Managing Underperformance: A Practical Guide for Singapore Employers
Managing underperformance in Singapore is probably the most common people challenge founders and business leaders face. And it’s consistently mishandled, not because people are bad managers, but because nobody really teaches you how to do this, and your instinct usually runs either to avoid it for too long or to act quickly without the right process. Both carry real consequences.
Here’s how to actually get it right.
Start With One Question
Before you have any conversation or formal process, ask yourself: is this a can’t or a won’t?
Can’t means the person doesn’t have the skills, experience, or clarity to do what’s expected. The role may have evolved. Onboarding might’ve been brief. Expectations might never have been clearly stated.
Won’t means they’re capable, but their behaviour, attitude, or choices aren’t meeting the standard. Different animals entirely.
This distinction matters enormously because the response is completely different for each one. Most managers mix them up, and that’s where things go sideways.
Handling Capability Issues
If someone’s underperforming because of capability, your obligation, both practically and legally, is to support them.
Singapore’s Tripartite Guidelines on Wrongful Dismissal are clear: poor performance isn’t grounds for dismissal without notice. You have to give the employee a genuine chance to improve, documented through a structured Performance Improvement Plan (PIP).
A good PIP includes:
- Clear description of the specific performance gap and what improvement actually looks like
- The support you’re providing: training, mentoring, regular check-ins
- A defined review period, usually four to twelve weeks depending on the role
- Measurable milestones that show what success looks like at the end
A PIP isn’t just legal cover. Done properly, it gives the person the best possible chance to turn things around. It also gives you a clear, documented record if further action becomes necessary.
Handling Conduct Issues
Conduct issues are different. Persistent lateness, disruptive behaviour, insubordination, dishonesty, these need a different approach.
In Singapore, misconduct is the only ground for dismissal without notice. But you still have to conduct a due inquiry first. That means:
- Informing the employee of the specific allegations in writing
- Giving them a fair opportunity to respond before any decision gets made
- Documenting the inquiry process and its outcome
For less serious conduct issues, a formal written warning is typically where you start, with escalating consequences if behaviour doesn’t change.
The Patterns That Keep Showing Up
I’ve worked through a lot of underperformance situations with growing businesses. The same mistakes tend to repeat.
Waiting too long is the first one. The longer an underperformance issue sits unaddressed, the more entrenched it becomes, the more the wider team notices, and the harder it becomes to resolve fairly.
Vague conversations are next. “We need to see improvement” isn’t a performance expectation. You’ve got to be specific about what needs to change, when, and how you’ll measure it.
No documentation comes up constantly. Verbal conversations without written follow-up leave you exposed if things escalate. Even a quick email confirming what you discussed is meaningfully better than nothing.
And skipping the process altogether. Acting on frustration rather than following a structured approach, especially around dismissal, is the fastest way to end up at the Employment Claims Tribunal.
If You’re Not Sure, Get Advice Early
If you’re currently dealing with underperformance and you’re unsure whether you’re handling it right, that’s worth getting advice on before you act, not after. The cost of a wrongful dismissal claim in time, money, and distraction far outweighs the cost of a conversation with someone who can help you navigate it properly.
Expert People Solutions works with founders and business leaders to navigate underperformance situations: diagnosing the issue correctly, designing the right process, and handling the conversation in a way that’s fair to the employee and protects the business. Get in touch if you want to talk it through.
