Don't let underperformance waste your valuable time and resources anymore!
In my previous blog, we delved into the critical role of expert HR support for SMEs and the risks associated with neglecting it. Today, I want to shed light on another common area that can drain valuable resources and hinder business growth—underperforming employees. We all know at least one underperforming employee within an organisation (usually!). As of 2019, underperforming employees were costing SMEs an average of £39,500 a year, a substantial financial burden that can no longer be ignored.
The Underperformance Dilemma
When an organisation lacks expert HR support, one of the often-overlooked challenges is effectively managing underperforming employees. It's an issue with several root causes, and if left unchecked, it can lead to wasted time, resources, and money.
Common Causes of Underperformance
Lack of Clarity: Employees may underperform when they're unclear about their roles, responsibilities, or performance expectations. This can stem from inadequate job descriptions or poor communication. I've come across so many organisations that fail to create or issue job descriptions and it shows. How should employees know exactly what is expected of them if it's not documented?
Lack of Training: Employees need the right skills and training to perform their roles effectively. A lack of proper training can lead to underperformance. You would be surprised how many organisations fail to carry out even basic training.
Motivation Issues: Motivation varies from person to person. Some employees may lose motivation due to a lack of recognition, advancement opportunities, or personal challenges. As mentioned in a previous blog, motivations differ from employee to employee and it's crucial that management recognise motivating factors and play these to the organisations advantage (and also the employees). For some it may be flexibility, others money, however, we'll delve into this deeper in a future blog.
Health and Well-being: Physical and mental health issues can impact an employee's performance. These issues may go unnoticed without proper HR support, would you know how to notice the signs of someone's health and well-being deteriorating?
Solutions to Managing Underperformance
Clear Expectations: Set clear job descriptions and performance expectations for each employee. Regularly review these expectations and provide constructive feedback.
Training and Development: Invest in training and development programs to enhance your team's skills. This not only improves performance but also boosts employee morale.
Motivation and Recognition: Understand what motivates each member of your team. Building strong working relationships allows you to recognise and address their individual needs.
Performance Management: Implement a performance management process that includes regular performance reviews and feedback sessions. Address issues promptly and constructively to stay on top of performance and areas of concern.
Health and Well-being Support: Offer employee assistance programs (EAPs) and promote a healthy work-life balance to support the physical and mental well-being of your team.
Building Strong Relationships: The Key to Employee Motivation
One of the most effective ways to manage underperformance is to build strong working relationships between staff and management, in my experience. This involves understanding what motivates each employee individually. While some may thrive on challenges and recognition, others may value work-life balance and job security. By getting to know your team members on a personal level, you can tailor your management approach to meet their needs, ultimately enhancing motivation and performance.
The Cost of Doing Nothing
Ignoring underperformance can lead to significant financial losses for SMEs. The £39,500 annual average cost per underperforming employee is a stark reminder of the hidden toll it can take on your organisation. This includes lost productivity, the impact on team morale, and potential turnover costs.
In conclusion, effective management of underperforming employees is crucial for the success of SMEs. While the absence of expert HR support can make this challenging, it's not insurmountable. By setting clear expectations, investing in training, understanding employee motivation, and building strong relationships, you can address underperformance head-on and unlock your team's true potential.
Don't let underperformance drain your resources and stop your business from thriving. Take action today by getting in touch:
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