“They’re just not working out.” It’s one of the most common things we hear from business owners and managers. Sometimes the employee simply isn’t performing at the level expected. Sometimes their attitude or behaviour is affecting the rest of the team. Sometimes they interviewed brilliantly, but the person who has turned up isn’t quite the person you thought you were hiring. And sometimes you just know you’ve made the wrong hire.

“What can I actually do about it?”

This is where things can get tricky. Some businesses wait far too long, hoping the problem will sort itself out. Others move too quickly and decide to terminate without first considering the process or potential risks. Neither approach is ideal. So, if you have an employee who isn’t working out, where do you start?

First, work out what the actual problem is. Not a good fit might accurately describe how you feel, but it doesn’t necessarily tell you what has gone wrong. Is the employee

  • Not capable of performing the role?
  • Regularly making mistakes?
  • Failing to meet reasonable expectations or KPIs?
  • Behaving inappropriately?
  • Creating issues within the team?
  • Failing to follow reasonable directions?
  • Simply inexperienced and needing more support?
  • Unclear about what is actually expected of them?

These are different issues and may need to be managed differently.

Before doing anything else, get specific. If you can’t clearly explain what the employee is doing, or not doing, that’s causing concern, it will be very difficult to have a fair and productive conversation with them about it.

“But they’re on probation, can’t I just let them go?”

This is another question we hear regularly. Probation is there for a reason. It gives both the employer and employee an opportunity to assess whether the employment relationship is going to work, but probation shouldn’t mean ignoring problems until the final week and then making a rushed decision. If someone isn’t meeting expectations during probation, tell them early.

Explain the concerns. Be clear about what needs to change. Give feedback. Document the conversation. Then monitor whether things improve. Remember that being on probation doesn’t mean an employee has no employment rights or entitlements.

If you think someone isn’t going to successfully complete probation, get advice before the probation period expires rather than leaving the decision until the last minute.

“Don’t I have to give them three warnings?”

This is probably one of the biggest HR myths. There isn’t a universal rule in Australia that every employee must receive three warnings before their employment can be terminated. What is appropriate will depend on the circumstances. What does matter is understanding why you’re considering disciplinary action or termination and ensuring the process you follow is appropriate and fair. For an underperformance issue, that will often mean making sure the employee understands

  • What is the problem?
  • What standard is expected?
  • What needs to improve?
  • What support or opportunity will they have to improve?
  • What could happen if the required improvement doesn’t occur?

A warning shouldn’t simply be a document designed to tick a box. It should make the problem and expectations clear.

The biggest mistake we see? Waiting. This happens all the time. A manager notices problems in the employee’s first few weeks. They decide to give them some time. A couple of months pass. Everyone knows there are issues, but nobody has really addressed them. There might have been a few informal comments along the way like

  • “You need to pick up the pace.”
  • “We’ve spoken about this before.”
  • “You really need to improve.”

But nothing specific has been documented. Eventually, the manager has had enough and that’s often when HR gets the phone call.

“We’ve had problems with this person from the beginning and we want to terminate them”

One of our first questions will usually be “What have you discussed with them, and what have you documented?” And sometimes the answer is very little. The earlier you address an employee problem, the more options you generally have. Having a performance conversation doesn’t need to be aggressive.

Managers avoid these conversations because they don’t like conflict but good performance management shouldn’t be about catching someone out or building a case to terminate them. It’s about being clear.

For example – “We’ve noticed that X has occurred on several occasions. The expectation for your role is Y. I’d like to understand what’s happening from your perspective and talk about what needs to change.” Then listen.

There may be information you weren’t aware of. There may be a training issue. Expectations may not have been clear. Or the employee may simply not be able or willing to perform at the standard the role requires. Either way, you’ve started dealing with the actual issue.

“What if they still don’t improve?”

If you’ve clearly addressed the concerns, set reasonable expectations and provided an appropriate opportunity to improve, but the employee’s performance still isn’t where it needs to be, further action may be appropriate. Depending on the circumstances, that could include

  • Further performance discussions
  • Additional training or support
  • A formal performance improvement plan
  • A written warning
  • A final warning
  • Termination of employment

But don’t assume every situation needs to follow exactly the same sequence. Performance, misconduct and serious misconduct are different things, and the appropriate process will depend on what has actually happened. Before you terminate, ask yourself these questions

  1. What is the actual reason I’m considering termination?
  2. Can I provide specific examples to support it?
  3. Does the employee know what was expected of them?
  4. Have the concerns been clearly raised with them?
  5. Have they had an opportunity to respond?
  6. If this is underperformance, have they had a reasonable opportunity to improve?
  7. What have we documented?
  8. Is this performance, conduct, serious misconduct – or something else?
  9. Are there any other circumstances that could create additional risk?
  10. Have I checked the employee’s contract, Award or enterprise agreement and notice requirements?
  11. Have I obtained HR or workplace relations advice before making the final decision?

If you can’t confidently answer those questions, don’t rush the termination conversation.

Small businesses need to take care too

There’s another misconception that small businesses can simply dismiss employees without following a process. That’s not the case. There are particular unfair dismissal rules that apply to small business employers, including the Small Business Fair Dismissal Code, and other employment protections can apply regardless of the size of the business.

The fact that someone may not be eligible to make an unfair dismissal claim also doesn’t automatically mean there is no employment risk. That’s another reason it’s worth getting advice based on the actual circumstances rather than relying on something you’ve heard about probation periods, warnings or small-business exemptions.

Sometimes the employee isn’t the only problem This can be uncomfortable to consider, but it’s important. When we look into an ongoing performance issue, sometimes we discover that the employee was never given clear expectations in the first place.

  • There was no proper position description.
  • The onboarding was rushed.
  • Nobody clearly explained the KPIs.
  • The manager hasn’t provided regular feedback.
  • The role has evolved considerably since the employee commenced.

That doesn’t necessarily mean the performance concerns aren’t legitimate. It does mean we need to understand the whole picture before deciding what should happen next. Good performance management is as much about good management as it is about the employee.

Don’t wait until you’ve already decided to terminate

This is probably the most important message. If you’re thinking “This employee isn’t working out and I don’t know what to do next,” that’s actually a very good time to get advice. It’s much easier to help a business put the right process in place before a termination decision has been made than to try to repair things afterwards.

At HR Cornerstone , we work with business owners and managers to understand what’s actually happening, assess the risks and determine the most practical next step. Sometimes that’s a straightforward conversation with the employee. Sometimes it’s a structured performance management process. Sometimes a warning is appropriate. The important thing is making that decision for the right reasons and managing the process properly.

Have an employee who just isn’t working out? Don’t wait until the situation becomes a much bigger problem. Talk to HR Cornerstone before you act. We provide practical HR advice to employers across Perth and Western Australia and can help you work out what to do next without making the process more complicated than it needs to be.