Created by:
Teresa Garanhel
Tackling underperformance isn’t easy for anyone involved.
But having a clear, structured, and fair process in place helps you handle these situations confidently and compassionately.
Our underperformance process template gives you a step-by-step framework for addressing performance issues in a way that’s consistent, transparent, and rooted in growth, not punishment.
What is an underperformance process template?
It's a practical framework that walks you through every stage of the process, from informal conversations and observation periods to performance improvement plans (PIPs), reviews, and, where necessary, formal hearings.
It’s designed to give managers clarity on how to handle underperformance and to ensure employees are treated fairly, with plenty of opportunity and support to improve.
The template includes example steps, documentation guidance, and suggested timeframes to help you build or refine your own internal policy.
Who's it for?
This template is built for HR leaders, Chief People Officers, and managers who want to create a structured, fair, and people-first approach to managing performance.
If you’re building or refining your company’s HR handbook, developing manager training, or looking for a way to make performance conversations more constructive, this resource is for you.
It’s particularly helpful if you’re working in a growing organization that’s starting to formalize its people policies, or if you’re part of a larger business where consistency and compliance are key.
How to use the template
You can use this template as a ready-to-go framework or adapt it to fit your organization’s tone, structure, and legal requirements. Here’s how:
- Start with the informal stage. Use the first part of the template to guide early-stage conversations and observations between managers and employees. This helps address performance concerns before they become formal issues.
- Move into structured improvement. The performance improvement plan (PIP) section outlines how to set clear expectations, offer support, and track progress.
- Follow through with reviews and next steps. Use the later stages to document reviews, decisions, and (where necessary) formal capability hearings or appeals.
- Customize for compliance. Employment laws vary by region, so always review this template with your legal or HR advisors before implementing it in your organization.
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