Is It a Performance Issue or Misconduct?
When an employee drops the ball, misses a deadline, or behaves unprofessionally, managers are often left asking: Is this a performance issue or a misconduct issue?
The answer isn’t always obvious. Getting it wrong can lead to missed opportunities, ineffective interventions, or even legal risk. Here’s how to tell the difference and why it matters.
Performance: The “Can’t”
Performance issues are about capability. The employee is trying, but not meeting expectations. They may lack the skills, clarity, or support to succeed. In some cases, their strengths and the role’s responsibilities are simply misaligned. These are “can’t” situations:
Missed deadlines due to poor time management
Work quality is subpar due to insufficient training
Communication challenges despite good intentions
Struggles in a role that requires leadership, despite strong technical skills
Performance issues tend to unfold over time. With the right support, most can be improved through feedback, coaching, and formal training.
Misconduct: The “Won’t”
Misconduct is about behavior and choice. These are “won’t” situations:
Has the skills, but refuses to follow direction
Falsifies information or intentionally misleads others
Engages in harassment or other disrespectful conduct
Knowingly violates policy or misuses time and resources
Misconduct often calls for prompt, formal action. The focus is on accountability and preserving trust.
Why the Distinction Matters
Treating misconduct like a performance issue can normalize harmful behavior and treating a performance issue like misconduct can feel punitive, damage morale, and discourage growth.
It also affects how you document and respond. Misconduct may require an investigation and formal documentation. Performance issues may call for a clear improvement plan and coaching.
When It’s Both
Sometimes the lines blur. A struggling employee might lash out. A disengaged one might start missing deadlines and acting unprofessionally.
In these cases, sort the issues:
What’s skill-based and coachable?
What’s behavioral and non-negotiable?
Tackle both, but be clear about what you're addressing and why.
What Skilled Managers Do
Pause before reacting. Step back and assess the behavior in context.
Look for patterns. Is this a one-off or a recurring issue?
Consult HR early. A second perspective helps sharpen the response.
Document clearly. Keep accurate records of what happened, how you responded, and what comes next.
When You Need Backup
At Faro Point Consulting, we help leaders make these distinctions with clarity and confidence. Whether you're navigating a sensitive performance issue or launching a formal misconduct investigation, we bring structure, insight, and discretion to every step.
Not every bad attitude is misconduct. Not every slip-up is a performance problem. But understanding the cause? That’s the mark of a thoughtful, accountable leader. And if you’re unsure, we’re here to help.
