When an employee starts underperforming, the worst response is to ignore it. The most effective digital agencies act quickly—by identifying the cause, providing structured feedback and support, and implementing a clear improvement plan. If things still don’t improve, a fair and transparent process protects both your agency and your team culture.
At Bespoke Marketing Plans, we understand that managing people is just as important as managing projects. A single underperforming employee can affect delivery quality, client satisfaction, and morale. Here’s how to handle it the right way, ensuring fairness, productivity, and compliance with UK employment standards.
Why Addressing Underperformance Matters
Poor performance doesn’t just affect one employee—it impacts the entire agency. Unaddressed, it can spread frustration among colleagues and erode the agency’s reputation with clients.
Key reasons to act early include:
- Maintaining client satisfaction: Missed deadlines or inconsistent work quality can quickly lead to lost contracts.
- Protecting team morale: High performers often feel demotivated when they’re forced to pick up the slack.
- Preserving productivity: Rework and miscommunication slow down projects, leading to profit loss.
- Avoiding legal issues: In the UK, dismissing someone for poor performance without following fair procedure can result in costly employment claims.
A well-structured approach ensures you stay compliant while giving the employee every chance to improve.
Step 1: Identify What “Underperforming” Really Means
Before addressing the problem, you need clarity. Underperformance can take many forms—reduced output, missed targets, declining creativity, or poor collaboration.
Define the gap clearly
- Review their role description and KPIs.
- Compare their recent performance to measurable standards (e.g., project completion rates, client feedback).
- Separate underperformance from misconduct—the former is about capability, the latter about behaviour.
Gather factual evidence
Avoid basing your judgement on perception. Collect objective examples—missed deadlines, errors in client work, or consistent complaints—to form a fair assessment.
Spot patterns, not one-offs
Everyone has an off week. The concern is consistent decline or a pattern of issues. Recognising trends helps you distinguish a temporary problem from a persistent one.
Once you’ve confirmed underperformance, it’s time to engage directly with the employee.
Step 2: Start an Honest, Supportive Conversation
The first step isn’t disciplinary—it’s diagnostic. An informal, empathetic chat can reveal underlying causes and prevent escalation.
How to approach the meeting
- Schedule it privately and avoid surprising the employee.
- Use a calm, factual tone: reference specific examples, not generalisations.
- Ask open questions like:
“Are there particular projects or tasks you’re finding challenging?”
“Is there anything we can do to help you improve your results?” - Listen actively and avoid jumping to conclusions.
According to The Alternative Board UK, open dialogue often uncovers issues such as unclear expectations, personal difficulties, or lack of training.
Reaffirm strengths
Highlight what they’re doing well. Constructive feedback motivates rather than deflates. Then, agree on next steps and revisit expectations together.
Step 3: Diagnose the Root Cause
You can’t fix what you don’t understand. Common reasons for poor performance include:
- Skills gaps or outdated knowledge – The employee may not have received adequate onboarding or training for new tools.
- Unclear expectations – If job roles or KPIs have shifted, the employee may be working towards the wrong targets.
- Burnout or workload imbalance – Digital agency environments are fast-paced, and overwork often leads to reduced focus.
- Cultural or motivation issues – Misalignment with team values or a lack of recognition can reduce engagement.
- Personal or health challenges – These can quietly affect performance and require sensitivity and support.
By identifying what’s really wrong, you can decide whether coaching, resources, or role changes are needed.
Step 4: Set Clear, Achievable Goals
Once you’ve addressed the “why,” focus on the “how.” Improvement only happens when goals are defined and measurable.
Use the SMART framework
- Specific: Define what improvement looks like.
- Measurable: Attach KPIs—e.g., “Deliver SEO reports on deadline for three consecutive months.”
- Achievable: Ensure targets are realistic for the role.
- Relevant: Align goals with client priorities and team outcomes.
- Time-bound: Set a review period (often 4–8 weeks).
Clarify accountability
Document the agreed objectives and confirm both sides understand them. Follow up via email summarising what was discussed—this transparency builds trust and accountability.
If expectations are ambiguous, improvement becomes impossible.
Step 5: Create a Performance Improvement Plan (PIP)
If informal feedback doesn’t yield results, move to a formal Performance Improvement Plan (PIP). This is a structured document that outlines expectations, timelines, and consequences.
What a PIP should include
- Specific areas requiring improvement (e.g., communication, accuracy, timeliness).
- Exact performance benchmarks.
- Support available—mentorship, software, or training.
- Review intervals (typically fortnightly or monthly).
- Timeframe (usually 30–90 days).
- Potential outcomes if goals are not met.
A fair and detailed PIP protects your business legally while giving the employee a structured opportunity to recover.
Remember: the PIP’s goal is to support, not punish.
