Why poor performance becomes harder as businesses grow
In very small teams, underperformance is obvious and dealt with informally.
As businesses grow:
- founders step back from day-to-day oversight
- managers lead teams for the first time
- expectations vary between individuals
- feedback becomes inconsistent
Performance issues don’t disappear.
They just become harder to articulate and address.
This is where many businesses stall.
What “poor performance” actually means in practice
Poor performance is not about effort or attitude.
It’s about outcomes against expectations.
In practice, this includes:
- missed deadlines
- work requiring repeated correction
- inability to meet role requirements
- failure to follow reasonable directions
Performance becomes difficult to manage when expectations were never clearly defined.
This is why clarity beats intensity every time.
The biggest mistake businesses make
The most common mistake is delay.
Businesses often:
- hope performance will improve on its own
- avoid uncomfortable conversations
- tolerate issues longer than they should
- then attempt to “fix everything” at once
By the time formal action is taken:
- frustration is high
- trust is low
- documentation is thin
This makes fair management much harder.
Why early conversations matter more than formal process
Most performance issues can be corrected early.
Early conversations:
- reduce defensiveness
- allow course correction
- create shared understanding
- protect future decisions
They don’t need to be formal or threatening.
They just need to be clear.
Waiting for certainty often removes the chance to improve outcomes.
What effective performance management looks like
Good performance management is:
- structured but human
- clear but proportionate
- consistent across employees
In practice, it usually involves:
- setting clear expectations
- documenting key conversations
- giving the employee an opportunity to respond
- allowing reasonable time for improvement
It does not require corporate frameworks or endless paperwork.
Do you always need warnings?
No, but warnings are often useful.
Warnings help when:
- expectations were unclear
- the role is complex
- improvement is genuinely possible
They hurt when:
- the decision is already made
- they are used to “tick a box”
- managers do not believe improvement will occur
Warnings should support improvement, not justify termination after the fact.
How long should you give someone to improve?
There is no fixed timeframe.
Reasonableness depends on:
- the role
- the impact of the underperformance
- how long the issue has existed
- whether expectations were clear
Dragging performance management out to feel “safer” often increases risk rather than reducing it.
Clarity and decisiveness matter more than duration.
The role of documentation (without overdoing it)
Documentation protects decisions when it reflects reality.
Effective documentation:
- is factual
- is timely
- reflects actual conversations
- aligns with actions taken
Poor documentation:
- is written after the decision
- exaggerates issues
- contradicts earlier feedback
More documents do not equal more protection.
Consistency does.
When performance management should stop
Performance management should stop when:
- expectations are met, or
- it becomes clear improvement is unlikely
Continuing process when the outcome is obvious:
- wastes time
- undermines credibility
- increases legal risk
Knowing when to stop is just as important as knowing when to start.
How poor performance links to termination risk
Most unfair dismissal claims involving performance are not about the employee’s capability.
They are about:
- surprise
- lack of clarity
- inconsistent treatment
- delayed action
Good performance management makes termination easier, cleaner and safer if it becomes necessary.
Where HR support adds the most value
HR support is most valuable when it:
- helps frame expectations
- sense-checks timing
- advises whether formal steps are needed
- supports managers through conversations
This prevents drift and protects decisions.
For growing businesses, this support often avoids escalation altogether.
FAQs
Before performance becomes a problem
Poor performance is easiest to manage when it is addressed early, calmly and clearly.
If you’re unsure whether to coach, formalise or move towards termination, that uncertainty is usually the cue to pause and get advice before the situation hardens.
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