How to Handle Underperforming Employees as a Manager

How to Handle Underperformance as a First-Time Manager: A Practical Playbook for Clear, Confident Leadership

Underperformance is one of the most difficult challenges a new manager faces. You may have been promoted because you delivered strong results as an individual contributor, solved problems quickly, and earned trust through your own performance. But managing people requires a different skill set. Suddenly, your success depends not only on what you do, but also on how clearly you guide, support, and hold others accountable.

For first-time managers, underperformance can feel especially uncomfortable. You may worry about sounding harsh, damaging the relationship, creating conflict, or being unfair. As a result, many new managers delay the conversation, soften the message too much, or hope the issue resolves itself. But silence rarely helps. When performance problems go unaddressed, deadlines slip, team morale drops, high performers become frustrated, and the struggling employee loses the chance to improve.

The guidebook, How to Handle Underperformance as a First-Time Manager, offers a practical way forward. It gives new managers scripts, examples, frameworks, and action steps to handle performance concerns with clarity, care, and consistency. Instead of treating underperformance as a confrontation, it positions the manager as a coach whose role is to create the right conditions for improvement.

Download these resources and apply them alongside your daily work for improved clarity, productivity, and professional growth. You can also book a free trial to gain expert guidance and enhance your communication, problem-solving, and decision-making skills. The materials are designed in a clear, structured format to help professionals learn efficiently and implement insights with confidence.

Who Is This Blog For?

This blog is designed for professionals who are stepping into leadership roles and need a practical approach to handling difficult performance conversations.

- First-time managers who are responsible for team output for the first time
- New team leads who want to give feedback without damaging trust
- Professionals transitioning from individual contributor roles into people management
- Managers struggling to address missed deadlines, low-quality work, or behavioural issues
- Leaders who want scripts for difficult conversations instead of vague advice
- HR professionals and mentors supporting new managers with leadership communication
- Working professionals who want to strengthen their workplace communication, coaching, and feedback skills

Why This Topic Matters Today?

Modern workplaces move quickly. Teams are expected to deliver results under tight timelines, adapt to shifting priorities, collaborate across functions, and maintain high standards. In this environment, underperformance cannot be ignored for long.

The guidebook highlights an uncomfortable but important reality: most new managers wait too long before addressing performance concerns. They may avoid the conversation because it feels awkward, or they may raise the issue so indirectly that the employee does not realise there is a serious concern. This creates a damaging cycle. The manager becomes frustrated, the employee remains unclear, and the rest of the team begins to notice the lack of accountability.

Unaddressed underperformance also affects high performers. When strong team members see that missed deadlines, incomplete work, or poor behaviour are tolerated, they may feel demotivated or unfairly burdened. The guidebook notes that unaddressed underperformance is one of the reasons high performers leave. People who care about standards are always watching how leaders respond when those standards slip.

For first-time managers, this topic matters because credibility is built early. Your team learns quickly whether you follow through, communicate clearly, and address issues fairly. Handling underperformance well shows that you are not there to judge people, but to coach them toward success.

Core Concept or Framework Explained

The guidebook is built around a clear leadership principle: diagnose first, speak second.

Before you speak to an underperforming employee, you need to understand why the underperformance is happening. The guidebook introduces the 3-Root-Cause Framework, which helps managers identify whether the problem is a skill gap, a will gap, or a system gap.

A skill gap means the person does not yet know how to perform the task successfully. They may need training, coaching, clearer examples, or a better process. In this case, the right response is support and structure.

A will gap means the person may have the ability but is not consistently applying effort, focus, or ownership. This may show up as selective performance, repeated patterns despite feedback, disengagement, or missed deadlines without explanation. In this case, the manager needs a more candid conversation about expectations and accountability.

A system gap means the environment is preventing success. The person may lack clear goals, the right tools, enough time, proper resources, or direction from the manager. This is often the most uncomfortable diagnosis because it requires the manager to examine their own role in the problem.

The second major framework in the guidebook is the SBI-I Framework: Situation, Behaviour, Impact, Intention. This structure helps managers give feedback based on observable facts rather than personality judgments.

- Situation: When and where the issue happened
- Behaviour: What specific action or pattern was observed
- Impact: How it affected the work, team, client, or outcome
- Intention: What you want to explore, understand, or change

The strength of SBI-I is that it keeps the conversation specific and professional. Instead of saying, “You are unreliable,” a manager can say, “The last three reports were submitted after the deadline, which delayed the client response.” This separates the person from the behaviour and makes improvement possible.

How This Blog and Guidebook Help You?

This blog and guidebook help new managers move from avoidance to action. Instead of guessing what to say, you get a structured approach for every stage of the conversation: diagnosis, meeting invite, feedback delivery, response handling, action planning, and follow-up.

By applying the guidebook, you can:

- Address performance concerns earlier and more confidently
- Reduce anxiety by using supportive but direct language
- Avoid making feedback personal or emotional
- Understand whether the issue requires coaching, accountability, or system improvement
- Use scripts that keep conversations calm and focused
- Create action plans with clear owners and deadlines
- Protect team morale by showing that standards matter
- Build credibility as a fair and consistent manager

Most importantly, the guidebook helps you remember that your role is not to punish. Your role is to help the team member succeed or to make clear what success requires.

