How to motivate underperforming staff? Well, it can be a challenge for any manager. Even the most talented and reliable staff members can experience dips in performance, leading to frustration for both the employee and the team. The key to turning things around lies in understanding what drives each individual and reigniting their passion for the job. 

Employee motivation is not just about getting tasks done—it directly impacts company success. In fact, highly motivated employees contribute to 21% higher profitability, are 87% less likely to resign, and reduce absenteeism by 41%. 

These statistics highlight how critical it is for leaders to foster motivation in the workplace. Finding ways to inspire underperforming employees is essential to maintaining high productivity, employee retention, and a positive workplace culture.

Before we get in to how to motivate employees for better performance?  Lets focus on What is underperformance.

What is underperformance?

Workplace underperformance occurs when an employee's work quality falls below the required standards and expectations set by the organization. It can manifest in various ways, but certain common behaviours signal employees are not meeting their performance potential. These signs of underperformance include:

• Failure to meet expected standards – Employees may struggle to complete tasks or projects as required, either missing deadlines or delivering work that lacks accuracy and thoroughness.
• Disruptive, harmful, or unacceptable behaviour could involve inappropriate workplace interactions, failure to adhere to company values, or creating a toxic work environment.
• Declining compliance with rules, procedures, or policies—Underperforming employees might show a lack of respect for company protocols by missing mandatory meetings or disregarding established workflows.

In practice, underperformance often translates to employees consistently missing deadlines, arriving late to work, showing decreased enthusiasm for their roles and responsibilities, and producing lower-quality work. Research from Gallup shows that only 21% of employees are actively engaged in their work, meaning that a vast majority may be susceptible to underperformance if not properly supported. 

Also, a study by the Harvard Business Review found that underperforming employees are 12 times more likely to negatively affect team morale and productivity, a concerning trend that should motivate action.

Addressing underperformance early is important, as it can lead to broader organizational inefficiencies. 

Poor performance not only impacts individual output but can also drag down team productivity, increase turnover, and create a ripple effect across the company. However, by addressing the root causes—such as lack of engagement, insufficient training, or unclear expectations—companies can reverse the trend and foster a more productive, motivated workforce, bringing a sense of optimism and hope for the future.

What causes employees to underperform?

Employee underperformance can stem from various factors, often related to the work environment, personal challenges, or management practices. Identifying these causes is essential to addressing and correcting the issue. Below are common reasons why employees may underperform:

• Lack of Clear Expectations - Employees may struggle to perform well if they don't fully understand what is expected of them. Without clear goals, objectives, or guidelines, employees may deliver subpar work or become disengaged.
• Insufficient Training and Development - If employees are not given the proper training or opportunities for development, they may lack the skills or confidence needed to succeed. This can result in low-quality work and missed deadlines.
• Poor Management or Leadership - Ineffective leadership can demotivate employees through lack of communication, micromanagement, or inconsistent feedback. A toxic or unsupportive environment can further contribute to underperformance.
• Lack of Engagement or Motivation—According to Gallup, only 21% of employees are fully engaged at work. Employees who are not motivated or engaged with their roles may become disinterested and fail to make the necessary effort to meet job requirements.
• Personal Issues - Personal problems, such as health issues, family difficulties, or financial stress, can distract employees and hinder their ability to focus on their work, leading to lower productivity and performance.
• Work Overload or Burnout - An excessive workload or consistently high pressure can lead to burnout, causing employees to become exhausted and disengaged. Burnout can result in reduced productivity and a higher likelihood of mistakes.
• Lack of Resources—Employees may underperform if they lack the necessary tools, resources, or support to complete their tasks effectively. This can lead to frustration and a decline in the quality of work.
• Unclear Career Progression - Employees may gain motivation when they see a clear path for career advancement or growth within the company. A lack of professional development opportunities can contribute to disengagement and underperformance.

By recognizing these causes, organizations can address and mitigate underperformance through improved management, better communication, and a focus on employee well-being and development.

