EP 127: The 5 Root Causes of Underperformance (And How to Fix Each One) | HR Systems Series Ep. 7

podcastDon't Waste the ChaosHR Systems Series
Written By Kerri Roberts

Performance management isn't about performance reviews. It's about clarity, alignment, and accountability. If your team feels confused, resentful, or like they're underperforming, it's almost never a motivation problem — it's an expectations problem. Most employees aren't failing to meet the standard; they don't know what the standard is, because no one ever defined it. In this episode, Kerri reframes performance management from the dreaded annual review into a system: tiered expectations for every role, a clear-eyed diagnosis of why someone is underperforming, and a feedback rhythm that makes the annual review a non-event instead of a surprise.

You'll get the five root causes of underperformance — and learn why only one of them is actually a discipline issue. You'll get three feedback models simple enough to use this week, and a four-part performance rhythm you can drop onto your calendar today. If you've got someone you're quietly "managing around" right now, this episode hands you the next step. Clarity isn't a nice-to-have. If your people don't know what winning looks like, they can't win.

In This Episode

  • Why "people problems" are almost always systems and expectations problems

  • The three markers every role needs: what good, great, and not meeting look like

  • The four performance tiers — and how to build tiered reviews instead of one-size-fits-all

  • Where expectations actually get set (hire, offer letter, job description, onboarding) and why verbal won't hold up legally

  • The 5 root causes of underperformance — skill gap, will gap, capacity overload, misaligned role, personal life interference — and the different fix for each

  • Why "going in curious" keeps you from disciplining what was really a training problem

  • Three feedback models: SBI, COIN, and Feedforward — and when to use each

  • The four-part performance rhythm: monthly one-on-ones, quarterly check-ins, biannual reviews, and an annual review tied to compensation

  • The five-point rating scale, the three biases that wreck ratings, and why calibration meetings matter

Chapter Timestamps

0:00 Performance management is clarity, not reviews

2:19 Where this fits in the HR Systems Series

3:00 Your "people problems" are systems problems

4:44 Three defined markers for every role

6:00 The four performance tiers

7:10 Building tiered reviews (a real client example)

8:00 Where expectations get set and reinforced

9:31 Document everything — verbal won't hold up

10:00 Diagnosing underperformance + the GWC model

11:40 Root cause #1: Skill gap

12:30 Root cause #2: Will gap

13:10 Root cause #3: Capacity overload

13:55 Root cause #4: Misaligned role

15:00 Root cause #5: Personal life interference

15:30 The right fix for each root cause

18:10 The diagnostic conversation, step by step

20:00 Why you go in curious

22:00 The cost of waiting + documentation

22:35 Feedback model: SBI

25:00 Feedback model: COIN

26:30 Feedback model: Feedforward

27:00 Positive reinforcement that sticks

27:30 Monthly one-on-ones (with agenda)

31:00 Quarterly check-ins

32:30 Biannual reviews

33:30 Annual review tied to compensation

36:25 The five-point rating scale

38:00 Rating biases + calibration meetings

40:30 Your action item + what's next

Resources Mentioned

Your Action Item

Pick one person on your team who isn't performing right now. Put a meeting on the calendar this week to have the conversation — go in curious, and diagnose which of the five root causes it actually is before you decide it's a discipline issue. Then set a check-in cadence and follow it. Second step: schedule recurring monthly one-on-ones with all your direct reports using the agenda from this episode. If you can't realistically meet monthly with everyone, that's your signal to look at your structure.

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Full Transcript

Performance management is about clarity, not reviews

Performance management is not about performance reviews. It's about clarity. It's about alignment. It's about accountability. If your team is always confused, or they're underperforming, or they're resentful, it's likely an expectations issue — not necessarily a performance issue. It's rarely even a motivation issue. So I'm excited today to jump into performance management. Yes, we're going to talk about performance reviews. We're going to talk about rating skills. We're going to talk about how to give good feedback. But mostly what I want you to hear is the root cause analysis — the five major reasons why we think we've got performance issues with our team. We're going to drill down into the roots, and we are going to get into it.

You probably have somebody on your team right now who you would say is underperforming, and you're managing around them. Today we're going to drill into this and help you take the next steps to addressing those issues. So: the expectations you need to set, how to diagnose performance, and how to build a real feedback rhythm so the annual review is not a surprise.

