HR Sounding Board: How Do You Support Aging Employees Who Are Underperforming?

Question: We’ve noticed that some long-tenured employees aren’t meeting KPIs the way they used to. Performance is slipping, but we also want to be fair and respectful. What are our obligations beyond traditional discipline?

Answer: You’re not alone - this is a challenge many HR professionals are quietly navigating as our workforce ages.

When a seasoned employee’s performance begins to decline, it can feel like a no-win situation. But it doesn’t have to be. Instead of treating it strictly as a performance issue, consider it an opportunity for a respectful transition - one that honours their contributions while addressing business needs.

Here are a few approaches we’re seeing work:

• Create flexible retirement pathways. Some organizations have introduced the option to reduce to a 3- or 4-day workweek. When positioned as a standard offering (not a one-off accommodation), employees are more likely to consider it on their own terms.

  
  

• Offer adjusted roles with lighter duties. This might include a shift in responsibilities, a new job title or a slight pay adjustment - but the key is framing it as a supported option, not a demotion.

  
  

• Use the shift to support mentorship and knowledge transfer. As senior employees scale back, it can open the door for junior staff to take on new challenges, shadow experienced team members and build institutional knowledge.

  
  

• Continue to document performance conversations. Performance expectations should remain clear and consistent. Focus on behaviours and results - not assumptions about age or ability.

  
  

Ultimately, this is about making it easier for employees to stay - not pushing them out. With the right structure, you can support your team’s longevity while planning thoughtfully for the future.

Got a question you want featured in a future edition of HR Sounding Board?Send it our way.