Step-by-Step Breakdown

Step 1: Diagnose the Root Cause Before the Conversation

The first step is to pause before speaking. A performance issue may look obvious on the surface, but the cause may not be. If you assume the problem is laziness when it is actually confusion, you will damage trust. If you assume it is a skill gap when the person is repeatedly ignoring clear expectations, you may avoid necessary accountability.

Use the diagnosis checklist from the guidebook before scheduling the conversation:

- Have expectations been clearly communicated in writing?
- Has the person had enough time and resources to succeed?
- Have you observed the behaviour consistently, not just once?
- Could there be a personal or external factor you are unaware of?
- Have you given feedback before, and was it clear?
- Is this a skill issue or a motivation issue?
- Are you confusing a different working style with underperformance?

This step forces you to think like a manager, not just react like a frustrated colleague. It also helps you enter the conversation with curiosity instead of accusation.

Step 2: Identify Whether It Is a Skill Gap, Will Gap, or System Gap

Once you reflect on the situation, classify the likely root cause.

A skill gap may be present when the employee is new to the role, shows inconsistent output across similar tasks, asks few clarifying questions, or puts in effort but still produces poor results. For example, if someone repeatedly submits client reports without the executive recommendations section, the issue may be a lack of clarity or training.

A will gap may be present when performance was previously fine but suddenly declined, when the person performs well only on tasks they enjoy, or when feedback has already been given clearly but the pattern continues. For example, repeated lateness to Monday stand-ups after prior reminders may require a direct behaviour conversation.

A system gap may be present when goals are unclear, tools are missing, timelines are unrealistic, or the manager has not provided enough guidance. A first-time manager must be honest enough to ask, “Have I set this person up for success?”

Step 3: Set Up the Conversation Thoughtfully

The way you invite someone to a performance conversation matters. A vague “Can we chat?” can create anxiety. A cold “We need to discuss your performance” can create defensiveness. The guidebook recommends a supportive, specific, and respectful tone.

For a skill gap, the invite should feel growth-oriented:

“Hey [Name], I’d love to block 30 minutes with you this week to talk through how things are going on [project/task]. I want to make sure you have everything you need to feel set up for success. Does [day/time] work for you?”

For a will or behaviour gap, the invite should be direct but calm:

“Hi [Name], I want to check in with you privately about some patterns I’ve been noticing around [area]. I think it’s important we talk openly. I’ll keep it focused and it won’t take long — can we meet [day/time]?”

If you have already raised the issue before, consistency matters:

“[Name], I want to revisit something we discussed last time. I said I’d follow up, and I want to do that now — not to pressure you, but because I genuinely want to see this improve and I want to help make that happen. Can we find time this week?”

The guidebook also warns managers not to schedule these conversations on Friday afternoons, not to send vague invites, and not to delay more than 48 hours after deciding the conversation is needed.

Step 4: Use the SBI-I Framework During the Conversation

During the conversation, avoid general impressions and personality labels. Use the SBI-I structure.

Start with the situation and behaviour. Be specific about what happened and when. Then explain the impact. Finally, end with intention by inviting the employee’s perspective and exploring what needs to change.

For a skill gap, the guidebook gives an example where the manager says that in the last three client reports, the data summaries were missing the executive recommendations section. The impact is that clients use that section to make decisions, so its absence creates extra work and delays. The manager then asks whether the brief was clear enough or whether part of the report structure feels unclear.

For a behaviour or will gap, the guidebook gives an example of repeated lateness to Monday stand-ups. The manager names the pattern, explains that it disrupts the team’s weekly flow, and asks whether something is going on or whether something can be changed to make the schedule work better.

The key is to avoid accusation. The conversation should sound like, “Here is what I observed, here is the impact, and I want to understand your perspective.”

Step 5: Prepare for Different Employee Reactions

Performance conversations do not always go smoothly. The guidebook identifies four common reactions: silence, defensiveness, emotion, and vague agreement.

If the employee shuts down, acknowledge the difficulty and invite a small response. You might say, “I can see this is a lot to take in. I’m not looking for all the answers right now. Can you share what’s going through your mind, even briefly?”

If the employee becomes defensive, do not argue. Stay grounded in observations. You might say, “I hear you, and I don’t want to dismiss your perspective. What I’ve shared is based on what I observed. Can we look at the specific example together?”

If the employee becomes emotional, give them space without abandoning the conversation. You might say, “I can see this landed hard. My intention isn’t to hurt you. It’s to have an honest conversation because I think you’re capable of more.”

If the employee agrees quickly but vaguely, move toward specifics. You might say, “I’m glad we’re aligned. Let’s be specific about what changes and by when.”

Your emotional regulation is part of your leadership. If the conversation gets tense, name it calmly and return to the goal.