Where this fits in the HR Systems Series

Welcome back to another episode of Don't Waste the Chaos. I'm your host, Kerri Roberts. If you're tuning in today, you're catching me in the middle of a 13-part series. I know 13 is a lot, but we are getting into the entire foundational bedrock of human resources. So many people say, "I don't even know what HR really is," and I get it — most people think it's admin. We're really breaking down what the 13 core functional pieces of human resources are, based on my 20 years of experience, and helping you build them one on one. You're catching me in the operating-system portion. We started out in the HR Foundations: HR mindset and our employer responsibility. Then we went to hiring, then onboarding, then HR law and compliance. That's HR Foundations — you can go back and listen to those episodes. If you want to go deeper, go to saltandlightadvisors.com/hrfoundations, or saltandlightadvisors.com/resources in general.

The operating system is where we're at right now. We've gotten into compensation and classification. We've gotten into leave management. Now, performance management. Next week we'll get into disciplinary actions and documentation. That's the operating system — that's where most of us get hung up, spending all our days, because we didn't build the foundation first. If you've listened and you want the tools and resources I mention, go to saltandlightadvisors.com/HR-operating-system or saltandlightadvisors.com/resources. You can go a little deeper and do some of my coursework. Of course, you can always pick up a copy of my book, The HR Easy Button — it's available on my website, and also on Amazon, where you can get paperback, hardback, or audio. Or you can reach out and we can talk about a consulting engagement. And don't forget to go to saltandlightadvisors.com/hraudit so you can get a free mini HR audit. That's a great place to start with these 13 foundations — you score yourself, you get an immediate score, and it lets you know: are you risky, do you need some attention, or are you smooth sailing? That's something you should know as a small-to-mid-sized business owner, as an HR pro, and as a leader.

Most performance issues are systems problems

Most performance issues are not people problems. So often I hear, "I've got so many people problems. The people are the hardest part of my business." I would say you likely have a systems problem, or a lack thereof. They're expectation problems. Did we set the expectations? Are we holding them to the expectations? Are we following through and explaining the why? Most employees aren't failing to meet the standard — they don't even know what the standard is. And you probably didn't outline it, either. You were hoping they knew, because they said they could rise to the occasion. But they can't read your mind.

Every role needs three markers

Every single role in your organization should have three defined markers to help both of you know how to move forward. What does good look like in this role? What does great look like in this role? And what does not meeting expectations look like in this role? If you've clarified that for them — and they understand it, because you included it in your interview process, your performance management process, your disciplinary action process, and your culture — you're smooth sailing. So if you're having issues, take a look at this area of clarity around standards and expectations. If your employee doesn't know what winning looks like, they can't win. You may have read it before: if you don't know what success looks like, you can't succeed. Same concept.

The four performance tiers

Expectations are not one-size-fits-all. When I start working with a client, sometimes they have a performance review and sometimes they don't. And I genuinely can't think of a client who had a tiered system before I came along. Here's what I mean.

You've got support task experts — the folks you delegate work to; they do the work. They're succeeding if they're accurate, timely, and they follow the process.

Then you have your subject matter professionals — more individual-contributor roles. They're succeeding if they're good at problem-solving, if they take initiative, and if they bring depth of expertise and experience to the role.

Then you've got your management tier. They're succeeding if their team has good output, if they're good at delegating, and if they coach others effectively.

And then you've got your leadership tier — your strategic tier. They're succeeding if they have strategic alignment up and down the organization, a positive cultural impact, and an impact on revenue or growth that they're accountable to.

Building tiered reviews in practice

When I look at performance management — specifically the performance review process — I build tiers for those. You might say, "Gosh, Kerri, that's getting really complex. I don't even have a performance review in the first place." I do this for clients every day. Or maybe you have review questions, but they're general and across the board, or geared toward your entry-level employee, so you don't really do reviews for managers and leaders. Let's tier it. Give me those questions and let me work them into tiers for you. Here's what it looks like. I have a client I just walked through this. They use an HR payroll technology. We took the review process and duplicated it times three — so there are four total. We put the tiered questions in. We put the workflows in — who's going to approve what reviews. It starts with the self-evaluation, then the manager evaluation. Now every level in the organization has performance review questions. That's just the annual review, but it's tiered. It's not one-size-fits-all when it comes to expectations.

