Prime Minister Christopher Luxon’s approach to managing underperforming employees has gained considerable praise, reflecting a sentiment shared by a significant portion of New Zealand’s workforce.

Recent findings indicate that many workers wish their employers would adopt similar measures.

A study conducted in April 2024 by Professor Jarrod Haar, Dean of Management and Māori Business at Massey Business School, surveyed 1,081 New Zealand employees about workplace performance issues.

The research revealed that 57.6% of respondents reported having a poorly performing co-worker whom they wished would resign.

Additionally, 57% believed their managers tolerated poor performance, and 58.4% attributed this tolerance to their organisation’s reluctance to address the issue.

“Workers feel frustrated when their managers do not act on poor performance,” said Haar.

“This inaction leads to dissatisfaction and increased turnover intentions among competent employees.”

The study also highlighted the impact of this tolerance on employee morale.

Employees who perceived their employers as indifferent to poor performance were 22 times more likely to consider quitting.

This dissatisfaction often results in reduced work ethic, with affected employees becoming less productive due to their frustration with management’s inaction.

Prime Minister Luxon’s firm stance on addressing poor performance resonates with many employees.

His actions contrast with what Haar describes as a prevalent “blasé indifference” among many employers and managers.

“This is a wakeup call for employers,” said Haar.

“They need to prioritise managing poor performance to maintain a motivated and productive workforce.”

The implications of ignoring poor performance extend beyond individual dissatisfaction.

The research suggests that tolerating underperformance can lead to a broader decline in workplace standards, with good performers potentially lowering their efforts in response.

Despite differing political opinions, Luxon’s approach to poor performers has garnered broad support from the workforce.

The findings underscore a common desire for more proactive management practices in workplaces across New Zealand.

Employers and managers are urged to take note of these findings and consider implementing more robust performance management strategies.

Doing so could enhance overall employee satisfaction and productivity, fostering a more positive and efficient work environment.