Some 40% of businesses in the UK are tolerating poor performance and behaviour due to recruitment issues, a new survey reveals.

Ramsdens Solicitors conducted a survey of more than 200 employers to gauge their confidence in dealing with a number of day-to-day issues. Of the 222 responses, 88 employers said they had adjusted their stance and had treated staff with leniency in relation to poor behaviour and performance, due to a lack of available candidates and difficult recruitment.

David Bradley, Head of Employment and Chairman of Ramsdens Solicitors, said: “The results of the survey cause particular concern in relation to employers appearing to tolerate poor performance and behaviour. This may impact both customer service and relations with co-workers. While businesses may be reacting to the current environment, not tackling poor performance and behaviour is likely to undermine the values employers regard as important and impact the long-term performance of the organisation.”

When employers were asked about the areas in which they found it difficult to achieve a satisfactory outcome, 22% named handling grievances, making this the most common response. This was followed by performance management (19%) and absences (13%).

Gareth Dando, Employment Partner at Ramsdes Solicitors, said: “Managing poorly performing employees can be an emotive issue, but the matter shouldn’t be avoided to prevent further damage down the line. With working from home continuing to be a popular method of working, this could lead to further problems for a business.

“When approaching the management of an employee’s performance or behaviour, matters should be handled fairly and legally – failure to do so risks various claims such as unfair dismissal, discrimination and breach of contract.”

Ramsdens Solicitors has provided some tips to help you handle poor performance and behaviour:

1. Deal with poor performance at an early stage
Employees who perform poorly or whose behaviour or attendance is problematic should be reviewed. Identify the problem and come up with a reasonable action plan. Common issues include an inability to perform the functions of the role, problems with working relationships, poor attitude, or a lack of productivity. Remember, employees in the first two years of service have less statutory protection than longer servers. An 18-month review is, therefore, always a good idea.

2. Try to handle matters informally
Before pursuing any formal procedures, try to deal with poor performance informally. This can include explaining the requirements of the role and the expected performance level, sharing examples of good practice, setting clear expectations, and opening up discussions about providing support where required. This is particularly important if an employer suspects the employee suffers from a disability.

3. Moving on to a formal process
Where an informal approach doesn’t have the desired effect, a formal process may be appropriate. The first step is to conduct an assessment or investigation into the employee’s performance. You should then discuss performance and ways to improve it at a capability meeting.

4. Give sufficient warnings
If an employee’s performance is unsatisfactory, you may give a written warning. In serious cases of poor performance, you may decide to go straight to a final written warning. However, it is good practice to give an employee at least two warnings to give them the opportunity to improve.

5. Handling dismissal
If an employee continues to not meet the requirements laid out in the capability proceedings, you are legally permitted to terminate their employment. Employees dismissed for performance reasons are entitled to notice pay and any accrued but unused holidays up to the last date of their employment.

Gareth said: “Taking timely legal advice is advised, as a solicitor can walk you through what you need to do and how to avoid common pitfalls. Performance management is crucial for maintaining and improving your business performance through the quality of your employees’ performance.”