What should you do when an employee still isn’t improving?

There comes a point in many performance situations when the manager has had the conversations, offered support and allowed time for improvement, but the same concerns remain. It’s often at this point that the manager offers one more informal review period, hoping the employee will turn a corner without the need for a formal warning.

That instinct is understandable. Most managers want to be fair and avoid making the situation feel more serious than necessary. But if expectations have been clear, the underlying cause has been explored and suitable initial support has already been provided, another round of the same support may simply prolong the problem.

The answer isn’t to rush towards dismissal. It’s to check that the groundwork has been fair and, if it has, move into the first formal capability stage while continuing to support the employee in achieving the required standard.

This post is for: Owners and managers who have already raised a performance concern and offered some informal support but have not seen enough improvement.

You’ll leave with: A practical way to check that the informal stage has been fair, decide whether it’s time to move to the formal process and understand why that step can help the employee as well as the business.

This post is not: A complete guide to every stage of a formal capability process or dismissal.

If you want something more specific, these may help:

Performance management in small businesses: A calm, clear 4-step approach

Managing Underperformance in the UK: What to Do Before It Escalates

Difficult Conversations at Work: A UK Guide for Employers and Managers

Start by checking whether the employee knew what needed to improve

A manager may feel they have been very clear because the subject has been discussed several times. But repeated conversations don't always mean the employee understood the standard, the gap or the seriousness of the situation.

Before moving to the formal process, check whether the employee was given specific examples, a clear description of what good performance would look like and a reasonable opportunity to demonstrate it. They should have also understood how progress would be measured.

This doesn’t mean starting again every time the employee says something was unclear. It means being able to show that the expectations were fair, realistic and properly communicated.

Separate capability from conduct

Performance concerns aren’t always capability issues. Capability is about whether someone can do the job to the required standard. Conduct is about how they behave, including whether they are willing to follow reasonable instructions or apply the effort expected. Often referred to as the Skill/Will dilemma.

The difference matters because the response is likely to be different. Someone who lacks knowledge or skill may need training, clearer objectives or closer support. Someone who understands the requirement but repeatedly chooses not to follow it may need to be managed through a conduct process.

The facts aren’t always straightforward and a situation can involve both. The important thing is to understand what’s actually happening before deciding which process and support are appropriate.

Make sure the support matched the real problem

More support isn’t always the answer - the right approach depends on why the performance problem exists.

So, training might help someone who hasn’t been shown how to complete a task but it’s unlikely to solve a lack of effort. Closer supervision might support an inexperienced employee but it’s unlikely to add value where the real problem is an unrealistic workload or conflicting priorities. Likewise, repeated reminders will not address a health issue and a capability process will be the wrong route if the concern is really about conduct.

There might also be a disability, neurodivergence or another health condition that has not yet been recognised. In that situation, you may need to explore reasonable adjustments before deciding that the employee has been given a fair chance to improve.

A useful question is not simply: “What else can we offer?” It’s along the lines of: “What’s preventing the required performance and will this additional support or approach address it?”

Check whether another informal extension would genuinely help

Managers often offer one more informal review period because they hope to avoid moving to a formal warning. That may be reasonable where something meaningful will be different.

Perhaps delayed training is finally taking place, a reasonable adjustment has just been agreed, the workload has changed or the original expectations need to be made clearer. In those circumstances, a short further period may give the employee a fair opportunity that they have not yet had.

But if the same support has already been tried, the expectations were clear and there is no new reason to believe the outcome will change, another informal extension is unlikely to help. It may simply delay the point at which both the manager and the employee have a clear understanding of where they stand.

Why the first formal step is often the right next step

Moving into the first formal capability stage doesn’t mean the business has decided the employee will fail or that dismissal is inevitable. It means the concern is now serious enough to be dealt with through a clear and structured process.

The employee should be told what has not improved, the standard required, the review period, the support that will remain available and the possible consequences if the required improvement isn’t achieved.

That clarity can help. Some employees don't fully appreciate the seriousness of the concern while conversations remain informal. A formal warning may provide the impetus they need to focus on the required changes and demonstrate that they can meet the standard.

For the manager, the formal process replaces a series of increasingly frustrating conversations with a clear review period and defined decision points. For the team and the business, it means the performance concern is being addressed rather than allowed to drift on while the employee’s work is double checked, reassigned or completed by other people.

Formal doesn’t mean support stops

One reason managers become frustrated with capability procedures is that they feel they have already done the support stage before moving to the formal process. They may have explained the concern several times, offered training, allowed extra time and adjusted priorities. By the time the process becomes formal they may already believe that more of the same is unlikely to work.

The formal stage isn’t necessarily about inventing a completely different package of support or pretending that the earlier work did not happen. Relevant support should continue but it should now come along with a formal explanation of the standard, the timescale and the consequences.

The business should remain genuinely open to the employee improving. Training that is still relevant should continue. Agreed adjustments should remain in place and be reviewed. Feedback should be regular and clear and the employee should have the opportunity to explain anything that has not previously been considered.

What the manager should avoid is repeatedly redesigning the support simply to delay a decision. The formal process gives the employee a proper opportunity to improve but it also gives the business a route forward if they don't.

Consider agreed alternatives where they're realistic

A formal capability process doesn’t prevent the employer and employee considering other practical options. There may be a genuine vacancy elsewhere in the business that better matches the employee’s skills or a change to duties, hours or responsibilities may be worth discussing.

These aren’t automatic solutions and the business doesn’t have to create a role that isn’t needed. Any change to the employee’s role or contractual terms should be discussed and agreed. Redeployment or an agreed role change can be constructive where it’s realistic for both sides, but it should not become another way of postponing a decision.

Discussion around these types of alternatives should be handled with care – ideally, supported by advice from an HR professional.

Do not let the manager or team prop up the role indefinitely

One of the easiest ways to miss the true level of performance is for the manager or team to keep compensating for it. Work is checked again, deadlines are moved, difficult tasks are reassigned and team members cover mistakes or omissions.

That may protect clients and keep work moving in the short term but it also hides the real gap and puts pressure on other people. Support should help the employee perform the role; it should not require the manager or team to perform part of it indefinitely.

The practical answer

Before moving formally, check that expectations were clear, the issue has been correctly identified and the initial support was suitable. Consider whether health, disability, workload, management or conduct may be involved and whether anything important has been missed.

If that groundwork has been done and another extension to the informal stage is unlikely to make a meaningful difference, the answer is usually to begin the first formal capability stage rather than offering one more round of the same support. Relevant training, feedback and adjustments should continue and the business should remain genuinely open to the employee achieving the required standard. But give the situation the clarity it now needs and protect the business by moving it forward.

Final thought

Moving to a formal capability process is not the same as giving up on the employee. It recognises that the informal stage has reached its limit and that both sides now need greater clarity. Handled fairly, it gives the employee a clear opportunity to improve and gives the business a proper route forward if the required standard is still not achieved.

Disclaimer

This article is for general information and practical guidance. It’s not legal advice. Performance and capability cases depend on the facts, the employee’s circumstances and the process followed, so take advice where the position is unclear.