How Underperforming Employees Affect the Workplace

Employees who consistently underperform can significantly impact the overall business, affecting everything from productivity to morale. Here are vital ways underperforming employees can influence an organization, with examples and statistics to highlight their effects:

• Underperformance - directly impacts the company's financial health. For instance, a sales representative missing targets or a project manager failing to meet deadlines can lead to delays and revenue loss. A study by Gallup found that disengaged employees can cost businesses up to 18% of their annual salary in lost productivity, a significant financial burden that accumulates over time.
• Increased Workload for Others - When one employee isn'tisn't pulling their weight, their coworkers often have to step in to pick up the slack. For example, a team member who fails to complete their portion of a project may force others to work overtime to meet deadlines. Over time, this creates frustration and resentment, leading to burnout. According to the American Institute of Stress, job stress, largely caused by increased workloads, costs U.S. businesses over $300 billion annually in absenteeism, turnover, and lost productivity.
• Lower Team Morale - Having underperformers on a team can hurt morale, especially when high-performing employees feel they are constantly compensating for their colleagues' shortcomings. This can create a toxic work environment where frustration builds, reducing team cohesion. Research by the Society for Human Resource Management (SHRM) found that poor morale can reduce team effectiveness by as much as 30%.
• Reduced Customer Satisfaction - Poor performance, particularly in customer-facing roles, directly affects customer satisfaction. For instance, a customer service representative who provides accurate information or needs to resolve issues can damage the company's reputation. Even employees in backend roles can affect customer satisfaction—if a product is delayed or delivered with errors, it can lead to customer dissatisfaction. A report by PwC revealed that 32% of customers would stop doing business with a brand they love after just one bad experience.
• Increased Turnover - Underperforming employees are more likely to leave an organization by being let go, resigning, or moving to another job. High turnover increases recruitment and training costs, disrupts team dynamics, and hinders long-term growth. According to the Work Institute's 2020 Retention Report, voluntary employee turnover costs U.S. businesses an estimated $630 billion annually.

In summary, underperforming employees can create a ripple effect throughout the organization. However, these issues can be mitigated if addressed early. By providing better training, setting clear expectations, and implementing stronger management practices, the negative impact of underperformance can be minimized, allowing the organization to thrive. 

What Motivates Employees?  

Understanding what motivates employees is essential for addressing underperformance. According to Frederick Herzberg's motivation theory, there are five key factors that influence workplace motivation: achievement, recognition, the work itself, responsibility, and advancement. Achievement gives employees a sense of purpose and fulfillment, while recognition makes them feel valued for their contributions. 

The nature of the work also plays a significant role—tasks should be varied, interesting, and challenging. Responsibility allows employees to take ownership of their work, and opportunities for advancement provide the motivation to grow and develop within the company.

Motivation can be divided into two categories: intrinsic motivation and extrinsic rewards. Intrinsic motivation refers to the internal satisfaction employees derive from their work, such as personal achievement, job satisfaction, and self-fulfillment. Extrinsic rewards, on the other hand, are external incentives like salary, bonuses, and promotions. 

Both are important, but understanding when and how to apply these motivations can help leaders encourage even the most disengaged employees to improve their performance and remain engaged in their roles.

Understanding Employee Motivation: What Makes Workers Tick

To effectively motivate employees, leaders must understand what drives each individual. 

Every worker is unique, with different experiences, personalities, and life circumstances influencing their motivation. Some may thrive on recognition and rewards, while others may be driven by personal growth or a strong sense of purpose. Knowing what makes your team members tick is key to helping them reach their full potential.

Personal check-ins and regular one-on-one conversations provide valuable insights into employee motivation. These meetings allow leaders to ask about challenges, discuss career goals, and uncover any personal or professional obstacles that may be impacting performance. Personalizing your approach can lead to deeper trust and better engagement. Surveys and pulse checks also play a role in identifying broader trends across teams. An anonymous survey can help determine whether overall team motivation is slipping and highlight areas where improvements can be made.

By taking the time to get to know your employees on an individual level, leaders can tailor their motivational strategies, offering the right mix of incentives and support to boost performance and keep employees engaged.

How Do Leaders Motivate Employees?

How to motivate employees as a manager, well by understand how to motivate employees by implementing targeted strategies and providing the right support.

Leaders play a pivotal role in shaping employee motivation. The way a manager interacts with their team directly impacts how motivated and engaged employees feel. Successful leaders know that motivating employees goes beyond offering financial incentives—they inspire their teams by creating a supportive and goal-oriented environment. Setting clear, achievable goals gives employees direction and purpose, while offering encouragement boosts confidence and morale.

Listening is another crucial leadership quality. Employees who feel heard are more likely to be engaged and motivated. Leaders should also foster a culture of trust, giving employees autonomy and allowing them to take ownership of their work. Finally, leaders must model the behaviors they expect from their team members. By demonstrating strong work ethics, accountability, and a positive attitude, managers can motivate their teams to follow suit. A leader's influence on motivation is significant, and cultivating these key qualities can lead to more motivated, productive employees.

12 Ways to Motivate Underperforming Employees

#1. Company Shout-Outs

Recognizing employees for their hard work is a powerful motivator. Public acknowledgment not only boosts morale but also reinforces a culture of appreciation. 

