Australians enjoy an unemployment rate of 4.9%, but not all of the remaining 95.1% are necessarily up to scratch. With the retail industry suffering and troubling statistics showing that 75% of senior staff are looking to move to other organisations, it's tougher than ever to retain quality employees. Michael Floyd, director of sales and marketing recruitment firm, Carrera Partners, has identified fatigue as a major factor behind a surge in employee disengagement. He has suggested that many people who are falling behind are simply in need of a change.

With many long-term employees having survived the redundancy layoffs of 2009, "they've seen workmates lose their jobs and have had their workloads substantially increased and as a result, are exhausted and unmotivated", Floyd says.

Additionally, uncertainty issues relating to continued squeezing of margins and a tough market, reduced marketing budgets, restructures, mergers, and changes in leadership/management are all issues that have greatly affected employee confidence.

While it is an unprecedented time for various employment sectors, Floyd added that HR managers must firstly articulate a well communicated vision for rallying staff motivation. Secondly, transparency is the key to allowing staff the opportunity to rise above poor performance. "Communicate to the team what's happening in the business with regards to the overall business performance, clients, industry and employees [and include meaningful appraisals]," Floyd said. The recruitment specialist also identifies taking feedback on board, and acknowledging exceptional performance as key factors behind motivating and engaging staff. Ben Thompson, CEO of The EI Group saidthe management of underperforming staff "comes down to a range of processes and strategies dependent on the culture and attitudes of each company".
The EI Group, which specialises in HR consulting across a broad area, offered the following six tips to manage underperforming staff:

1. Use progressive discipline. Focus on helping employees understand that their performance is not up to standard and help them be aware through regular feedback and the impact of their performance

2. Keep records, of your informal and formal discussions, to demonstrate your attempts to improve the situation.

3. Issue appropriate warnings.

4. Provide opportunities to improve. Keep your employees skills fresh and up to date by providing appropriate training and support

5. Assess your management style. Any good manager audits their own performance. Managers should ask themselves, 'Am I able to offer guidance, good communication and a clear understanding of the implications of non-performance?

6. Make sure you comply with the Fair Work Act. Ensure you are fair to the employee and comply with disciplinary procedures in the case of dismissing them. Get expert advice if you are in any way unsure about whatconstitutes a fair disciplinary procedure.