What Should I Document When an Employee Has a Performance Problem?

If you've ever had an employee who isn't meeting expectations, you've probably heard the advice:

"Document everything."

But what does that actually mean?

As a small business owner, you may know you should keep records of employee performance issues, but you might not know what to write, how detailed it needs to be, or when something is important enough to document.

And that's where many businesses run into trouble.

You don't need to write a novel every time an employee makes a mistake. But when an employee is consistently struggling with performance, good documentation can help you manage the situation fairly, consistently, and professionally.

Here's what small business owners should know about documenting employee performance problems.

Why Is Employee Documentation Important?

Documentation creates a record of what happened, what was expected, what was communicated to the employee, and what happened afterward.

It can help you:

• Keep track of ongoing performance concerns

• Communicate expectations clearly

• Give employees an opportunity to improve

• Maintain consistency

• Make better employment decisions

• Help managers communicate with one another

• Identify patterns over time

• Explain the reasoning behind employment decisions

Documentation isn't about trying to "build a case" against an employee.

Good documentation is about creating an accurate record of the employment relationship.

That distinction matters.

Document Facts, Not Frustration

One of the biggest mistakes business owners make is documenting their opinion instead of the actual situation.

For example:

Poor documentation:

John has a terrible attitude and doesn't care about his job.

What's wrong with this?

"Terrible attitude" and "doesn't care" are opinions. They don't tell you what John actually did.

Instead, describe the specific behavior.

Better documentation:

On September 1, during the morning team meeting, John interrupted his supervisor three times while the supervisor was providing instructions for the day's assignments. After being asked to allow the supervisor to finish, John continued speaking over the supervisor.

Now you have something concrete.

Someone reading that documentation later can understand what actually happened without having to interpret your opinion.

What Should You Include in Performance Documentation?

When you're documenting a performance issue, try to answer the basic questions:

Who?

Who was involved?

What?

What specifically happened?

When?

When did it happen?

Where?

Where did it happen, if relevant?

What was expected?

What should the employee have done instead?

What was communicated?

What did you tell the employee about the issue?

What was the employee's response?

Did they acknowledge the concern, disagree, provide an explanation, or have questions?

What happens next?

What expectations or follow-up did you establish?

You don't have to write every detail of the conversation.

Focus on the information that is relevant and useful.

Example: Attendance Problems

Let's say an employee has been repeatedly late.

A weak documentation entry might say:

Sarah is always late.

That's difficult to use because it doesn't tell you much.

A better record might say:

Sarah was scheduled to begin work at 8:00 a.m. on August 25 and arrived at 8:24 a.m. She was scheduled to begin at 8:00 a.m. on August 29 and arrived at 8:17 a.m. Sarah was reminded on August 29 that she is expected to be ready to begin work at 8:00 a.m. and that continued attendance issues may result in further corrective action.

Now you have dates, times, expectations, and communication.

That's much more useful.

Example: Missed Deadlines

Let's say an employee repeatedly fails to complete assignments on time.

Instead of writing:

Mike never gets anything done on time.

Document the specific issue:

The monthly inventory report was due by 3:00 p.m. on August 30. The report was not completed by the deadline. Mike was reminded during the August 31 meeting that the report needs to be completed by the established deadline each month. Mike stated that he understood the expectation.

Again, you're documenting what happened rather than how frustrated you are.

Example: Quality of Work

Performance problems don't always involve missed deadlines.

Maybe an employee's work consistently contains errors.

Instead of:

Emily's work is sloppy.

Try:

Three customer invoices submitted by Emily on August 28 contained incorrect billing amounts. The invoices were reviewed with Emily on August 29, and she was reminded to verify billing information before submitting invoices to customers. Emily acknowledged the errors and stated that she understood the expectation.

This creates a much clearer record of the problem and the conversation.

Document the Employee's Response

Documentation shouldn't only record what the employer says.

Whenever appropriate, document the employee's response as well.

Maybe they:

• Disagree with the concern

• Explain what happened

• Say they didn't understand the expectation

• Identify a training issue

• Provide additional information

• Acknowledge the problem

• Ask for additional support

For example:

The employee stated that they were unaware the report was due by Friday. The manager clarified that the Friday deadline had been communicated during the previous team meeting and provided the employee with a written copy of the reporting schedule.

This is much more useful than simply writing:

Employee made excuses.

Your goal is to create an objective record—not to win an argument on paper.

Document Coaching and Feedback Too

Documentation isn't just for formal write-ups.

If you've had a meaningful conversation with an employee about their performance, consider documenting it.

For example:

On September 1, I met with Alex to discuss concerns regarding missed customer follow-ups. We reviewed the expectation that customer inquiries should receive a response within one business day. Alex was reminded of the expectation and stated that they understood. We agreed to review progress again in two weeks.

This shows that the employee was given feedback and knew what was expected.

It also gives you something to refer back to later.

Document Positive Performance, Too

Here's something small business owners often overlook:

Documentation isn't only for problems.

If an employee successfully improves after receiving feedback, document that as well.