Company shout-outs, whether in team meetings or through internal communication platforms, give employees the recognition they deserve. Setting up a dedicated channel for peer-to-peer shout-outs can amplify this impact. 

Whether it's for a job well done, an innovative idea, or going the extra mile, acknowledging these efforts publicly creates positive reinforcement. This simple yet effective strategy encourages underperforming employees to step up their game and strive for excellence.

Here are 5 steps to effectively recognize employees for their hard work:

• Define specific achievements or behaviors, such as completing a major project, showing leadership, or bringing innovative ideas, to guide what deserves acknowledgment.
• Incorporate shout-outs in team meetings or use internal communication tools to highlight accomplishments and share them with the entire organization.
• Set up a dedicated space where employees can recognize and appreciate each other's work, fostering a supportive team environment.
• Recognize efforts as soon as possible after the achievement, and be clear about what specific action or accomplishment is being appreciated.
• Make recognition a regular part of your company culture, so it happens consistently and involves everyone in the process, not just management.

#2. Introduce Gamification and Incentives

Gamification adds a fun, competitive element to the workplace, making routine tasks more engaging. By introducing friendly competitions or performance-based challenges, leaders can motivate employees to improve their output. Incentives like badges, trophies, or small rewards, such as gift cards or team lunches, can further boost enthusiasm. 

However, it's important to ensure that competition remains healthy and fosters collaboration rather than division. Keep the focus on team-based achievements rather than individual rivalry, and tie the challenges to meaningful business goals to maintain relevance and motivate underperforming employees to participate actively.  

Here are five ways to implement gamification in the workplace:

• Focus on performance metrics and rankings publicly to encourage friendly competition among employees. Update these regularly to reflect recent achievements and progress.
• Implement a system where employees earn badges or rewards for completing tasks, hitting milestones, or achieving specific goals. These can be small prizes, gift cards, or even team outings.
• Set up time-bound challenges or contests related to work tasks or company objectives. This could include sales targets, project completions, or innovative ideas.
• Introduce a point-based system where employees earn points for various activities or accomplishments. Points can be redeemed for rewards or used to unlock new opportunities.
• Create competitions that emphasize team collaboration rather than individual performance. This can help build camaraderie and ensure that the competitive spirit drives collective rather than divisive outcomes.

#3. Trust in Your Team Members

Micromanaging often stifles creativity and autonomy, leading to disengagement. Instead, trust your employees to complete tasks without constant oversight. 

Give them the freedom to work in a way that suits them, especially for remote teams. Employees who feel trusted are more likely to take ownership of their work and deliver better results. Offering flexibility in when and where they work can also contribute to higher job satisfaction. 

By trusting your team and giving them the autonomy to make decisions, you encourage accountability and create a more motivated, self-driven workforce.

Here are five ways to foster trust and autonomy in the workplace:

• List the objectives and key results clearly, but avoid micromanaging how employees achieve them. This gives them a sense of direction while allowing them to choose their own approach.
• Allow employees to tackle challenges and make decisions on their own. Support their initiatives and provide guidance only when needed, rather than dictating every step.
• Provide options for flexible hours and remote work. This allows employees to work in a way that suits their personal productivity rhythms and lifestyles.
• Acknowledge and reward employees who take initiative and demonstrate creativity in their work. This reinforces the value of autonomy and encourages others to do the same.
• Give regular, constructive feedback to help employees grow and improve. Focus on their outcomes and development rather than how they arrived at their results, promoting a culture of trust and growth

#4. Involve Employees in Goal-Setting

Involving employees in the goal-setting process creates a sense of ownership and alignment with company objectives. When employees have a say in setting their own targets, they feel more committed to achieving them. Collaborative goal-setting not only provides clarity on expectations but also makes employees feel valued. 

By setting goals that are challenging yet achievable, managers can foster personal growth and job satisfaction. Regularly tracking progress and celebrating milestones further motivates employees, reinforcing the importance of their contributions to the overall success of the team and organization.

#5. Celebrate Success as a Team  

Celebrating success, no matter how small, can go a long way in motivating employees. 

Team celebrations, whether it's a shared lunch, an outing, or even a simple round of applause during a meeting, create a positive and supportive atmosphere.

These moments of recognition remind employees that their hard work is appreciated and valued. Moreover, celebrating together fosters camaraderie and strengthens team bonds. Acknowledging both individual and team achievements helps maintain high morale, motivates underperformers, and creates a culture where success is shared and celebrated collectively.