Where expectations get set — and documented

Expectations must be set first at hire — in the interview process, and then in the offer letter when you extend an offer. And of course it's got to be in the job description. (If you want to dig into job descriptions, go back to my hiring episode — we jump off the deep end there.) Then expectations have to be reinforced during onboarding. Week one, you walk through the job description line by line: here's the expectation, here's what training looks like, here's what mastery looks like, here's when you should be able to take this over on your own. Weeks one, two, three, four — you're using that job description to make sure expectations keep getting set.

Then they've got to be reinforced at every review cycle. These need to be revised and updated. Is this what you're performing to? Have you been trained in all of this? Where are you meeting, exceeding, or not meeting expectations? Any time the role changes — advancing, or even demoting (I haven't seen many successful demotions, but they happen) — we need to level-set those expectations again. And document it. Verbal expectations do not hold up when you've got a wrongful termination case, a legal dispute, or a potential discrimination case. So we're documenting these expectations every step of the way.

Diagnosing underperformance: the GWC model

So how do we diagnose underperformance before you write anyone up? Because if you're writing someone up and you haven't diagnosed the root cause, it's likely your write-up is kind of crap — I've got to be honest. Most underperformance is one of five things, and only one of them is truly a discipline-worthy problem. Four out of the five are something else. If you haven't read it — and I'm not affiliated with them in any way — there's a book called Traction by Gino Wickman. It's the entrepreneurial operating system. I'll link it in the show notes. It's something I recommend small business owners and leadership teams go through. The reason I bring it up: there's a portion in the book called GWC. It's a great, rudimentary way to rate your people, and it helps you diagnose the root cause of underperformance. It doesn't take over the annual review process, but it's a great informal review.

The five root causes of underperformance

Let's go through GWC, and then the two more I've identified.

Get it (the G) — a skill gap. Do they get it? If they don't, they don't know how. They haven't had enough training, proper education — they outkicked their coverage when they took the role. This is not a discipline problem. There's a skills gap, and we need to address the training needs of this employee.

Want it (the W) — a will gap. They know how, but they aren't doing it. Ugh. This one's a frustrator, and most people don't know how to address it. This is an engagement or motivation issue. Maybe they don't know the why, or they don't care about the why.

Capacity (the C) — capacity overload. Do they have the capacity to do it? They've either got too much on their plate, something's slipping, there's a workload problem, or they don't have the mental capacity for it. You should have been able to level-set this when you posted the job description and ran the interview. If it turns out to be a workload issue once they're inside, that's still a capacity issue we need to work on as an organization.

Misaligned role. This is when you've got the wrong person for the job, or — more often — the role has evolved past them. For example: you're a small business owner with an admin person who steps in and does AR/AP. Then they pick up payroll because you've added people, and you name them CFO. Eight years down the road you're a multi-million-dollar company, and this person is no more a CFO than the man on the moon. They don't have those skills. They've been the doer, you need them, you've built a relationship, they're your go-to — but they've never been a CFO. You feel like they're not getting you to the next level, and so do they. And you're so loyal that you'll stifle your growth and scalability rather than bring in an actual CFO. That's a root cause of underperformance.

Personal life interference. Something outside of work is affecting their performance, and it has to be addressed. We've all got a personal life.

The right fix for each

Why does this matter? Because the fix is completely different for each one. People tell me all the time, "I just can't motivate this person." You're right — you cannot. They need to motivate themselves. We can provide all the clarity and purpose in the world, but they have to motivate themselves.

If it's a skill gap, they need training, coaching, and job shadowing. We have to take ownership as the organization to train, coach, and mentor them. If we do all that adequately and it's still not working, then maybe we've got a discipline issue.

If it's a will gap, you need a direct conversation about expectations and then about consequences. They're able to do the role, they've had the training, they've got the background — and they're not performing. That's the disciplinary action conversation. Be very clear about where they're performing, where they're not, and what the consequences are if they continue.

If it's capacity overload, it's a reprioritization or resourcing conversation. If it's a new hire, maybe we didn't step them in correctly. And for senior people this can be a big issue — they've collected everything and become a martyr, feeling like they have to carry this burden or they're not valuable. Maybe that's a childhood thing, maybe it's a you thing — that's a therapy issue for them to work through. But in general, we need to talk about resourcing them appropriately, and if they won't let go or delegate, that's a deeper conversation.

