Workplace Performance at Risk: 12 Red Flags to Watch Out For

Leaders do more than manage performance in today’s complex workplaces; you play an important role in protecting employee well-being and performance. When stress, personal challenges or workplace pressures accumulate, employees may exhibit subtle behavioural signals, often called red flags, that precede performance decline. These signals are behavioural indicators that something may interfere with an employee’s ability to thrive.

What are workplace red flags?

A red flag is a noticeable change in behaviour, attitude or performance that suggests an employee may be struggling. These changes can stem from multiple root causes, such as stress, trauma, health issues, family challenges and workplace conflict. Leaders should never assume or diagnose the reason behind a behaviour. Instead, their first responsibility is to protect and support the employee, ensuring they have the resources and space to succeed.

Why leaders must act early when performance red flags appear

Ignoring red flags can lead to escalating issues, including burnout, acting-out behaviours, disengagement, interpersonal conflict and turnover. By taking action early you can reduce risk and potentially prevent negative outcomes, maintain team stability and reinforce the sense that the organization cares about employee well-being. The goal of early intervention is not to “fix” the employee but to create conditions in which they can get support they need and make healthy decisions.

Psychologically safe leaders are ready to address red flags and intervene early and constructively. They are committed to creating psychologically safe workplace cultures that empower employees to seek help without fear of judgement and reprisal and enables leaders to respond with empathy and clarity. 

By becoming aware of red flags and developing a coaching approach to support employees in challenging times you can help make your workplace crisis-ready and reduce employee crises. 

Red flags to watch for

• A sudden drop in productivity — Missed deadlines, incomplete tasks or a noticeable slowdown in output

• Frequent absenteeism or tardiness — Unexplained absences or patterns of arriving late

• Withdrawal from team interactions — Avoiding meetings, reduced participation or social isolation

• Visible stress or emotional volatility — Irritability, tearfulness or signs of anxiety during routine interactions

• Declining quality of work — Increased errors, lack of attention to detail or missed standards

• Resistance to feedback — Defensive reactions or a dismissive attitude towards coaching

• Loss of initiative — Stops volunteering for projects or avoids taking ownership

• Negative attitude or cynicism — Complaints, sarcasm or persistent pessimism about work or leadership

• Interpersonal conflicts — Frequent disagreements or tension with colleagues

• Physical signs of fatigue — Appearing exhausted, dishevelled, or distracted

• Overworking or perfectionism — Staying excessively late or showing signs of burnout

• Uncharacteristic risk-taking or rule-breaking — Ignoring policies or making impulsive decisions

Use a coaching approach to support employees

Coaching is not about fixing people; it’s about supporting growth and clarity. When employees struggle or exhibit red flags, resist the feeling that you must diagnose or solve the problem. Use your coaching approach to shift the focus from judgment to partnership and emphasize listening, asking powerful questions and co-creating solutions that help employees regain confidence and capacity.

Before the conversation

• Prepare with facts: Document observed behaviours (not assumptions).

• Choose a private, safe setting: Ensure confidentiality and comfort.

• Adopt a supportive mindset: Your role is to help, not judge.

During the conversation

• Start with empathy

  Reassure the employee that you’re there to help: “I’ve noticed some changes and wanted to check on how you are doing.”

  Use a calm tone and open body language.

• Focus on behaviour, not diagnosis

  Describe what you observed: “I noticed deadlines have been missed.”

  Avoid speculating about personal issues.

• Listen actively

  Give the employee space to share.

  Use reflective statements such as, “It sounds like you’re feeling overwhelmed.”

• Clarify expectations

  Reaffirm role responsibilities and performance standards.

  Ensure a mutual understanding of priorities.

• Collaborate on solutions

  Ask, “What would help you succeed right now?” or “What can I do to help?”

  Listen to the employee and work with them to identify the proper support and resources (EAP, flexible scheduling, workload adjustments), solve problems and address issues.

• Set short-term goals

  Break tasks into achievable steps.

  Agree on timelines and success measures.

• Confirm support

  Let the employee know this isn’t a one-off opportunity: “I’m here to help; let’s check in regularly.”

  Schedule follow-up meetings.

After the conversation

• Document agreed upon actions and timelines.

• Follow up consistently to show reliability and care.

• Escalate early if needed (HR or professional support).

Key takeaways

Do:

• Act promptly and early; coaching prevents bigger problems.

• Show empathy and respect for confidentiality.

• Be specific and solution-focused.

• Set regular check-ins to build trust and psychological safety.

• Adapt questions to your style while keeping the structure.

Don’t:

• Diagnose or pry into personal details.

• Ignore repeated patterns, hoping they’ll resolve on their own.

• Use punitive language or public criticism.

By prioritizing psychological safety and early intervention and approaching red flags with compassion and structure, you can transform potential crises into opportunities for growth. Taking these steps will not only protect performance but also strengthen trust and resilience across your team.

Get to know the authors – Dr. Bill Howatt