- 1. Focus on poor performance that is damaging business results
- 2. Don't waste valuable time

Key Takeaways
- Address underperformance early with specific, documented feedback rather than waiting for annual reviews when habits are entrenched
- Set clear, measurable expectations for each role so employees understand exactly what success looks like and can self-assess
- Invest in training and tools that remove friction from daily work, as most performance issues stem from unclear processes not bad intent
As a business owner and leader, one of your main responsibilities is to ensure that the company has a good working environment. Only under these conditions are employees able to work calmly, carry out their daily tasks, and motivate themselves to commit to the company's growth objectives. When workplace performance drops, the effects ripple through client relationships, revenue, and team morale. Addressing issues early and systematically is far more effective than waiting until problems become crises.
In case of problems, the first thing you should do is identify the people who are causing them and apply these ten tips.
1. Focus on poor performance that is damaging business results
Businesses, especially those with more employees, often face many employee relationship and performance issues, and the reality is that their resolution can take time. Not every issue deserves equal attention. Start by identifying which performance gaps are directly hurting revenue, client satisfaction, or team productivity. A salesperson who consistently misses targets has a more immediate impact than someone who is occasionally late to non-critical meetings. Prioritize the problems that cost the business the most, and address those first.
2. Don't waste valuable time
Once the sources of problems have been detected, it is best to face them as quickly as possible and stop them from damaging the good working environment. Silence and inaction are equivalent to validating negative behavior. Research on organizational behavior consistently shows that unaddressed performance issues tend to escalate rather than resolve themselves, a finding supported by the Society for Human Resource Management (SHRM) performance management toolkit. Other employees notice when poor performance goes unchecked, and it can erode their own motivation. Aim to have an initial conversation within one to two weeks of identifying the problem.
3. Listen
When you meet with a difficult employee, expose the situation and then focus on learning more about them: what is happening in their work and personal life, how they feel about their role, and their vision of the company and their colleagues. Active listening means asking open-ended questions such as "What would make this role work better for you?" rather than leading with accusations. Employees who feel heard are significantly more likely to engage constructively with feedback and make genuine changes.
4. Try to understand the causes
People who cause problems in their work often have personal conflicts, difficulties relating to and accepting authority, or sometimes they are simply unmotivated and frustrated with the company. Common root causes include unclear job expectations, lack of skill development, burnout from overwork, or feeling undervalued. Before deciding on a solution, make sure you understand the actual cause. A skills gap requires training, while a motivation issue might require a different role or new challenges.
5. Be clear
Difficult collaborators generally don't know they are difficult, or they tend to ignore the situation. Respectfully but firmly explain what is happening and what the negative impact of their behaviors is. Use specific examples with dates and outcomes rather than vague statements. Instead of saying "your work has been slipping," say something like "the last three client reports were submitted after the deadline, which caused us to miss our monthly review window." Specificity makes the conversation productive rather than defensive.
6. Raise options for improvement
It is very important to allow the employee to acknowledge their mistakes, express their point of view, and improve their attitude to continue being part of the team. Collaborate on an improvement plan rather than dictating one. When employees participate in designing their own improvement path, they take more ownership of the outcome. Write down the agreed-upon actions, expected results, and timeline so both parties have a clear reference.
7. Set clear deadlines
The opportunity to improve their situation in the company cannot have an indefinite period. That's why it's best to set short goals and follow through on them. A 30-60-90 day improvement plan works well for most situations: set specific milestones at each interval and schedule check-in meetings to review progress. This structure gives the employee enough time to make real changes while keeping the process accountable and measurable.
8. Offer training
Does an employee have a lack of empathy? Or do they not know how to work in a team? Do they have problems with authority? Once the problem is identified, look for workshop options or personalized mentoring from a coach. Training doesn't have to be expensive. Internal mentoring programs, online courses, and peer shadowing can all be effective. The key is matching the training to the specific gap you identified in step four. A $200 communication skills workshop can save you the $15,000+ cost of replacing an employee.
9. What if you change the employee's position?
Perhaps the main problem with your collaborator is that they have been in the same place for a long time and do not have the opportunity to take advantage of their knowledge, skills, and experience. A lateral move to a different team, project, or set of responsibilities can reignite motivation and productivity. Before making a change, discuss it openly with the employee. A move should feel like an opportunity, not a punishment. Many companies have found that their best performers emerged after being placed in roles that better matched their strengths.
10. Apply consequences
If the employee does not show a willingness to change after reasonable opportunities, then you have to think about appropriate consequences. These might include a formal written warning, a performance improvement plan with specific metrics, or in serious cases, suspension. The goal is not punishment for its own sake but to communicate that standards exist and must be met. Document every step of the process to protect both the employee and the business. Consistent enforcement across the team builds trust in the fairness of your leadership.
Best practices for sustaining workplace performance
Beyond handling individual issues, consider these ongoing practices that prevent performance problems from developing in the first place:
- Set expectations on day one. New employees should receive a written description of their responsibilities, performance metrics, and how success will be evaluated. Ambiguity at the start compounds into confusion later.
- Conduct regular one-on-one meetings. A brief 15-30 minute weekly or biweekly check-in catches small issues before they grow. These meetings also build rapport and trust between managers and team members.
- Recognize good work publicly. Acknowledging strong performance reinforces the behaviors you want to see. Recognition does not need to be monetary; a specific compliment in a team meeting or a brief written note can be highly effective.
- Use the right tools. Administrative friction, such as manual invoicing, disorganized project tracking, or slow communication tools, drains productivity. Investing in streamlined tools like Billed for financial workflows frees your team to focus on higher-value work.
Have you had to deal with a difficult collaborator? How have you handled it?
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Frequently Asked Questions
What is the single most impactful way to improve workplace performance?
Setting clear, measurable goals and communicating expectations explicitly has the greatest impact on performance because most underperformance stems from ambiguity rather than lack of effort or ability. When employees know exactly what success looks like and how their work connects to business outcomes, productivity increases significantly without additional tools or processes.
How do I improve employee performance without micromanaging?
Focus on setting clear outcomes and deadlines rather than dictating how the work gets done, and schedule regular check-ins where employees report on progress and flag obstacles. Giving autonomy over methods while maintaining accountability for results builds both trust and competence, and employees who feel trusted consistently outperform those who feel over-supervised.
How long does it take to see results from workplace performance improvements?
Simple changes like clarifying goals and removing meeting bloat can produce measurable results within two to four weeks. More systemic improvements like building feedback cultures, implementing new workflows, or developing employee skills typically show meaningful impact within three to six months of consistent effort.

