What to Do as a Leader When You Inherit an Underperforming Employee

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Many leaders have faced this situation: you step in as the new hire or new boss and you inherit an underperforming employee on your team. Management is already telling you to fix them or fire them.

While you must treat every team member fairly and uphold the same standards for all, fairness does not mean ignoring performance issues.

Often, the previous boss was unwilling or unable to effectively coach the “underperforming employee,” let them go, or find a better job fit.

Now management expects you to resolve the situation.

Why This Expectation Is a Problem

  1. You cannot “fix” an employee.
  2. The “underperforming employee” may excel under your leadership.
  3. If management insists on firing them, have them do so before you start as the new boss.

The Reality of Inheriting a “Underperforming Employee”

  • A label from a previous boss does not define how anyone will perform with you. Conduct your due diligence with all
  • You are accountable for everyone’s performance. Ensure the team has the resources to meet customer demands.
  • Investigate first: use job fit assessments, review and update job descriptions, talk with current and former team members, and get management’s perspective.
  • Ask the customers what’s working and what’s not.
  • If you’re interviewing for the role, say: “I’ll need to assess them first. If you need them gone, you’ll need to handle that before I start.”
  • Maintain confidentiality and reinforce your standards.
  • Partner early with HR to ensure compliance.
  • Communicate appropriately with the team to prevent rumors and reinforce expectations.

As a New Leader, Share Expectations Immediately

  • Introduce yourself briefly in a group meeting.
  • In 1:1s, explain you’re assessing each role.
  • Ask how the team members see their role.
  • Clarify standards, timelines, and responsibilities.
  • Put expectations in writing.
  • Reinforce what “good performance” looks like.
  • Let the team know you’re available. And be available! It builds trust, which is needed in difficult conversations.
  • Hold each team member accountable and follow through consistently.
  • Never accuse anyone of being an underperforming employee since they may simply be in the wrong job.

Objectively Assess the Situation

  • Use a job fit assessment to confirm they’re in the right job. They may “fit” the thinking style, behaviors, and interests but have deviated from the job description due to lack of support and awareness.
  • Review performance history, documentation, and feedback from previous bosses and team members. Have intentional conversations. Remember, memories are never 100% accurate.
  • Identify whether the issue is skill, attitude, or both. Sometimes employees weren’t trained or were expected to grasp abstract concepts without guidance. Provide what’s missing and show them how to use it.
  • Create a written plan before speaking with the employee.

Have Direct and Intentional Conversations with the “Underperforming Employee”

  • Address issues factually using the Sandwich or Direct Approach, depending on the employee.
  • State what must change and why it matters. Use a performance improvement plan when needed.
  • Offer training and tools. If they’re unwilling to do the work, document it.
  • Treat each employee fairly.
  • Document everything: performance, behaviors, missed deadlines, and conversations (who, what, when, where, why).
  • If they want to leave, let them. Help them find a better internal fit or follow HR’s severance process.

Decide: Can They Stay or Must They Go?

  • Evaluate whether improvement is real and sustainable. (They cannot fake it forever.)
  • If not, initiate the appropriate exit process with HR.
  • Remember, the “underperforming employee” may be well liked but ineffective.
  • “Ride it out” when there is pushback from the team.
  • Reinforce expectations without criticizing the departing employee.

Strengthen Your Leadership Reputation

Your job is to ensure every employee receives the tools, coaching, and training needed to succeed.

  • Demonstrate fairness, consistency, and courage.
  • Show, by example, that you protect the team and uphold company standards.
  • You are judged not by the problems you inherit, but by how you handle the person and situation.

PS: What if You’re the “Underperforming Employee?” Don’t wait. Get help from an executive or career coach. This may include looking for another job after learning what you overlooked or ignored during your interview. The key is to get real about your strengths and weaknesses using a qualified job fit assessment to learn who you really are … not who you want to be seen as.

© Jeannette Seibly 2026 All Rights Reserved

Jeannette Seibly is a Leadership Results Coach, Talent Advisor, and Business Author with 33 years of experience activating greatness in leaders and companies. She delivers practical coaching and solutions that elevate performance today, build legacies that stand the test of time, and support people in empowering themselves to lead with clarity and impact.

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