cooperation in order to turn low performers into high performers.
#1 Conduct root cause analysis!
Extensive cause research is the basis for motivating an underperformer in your team to new top performance: Without knowing the reasons that are responsible for the drop in performance of your low performer, you will not be able to develop a strategy for any improvements. The causes can be found in various areas – on the one hand, of course, within the company, in general in the professional environment, or in private life. Be sure to talk to your employee and carefully – step by step – ask for details about the reasons and causes of the low performance.
Common causes of reduced performance and suitable measures to achieve an improvement:
Private reasons:
Dealing with low performers becomes particularly difficult when the causes of the underperformance are to be found in the private sphere. This includes, for example, an illness such as burnout, cancer, etc., which deeply affects everyday life over a long period of time. Here, as a manager, you should act quickly and offer your employees a solution that focuses on their personal well-being. In the event of illness, of course, the first thing that helps is sick leave, a cure, or a longer holiday, which enables the low performer to recharge their batteries and eventually return to everyday work stronger. Even a temporary reduction in working hours can work wonders. In addition, company integration management help to restore the employee’s ability to work after a long absence and reintegrate him comprehensively into operational processes.
Problems in an employee’s personal environment, such as a death or a divorce, can also cause an employee to experience a severe drop in performance. Here, as a manager, you should definitely speak carefully to the low performer and look for a solution together with them. In this case, too, a spontaneous holiday, a sick note, or a cure can be suitable measures to support your employee in a personal crisis. Your commitment will pay off because in most cases your low performer will appreciate your support in difficult times and will significantly increase his performance when he has the strength and capacity to do so again.
Operational reasons:
Reasons for low performance can also emerge within the company, which may not be obvious to you as a manager at first glance. This includes, for example, a workplace or work equipment that is outdated or defective and thus arouses little motivation in your employees or they cannot provide the desired performance with the given resources. A dirty and noisy working environment can also turn out to be a reason for low performance since your employees are slowed down by the working environment and do not feel comfortable there.
But perhaps the field of work that you have assigned to your employee does not match their qualifications, so they feel under- or overwhelmed – and become a low performer. As a manager, make sure that every employee in your company has a suitable workplace that they are happy to return to every day and that their area of responsibility challenges them, but does not overwhelm them. By dealing correctly with low performers in the company, they can quickly develop into high performers.
It becomes particularly difficult if the reason for your employee’s low performance is personal bullying. If an employee experiences hostility in the team or company on a daily basis, this not only reduces their motivation but can also lead to serious psychological damage – and of course also has a noticeable effect on the work performance of your employee. As an employer, you have to intervene quickly in the event of bullying – not only for economic reasons that low performance entails but above all because of your existing duty of care towards employees.
Bringing the team back together and stopping the bullying is key to spurring your low performer on to new heights. Team-building measures are available for this, which strengthen cohesion, for example through joint excursions, but also problem-oriented solution discussions. If there is no rapid improvement, it helps to put the affected low performer in another work environment where they can improve their performance without being affected by bullying.
#2 Your leadership style matters: Stand behind the low performer and stand up for him
When dealing with low performers, you as a manager and your associated characteristics are particularly important in order to turn a low performer into a high performer. Once the causes for a possible underperformance of a low performer have been found, it is important to stand by them and support their needs. This is not only worth it personally, but also economically and has a positive effect on the company, because: If you, as a manager, support a low performer individually or offer measures to prevent underperformance throughout the company, the rest of your employees will also benefit.
You also strengthen the employer branding of your company: By taking care of low performers, tackling the problem with your leadership style, and not avoiding or relocating, you create an attractive employer brand that ideally positions you as a company and has a positive impact inside and out. As a manager, it is also essential to deploy your employees according to their personal strengths and potential. Even if there are underperforming employees in your team, you should still use their individual strengths for overall success and use the low performers where they can shine.
#3 Sustainable employee motivation as a means against underperformers
The most sustainable way to turn low performers into high performers is to actively motivate employees. In this way, as a manager, you create a counter-movement that will no longer give way to underperformance in the long run. For example, joint and concrete target agreements are essential here: Work out goals together in a fair and open manner and discuss the role of each employee in the work process. In this way, they ensure that both sides are aware of the respective expectations and that the team pulls together. Attention: Make sure you set realistic goals that motivate your employees – but do not overwhelm them.