For example:

During the September 15 follow-up, Alex's customer follow-ups had consistently been completed within the one-business-day expectation. Alex was recognized for the improvement.

This creates a more complete record and shows that performance management isn't simply about collecting negative information.

Don't Wait Until You're Ready to Fire Someone

One of the biggest documentation mistakes is waiting until you think you might terminate an employee.

By then, you may be trying to reconstruct months of events from memory.

Instead, document important performance conversations when they happen.

You don't need to document every tiny mistake.

But if an issue is significant, recurring, or requires a conversation with the employee, it's generally worth creating a record.

Don't Backdate Documentation

If you forgot to document something that happened two months ago, don't create a document today and make it look like it was written two months ago.

Instead, document it honestly.

For example:

On September 1, I am documenting a conversation that occurred with John on August 15 regarding his attendance. At that time, John was reminded that...

Being transparent about when documentation was created is much better than trying to make an old record look like it was created at the time of the event.

Avoid Emotional Language

When you're frustrated with an employee, it can be tempting to write exactly how you feel.

Don't.

Avoid phrases such as:

• "Lazy"

• "Bad attitude"

• "Doesn't care"

• "Impossible"

• "Drama"

• "Always causing problems"

• "Terrible employee"

• "Not a team player"

Instead, describe the behavior that led you to have that impression.

For example, instead of:

John is not a team player.

Write:

John declined to assist with the customer transition after being asked by his supervisor and stated that helping with the transition was "not his problem."

The second statement allows someone else to understand the situation without relying on your interpretation.

Don't Put Things in Writing That You Wouldn't Want Someone Else to Read

This is a good rule for all employment documentation.

Imagine your documentation being reviewed by:

• Another manager

• An HR professional

• An attorney

• A government agency

• A judge

• The employee

Would your documentation still look professional and reasonable?

If the answer is no, rewrite it.

Write as though someone else will eventually read it.

Keep Employee Documentation Secure

Employee records contain sensitive information and shouldn't be treated casually.

Make sure your business has a secure system for storing employee documentation and limit access to people who have a legitimate business need to see it.

Also remember that certain types of information may need to be kept separately from general personnel records.

For example, medical information and certain other confidential records may have different privacy and storage requirements.

If you're unsure how employee records should be organized or maintained, getting HR guidance can help.

What About Text Messages and Emails?

Small business owners often communicate with employees through text messages or email.

Those communications may become relevant to an employee's personnel record depending on the situation.

If an important performance conversation happens over text or email, don't assume that because it's digital, it doesn't count as documentation.

At the same time, don't rely entirely on casual text messages for important performance management.

For significant concerns, create a clear and professional record of the issue and the conversation.

What If the Employee Disagrees With the Documentation?

Employees don't have to agree with everything you document.

An employee may say:

"That's not what happened."

or:

"I don't agree with this write-up."

You can acknowledge their disagreement without necessarily changing your documentation.

If appropriate, allow the employee to provide their perspective or written response and maintain it with the relevant documentation.

The goal isn't to force an employee to agree with your version of events.

The goal is to maintain an accurate record of what occurred and how the situation was addressed.

When Should You Get HR Help?

Sometimes the biggest question isn't how to document the problem.

It's what to do with the documentation once you have it.

If you've documented multiple performance problems and the employee still isn't improving, you may be wondering:

• Should I give them a written warning?

• Should I create a performance improvement plan?

• Should I reduce their responsibilities?

• Should I put them on probation?

• Should I terminate their employment?

• Have I handled this consistently with other employees?

• Is there anything else I should consider before taking action?

That's when an HR professional can be incredibly helpful.

You don't have to wait until you're ready to terminate someone.

An HR professional can help you evaluate the situation, determine appropriate next steps, and make sure you're approaching the issue objectively.

The Goal of Documentation Isn't to "Build a Case"

This is worth repeating.

Good HR documentation isn't about creating a file full of negative things about an employee so you can eventually fire them.

It's about creating a clear record of:

What happened → What was expected → What was communicated → What the employee did → What happened next.

Sometimes good documentation leads to termination.

Sometimes it leads to coaching.

Sometimes the employee improves and the issue goes away.

That's okay.

The purpose of documentation is to help you manage employees fairly, consistently, and thoughtfully.

Need Help Managing an Employee Performance Problem?

You don't have to figure out employee performance issues on your own.

Moxie HR Consulting helps small and growing businesses navigate performance management, employee documentation, corrective action, employee relations, and other HR challenges.

Whether you need help figuring out what to document, how to approach a difficult conversation, or what your next step should be, Moxie can provide practical HR guidance.

And if you want an HR professional available when questions and employee issues come up, the Moxie HR Hotline provides ongoing HR support for $300/month.

Good documentation doesn't have to be complicated. It just needs to be clear, factual, and consistent.

Disclaimer: This article is for general informational purposes and does not constitute legal advice. Employment laws and requirements vary based on your location, industry, and specific circumstances. Documentation practices and employee rights may vary by state and situation. When you're dealing with a significant performance issue, potential termination, or other complicated employment matter, consult a qualified HR professional and/or employment attorney.