How to Handle Underperforming Employees with Servant Leadership: A Compassionate Manager’s Guide

Handling an underperforming employee is one of the toughest challenges for any manager. It's tempting to get frustrated or label someone a "bad apple," but that hasty assumption can do more harm than good. Poor performance is usually a symptom of a deeper issue, not an incurable character flaw. With the right approach, a struggling employee’s slump can become a turning point.

Enter servant leadership. This management style flips the script: you, as the leader, serve your team by understanding their needs and removing obstacles to their success. Being a servant leader doesn’t mean ignoring problems, you still address underperformance, but you do so with empathy and support.

This comprehensive guide will walk you through how to handle underperforming employees using a servant leadership approach. We’ll cover a step-by-step process, from opening a conversation, uncovering root causes, and coaching effectively, to co-creating performance plans. Along the way, you’ll find examples from multiple industries and practical conversation scripts to help guide your way.

Step 1: Lead with Empathy, Not Assumptions

Before speaking to the employee, examine your own mindset. Ask yourself:
- What specific behaviors or results are falling short?
- Have I clearly communicated expectations?
- Could there be personal or professional challenges I'm unaware of?

Set aside assumptions and approach the employee with curiosity and care.

Example: In a retail setting, instead of assuming a sales associate is lazy, note that sales are down and they've been late a few times. Reflect that this might be due to external stress or disengagement, not lack of work ethic.

Step 2: Initiate a Private, Supportive Conversation

Schedule a one-on-one and open with empathy:

"Thanks for sitting down with me. I want to check in and see how you're doing, and how I can support you."

Ask open-ended questions:
- How are things going for you lately?
- What's been going well, and what's been challenging?
- Is anything outside of work impacting you?

Create a safe, non-judgmental space. Listen actively and validate their experience.

Step 3: Uncover the "Why"

Use thoughtful questions to dig into the root cause:
- Do you feel clear on what success looks like in your role?
- Are there parts of your job you feel unprepared for?
- What’s getting in the way of doing your best work?

Common root causes include:
- Skill or training gaps
- Burnout or mental fatigue
- Lack of clarity in role or priorities
- Personal issues like health or family stress
- Mismatch between the role and the person's strengths

Step 4: Identify Strengths and Interests

Shift to a positive and empowering dialogue:
- What do you feel you do well?
- What kind of tasks energize you?
- Are there responsibilities you'd like more or less of?

Aligning someone’s responsibilities with their strengths and interests can dramatically boost engagement.

Step 5: Co-Create a Performance Plan

Now it’s time to build a realistic, shared path forward. This should include:
- Clear, measurable performance goals
- Specific action steps
- Timelines and milestones
- Regular check-ins
- Support you'll provide

Use language like:
"Let’s work on this together. Here's what I can commit to doing to support you. What steps do you feel comfortable taking?"

Step 6: Provide Resources and Support

Ensure the employee has everything they need to succeed:
- Training or workshops
- Peer mentorship
- Updated tools or systems
- Emotional support and wellness resources

Step 7: Coach Consistently and Track Progress

Hold regular check-ins:
- Celebrate small wins
- Identify new roadblocks
- Adjust the plan if needed

Ask:
"What’s working for you? What’s still tough? How can I help this week?"

Document progress and keep the tone collaborative. Stay committed, and let them know you believe in their ability to improve.

Step 8: Explore Role Fit or Transitions if Needed

If progress stalls, ask whether the role is truly the right fit. Pivoting to a different role that better aligns with their strengths might be the best solution.

If necessary, and after ample support and documentation, part ways respectfully. Maintain their dignity and, if possible, assist with the transition.

Conclusion: Lead with Service, Watch Performance Soar

Managing an underperforming employee through a servant leadership approach isn’t the quickest fix , it requires patience, empathy, and effort. But it is incredibly rewarding and effective. By treating the employee as a capable human being going through a tough time (rather than a "problem" to be disposed of), you create the possibility for genuine improvement.

This approach also strengthens your entire team’s culture. Other employees see that you are a fair, caring leader who helps people succeed instead of scapegoating them. This builds trust and loyalty. In contrast, managers who immediately label someone a bad apple and cut them loose may create a climate of fear, remaining staff worry, "If I slip up, I’m next." Servant leadership sends the message: "We’re in this together, and I’ve got your back." Paradoxically, that actually drives higher performance, as people feel safe to do their best and even take smart risks.

Of course, you still hold people accountable. If someone ultimately can’t or won’t improve, you handle it professionally, serving the greater good of the team. But by exhausting the coaching route first, you ensure that any final decision is fair and informed. Often you’ll find that with consistent support and a willingness to explore new options, underperformers can improve, in fact, turning around an underperformer can become one of the most satisfying wins in your leadership career.

Remember, your primary job as a leader is to develop and empower your people. When you approach underperformance with a servant’s heart, seeking to help rather than punish, you fulfill that role. You not only rescue an employee’s performance, but you also grow as a leader in the process. You practice empathy, coaching, and creative problem-solving.

So the next time you face an underperforming team member, resist the urge to write them off. Instead, put on your coach’s hat, sit down with them, and ask "How can I help you succeed?" By following these steps, from empathetic conversation to co-created action plan and beyond, you’ll handle underperforming employees in a way that is compassionate, effective, and true to the spirit of servant leadership. In doing so, you’ll likely find that there are no bad apples after all, just potential star performers waiting for the right care and guidance to shine.