How to deliver critical feedback that unlocks the full potential of underperforming employees

Imagine you’re a manager on a team of sales associates and one member of your team is consistently underperforming. You know that he is bright and has high potential to start taking on important projects. You’ve heard good things about his work ethic from a few colleagues. But something is holding him back. Despite the specific critical feedback you’ve given, you’re not seeing improvement. Faced with this situation, you might arrive at the conclusion that he’s an underperformer and that you were mistaken about his potential. You might feel stuck or be considering putting him on a performance plan. Before you go there, consider another possibility. In our work with clients, we’ve seen that often something else is getting in the way of the team member “hearing” your feedback. 



The real issue might not be lack of potential, but a mismatch between the intent of your feedback and how your employee interprets it. There is a world of difference between someone who receives critical feedback in a defensive way and as a signal that “I’m not cut out for this job or this task” and someone who sees your input as an opportunity to learn and improve.



Here’s a step-by-step approach to resolving this mismatch, bridging the gap, and helping you transform untapped potential into performance:



Consider if a key relational element is missing



Many have written about ways to have difficult conversations with direct reports who are not performing. But these strategies, no matter how promising, may not stand a chance of changing behaviors because of a more serious mindset standing in the way; and that is lack of trust. 



Research shows that the effectiveness of feedback hinges on trust, and a lack of trust may be more common than you think. A Gallup Panel survey from March 2021 , for example, found that only 23% of U.S. employees strongly trust their company’s leadership. And when employees don’t trust their managers, they are more likely to question their actions and motives. Taken together, this evidence may shed light on situations in which feedback doesn’t always land in the way the giver intends.



Lack of trust can interfere with the feedback loop in any context, from education—where studies show that a white teacher’s feedback may be received differently by Black students due to trust disparities—to the workplace, where skepticism about the true motives of managerial feedback may reduce the likelihood of any real progress. This is true, particularly in cases where employees have concerns that feedback might be based on preconceived notions against them or their abilities. For example, if someone believes that “I’m no good with numbers”, or “People like me don’t belong in a company like this one”, critical feedback may be interpreted in ways that reinforce these negative beliefs and adversely shape future behavior.



Build a Foundation of Trust with underperforming employees



If you truly believe your underperformer has the potential to improve and turn into a high performer, you first must foster a culture of trust which is essential for increasing the impact of feedback . Compared to people at low trust companies, people at high trust companies report 76% more engagement and 74% less stress and employees who trust their leaders are 61% more likely to stay with their company.



Before giving more critical feedback, first evaluate your own behaviors to make sure you are doing what you can to build trust with your high potential underperformer. These are specific things you can do to build trust: 




Be consistent: Your team must see you as someone who is fair and consistent with both high and low performers. It’s easy to show favoritism and hand plum projects to high performers, but this perpetuates distrust. Consistency, on the other hand, helps remove uncertainty, decreases stress , and boosts employee confidence. 



Support employee development: Many leaders engage in proactive conversations with star employees about skills they would like to learn which career paths interest them. Make sure that you do the same with your underperformer. Supporting career goals shows that you care about your employee’s future no matter what their current performance is like. 



Appreciate your team: Regularly acknowledging the efforts of your underperformer can significantly boost trust . Appreciation shows that you value your employees and their contributions.




Clarify Expectations



For example: Tim’s job involves writing proposals for new projects for his boss, Helen.  Over the past quarter, Tim has been turning in sub-par proposals and Helen has been fixing them in her own time or handing them to someone else. When she has critiqued Tim’s work, he seems to ignore or brush off the feedback.



It might seem obvious that your team members know what is expected of them in their specific job role but research suggests otherwise. For example, a recent Gallup poll found that less than half of employees know what is expected of them. And so even if you believe you have been clear in your high expectations for a role it’s crucial to find out if your underperformer really does understand your expectations. 



Faced with this poor performance, what should Helen do next? Before critiquing Tim’s most recent proposal, Helen should first re-build trust by acknowledging that due to time constraints she had been revising the proposals herself or giving them to someone else. She should reset the relationship by acknowledging that she wants to try something different for the future. Helen should ask questions and make sure that Tim understands what she was looking for. They can go deep into the specifics of the proposal to see if Tim had clarity on the task and knew what he was supposed to do. Without these shared expectations, her feedback might be perceived as unfair or a personal attack. 



Convey High Standards and Confidence in Feedback



If trust in the workplace is established, the next step is to convey feedback in ways that will help underperformers receive it through a positive, productive lens. As a leader you can do this by conveying high expectations, combining those expectations with a genuine belief that the person can and will accomplish what is expected, and the understanding that you are available to guide and support along the way.



In the study of teachers and students referenced earlier, some students received a brief note (a post it!) on their marked-up essays. The note explicitly conveyed that teachers were giving critical feedback because they had high expectations of the student and believed they could improve. Others got the critical feedback alone. Those who received the additional note were more likely to make the changes suggested by the teacher and submit an improved revision of the essay. 



In a workplace setting, once they’ve aligned on the expectations for the proposal, Helen could say to Tim: “I am sharing these comments with you because we share high expectations, and I am confident that you can do the work. I want to see you succeed and I am here to coach and help you.”



Helen’s approach to working with Tim establishes a positive relationship rather than a one-sided critical “attack,” leaving little room for Tim to second guess her motives for giving the feedback. Tim knows Helen has high expectations and confidence in him, and has given him the tools, support, and the time to try again and improve.



Final thoughts



The value of feedback is clear. Yet, its effectiveness depends on trust, mutual understanding, and clear communication of expectations. Drawing from education research, particularly in contexts where trust may be fragile, we help leaders overcome the fear of giving tough feedback. Then, like Helen honing her management skills, we can ensure that the highest potential employees productively hear the feedback and get the best opportunity to excel in a culture of continuous growth and development.