How to Tell an Employee They Are Underperforming: Tips for HR in Malaysia

Telling an employee that they are underperforming is one of the harder conversations for HR and managers.

It can be uncomfortable for both sides. However, avoiding the conversation can allow performance problems to continue and affect the team.

The goal is not to make the employee feel bad. The goal is to explain the performance problem clearly, understand what is causing it, and give the employee a fair opportunity to improve.

For HR in Malaysia, performance concerns should be handled carefully, with clear expectations, proper documentation and a process that follows the employment contract, company policies and applicable employment requirements.

What Does It Mean When an Employee Is Underperforming?

An employee is underperforming when their work consistently falls below the standard or expectations of their role.

This may include:

Frequently missing deadlines
Producing work with repeated errors
Not meeting agreed targets
Failing to complete important tasks
Poor communication with colleagues or customers
Not following reasonable work procedures
Showing little improvement despite feedback

One poor result does not always mean an employee is underperforming.

HR and managers should look at the employee's overall performance, the expectations that were communicated and the circumstances behind the issue.

Why Should HR Address Underperformance Early?

Ignoring poor performance can create more problems over time.

It Gives the Employee a Chance to Improve

An employee cannot fix a problem they do not know about.

A clear conversation helps the employee understand what needs to change.

It Protects Team Performance

When one employee regularly misses deadlines or does not complete their work, other team members may have to take on the extra workload.

It Clarifies Expectations

Sometimes a performance problem happens because the employee does not fully understand what is expected.

A discussion can help remove that confusion.

It Creates a Clear Performance Record

For ongoing performance concerns, keeping appropriate records of feedback, expectations and follow-up can help HR track progress.

This is especially important if the performance issue continues and further action later becomes necessary.

Before Talking to the Employee

Do not start the conversation without preparing.

HR or the manager should first collect the relevant information.

Ask:

What is the actual performance problem?
What was the expected standard?
When did the problem happen?
Is it a repeated issue?
What examples can I provide?
Has the employee received previous feedback?
Has the employee received the training or support needed for the role?
Is there any information the manager may not know?

Use facts rather than assumptions.

For example:

Too vague:

You are not doing a good job.

More specific:

Four weekly reports were submitted after the agreed deadline during the last month.

The second statement gives the employee something specific to discuss.

How to Tell an Employee They Are Underperforming

1. Have the Conversation in Private

Choose a private and suitable place for the discussion.

Avoid embarrassing the employee in front of colleagues.

The conversation should feel like a professional performance discussion, not a public punishment.

2. Start With the Purpose of the Conversation

You can begin with:

I'd like to talk about your recent performance and some areas where we need to see improvement.

This prepares the employee for the topic without immediately making the conversation confrontational.

3. Explain the Specific Problem

Describe what has happened using clear examples.

For example:

Over the past four weeks, three client reports were submitted after the agreed deadline.

Avoid statements about the employee's personality.

Do not say:

You are irresponsible.

Focus on the work instead:

The reports have not been submitted by the agreed deadlines.

4. Explain Why It Matters

Help the employee understand the impact of the problem.

For example:

When the reports are late, the team does not have enough time to review them before sending them to the client.

This makes the conversation about the effect of the performance issue, not simply criticism.

5. Explain What Needs to Improve

Tell the employee what you expect going forward.

For example:

From next week, the reports need to be completed and submitted by 3 p.m. every Friday.

The employee should leave the conversation knowing what good performance looks like.

6. Ask What Is Causing the Problem

Do not assume that you already know the reason.

Ask:

Is there anything making it difficult for you to meet this deadline?

7. Listen to the Employee

Give the employee a reasonable opportunity to explain their side.

The purpose is not to argue.

Listen carefully and ask follow-up questions when necessary.

The explanation may not remove the performance problem, but it can help HR understand whether the issue is related to training, workload, unclear expectations or another workplace issue.

8. Agree on an Improvement Plan

End the conversation with clear next steps.

For example:

For the next four weeks, we will focus on meeting the Friday deadline. I'll also arrange additional training on the reporting process. We'll review your progress in two weeks.

The improvement steps should be realistic and related to the actual performance problem.

9. Follow Up

Do not have one difficult conversation and then forget about it.

Schedule a follow-up meeting and review whether performance has improved.

Recognise improvements where they happen.

If the problem continues, explain clearly what is still not meeting expectations.

