When You Have an Under-Performer Reporting Directly to You
What Should You Do About an Under-performer Who Reports Directly to you?
If you’re the owner of a small business, there is one situation that almost every owner dreads—but often delays dealing with:
An under-performer who reports directly to you.
This isn’t a middle‑management issue you can delegate. This is personal. It affects results, morale, and—whether you admit it or not—your own energy and focus as the owner.
And because of that, many owners tolerate the situation longer than they should.
Why This Situation Is Harder When You’re the Owner
When the under-performer reports directly to you, the stakes feel higher:
You may have hired this person personally.
You may have known them for years.
They may have been “good once,” even if they aren’t now.
You may fear the disruption of change more than the cost of inaction.
So instead of addressing the issue clearly, many owners:
Lower expectations quietly
Do the work themselves
Avoid direct conversations
Hope performance will improve on its own
It rarely does.
First: Get Clear on What “Under performing” Actually Means
Before you talk to anyone, you need to get honest with yourself.
Ask:
What result am I expecting that is not happening?
Is this a capability issue, a commitment issue, or a clarity issue?
Have I been explicit about what success looks like?
Under performance is not about personality or effort alone. It’s about outcomes. If you cannot clearly articulate the gap between expectations and results, you’re not ready for the conversation yet.
Clarity is your responsibility first.
Second: Examine Your Role in the Situation
This is the part many owners skip.
Ask yourself:
Have I changed the role without resetting expectations?
Have I avoided giving direct feedback?
Have I allowed exceptions “just this once” that became the norm?
Have I been unclear because I didn’t want conflict?
This isn’t about blame—it’s about ownership. As the owner, the environment you create either enables performance or tolerates drift.
If the person reports directly to you, the system includes you.
Third: Have the Conversation You’ve Been Avoiding
Once you are clear, you owe the person a direct, respectful, adult conversation.
That conversation should include three elements:
The Reality
“Here’s what I’m seeing.”
“Here’s what is not happening.”
No drama. No stories. Just facts.
The Expectation
“Here’s what success in this role requires.”
“Here’s what needs to change.”
The Choice
“Are you willing and able to meet this standard?”
Not “Do you want to?”—willing and able.
This conversation is not a threat. It’s clarity. And clarity is respectful.
Fourth: Set a Short, Real Performance Window
If you agree to move forward together, define a specific time frame—usually 30 to 90 days.
Be explicit about:
What must change
How progress will be measured
How often you’ll check in
Avoid vague promises like “let’s see how it goes.” That’s just postponing the decision.
You’re not managing effort. You’re evaluating results.
Fifth: Decide—Don’t Drift
At the end of the agreed‑upon window, there are only three possible outcomes:
Performance improves and sustains
Great. Acknowledge it and move forward.
Performance improves briefly, then fades
That’s data. Address it directly.
Performance does not improve
Then the decision is already made—you just haven’t acted on it yet.
The most damaging option is doing nothing.
What This Is Really About
When an under performer reports directly to you, the issue is rarely just about them.
It’s often about:
Your tolerance for discomfort
Your willingness to make clean decisions
Your clarity about what the business needs now—not what it needed years ago
Strong businesses don’t come from avoiding hard moments. They come from handling them well.
A Final Thought from the Owner’s Chair
As the owner, your job is not to rescue people from roles that no longer fit.
Your job is to:
Protect the health of the business
Set clear standards
Make decisions that allow the company—and its people—to move forward
Addressing underperformance is not a failure of leadership.
Avoiding it is.
