Misconduct or Poor Performance? How to Manage Employee Issues

Oct 8

6 min read

Employee problems do not always come with a clear label. Is it misconduct, poor performance or simply a situation that needs a conversation? Understanding the difference is the first step to managing the issue effectively and fairly.

The first step is to ask:

Is this a conduct issue or a performance issue?

Although the two can sometimes overlap, they generally require different approaches.

Misconduct and Performance: What's the Difference?

Misconduct generally involves an employee's behaviour or actions. This could include breaking workplace rules, ignoring safety requirements or behaving in a way that does not meet expected workplace standards.

Performance issues, on the other hand, relate to an employee's ability to perform their job to the required standard.

Understanding the difference helps you choose the right process and avoid treating every employee issue in the same way.

Managing Misconduct

There is no single approach that will work for every misconduct matter. The appropriate response will depend on:

The seriousness of the behaviour
Whether it is an isolated incident or an ongoing concern
The circumstances surrounding the incident
The evidence available
Any relevant workplace policies
The employee's response and circumstances

Sometimes a simple reminder is enough. Other situations may require a formal investigation and disciplinary process. Think of it as choosing between a gentle reminder and a more formal response. The aim is to use the level of intervention that is appropriate for the situation.

Minor Behavioural Concerns

Not every issue requires a formal meeting or written warning. For minor concerns, a quick and respectful correction may be all that is needed.

For example:

An employee uses inappropriate language in the workplace.
An employee forgets to wear the required safety equipment.
An employee does not follow a straightforward workplace procedure.

You could simply explain what you observed and remind the employee of the expected standard. The purpose is to correct the behaviour early before it becomes a bigger issue.

What About Repeated or Less Serious Misconduct?

Consider the repeated lateness as an example. If an employee has arrived late several times, ignoring the issue will not necessarily make it disappear.

1. Raise the concern early

Have a private and respectful conversation with the employee.

Explain:

What you have noticed
Why it is a concern
What the workplace expectation is
What needs to change

Give the employee an opportunity to explain what is happening.

2. Listen before making assumptions

There may be circumstances you are unaware of, for example, an employee may suddenly have additional family responsibilities or another temporary situation affecting their usual routine.

Understanding the circumstances does not mean ignoring the issue. It gives you information that may help determine the most appropriate response.

3. Agree on expectations

If there is a genuine temporary issue, consider whether a practical solution is possible.

For example, a temporary change to working hours may help where operationally suitable.

However, make sure the employee understands what is expected going forward.

4. Keep a record

Even when an issue is dealt with informally, it is good practice to make a brief file note.

Record:

The date of the discussion
The issue raised
The employee's explanation
The expectations discussed
Any agreed actions

Good documentation creates a clear record if the issue happens again.

When Misconduct Is Serious

Some conduct issues are much more serious and may require a formal process.

Examples could include:

Physical violence or an altercation at work
Suspected theft
Serious breaches of workplace policies
Conduct that creates a significant safety risk

It can be tempting to immediately issue a warning or consider termination.

However, do not rush to a conclusion. Before deciding what disciplinary action, if any, is appropriate, you generally need to establish what actually happened and provide the employee with a fair opportunity to respond.

Could Suspension Be Appropriate?

In some serious situations, temporarily removing an employee from the workplace may be appropriate while an investigation takes place. This may be considered where there is a concern about:

Workplace safety
Further misconduct occurring
Interference with an investigation
The integrity of the investigation

Suspension is not the same thing as disciplinary action. It is generally a temporary measure used while the facts are being established. Depending on the circumstances and employment arrangements, an employee may still need to be paid during suspension.

A Fair Approach to Investigating Misconduct

When a serious allegation is raised, taking a structured approach can help ensure the matter is handled fairly.

1. Understand the situation

Start by establishing what you already know. Ask:

What happened?
When did it happen?
Who was involved?
Are there witnesses?
Is there evidence available?
Is there an immediate risk?

Not every incident will require a lengthy investigation. The circumstances should determine the level of investigation required.

2. Gather the facts

Where more information is needed, investigate the matter properly. This could involve:

Speaking with witnesses
Reviewing CCTV
Checking relevant records
Examining workplace documents
Gathering other available evidence
The investigation should be fair and impartial.

