How to Handle Employee Performance Issues Fairly in Singapore

Performance issues rarely announce themselves clearly. An employee who misses deadlines, produces inconsistent work, or falls short of targets may be facing a genuine performance problem, but the underlying reason is often harder to pinpoint. 

Unclear expectations, skills gaps, unmanageable workload, insufficient feedback, or a role that has quietly changed shape can all sit behind the exact same symptom.

This means addressing performance issues effectively takes more than telling someone to simply do better. It calls for a structured way to diagnose what’s actually happening before deciding how to respond.

This article walks through the patterns behind common performance issues locally, followed by a practical, step-by-step way to handle them fairly, and what “fair” actually means once a case moves past the informal conversation stage.

What Are Common Employee Performance Issues in Singapore?

Before any corrective step makes sense, it helps to recognise what’s actually driving the dip in performance.

A handful of patterns show up again and again across growing teams here, and most of them trace back to a small set of root causes rather than a single “bad employee.” 

Understanding which pattern is at play changes everything about how the next conversation should go.

Skills Gaps Affecting Job Performance

Skills gaps are a notable workforce challenge in Singapore. 

These findings show how capability gaps can translate into day-to-day performance problems. When employees do not have the skills needed for their roles, the impact can extend beyond individual output to work quality, team capacity, and the ability to meet business requirements.

Difficulty Adapting to Changing Skills and Technology

Singapore’s changing workforce requirements also create pressure for employees to keep their skills up to date. MOM identified difficulty keeping up with technological changes among the challenges reported by employers experiencing workforce skills gaps in 2025.

As technology, processes, and job requirements change, employees may need to develop new capabilities to maintain the expected level of performance. 

This makes skills development an important part of addressing performance gaps, particularly when an employee’s current capabilities no longer match the requirements of the role.

Lack of Manager Feedback and Coaching

Manager capability is another area that Singapore organisations continue to navigate. 

The report also highlights the importance of clear direction, feedback, coaching, recognition, and accountability in the manager-employee relationship.

This matters when addressing performance because employees do not manage performance expectations in isolation. 

Without regular feedback and coaching, managers can miss opportunities to identify gaps early, clarify expectations, and help employees improve before performance problems become more difficult to resolve.

Performance Declines Related to Workload

Workforce capability gaps can also affect the workload carried by other employees.

The data shows that performance challenges can extend beyond the employee whose output is below expectations. 

When one capability gap increases the workload of other team members, it can place additional pressure on their capacity and make it harder for the wider team to maintain consistent performance.

Low Engagement Affecting Performance

Employee engagement remains relatively low in Singapore compared with regional and global levels. 

This provides another layer of context when assessing changes in employee performance or initiative. 

Engagement alone does not explain why an employee is underperforming, but the low engagement level in Singapore highlights why managers need to look beyond output and understand the factors affecting an employee’s involvement, motivation, and connection to their work.

Read also: How to Manage Employee Performance in Singapore: A Complete Guide

How to Handle Employee Performance Issues Effectively

Handling a performance issue effectively requires a structured process rather than a single conversation. 

The goal is to establish what is happening, understand why the gap exists, provide appropriate support, and give the employee a clear opportunity to improve.

1. Define the Performance Gap Clearly

Start by identifying the specific gap between the employee’s expected and actual performance. Rather than using broad statements about poor performance, explain which expectations are not being met, how the actual performance differs from the required standard, and how this affects the team or business.

For example, if an employee is expected to submit monthly reports by the fifth working day but has missed the deadline for three consecutive months, the discussion should focus on the recurring missed deadlines and their impact on the team’s workflow. 

Using specific, observable examples makes the performance discussion more objective and gives the employee a clearer understanding of what needs to improve.

2. Understand the Root Cause

Before deciding on corrective action, identify what is contributing to the performance gap. A recurring issue may relate to a lack of skills, insufficient training, unrealistic workload, limited resources, changes in job requirements, or inadequate management support.

Consider whether the employee understands the expectation, has the necessary skills, and has received sufficient training. 

Review whether the workload is realistic, whether processes or resources are creating obstacles, and whether the manager has provided regular feedback. 

This approach is particularly relevant where skills gaps are affecting quality and workload across Singapore workplaces.

3. Discuss the Issue With the Employee

Have a constructive conversation with the employee about the performance gap and give them an opportunity to explain the circumstances affecting their work. Focus on specific observations and their impact rather than making personal or accusatory statements.

For example, if an employee has repeatedly missed a reporting deadline, explain how this has affected the team’s workflow and ask about any factors contributing to the delays. Their response can help determine whether the issue relates to skills, workload, resources, unclear expectations, or other factors.

Listen to the employee’s perspective before deciding on the appropriate corrective action. This creates a more objective basis for determining what support or improvement measures are needed.

4. Set Clear and Measurable Expectations

Once the performance gap has been discussed, establish clear expectations for improvement. Employees should understand what needs to change, the required standard, and how progress will be assessed.

Set expectations around specific outputs, quality standards, deadlines, behaviours, KPIs, or responsibilities where relevant. 

For example, instead of asking an employee to improve their reporting performance, establish a specific submission deadline and quality standard that can be reviewed consistently.

Clear performance criteria also make future discussions more objective. Singapore’s Skills Framework provides a reference for the skills and competencies associated with different job roles and can be used to benchmark employee performance and identify skills gaps.

