When it comes to managing performance, UK business owners often face difficult conversations, tricky decisions, and a lot of uncertainty. But with the right approach and a bit of planning, managing performance doesn’t have to feel daunting. Here are some practical, plain-English tips drawn from our latest episode of the Hybrid Legal Loop.
- Start with understanding the root cause
Before jumping to conclusions, step back and ask: Why is this person underperforming? Are they going through personal issues? Has there been a change in management or direction? A disengaged employee isn’t necessarily a lost cause. Fact-finding and open conversation are your first tools.
- Don’t avoid difficult conversations
Yes, they’re uncomfortable, but avoiding tough chats will only worsen the problem. Get to know your team, set clear expectations, and ask the right questions. If someone is resistant to opening up, focus on clearly communicating what is expected, documenting performance, and outlining consequences.
- Coaching helps
If you’re unsure how to approach these conversations, HR support can make all the difference. Coaching business owners before performance discussions helps them feel confident, prepared, and professional.
- Document everything
From the moment someone starts with your business, keep records of:
- Expectations during probation
- One-to-one discussions
- Performance concerns
- Positive feedback
Proper documentation protects both you and your team and ensures fairness.
- Use HR software (it’s more affordable than you think)
Modern HR platforms can track performance conversations, holiday, timekeeping, and more. Hybrid Legal partners with a provider offering great value and simplicity, get in touch if you’d like to explore it.
- Consider alternatives to redundancy
Redundancy isn’t always the only option. Reduced hours, voluntary redundancy, or short-term adjustments may help stabilise your business without losing valued team members. Use redundancy only when necessary and always follow a fair and transparent process
- During change, communicate clearly
If your business is merging or being sold, remember that employees often transfer under TUPE (Transfer of Undertakings (Protection of Employment) Regulations). Do your due diligence regarding the contract and policies you will inherit. Communicate clearly and opening to ensure you set the right tone from the outset. Beware of the two-year rule myth
A common myth: you can dismiss employees under two years without risk. In fact, employees can still bring claims for discrimination or breach of contract from day one. Always seek advice before making a dismissal decision.
- What’s changing in employment law?
New legislation is set to give employees full employment rights from day one, including the right to claim unfair dismissal. This makes thorough recruitment and structured probation periods even more critical.
Need support managing people challenges?
At Hybrid Legal, we work closely with clients to guide them through the difficult times, from performance management to redundancies, from absence tracking to team conflicts. If you’d like a confidential chat, we’re just a message away- Contact us.
Sally is well versed in managing even the most challenging HR issues faced by companies, giving practical advice in order to deliver resolutions for clients.