3. Clearly explain the allegation

The employee should understand exactly what concerns have been raised. An allegation should be:

Specific
Objective
Based on the information available
Clear about the conduct being questioned

Where relevant, include dates, times, locations and the workplace rule or standard involved.

4. Give the employee an opportunity to respond

This is an important part of a fair process. Before making a decision, allow the employee to explain their version of events. Their response may:

Provide additional context
Identify new evidence
Correct an inaccurate assumption
Change your understanding of what happened

For example, something that initially appears to be missing or stolen may have another explanation that only becomes apparent after speaking with the employee.

5. Consider all the information

Once you have gathered the relevant information, step back and consider the evidence as a whole. Consider:

The evidence collected
The employee's response
Witness accounts
Relevant policies
The surrounding circumstances
Any mitigating factors

You then need to determine whether the allegation can be substantiated.

In situations where there is conflicting information, decisions may need to be made on the balance of probabilities, essentially, what is more likely to have happened based on the available information.

6. Decide on the appropriate outcome

Only after completing the process should you determine what action is appropriate. Depending on the circumstances, this could include:

No disciplinary action
Coaching
Additional training
A formal warning
Other disciplinary action
Termination in the most serious circumstances

Any outcome should be appropriate and proportionate to the conduct and supported by the facts.

Five Practical Tips for Managing Misconduct

Good workplace practices can help prevent many conduct issues from escalating.

1. Set clear workplace rules

Employees need to understand what is expected of them. Make sure policies and procedures are:

Easy to access
Clearly communicated
Regularly reinforced
Applied consistently

2. Provide appropriate training

Training can help employees understand:

Their responsibilities
Workplace standards
Safety requirements
Expected behaviours
Relevant policies and procedures

3. Don't ignore small problems

A minor concern can become a much bigger issue if it is repeatedly overlooked. Addressing problems early can often prevent the need for more formal action.

4. Encourage employees to speak up

A workplace where people feel comfortable raising concerns can help managers identify problems sooner. Open communication can be an important part of managing workplace risk.

5. Use a formal process when necessary

Some matters cannot be resolved with a quick conversation.

Where conduct is serious or continues despite previous discussions, a structured and fair process may be necessary.

Managing Poor Performance

Poor performance is different from misconduct. The key question is not necessarily whether the employee has done something wrong, but whether they are meeting the requirements of their role. Performance expectations may be measured through:

KPIs
Quality of work
Productivity
Customer or client feedback
Accuracy
Meeting deadlines
Day-to-day performance

Clear expectations make it easier for both the manager and employee to understand what good performance looks like.

Is It a Skill Problem or a Willingness Problem?

When performance is below expectations, consider:

Does the employee know how to do the job, or do they need more support and training?

If the employee has previously demonstrated the required skill but is now choosing not to meet the expected standard, the issue may be different from someone who has never been properly trained. This distinction can help determine what needs to happen next.

If it is a skill issue

The focus should be on support and development. This may involve:

Additional training
Demonstrating the correct process
Providing clearer instructions
Additional resources
Coaching and supervision

If the employee has the skills but performance remains below expectations

A more structured performance management process may be appropriate. This could include a Performance Improvement Plan (PIP). A PIP can set out:

The areas requiring improvement
The required performance standard
Specific improvement goals
Timeframes
Support available
Regular review meetings
What may happen if improvement is not achieved

A PIP should provide clarity rather than simply being used as a disciplinary document.

How Can Businesses Prevent Performance Problems?

Good performance management should not only happen when something goes wrong.

Managers can help prevent problems by:

Providing appropriate training and resources
Clearly explaining responsibilities
Setting realistic and measurable expectations
Giving regular feedback
Providing positive recognition
Holding regular one-on-one meetings
Addressing concerns early

Regular communication makes it easier to identify problems before they become serious.

Summary

Misconduct and poor performance may look similar on the surface, but they should not automatically be managed in the same way. Before taking action, ask yourself:

Is this about behaviour, ability, or willingness? From there, consider the circumstances, gather the relevant information and choose a response that is fair and appropriate. Most importantly, do not ignore problems and do not jump to conclusions. A timely conversation may be all that is needed in one situation, while another may require a more structured process. Good employee management is about finding the right balance between clear expectations, early intervention, support and procedural fairness.