Step 6: Offer Training, Mentorship, and Resources
An employee’s performance often mirrors the support they receive. Before assuming they can’t do better, ask whether they’ve been given what they need to succeed.
Practical support ideas:
- Pair them with a senior mentor for skill shadowing.
- Provide refresher training on project management tools or client systems.
- Balance their workload or reassign specific tasks temporarily.
- Encourage mental health or wellbeing check-ins if stress appears to be a factor.
Investing in professional development not only aids the struggling employee—it signals to the rest of the team that growth and accountability go hand in hand.
Step 7: Monitor Progress and Give Feedback
Improvement requires consistent feedback, not just end-of-period reviews.
- Hold regular check-ins: Weekly or fortnightly progress meetings maintain focus.
- Track measurable results: Use dashboards, reports, or client feedback to gauge changes.
- Acknowledge wins: Recognise effort and improvement to maintain morale.
- Stay constructive: Address setbacks calmly and adjust plans where necessary.
Agencies that mix data-driven evaluation with supportive coaching typically see higher recovery rates and long-term loyalty.
Step 8: Take Fair Action If Performance Doesn’t Improve
If, after structured support and documented review, there’s still no improvement, you may need to escalate to formal action.
Follow a fair, lawful process
In the UK, this involves:
- Conducting a final review meeting and documenting the outcome.
- Considering whether any protected characteristics (e.g., disability, pregnancy) may require reasonable adjustments.
- Providing a written warning outlining continued concerns and next steps.
- Allowing time for an appeal, as required by law or your internal policy.
If termination becomes necessary, do so respectfully and by the book. Fairness, documentation, and consistency are critical in avoiding claims of unfair dismissal.
Always consult an HR professional before making final decisions.
Common Mistakes to Avoid
Even with good intentions, agency owners often make errors when addressing poor performance. Here are some pitfalls to steer clear of:
| Mistake | Why It’s a Problem | Better Approach |
| Ignoring the issue | It worsens over time and affects others | Address early with facts and empathy |
| Giving vague feedback | Creates confusion and frustration | Use specific examples and metrics |
| Assuming bad intent | Most issues stem from misalignment, not laziness | Diagnose before judging |
| Inconsistent treatment | Breeds resentment or legal risk | Apply standards uniformly |
| Poor documentation | Makes fair action impossible | Record meetings and agreements |
| Acting in anger | Damages trust and morale | Stay professional and composed |
Avoiding these missteps ensures you handle underperformance calmly and effectively.
Step 9: Strengthen Systems to Prevent Future Issues
Prevention is more efficient than correction. Build a high-performance culture that reduces the likelihood of recurring underperformance.
Key prevention strategies
- Robust recruitment: Hire for both skill and cultural fit.
- Clear onboarding: Give new hires defined goals and proper training.
- Regular feedback: Normalise open communication about performance, not just annual reviews.
- Balanced workloads: Avoid overburdening top performers.
- Recognition programmes: Reward effort and outcomes publicly.
- Healthy work environment: Encourage wellbeing and work-life balance to reduce burnout.
When expectations are transparent and support systems are strong, performance issues become far less frequent.
Step 10: Consider External Support or White Label Partnerships
Sometimes, underperformance is not an individual’s fault but a structural issue—too much work, not enough capacity, or skill gaps in technical areas like SEO or content marketing.
When this happens, partnering with specialists can relieve the pressure without needing to replace staff immediately.
Working with a white label SEO provider, such as Bespoke Marketing Plans, lets your agency:
- Maintain client relationships while outsourcing delivery.
- Improve output quality without hiring new employees.
- Give existing staff time to refocus on strengths.
- Scale efficiently while preserving your brand identity.
This approach can prevent burnout and protect team morale—especially when deadlines are tight or workloads spike.
Case Example: Turning an Underperformer Around
Imagine an account manager in your digital agency repeatedly misses deadlines and fails to follow up with clients. After reviewing their workload, you discover they’re overwhelmed handling both client communication and campaign setup.
You decide to:
- Reallocate campaign setup tasks to a white label SEO partner.
- Keep the account manager focused on client strategy and communication.
- Provide time management coaching and introduce project tracking software.
Within two months, performance stabilises. The account manager feels supported rather than penalised, clients receive faster responses, and project quality improves.
This example shows that “underperformance” can sometimes be a symptom of poor resourcing rather than poor attitude.
Conclusion
Managing underperformance isn’t about blame, it’s about leadership. When addressed with fairness, empathy, and clear communication, even struggling employees can rebound and thrive. And when they don’t, a structured and lawful process ensures your agency remains strong, compliant, and respected.
If you’re dealing with performance challenges or struggling to balance workload across your team, Bespoke Marketing Plans can help. We offer white label SEO solutions that allow you to maintain quality, scale capacity, and reduce pressure on your staff.
You can contact us today to discuss how we can support your digital agency’s growth and stability.