If it's role misalignment, we need to talk about role design. What's the appropriate role for them, and what role do you need filled? If there's a role they want to apply for, they can — but be very clear about the gap between where they're performing and what you need. It may be nothing wrong with their performance; it's just experience or education they don't have. Or you need an honest transition conversation: here's what we actually need, here's what you can't yet bring, we want this for you, you can get this training — but to scale, we need this in the role.

And if it's personal life interference, give them grace, but give them a clear timeline, and point them to your employee assistance program if you have one — therapy, counseling, legal resources, whatever it looks like. When I say timeline, I don't mean cut them off at 90 days. If they've got a parent on hospice, obviously there's more to it — maybe it's FMLA, maybe there are other things. But we need to be clear about when we need performance back, the resources we're willing to give, and regular check-ins — with grace and with love.

So those are the five root causes: skill gap, will gap, capacity overload, misaligned role, and personal life interference. My hope is that when you think about that underperformer on your team, you go, "That's it — it was one of those five." And if it wasn't, let's have a conversation and you can argue it with me — maybe I update this. But based on my 20-plus years in HR, that's what I've whittled it down to.

The diagnostic conversation: go in curious

You need to do a simple diagnostic before your formal conversation. Think through those five things and identify which it is. Then describe what you've observed — be specific, talk about the behavior, and do it factually, not emotionally. State the impact on the team or the business. Ask a curious question: "What's getting in the way?" or "What's going on?" Then reset the expectations clearly. Most managers skip the curious part and go straight to the dictator conversation. That's how you miss a skills gap — you go straight to discipline when there might have just been a training problem.

I was so proud last week. I was talking with a client who had a sexual harassment issue in the organization — something had been reported and they'd opened an investigation. When I said, "You need to have a conversation with the gentleman and learn what happened," the owner said, "I know — we're going to go in curious." I could have hugged him. That came from every time he and I talk about performance issues, I say: go in with a curious posture. We want to learn from the employee first. Because if an employee feels like we don't care about them as a person, and then we start telling them what we need, how undervalued and unknown do they feel? They might be going through a real personal thing. We need to go in with a posture of curiosity.

The cost of waiting

Here's the cost of waiting. Your top performers are watching. Are you dealing with your performance issues, or not? If you're not, they're already talking about it. I promise you — if you're coming to me or to a counterpart about a performance issue, other people have already talked about it behind your back. They're wondering if you're capable of handling it. I know that doesn't feel good, but they're saying you're either blind, you don't care, or you're not capable. You're going to lose top performers if you don't deal with performance issues. And every week you wait, the pattern builds. If you finally address it, they'll say, "I've been doing this forever — why are you just now bringing it up?" Now they can be defensive: "They've allowed this for so long and now they're going to fire me over it." That could be a wrongful termination suit. Address it as soon as you possibly can. And if you have no documentation, you have major legal exposure. So document, document, document. It can be an email. We're just documenting it.

Three feedback models: SBI, COIN, and Feedforward

Let me give you three feedback models. Don't use all three — that would be bananas. Pick one. If you're an HR pro, you should already know these. If you're not — which is probably most of you, based on the feedback I get — here are three you can run with. And don't forget: you can always download the transcript of this episode, whether you're on YouTube, Spotify, Apple, Buzzsprout, wherever, and apply it in your business. Just rip me off. I don't mind a bit. I want you to do this consistently, because if a bunch of small-to-mid-sized businesses aren't performing, they die out. The vast majority of businesses aren't profitable, and I'm trying to help you get there. If you want my help, reach out at saltandlightadvisors.com/contact.

SBI — Situation, Behavior, Impact. What's the situation (when and where did it happen)? What's the behavior (what specifically did they do or not do — observable, not interpreted)? And what's the impact (on the team, the client, the business)? Example: "In Friday's call [situation], you talked over the client twice [behavior]. They emailed me afterward and said they felt dismissed [impact]." That's how we give feedback, friends. It's really no more complicated than that.

COIN — Context, Observation, Impact, Next step. This is SBI plus a forward-facing piece. We give the context, the observation, the impact — and then the next step. What needs to change here? "Here's what happened, here's what needs to happen." This is good for coaching conversations where you want a committed next action — which is most coaching conversations, unless it's an "absolutely don't ever do that again, period" situation (that's an SBI). COIN is where we're moving toward.

