Performance Managing an Employee with a Mental Illness: A Compassionate Approach

Managing employees is rarely straightforward, and when mental health and underperformance intersect, it can be one of the trickiest challenges a leader will face. Balancing care and empathy with business priorities, ensuring team morale, and maintaining legal compliance are all essential considerations. But with the right strategies, you can support your employee while keeping the workplace productive and positive.

The Impact of Mental Health on Performance

Mental health challenges can manifest in the workplace in several ways:

  • Absenteeism: Not showing up to work.

  • Presenteeism: Showing up but struggling to focus or perform.

  • Low productivity: Tasks taking longer or being completed below standard.

  • Strained relationships: Increased conflict or withdrawal from colleagues.

Work can feel overwhelming or unmanageable for someone experiencing a mental health issue. Recognising these signs and taking appropriate action is key to supporting both the individual and the team.

Steps to Manage the Situation

1. Start with an Informal Check-In

Create a safe and private environment to discuss how the employee is feeling. Separate this conversation from a performance review to avoid the employee feeling targeted.

  • What to Say:
    “I’ve noticed you seem to be finding things a bit challenging lately. Is everything okay? How can I support you?”

  • Tips:

    • Use open-ended questions to encourage sharing.

    • Avoid jumping to solutions or assumptions.

    • Focus on workplace behaviours and how they’re affected, rather than personal details.

2. Implement Reasonable Adjustments

Workplace adjustments can help employees feel more comfortable and capable of performing their role. Examples include:

  • Flexible work hours or remote working.

  • Adjusted workloads or extended deadlines.

  • Providing access to Employee Assistance Programs (EAPs) or other mental health resources.

  • Creating a quieter workspace or modifying job tasks.

Note: Ensure adjustments are practical and align with the employee’s responsibilities.

3. Address Performance Separately

While it’s essential to support the employee, underperformance still needs to be addressed. Keeping performance and mental health discussions distinct can help maintain focus and clarity.

  • Steps to Address Performance:

    1. Document specific examples of underperformance (e.g., missed deadlines, errors).

    2. Schedule a performance-focused meeting, giving the employee notice.

    3. Create a performance plan with clear, achievable goals and timelines.

    4. Offer ongoing feedback and monitor progress.

4. Support the Team

An underperforming team member can affect overall morale. Address these dynamics proactively:

  • Communicate Clearly: Reassure team members that the situation is being managed.

  • Promote Empathy: Encourage understanding and discourage gossip.

  • Redistribute Workloads Temporarily: If others need to take on extra work, acknowledge their efforts and outline how this is temporary.

5. Self-Care and Compassion for Managers

Supporting an employee with mental health challenges can be emotionally taxing. Managers must prioritise their own wellbeing to lead effectively.

  • Self-Care Tips for Managers:

    • Debrief with HR or a trusted peer after challenging conversations.

    • Use professional resources, such as leadership coaching or counselling, to build resilience.

    • Set boundaries to avoid overburdening yourself with the employee’s challenges.

Remember, you can’t pour from an empty cup—your wellbeing is essential to providing support.

What If the Employee Isn’t Improving?

If an employee’s performance remains poor despite reasonable adjustments and support, consider the following steps:

  1. Review Their Role: Determine if the employee can still fulfil the inherent requirements of their position.

  2. Explore Alternatives: Discuss role modifications or redeployment options.

  3. Seek Legal Advice: Ensure compliance with the Fair Work Act 2009 and the Disability Discrimination Act 1992.

  4. Consider Termination as a Last Resort: If all options are exhausted and the employee cannot meet role requirements, follow legal procedures to avoid unfair dismissal.

How to Handle Workplace Gossip

Gossip and frustration from team members can undermine your efforts to create a supportive environment.

  • Strategies to Address Gossip:

    • Educate the Team: Share general information about mental health to build understanding.

    • Promote Respect: Reinforce the importance of confidentiality and kindness.

    • Model Empathy: Show through your actions that the organisation values compassion and inclusivity.

Takeaways for Managers

  1. Prioritise Conversations: Separate mental health check-ins from performance reviews for clarity and sensitivity.

  2. Support with Adjustments: Work collaboratively to create conditions that help the employee succeed.

  3. Document Everything: Keep detailed records of conversations, adjustments, and performance plans.

  4. Care for Yourself: Use available resources to maintain your mental and emotional wellbeing.

  5. Engage HR or Legal Professionals: Seek advice when navigating complex situations.

A Final Thought

Managing an employee with a mental illness who is underperforming is undoubtedly challenging, but it’s also an opportunity to reflect on workplace culture and management style. With empathy, clear communication, and practical steps, leaders can support their team members to recover and thrive, while ensuring the business remains productive and resilient.

RecipesRoisin Trainor