Performance Management
The informal conversations have happened. Nothing has changed.
You can't keep absorbing underperformance. But you also need to handle what comes next correctly.
Performance management is one of the most misunderstood areas of employment relations. Done well, it either resolves the problem or creates the legal foundation for a fair dismissal. Done without the right structure, it exposes the business to unfair dismissal claims, even when the performance issue is real.
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★★★★★ 5.0 from 18 Google reviews · FCIPD Chartered Fellow
Written and reviewed by Samantha Newton FCIPD, Chartered Fellow CIPD · 25+ years' employee relations experience · Last reviewed June 2026
At a glance
- What it is
- A fair, structured route to improve performance or exit safely.
- Main risk
- Dismissing without a documented, fair chance to improve.
- First step
- Put clear, written standards and gaps in front of them.
- Typical timescale
- Weeks to months, a reasonable chance to improve.
Most businesses try the informal route first
A quiet word. A clear conversation. Another one a few weeks later. And then another. When nothing changes, you are stuck, either absorbing underperformance that is genuinely damaging the business, or moving to formal action without a paper trail to support it.
By the time most business owners get in touch, they have had the conversations but haven't documented them. The performance issue is real. The process to address it formally isn't there yet.
The good news: performance management situations are usually recoverable. Even without a perfect paper trail from the beginning, you can build a proper process from here, if you do it correctly.
Watch
How to handle this, in a couple of minutes
Typical situations supported
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Why performance management is harder than it looks
The challenge is consistency and documentation. Informal conversations get put off. Formal reviews don't happen. When things escalate, there's no clear record. Common failures include:
No documented performance standards the employee was explicitly made aware of
Feedback given verbally but never confirmed in writing
Improvement plans too vague to be measurable
Inconsistent monitoring, intense at first, then dropped
Mixing conduct concerns with performance concerns in the same process
Moving toward dismissal before the formal process has been completed
Tribunals expect employers to demonstrate that the employee knew what was required, had a genuine opportunity to improve, and was supported during the process. Without that evidence, clear underperformance can still result in a finding of unfair dismissal.
What's at stake
What's actually at risk
Up to 25%
Tribunal awards can rise by up to 25% where a fair process wasn't followed, even when the underperformance was real.
- A performance dismissal needs you to show the targets were reasonable, the process fair, and the employee had a genuine chance to improve.
- A tribunal doesn't need to find the employee was performing well, only that your process was flawed. That's how employers lose these cases.
- Handled badly, inconsistent or undocumented conversations can prompt a grievance or constructive dismissal claim instead.
Performance management is recoverable in most cases. The key is putting the right structure in place now, even if the earlier conversations were informal.
The process
The performance process, step by step
A clear, fair process is what protects you at every stage. Here's how it runs, and where Samantha guides you through it.
Standards
Set out clearly what good looks like, in writing.
Gaps
Identify specifically where they're falling short.
Plan
Agree targets, support and a fair timescale to improve.
Review
Meet regularly and document progress.
Outcome
Recognise improvement, or move to a fair next stage.
- 1
Standards
Set out clearly what good looks like, in writing.
- 2
Gaps
Identify specifically where they're falling short.
- 3
Plan
Agree targets, support and a fair timescale to improve.
- 4
Review
Meet regularly and document progress.
- 5
Outcome
Recognise improvement, or move to a fair next stage.
How Magenta HR helps
In a single session, Samantha reviews the situation, identifies any risk in the existing approach, and builds a clear plan for what to do next:
Assessment of whether the current approach is legally sound
Clear structure for a formal performance improvement process
Advice on setting measurable, defensible targets
Guidance on the right level of support to offer during the process
Help with documentation at each stage
Advice on when and how to move to formal action if performance doesn't improve
Written plan within 48 hours
Samantha works with owner-managed businesses across a range of roles and sectors. She understands the operational reality of managing performance in a small team, not just the legal theory.
The Magenta Method
From problem to sorted, in four clear steps
A clear, four-step approach so you always know where you stand and what happens next.
Understand
We get a clear, honest picture of what's really going on, beneath the surface.
Assess the risk
Your legal exposure and commercial impact, explained in plain English.
Plan the right path
Realistic options and the correct steps, in order, written up within 48 hours.
Resolve & protect
Support through it, then keep you protected so the next issue is caught early.
Real situation · anonymised
Performance concerns
Accuracy improved within a month
He trusted her. She kept making mistakes. He didn't know what to do.
Situation
Repeated errors were affecting client work. The owner had flagged it informally twice but nothing changed. He was worried about losing her, or losing clients.
What changed
A structured improvement plan, framed properly, with clear expectations and support built in.
Outcome
Accuracy improved within a month. No tribunal risk. No recruitment cost. The employee later said it was the clearest feedback she had ever received.
Owner, wellbeing clinic
Reviewed by Samantha Newton FCIPD, Chartered Fellow of the CIPD, with 25+ years handling situations like this.
Prefer to handle it yourself?
There's a step-by-step system for this exact situation.
Plain-English guidance, letters, checklists and an editable policy. Written by a Chartered Fellow, from real cases. From £197.
Common questions
I've spoken to this employee several times. Nothing changes. What now?+
Informal conversations are a good starting point, but once they are not working you need to move to a structured process. That means setting clear, written targets, giving the employee a formal opportunity to improve, and documenting everything. Samantha can help you set this up properly even if the earlier conversations were not recorded.
How do I set targets that are fair but actually mean something?+
Targets need to be specific, measurable and within the employee's control. Vague targets like 'must improve attitude' are very difficult to enforce. Samantha advises on how to frame targets that are defensible if challenged, while still reflecting the real expectations of the role.
What's the risk if I just let this continue?+
Continued underperformance affects your team, your clients and your business. There is also a risk in the other direction: if you delay too long without following a proper process and then try to dismiss, the lack of documented steps works against you. Acting earlier gives you more options.
Do I need a formal process before I can dismiss for performance?+
Yes. You need to demonstrate that the employee was made aware of the performance concerns, given clear targets or standards, provided with support to improve, and given a reasonable opportunity to do so. Skipping these steps, even when the underperformance is obvious, typically results in a finding of unfair dismissal.
We've had conversations but haven't written anything down. Is it too late?+
Not necessarily. You can document what has happened so far and build a formal process from here. What matters is that the employee is given a proper, structured opportunity to improve going forward. Samantha will advise on how to do this in a way that is defensible.
What's the difference between a performance issue and a conduct issue?+
Performance is about capability, the employee is not meeting standards, potentially due to skill gaps, changing role requirements, or other factors. Conduct is about behaviour, the employee is choosing not to do what is required. They need different processes. Confusing them is a common mistake.
How long does a performance management process take?+
There is no fixed timeline, but tribunals look for a reasonable opportunity to improve. This is typically measured in weeks to months depending on the role and the severity of the concerns. A process that is too short can be challenged as unfair even if the right steps were followed.
What if the employee raises a grievance during the performance process?+
This is common. It does not automatically pause the performance process, but it does add complexity. You need to manage both correctly and simultaneously. Samantha advises on how to handle this without letting either process undermine the other.
Ready to sort this out
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You deal directly with Samantha, no call centre, no junior, and if you can handle it yourself, she'll tell you. Getting it wrong can run to five figures; a focused session starts from £495 + VAT, with a written plan in 48 hours.
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