5. Provide the Right Support

Performance management should include appropriate support alongside clear expectations. Depending on the root cause, this may involve training, coaching, mentoring, job aids, clearer processes, workload adjustments, additional resources, or more frequent check-ins.

This approach is consistent with Singapore’s fair employment principles, which encourage employers to provide employees with equal opportunities for training and development based on their strengths and needs. 

SkillsFuture also positions continuous skills development as an important part of helping workers keep pace with technological and economic changes.

6. Create a Performance Improvement Plan if Appropriate

A Performance Improvement Plan, or PIP, is a structured plan that lays out the performance gap, the expected standard, the support being provided, the review period, and how improvement will be measured. 

A well-built PIP typically covers the performance issue itself, measurable objectives, required actions, available support, review dates, duration, and the consequences if performance doesn’t improve.

In Singapore, a PIP should not be treated as an automatic legal requirement or as guaranteed protection against a wrongful dismissal claim. It is a management tool that creates greater clarity around expectations, support, progress, and documentation.

7. Monitor Progress Through Regular Check-Ins

Do not wait until the end of a PIP or formal review cycle to assess whether performance has improved. Regular check-ins allow managers to review progress, provide feedback, address obstacles, and adjust support when necessary.

The frequency can depend on the severity and nature of the issue. Weekly or biweekly conversations may be appropriate for a structured improvement period, while less frequent reviews may work for longer-term development goals. Each discussion should record progress, continued gaps, feedback provided, and any agreed changes.

8. Document Performance Discussions Consistently

Consistent documentation helps create a factual record of the performance management process. Record the date of each discussion, the agreed expectations, examples of performance gaps, the employee’s explanation, support provided, agreed actions, follow-up discussions, and progress.

Keep the documentation objective and focused on observable facts. Avoid subjective descriptions of an employee’s personality or attitude when they are not directly relevant to the performance standard. Clear records also make it easier to maintain consistency when several managers or stakeholders are involved in the process.

9. Decide on the Appropriate Next Step

After a reasonable period of support and monitoring, determine the next step based on the employee’s progress and the circumstances of the case.

Where performance has improved, the employee can return to normal performance management and development processes.

If performance has partially improved, the organisation may continue support or adjust the objectives where appropriate.

If performance does not improve despite clear expectations, support, and monitoring, further action may be considered in accordance with company policy, employment terms, and applicable Singapore requirements.

MOM states that poor performance can be a valid reason for dismissal when an employee does not perform according to the required standards. Where poor performance is cited as the reason for dismissal, employers need to substantiate the stated ground under the Tripartite Guidelines on Wrongful Dismissal.

Principles for Managing Employee Performance Issues Fairly in Singapore

Fairness should remain part of the performance management process from the initial assessment through any subsequent employment decision. 

Singapore’s fair employment principles emphasise merit-based practices, fair and respectful treatment, equal opportunities for training and development, and rewards based on ability, performance, contribution, and experience.

When managing performance issues, consider the following principles:

• Use objective performance criteria. Assess employees against job-related expectations, responsibilities, competencies, and agreed outcomes rather than personal characteristics or subjective impressions.
• Give employees an opportunity to respond. Allow employees to explain circumstances affecting their performance. This can help distinguish between a capability gap, workload problem, process issue, or failure to meet an established performance standard.
• Provide appropriate support. Where skills or capability contribute to the performance gap, consider whether training or development can help address the issue. This aligns with Singapore’s fair employment principles, which encourage opportunities for training and development based on employees’ strengths and needs.
• Apply standards consistently. Employees in comparable roles should be assessed against comparable performance expectations and processes. Consistency helps make performance management more objective and reduces the risk of decisions being influenced by personal characteristics or individual preferences.
• Keep documentation factual. Record relevant expectations, discussions, support provided, and progress throughout the process. When poor performance is cited as a reason for dismissal, employers need to substantiate the stated ground under Singapore’s wrongful dismissal framework.

Keeping these principles consistent becomes easier when performance information is organised in a structured performance management system. 

By bringing goals, reviews, feedback, development plans, and performance records into one place, organisations can give managers better visibility while maintaining a more consistent approach to managing employee performance.

Build a More Structured Performance Management Process

Managing employee performance becomes easier when goals, reviews, feedback, and development are connected in one place. 

With Mekari Talenta, you can streamline performance management, give managers clearer visibility into employee progress, and support more consistent performance discussions through its Talent Development feature. 

A structured approach also helps managers identify performance gaps earlier, provide timely support, and keep track of employee development over time. 

By bringing these processes together, organisations can make performance management more consistent and easier to manage as teams grow.

Ready to improve how your organisation manages employee performance? Book a demo and see how Mekari Talenta can support your performance management process.

References

1. Gallup. (2026). State of the global workplace: Singapore country-level data.
2. Gallup. (2026). Singapore workplace report 2026.
3. Ministry of Manpower. (2026, April 14). Overqualification in Singapore 2025.
4. Ministry of Manpower. (n.d.). Fair employment practices.
5. Ministry of Manpower. (n.d.). SkillsFuture.
6. Ministry of Manpower. (n.d.). Wrongful dismissal.
7. SkillsFuture Singapore. (n.d.). Skills Frameworks FAQs.