Feedforward. This one has its time and place — I like COIN best, but feedforward is where we don't focus on the past; we talk about future behaviors. Say you've got someone who beats themselves up — hypercritical, a people-pleaser, someone you'd crush if you gave them past-focused feedback. (I'm not talking about defensive people; that's a behavioral issue to address.) For these folks, focus on the future: "What's one thing you could do differently next time to make that client interaction stronger?" You use this when a relationship needs to stay intact and you want them to own the situation. You're not a therapist, and that's not why you got into business — but if you want to motivate and inspire your people and help them feel known, sometimes feedforward is the answer.

Positive reinforcement that sticks

Positive feedback is part of the system — it's not optional. Recognition has to be used for it to stick. I don't like the sandwich approach, because it downplays the message, and some employees miss that it's a performance-based conversation. "Great job" lands nowhere. But, "The way you handled that complaint on Thursday — that's exactly what we need," that lands. Be specific, because now they think, "That was good, I need to do that again." Top performers need to hear what they're doing well, not just what to fix.

Building a performance rhythm

Let's talk about performance management rhythms — not just the annual review. There are four parts.

Monthly one-on-ones. If you're not doing monthly one-on-ones with your employees, what are you doing? And if your answer is, "Kerri, I have 23 direct reports, I can't do a monthly one-on-one with all of them" — best practice is eight direct reports; twelve at a max and you're a beast, you're maxed out. If you have that many direct reports, take a look at your structure. And if you pride yourself on being non-hierarchical, I'd gently say that's nothing to pride yourself on, because you're not giving your team the attention they want, need, and value. A little hierarchy is not going to kill you — and your employees are going to like it.

Schedule these on your calendar. Thirty minutes is just fine for a monthly one-on-one. Here's the agenda: a personal and energy check-in ("How's it going? What's feeling heavy?") — we're building trust and the relationship. Then a workload review: what are you working on, where are you stuck, what's unclear, where might you be falling behind? Then real-time feedback: one strength you're seeing and one area to tighten up. This is real feedback, but we're not documenting every single thing — it's not a performance review. Then forward focus: one to three priorities before your next meeting.

A couple of tips: if it's virtual, record it (let them know it's for transcription), and use an automation or a Google Doc, Asana, SharePoint — whatever you use — to put the notes into next month's recurring check-in so you both stay on the same page and reference it next time. If you're not transcribing, have them take the notes and email them to you. Throw the agenda in your recurring calendar invite, and do not move this stinking meeting — otherwise there's no accountability and no progress on the one-to-three things.

Quarterly check-ins. Once a quarter, go a little deeper. This can happen at the same time as the monthly one-on-one. It's for goal accountability and alignment — and if you don't have goals for them, what are you doing? This is a more moderate, summary-form check-in that keeps all your goals progressing.

Biannual review. This can be as simple as start/stop/continue: three things to start in the next six months, three to stop, three to continue. It's a progress reset and trajectory check, and it's documented. Honestly, this one's a nice-to-have — if you're doing the monthly and quarterly, you don't have to do this one if you don't want to. (But I want you to do them all.)

Annual performance review. This is where the tiered reviews come in, and it's attached to a compensation review every single time — because people want to know how they make more money. If the answer is, "This year we didn't do enough business, revenue isn't where it needs to be, we're taking a loss," then we're just being clear about it. We're not sounding the alarms; we're being honest: "We're not doing increases this year because we didn't perform as an organization, and here's what we're doing to rectify that, and here's when we'll re-examine compensation." Otherwise we do a compensation review alongside the annual review once a year. Put this in your HR payroll system — and HR payroll systems with performance reviews are not as expensive as you think.

The monthly review builds trust. The quarterly builds accountability. The annual builds documentation for both of you. We want to justify the raises — we don't want to be arbitrary, because then our top performers get frustrated. If you're just giving an annual Christmas bonus based on how the company performed, with no individual performance, no tiering, no weighting, your top performers are going to leave. Everybody getting the same gift card is not a great way to reward top performers.

