Is Your Team Underperforming? Here Are 5 Warning Signs to Watch For

As a small business owner, managing a productive team is essential to your success. But how can you identify when your team is underperforming? In our latest Diamond Effect podcast episode # 167, “5 Indicators Your Team is Underperforming,” we discuss the top signs that your team might not be performing at its best, and how you can turn things around.

Spotting and addressing these issues early can help you boost employee engagement, improve productivity (which takes work off your plate), create a healthier workplace culture, and as a result, grow your business faster. Read on to learn the five major indicators of team underperformance and what you can do to resolve them.

1. Frequent Basic and Repetitive Mistakes

One of the clearest indicators of team underperformance is a rise in basic or repetitive mistakes. If your team members consistently make errors that should be easily avoidable, it could point to disengagement or insufficient training. These mistakes can add up, leading to inefficiencies and lost time, which ultimately impacts your business.

How to fix it: While mistakes happen, repeated errors are often signs that something’s not right and you might be having a more systemic issue. Consider revisiting training programs, setting clearer expectations, and fostering a culture of accountability where employees are encouraged to take ownership of their work.

2. Gossip and Lack of Accountability

Toxic workplace behaviors like gossip and finger-pointing can derail a team’s performance. When employees are more focused on blaming others than solving problems, productivity takes a hit. A lack of accountability not only creates tension but also discourages collaboration, making it harder to achieve business goals. Not to mention that this negative environment can spill over to your client's experience, which damages your brand reputation and deters business.

How to fix it: Create a culture of transparency and accountability. Encourage open communication and set clear guidelines for behavior that promote respect and teamwork.

3. High Turnover of Top Performers

If your top talent is leaving your company, it's a serious red flag. High turnover, especially among high performers, signals dissatisfaction with the workplace environment, management, or lack of growth opportunities. Replacing talented employees can be costly both in terms of time and lost revenue.

How to fix it: Focus on retention strategies like recognizing contributions, providing opportunities for growth, offering competitive compensation, and not tolerating toxic culture. Regular feedback sessions can help identify employee concerns before they lead to turnover.

4. Excessive Absenteeism

An increase in absenteeism can be more than just a sign of poor attendance—it’s often a symptom of low morale, disengament, or burnout. When employees are disengaged, they are more likely to take sick days or be late to work. This can severely disrupt your team's efficiency and morale.

How to fix it: Address the root causes of absenteeism by promoting a healthy work-life balance, offering wellness programs, and checking in with employees to understand their challenges.

5. Lack of Initiative for Improvement

When your team stops offering new ideas, suggestions for improvement, or raising concerns about problems in the business, it might mean they feel disconnected or demotivated. An engaged team should always be looking for ways to enhance business processes or address ongoing issues. If that stops, it’s a clear sign of disengagement.

How to fix it: Foster an environment where innovation and open communication are encouraged. Regularly seek input from your team and recognize their contributions to keep them motivated.

What Can You Do to Boost Team Performance? If any of these signs sound familiar, it’s important to act quickly. In the Diamond Effect Podcast episode 167, “5 Indicators Your Team is Underperforming,” we go deeper into each of these issues and provide actionable strategies to help you rebuild a strong, high-performing team.

Subsribe on your favorite platform and listen to the full episode for expert advice on how to diagnose and resolve team performance challenges, from reducing employee turnover to fostering accountability.

Boost Your Team’s Performance Today

Understanding and addressing underperformance can transform your business. By recognizing these warning signs early, you can take steps to create a motivated, high-functioning team that drives your business forward. Don’t wait until it’s too late—start making changes today!

If your team’s underperformance holding your business back, I can help. With my T.O.P. CEO Leading Team System, I’ve guided small business owners like yourself to transform their teams, boost productivity, and achieve impressive growth.

Book a FREE consultation today, and I’ll show you how my proven system can help you double your business while creating a motivated, high-performing team.

Don’t miss this opportunity to take your leadership and your team to the next level. Click here to schedule your consultation and start seeing results!