#6. Share Positive Reviews  

Sharing positive customer feedback or reviews is a great way to remind employees of the impact their work has. When a team member sees how their efforts contribute to customer satisfaction, it reinforces the value of their role. Posting glowing testimonials on an internal platform or discussing them during meetings can boost morale and create a sense of pride. 

These positive reinforcements motivate underperforming employees by showing them the tangible results of their work, encouraging them to deliver better results, and reinforcing the importance of quality in their day-to-day tasks.

#7. Provide Opportunities for Learning and Development  

Employees are more motivated when they have opportunities to grow. Offering access to training programs, workshops, or on-the-job learning helps underperforming employees develop new skills and regain enthusiasm for their roles. 

Growth opportunities signal that the company values its employees' career progression. 

Whether it's through formal training or internal mentoring programs, professional development keeps employees engaged. Encouraging them to take on new challenges can help reignite their passion and foster a mindset of continuous improvement, ultimately leading to better performance and long-term retention.

#8. Promote Collaboration  

Collaboration can be a powerful motivator, especially for employees who feel stuck or isolated. 

Encouraging team members to work together on projects allows them to share ideas, learn from one another, and feel more connected. For underperforming employees, the fresh perspective offered through collaboration can be energizing. It helps them see how their contributions fit into the bigger picture. Teamwork fosters accountability, increases creativity, and can reawaken enthusiasm for their work. 

Promoting collaboration within teams, especially in remote or hybrid setups, ensures that employees stay engaged and motivated by a sense of shared success.

#9. Set Up a Volunteering Program  

Engaging employees in community service through a volunteering program can significantly boost motivation. 

Offering time for employees to participate in charity work or local community projects allows them to step outside their day-to-day routines and connect on a deeper level. Volunteering fosters a sense of purpose and can reignite passion for work by aligning personal values with the company's broader mission. 

Additionally, volunteering strengthens team bonds, as employees work together outside the usual business environment. The positive emotional impact from helping others can translate into renewed motivation and commitment back in the workplace.

#10. Create a Feedback Loop  

Feedback is essential for growth and improvement. Establishing a two-way feedback loop between employees and management ensures that workers feel heard and valued. Regular feedback sessions allow leaders to provide constructive criticism while also gathering insights on how employees are feeling. 

For underperforming staff, this creates an opportunity to address any underlying issues affecting their motivation. An open feedback culture fosters trust and transparency, empowering employees to take ownership of their performance and make the necessary changes. It also allows management to quickly identify and resolve issues before they impact the wider team.

#11. Prioritize Employee Engagement  

Employee engagement is key to maintaining motivation in the workplace. Engaged employees feel connected to their work, team, and company mission. To prioritize engagement, leaders should focus on creating a culture of inclusion, recognition, and purpose. Regular one-on-one check-ins, surveys, and team-building activities keep engagement levels high. 

Engaged employees are not only more productive but also more committed to the company's success. For underperforming employees, increasing engagement can reignite their passion for their role and help them feel more connected to their work, leading to improved performance and job satisfaction.

#12. Make Your Workplace a Great Environment  

A positive, comfortable work environment goes a long way in supporting employee motivation. 

Simple things like well-lit spaces, ergonomic workstations, and break areas can significantly enhance an employee's day-to-day experience. Additionally, fostering a culture of inclusivity and respect ensures that employees feel safe and valued. Whether employees are in the office or working remotely, providing the right tools and technology to perform their jobs efficiently is crucial. 

A pleasant work environment boosts morale and encourages employees to take pride in their workplace, contributing to higher motivation and better overall performance.

The Cost of Disengagement and Poor Motivation

Disengaged employees can have a significant financial and productivity impact on a company, in fact Gallup said the cost of disengaged employees has skyrocketed $8.8 trillion annually. 

Research shows that disengaged workers are less productive, less creative, and more likely to take sick days. This directly affects a company's bottom line, with Gallup estimating that disengaged employees cost the U.S. economy billions in lost productivity each year. Additionally, disengagement leads to higher turnover rates, as unmotivated employees are more likely to leave, resulting in increased recruitment and training costs.

The effects of disengagement go beyond individual performance, creating a ripple effect throughout the entire organization. When one employee is disengaged, it often negatively influences the morale and motivation of their colleagues. A toxic environment of low engagement can spread quickly, affecting company culture and leading to a broader decline in team performance. Over time, this can damage the company's reputation, making it harder to attract and retain top talent. Addressing disengagement promptly is essential for maintaining a productive, positive workplace.

How an Employee Engagement Plan Can Transform Underperforming Team

From what we've discussed, it's evident that overlooking employee engagement comes with high costs. So, how can leaders effectively foster engagement within their organization? The first critical step is to develop a comprehensive employee engagement plan.