The five-point rating scale

Before we wrap, let me go through the five-point rating scale — for the annual review specifically. We're not rating monthly one-on-ones, quarterly check-ins, or biannual reviews. The formal annual review gets a rating scale, because it's hopefully attached to compensation or bonuses. A five-point scale is the sweet spot. A 10-point scale, you don't need. A three-point scale isn't helpful, because everyone just lands on a two. Five points gets you good weighted results, so you can get closest to what someone should be making for a performance increase.

Here's a peek behind the curtain at my scale, from the top down: five is outstanding; four is exceeding expectations; three is successful / meeting expectations; two is needs improvement; one is unacceptable. We use that scale on every question in the tiered review, and it spits out an average — and that's essentially what increases are based on. (I've got a paragraph that goes with each rating, and I train clients on it.)

Rating biases and calibration

For your first reviews, it's going to be rocky, because employees will be all over the place — even with the scale and definitions in front of them. You've got people who see themselves as Jesus incarnate, people who are really hard on themselves, and people who just rate themselves a three to avoid a conversation either way. We have to teach our people. By formal reviews two, three, and four, you're cooking with Crisco.

Common rating mistakes I see from managers: leniency bias (rating everybody higher); recency bias (because we're not doing the monthly one-on-ones and quarterly reviews, we only remember the last 30 days — not enough data for a good year-end look-back); and comparison bias (rating employees against each other instead of against the criteria). We all like some people better than others, and our personalities mesh better with some — so rate against the criteria, not against each other. Same thing in hiring (go back to my hiring episode): rate people against criteria, not against who you liked most or who's the best communicator — because that person might just be charming and full of crap.

I recommend calibration across your managers. Once everyone's rated all their employees — before the employee meetings — have a meeting with all your managers and talk through your people. "You rated them pretty high, but our whole team has a hard time working with that person." Or, "I rated this person high; you've got someone performing at the same level — why did you rate them lower? Are you just a tougher scorer?" Those calibration meetings are really powerful. You don't necessarily need performance management software for this. You just need a job description, a feedback habit — a feedback rhythm, I call it — and the willingness to have the conversation before things become a pattern.

Your action item and what's next

Here's one action I want you to take: identify one person who's not performing right now, put the meeting on the calendar to have the conversation, set regular check-ins after that, and address the performance issue. Then schedule monthly one-on-ones with all your direct reports — or sit down with a trusted confidant and map out what a hierarchy could look like, because you can't meet with every single person once a month. Put some structure in place: team leads, people who can shepherd others. If you don't have that monthly rhythm right now, put the recurring invites on the calendar, use my agenda from this episode, and get rocking and rolling.

Don't forget — HR Foundations is all captured in my book, or at saltandlightadvisors.com/hrfoundations: the employer responsibility checklist, hiring, onboarding, HR law and compliance. And saltandlightadvisors.com/HR-operating-system gets into compensation, classification, leave management, this one — performance management — and next week's episode on discipline and documentation. That's where you'll find the coursework, downloadables, tools, resources, scripts, and my teaching that goes along with it. After this, we're getting into HR strategy.

Next episode: discipline, documentation, and employee performance improvement plans. We're getting into it all. I know the HR aspect can feel like chaos — like a second job when you're trying to run the business — but I'm telling you, put these systems in place, and six months from now, a year from now, your business is going to be unrecognizable in all the best ways. So friends, don't waste the chaos. Embrace it. I'll see you next week.

Resources To Keep Building

If you've got an underperforming employee on your team right now, take the free HR Audit to see whether your people systems are actually set up to support those conversations. → saltandlightadvisors.com/hraudit

🎯 Take the free HR Audit — Score your HR systems in 5 minutes and see exactly where your gaps are. → saltandlightadvisors.com/hraudit

🎙️ Listen to Don't Waste the Chaos — This episode breaks down the 5 root causes of underperformance. → [FILL per-episode link]

📚 Explore the HR coursework — Self-paced courses, tools, and resources to build your HR systems step by step. → saltandlightadvisors.com/resources

✉️ Get the Monday Email — One practical idea for leaders, every Monday at 5:28am. 1,000+ leaders, 50%+ open rate. → saltandlight.myflodesk.com/saltandlightadvisors

Need fractional HR support or want to talk through a specific challenge? → saltandlightadvisors.com/contact

Kerri Roberts https://saltandlightadvisors.com
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