Step 6: Close With a Co-Created Action Plan

A performance conversation without an action plan often leads to no change. The guidebook recommends closing every conversation with clear, documented next steps. This does not always need to be a formal HR document. In many early-stage situations, a simple summary email within 24 hours is enough.

A strong action plan should include:

- What was discussed
- What actions were agreed
- Who owns each action
- Deadlines for each action
- How progress will be tracked
- When the follow-up conversation will happen

The guidebook recommends keeping the plan to two to four actions. Too many actions create confusion. Each action should be specific and time-bound. “I’ll try to do better” is not an action plan. “I will submit the next two reports by Thursday at 5 PM using the updated template” is much clearer.

The manager should also own at least one action. For example, the manager may agree to clarify expectations, review a template, provide resources, or check in weekly. Shared ownership builds trust and shows that the goal is improvement, not blame.

Step 7: Follow Up Consistently

Follow-up is where many first-time managers fail. They have one good conversation, but then nothing is tracked. The guidebook is clear: your credibility as a manager depends on whether you do what you said you would do.

Send the summary email within 24 to 48 hours. Put the follow-up meeting in the calendar before the conversation ends. Review progress at the agreed time. If improvement happens, acknowledge it. If the issue continues, address it directly and document the next step.

One conversation without follow-up can be worse than no conversation because it teaches the employee that accountability is optional.

Case Study: What Effective Underperformance Management Looks Like

The guidebook includes a composite case study about Priya, a new engineering team lead, and Arjun, a developer who has been missing sprint deadlines for six weeks. Arjun has been completing only 60 to 70 percent of his sprint commitments, even though he was previously reliable.

Priya first diagnoses the issue using the 3-root-cause framework. Since Arjun’s performance was strong before, she does not assume laziness. She suspects a will or personal factor. She sends a supportive invite, creating space for an honest conversation.

During the conversation, Priya uses the SBI-I framework. Arjun shares that he has been dealing with a family health issue. Instead of reacting with frustration, Priya listens and co-creates a temporary reduced sprint target with a clear review date. She sends a written summary within 24 hours and schedules weekly check-ins.

By week six, Arjun is back to 90 percent sprint completion. The relationship is stronger, Priya’s credibility improves, and the team sees that performance concerns can be handled with both compassion and accountability.

Common Mistakes or Pitfalls to Avoid

The guidebook identifies seven common mistakes first-time managers make when handling underperformance.

Waiting too long is the first mistake. Managers often hope the problem will resolve itself. The better approach is to address performance concerns after two consistent occurrences, not ten.

Giving vague feedback is another major issue. Statements like “You need to step up” or “Push yourself more” do not help because they lack specific examples. Use SBI-I instead.

The feedback sandwich can also weaken the message. If you bury the concern between too much praise, the employee may miss the seriousness of the issue. Care and clarity should work together.

Lack of follow-up is a frequent failure. A productive conversation means little if actions are not tracked.

Making it personal is especially damaging. Avoid labels like “unreliable” or “lazy.” Focus on specific behaviours, such as late reports or missed deadlines.

Escalating too early can create fear and reduce trust. Unless the behaviour involves policy violations, harassment, or serious risk, have direct documented conversations first.

Only documenting when things go wrong is another pitfall. Managers should document coaching conversations, progress, and positive changes too. This creates a fair and balanced record.

How Should You Use This Guidebook Effectively?

Use the guidebook as a working playbook, not just a reading resource. Before your next performance conversation, spend 30 to 45 minutes preparing with it.

Start by identifying the performance concern clearly. Write down the specific behaviour, when it happened, and its impact. Then run the diagnosis checklist. Decide whether the issue appears to be a skill gap, will gap, or system gap.

Next, draft your meeting invite using the relevant script. Do not overthink the wording, but make sure it is specific, respectful, and timely. Then prepare your SBI-I statement before the meeting. Writing it down helps you stay calm and clear.

Before the meeting, review the response scripts for silence, defensiveness, emotion, and vague agreement. This prepares you to lead the conversation without becoming reactive.

After the conversation, send the summary email within 24 hours. Keep the action plan short, specific, and shared. Then follow up exactly when you said you would.

For best results, treat this process as a repeatable leadership habit. The first conversation may feel awkward. That is normal. Practice the script aloud, adjust it to sound natural, and remember that clarity is a form of respect.

Key Takeaways

- Underperformance should be addressed early, not after weeks of frustration
- First-time managers should diagnose the issue before speaking
- The 3-root-cause framework helps identify skill gaps, will gaps, and system gaps
- Meeting invites should be specific, supportive, and not vague
- SBI-I keeps feedback focused on facts, behaviours, impact, and future intention
- Strong managers prepare for silence, defensiveness, emotion, and vague agreement
- Every performance conversation needs a clear action plan
- Action plans should include owners, deadlines, and follow-up dates
- Documentation should capture coaching, progress, and commitments
- The manager’s role is to coach, not judge
- Consistent follow-through builds leadership credibility
- Hard conversations become easier when handled with clarity, care, and structure

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