Manage People Portfolio – How to handle “Low Performers”?
For an efficient Performance Management the handling of Low Performers is a key. First you need a clear definition what a Low Performer is. The definition not only various from Company to Company it various from Manager to Manager even if there is a clear measurement (e.g. yearly rating done by the manager in a scale from 1 to X). In addition hopefully not only results are measured but behavior too.
If poor performance has not obviously to be addressed I would prefer to focus not only on one period/year to avoid one-time effects (e.g. impact of market, integration period in a new job, private issues …) on unsatisfying performance. Latest after 3 years in a row of not “fully meet expectations” an organization should track the actions done by Line Manager and relevant HR BP to address the performance issues of the Low Performers (according to my experience 1-3% of overall population). And the focus should be on the following four options:
Change
Action plan: Clear training plan to improve performance. Other actions to support improvement of performance + behavior.
Switch
Internal Move: To a position where capabilities of employee fits better. To another “environment” which employee allows better to perform.
Stay
If change + switch was not successful and/or according social responsibility / labor law exit is not an option (to be avoided whenever possible).
Go
Exit from Company: Find respectful and compliant ways to a voluntary agreement and/or finish contract in line with labor law and local policies.