How you motivate employees in the long term naturally also depends on the preferences of your employees. For example, you can increase your salary, give more recognition and praise, create further training and promotion opportunities, and also actively live your corporate culture and remain true to your principles.
#4 Performance improvement through personnel development
Reasons for low performance can often be found in the personal qualifications of an employee. For example, an employee can become a low performer due to a lack of expertise. A lack of specialist knowledge not only reduces the professional self-confidence of the low performer but can also affect the quality and quantity of their work performance.
As a manager, however, you can counteract these cases of low performance relatively easily by offering regular training measures – on the one hand, of course, for all employees to keep them up to date, but on the other hand also especially for low performers, who thus acquire missing knowledge, can catch up compared to other employees and thereby improve their performance. ‘On the job training can also help a low performer to come to terms with a lack of expertise. At the same time, this measure gives the low performer more self-confidence and thus increases their performance.
#5 Communication is the be-all and end-all to generating new high performers
In order to turn your low performer into a high performer, one measure is essential and indispensable: speak the plain language! Even if appraisal interviews are unpleasant in difficult situations, they are still the best way to get to the bottom of the causes of low performance and to be able to offer suitable solution strategies.
You can achieve more in conversation than you might think. Maybe your employee hasn’t even noticed that their work performance has deteriorated? Or are there actually simple and plausible reasons that justify the reduced performance? Clearly show the performance deficits and also clarify the consequences that long-term low performance has not only for the team but also for the entire company. It is often enough to ‘open the eyes of the low performer to bring about a rethink because they usually do not realize the consequences of their actions.
In order to turn the underperformer into a high performer, you should define clear long-term goals together with your employee, but also set smaller interim goals from which performance increases can be quickly read. Performance and the goals achieved are now jointly reviewed at regular intervals. You will see: Direct feedback motivates you in the long term and thus increases the performance of your employees.
Is your low performer not becoming a high performer? You have these sanction options
Have you followed all of our measures and strategies when dealing with low performers and yet there has been no visible success with your low performer? In order to protect your company from a major financial loss and also to keep the motivation in your team-high, you should not hesitate for too long but consider various sanctions.
If the low performance is a case of reduced or ‘poor performance’, it becomes difficult to enforce far-reaching sanctions without risking a dispute before the labor court and a severance payment obligation. The situation is different with a so-called ‘non-performance’. If the low performer only partially or not at all provides the services agreed in the employment contract, it is up to you to admonish your employee. If there is no improvement, you should warn the low performer and at the same time prepare for possible termination.
If nothing changes in the performance of your employee even after the warning, you as the employer are faced with the decision to actually implement the termination. However, this step should be well thought out and – above all – well documented so as not to provoke a complicated legal dispute. Therefore, with low performers, record in detail which tasks were set – the ‘target performance’ – and document the employee’s solution – the ‘actual performance’. If all mild measures have been exhausted, you can enforce the termination with the documented underperformance.
BUT: Before you terminate your contract, you should always analyze the situation and the low performance, have an open discussion with your low performer and find a profitable solution together. Far-reaching sanctions are always only the last step, but are sometimes necessary for the benefit of the entire company and the entire team!
Conclusion: dealing with low performers
Low performers are not only a financial threat to your business, they can also bring the team’s overall performance and morale into disrepute. A scientific study by Benjamin Walker from 2011 shows that just one underperformer in a team is enough to have a negative impact on overall performance. Walker divided 158 students into 33 groups – each team had one low performer. Team members were promised the same grade based on how well they did their job together.
The result of the study is hardly surprising: Even a weak team member reduced the performance of the entire group: Even if all other members did their best, they could not compensate for the low performer’s underperformance. A chain is actually only as strong as its weakest link.
This study shows how important it is to deal with low performers correctly in your company: Don’t give up on your underperformers, but turn a low performer into a high performer. Intensive discussions and root cause analysis are particularly important here. Trace the underperformance of your employee and try to decode the reasons and causes. In this way, you may be able to resolve possible problems in a timely manner through intensive support, further and further training, sick leave, or vacation.
Talk to the low performer and discuss the situation together – maybe your employee doesn’t even notice the underperformance as such. It is also essential that you as a manager stand behind the low performer 100% and use their individual strengths correctly. If you also motivate your employees in the long term and offer them the opportunity to develop personally and professionally, your low performers will quickly become high performers.
Editorial Team
