High Performers and Underperformers
When it comes to managing talent, you’ve got two distinct types of employees to address: the high performers and the underperformers. Each requires a different strategy, and balancing these needs can make the difference between a thriving team and a stumbling one. Here’s how to get it right.
On the Agenda:
The Anatomy of Workplace Performance
Before diving into how to manage high performers and underperformers, it’s important to understand the makeup of your team. In most organizations:
- About 30% of employees are high performers, 10% are low performers, and the remaining 60% fall somewhere in the middle.
- High performers can be up to 400% more productive than average employees, and in more complex roles, they might be as much as 800% more productive.
- Unfortunately, 30% of high performers leave their organizations within a year, often due to a lack of adequate recognition or development opportunities.
- Although two-thirds of companies have a formal process for selecting high performers, only 57% do the same for identifying high potentials.
- Thriving stars are more likely to flourish in hybrid and remote-working models, and proximity matters too—sitting within 25 feet of a high performer can boost an individual’s performance by 15%, while being near a low performer can lead to a 30% decline.
- The cost of replacing an employee ranges from 30% to 200% of their salary, making retention all the more critical.
Understanding these dynamics is key to effectively managing your team. Now, let’s look at how to fuel the fire of your high performers and guide your underperformers back on track.
High Performers: Fuel Their Fire
Ever hear of the saying, “10% of the people do 90% of the work.”? That 10% are your high performers. Your jet engines of your team. They’re driven, engaged, and delivering results. So how do you keep them motivated and prevent them from burning out?
1. Recognition Programs: High achievers crave acknowledgment. Create recognition programs that celebrate their milestones and achievements. This could be as simple as shout-outs in team meetings or as elaborate as annual awards. The goal is to make them feel valued and appreciated.
2. Professional Growth Opportunities: Top performers are often eager for new challenges. Offer them opportunities to lead projects, attend industry conferences, or even mentor others. This not only keeps them engaged but also helps them develop their skills further.
3. Tailored Incentives: Financial bonuses are great, but consider other perks like additional vacation days or flexible work arrangements. Tailoring rewards to what your top performers truly value will make your appreciation more impactful.
4. Open Feedback Channels: Maintain regular one-on-one meetings to discuss their goals and career aspirations. This will help you align their ambitions with the company’s needs and ensure they stay motivated.
Note: High performers know their worth. 30% of high performers leave their organization within a year. Keep that in mind when you find your next rockstar.
Underperformers: Guide Them to Improvement
Ever hear the saying, “A chain is only as strong as its weakest link”? These are your underperformers. Underperformers need a different approach. They’re not lost causes; they just need the right guidance to get back on track. So how do you help them improve without letting them drag the team down? Here’s how to manage them effectively:
1. Constructive Feedback: Provide clear, actionable feedback. Be specific about what’s lacking and how they can improve. Avoid vague criticisms—focus on tangible steps they can take to enhance their performance.
2. Improvement Plans: Develop a structured improvement plan with set goals and deadlines. This plan should include regular check-ins to assess progress and offer additional support. Make sure the expectations are realistic and achievable.
3. Training and Development: Sometimes underperformance stems from a lack of skills or knowledge. Offer training programs or coaching to help employees build the necessary competencies. This investment in their development can turn their performance around.
4. Supportive Environment: Ensure that underperformers have the resources and support they need to succeed. This might involve adjusting their workload or providing them with a mentor to guide them through challenges.
5. Reassess Fit: Occasionally, an employee might not be the right fit for their current role. In such cases, consider if there’s another position within the organization that suits their skills better. A change of scenery can sometimes reignite an employee’s drive.
Striking the Balance
Managing high and underperformers requires a thoughtful balance. Celebrate your top achievers to keep them engaged, while also providing the necessary support to help those struggling. By tailoring your approach, you can build a team that is both high-functioning and cohesive. Ready to optimize your performance management strategies? Contact us for more insights and tools to get the most out of your team.
Check out these related articles: Tactics for Gaining and Rebuilding Trust in the Workplace, Human Resources Strategic Objectives: The Key to Winning Big in Business, Employee Turnover Costs – Free Calculator, Recruitment Flowchart: Types, Benefits, and Best Practices for Effective Hiring, What is the Meaning of Talent Acquisition? Why It’s More Than Just Hiring, How Top Companies Use HR to Set New Benchmarks, Top 8 Time Wasters at Work and How to Eliminate Them, and Balancing Employee Leave: PTO, Vacation, and Sick Time Simplified.