An employee engagement plan is a strategic framework to boost engagement and enhance company culture. It should encompass a range of short-term and long-term initiatives that are prioritized to achieve clear objectives.

Now, let's dive into the four essential steps to creating a successful employee engagement plan:

• Define Key Objectives - Identify the main goals you want to achieve with your engagement plan. These objectives should align with your overall business strategy and address areas lacking engagement.
• Evaluate Current Engagement Levels - Conduct an assessment to understand employee engagement within your company. This may involve surveys, interviews, or focus groups to gather insights on employee satisfaction and areas needing improvement.
• Set Targets and Develop Action Items - Based on your objectives and current engagement levels, establish specific, measurable targets and outline actionable steps to reach them. These should include both immediate actions and long-term strategies to drive sustained engagement.
• Implement Review Mechanisms - Create a system for regularly reviewing and assessing the effectiveness of your engagement initiatives. This will help you track progress, make necessary adjustments, and ensure that your plan meets the evolving needs of your employees and organization.

By following these steps, you can build a robust employee engagement plan that addresses current challenges and fosters a more engaged, motivated, and productive workforce.

Unlock the Potential of AgilityPortal's Employee Experience Platform to Transform Your Organization Today

Enhance engagement and revitalize underperforming teams by implementing an employee communication platform like AgilityPortal. This comprehensive solution offers all the tools necessary to boost productivity and engagement, particularly with remote teams.

Schedule a live 1:1 demo to explore how the world's leading employee experience platform can help your team:

• Stay informed and aligned
• Feel included and engaged
• Access all the information and tools they need

Frequently Asked Questions About Underperforming Teams and How to Handle Them

1. What are common signs of an underperforming team?

Common signs include missed deadlines, frequent conflicts, low morale, lack of communication, and diminished productivity. Team members may also show disengagement or a lack of enthusiasm towards their work. Regularly monitoring performance metrics and conducting employee surveys can help identify these issues early.

2. How can I identify the root cause of underperformance?

To pinpoint the root cause, start with a thorough assessment. Conduct one-on-one meetings, gather feedback through surveys, and review performance data. Look for patterns such as inadequate resources, unclear expectations, lack of skills, or external factors affecting team morale. Understanding the underlying issues is crucial for addressing them effectively.

3. What strategies can improve team performance?

Several strategies can help improve performance:

• Set Clear Goals: Ensure that all team members understand the objectives and their roles in achieving them. Clear, measurable goals help align efforts and increase accountability.
• Provide Regular Feedback: Offer constructive feedback and recognize achievements. Regular check-ins can help address issues before they escalate and keep the team motivated.
• Enhance Communication: Foster open communication channels to address concerns, share updates, and encourage collaboration. Tools like AgilityPortal can facilitate better communication, especially for remote teams.
• Offer Training and Development: Invest in training programs to enhance skills and address knowledge gaps. Professional development opportunities can boost confidence and performance.
• Promote Team Building: Organize activities that strengthen relationships and teamwork. Building trust and camaraderie can improve collaboration and overall team dynamics.

4. How can I support a struggling team member?

Support struggling team members by first understanding their challenges. Have a private conversation to discuss their difficulties and offer assistance. Provide additional training, resources, or mentorship as needed. Set up a clear action plan with achievable goals and regular follow-ups to track progress and offer encouragement.

5. What role does leadership play in team performance?

Leadership is crucial in shaping team performance. Leaders should model the behavior they expect, set clear expectations, and foster a positive work environment. Effective leaders communicate openly, provide support, and inspire their teams to reach their potential. They also play a key role in resolving conflicts and facilitating professional growth.

6. How can an employee engagement platform like AgilityPortal help?

An employee engagement platform such as AgilityPortal can significantly enhance team performance by streamlining communication, setting clear goals, and providing essential tools for collaboration. It helps keep team members informed, aligned, and engaged, especially in remote settings. By centralizing information and facilitating seamless interactions, it can boost productivity and address issues related to disengagement and underperformance.

Implementing these strategies and leveraging tools like AgilityPortal can help turn around underperforming teams and drive better results for your organization.

Conclusion

Motivating employees is essential to achieving long-term success. By recognizing what drives individual workers, providing growth opportunities, and fostering a culture of recognition and engagement, leaders can inspire their teams to perform at their best. Ongoing feedback and personal engagement are critical in maintaining motivation. 

Ultimately, promoting employee engagement and motivation should be a core part of company culture. When employees feel valued, trusted, and supported, they are more likely to stay committed, leading to improved performance, better morale, and overall organizational success.