One of the most obvious challenges I see when working with leaders and managers is dealing with low performance.

Sadly, it’s common for managers to simply move low-performing employees around the business, away from important work. At a conference, I spoke with someone whose “strategy” was to relocate under-performers instead of addressing their performance directly. Over time, these employees ended up running their own department of low-value, unchallenging work. I’ve seen entire teams built in this way – work is “found” for them, but nothing meaningful is achieved.

Passing the burden may seem easier, but it’s tragic for the business. You can read more about this in my article on Releasing Business Agility.

It’s Not Fair to Pass the Burden

Addressing low performance isn’t just about economics – it’s about fairness. There are three key perspectives:

1. Fairness to the Employee

Simply moving people around is not fair to them. Most low performers have never been clearly told what the performance standard is or how far below it they are.

“One of the kindest things you could do for a low-performing employee is clearly and carefully tell them what the standard is and where they are falling short.”

In my experience, 99% of the time, when clarity is provided, performance improves – often dramatically. Avoiding the conversation under the guise of kindness is usually self-serving; managers shy away from discomfort rather than helping the employee.

Kindness isn’t avoiding difficult conversations – it’s about being honest, respectful, and supportive. It’s giving people the chance to improve, grow, and contribute meaningfully.

2. Fairness to Investors, Shareholders, and Customers

Money spent on salaries is a cost. Value is only realized externally, through customers. Allowing low performers to remain hidden or unchallenged reduces the return on investment and can lead to higher costs, lower profits, or increased prices for customers.

“As a manager, you have the obligation to spend the company’s money carefully. Would you spend your own money on work that produces no value?”

Ignoring low performance impacts profit per employee and, over time, erodes the financial health of the business. While it’s often said that 20% of employees create most of the value, this doesn’t have to be inevitable. Addressing low performance ensures everyone has the opportunity to contribute meaningfully.

3. Fairness to the Wider Team

Finally, low performance affects the rest of the team. High-performing employees want to work with capable, motivated colleagues. When underperformance is ignored:

  • Workloads become imbalanced
  • Morale drops
  • Engagement and creativity suffer
“People don’t leave a bad company – they leave a company that doesn’t deal with low performance.”

To cultivate a company that is enriching for everyone, leaders must ensure that the team is capable, motivated, and contributing. It’s about creating an environment where everyone can bring their best selves to work.

The Team to Get It Done

A simple, powerful question I ask leaders and managers is:

“With your hand on your heart, look around your team. Can you honestly say that this is the team to get it done?”

If the answer is no, it’s time to take action. Passing the burden of low performance is never the answer. Being kind and fair means addressing performance honestly, supporting improvement, and making hard decisions when necessary. It’s not easy, but it’s the only way to release potential – in individuals, teams, and the business.

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