A Simple Formula HR Can Use

A useful structure for a difficult performance conversation is:

Problem → Impact → Expected Standard → Employee Response → Support → Follow-Up

For example:

The last three reports were submitted late. This delayed the team's review process. Going forward, reports need to be submitted by Friday at 3 p.m. Is there anything affecting your ability to meet this deadline? Let's discuss what support you need, and we'll review your progress in two weeks.

This keeps the conversation focused and professional.

What Should HR Avoid Saying?

The words used during a performance conversation matter.

Avoid Personal Attacks

Don't say:

You are lazy.

Say:

Several assigned tasks were not completed by the agreed deadlines.

Avoid Absolute Statements

Avoid words such as:

You always make mistakes.

Instead:

There were several errors in the last two reports.

Avoid Comparing Employees

Don't say:

Everyone else is doing better than you.

Focus on the employee's own responsibilities and targets.

Avoid Threatening the Employee

Don't use statements such as:

Improve immediately or you will lose your job.

When a serious performance problem exists, HR should explain the actual process and next steps rather than make emotional threats.

Avoid Giving Feedback Without Examples

"Your attitude is bad" is difficult for an employee to act on.

Explain the behaviour or performance that needs to change.

What If the Employee Gets Defensive?

An employee may become upset or defensive when they hear negative feedback.

Stay calm.

Do not argue about every point immediately. Instead, acknowledge the employee's response and bring the conversation back to the specific issue.

For example:

I understand that you see the situation differently. Let's look at the specific examples together and discuss what happened.

If the employee provides new information, HR should consider it before reaching a conclusion.

The goal is to understand the situation and address the performance issue fairly.

What If the Employee Says the Problem Is Not Their Fault?

Listen to the explanation before deciding what to do next.

For example, an employee may explain that:

Their workload increased
Instructions were unclear
They did not receive required training
Another team was responsible for part of the work
A system or process caused delays

HR should check the facts.

If the employee has identified a genuine workplace problem, fixing that problem may be part of the solution.

At the same time, if the employee remains responsible for the performance issue, the expected standard should still be clearly explained.

What If the Employee Does Not Improve?

If performance does not improve after feedback and reasonable support, HR may need to take further action according to the company's performance management process.

This could include:

Setting clearer performance targets
Increasing performance reviews
Providing additional training
Putting a formal performance improvement process in place
Taking other action allowed by the employment contract, company policy and applicable requirements

HR should distinguish poor performance from misconduct.

Poor performance is generally about an employee not meeting the required standard.

Misconduct involves conduct that breaches workplace or employment obligations and may require a different disciplinary process.

For employees covered by the Employment Act 1955 in Peninsular Malaysia and the Federal Territory of Labuan, Section 14 provides for certain disciplinary action for misconduct after due inquiry.

What About Termination for Poor Performance?

Poor performance may, depending on the circumstances, become a reason for termination. However, HR should not treat termination as an automatic first step when an employee is underperforming.

Before taking action, HR should review:

The employee's contract
Performance history
Previous feedback
Performance targets
Company policies
Relevant documentation
The circumstances of the case
Applicable employment requirements

The appropriate process can depend on the employee, role, contract and facts of the case.

Where termination is being considered, HR should obtain appropriate professional advice when needed.

How to Document an Underperformance Conversation

After the meeting, HR or the manager should record the important points.

The record can include:

Date of the meeting
Performance issues discussed
Specific examples
Employee's response
Expected improvement
Support or training offered
Agreed timeline
Follow-up date

Keep the record factual.

Instead of:

Employee has a bad attitude.

Write:

Employee was reminded to provide project updates to the team when a deadline is at risk.

Good documentation helps everyone understand what was discussed.

Simple Script for HR Managers

A manager can use this structure during a performance conversation:

I'd like to talk about your recent performance. We have noticed that [specific issue]. For example, [specific example]. This is affecting [impact on team, customer or work].

The expected standard is [clear expectation].

I'd like to understand if there is anything affecting your ability to meet this standard.

Let's agree on [specific improvement]. I'll provide [support], and we'll review your progress on [date].

The exact words should be adjusted to the employee and situation, but the structure keeps the discussion clear.

FAQs

How do you tell an employee they are underperforming?

Be direct but respectful. Explain the specific issue, give examples and discuss how to improve.

Should HR give a warning for poor performance?

Not every performance conversation needs to be a formal warning. Follow your company's performance management process.

What if an employee disagrees with the feedback?

Listen to their explanation and review any new information they provide.

How long should an employee be given to improve?

There is no single timeframe. The review period should be reasonable for the role and performance issue.

Can an employee be terminated for poor performance in Malaysia?

It may be possible, depending on the circumstances. HR should review the performance records, contract and applicable requirements before taking action.

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