What to Do When an Employee Keeps Making Mistakes

A practical approach for business leaders and managers in SMEs

In the fast-paced world of small and medium-sized enterprises (SMEs), consistent performance from every team member is critical. Unlike large corporations, most SMEs don't have the luxury of excess capacity, so when an employee keeps making mistakes, the impact is often felt across teams, clients, and the bottom line.

This article outlines what business leaders and managers can do when faced with repeated errors from an employee. It offers a step-by-step approach that balances accountability with development, and protects business outcomes while fostering a culture of improvement.

Why Repeated Mistakes Are Risky for SMEs

For SMEs, the cost of recurring mistakes is more than just rework: it can erode trust with clients, slow down operations, and demotivate high-performing employees. The stakes are higher because resources are tighter.

Common risks include:

• Missed deadlines and lost revenue

• Increased workload for other team members

• Reduced client satisfaction and contract renewals

• Potential reputational damage

Addressing the issue promptly and constructively is therefore essential.

Step 1: Define Expectations Clearly and Early

Repeated mistakes are often a symptom of misaligned expectations. Before assuming an employee is careless or underperforming, ask:

• Was the task or outcome clearly defined?

• Are the instructions and KPIs documented and accessible?

• Have you confirmed that the employee fully understood what was expected?

In SMEs, where teams often wear multiple hats, it's easy for roles and boundaries to blur. Ensuring clarity up front prevents ambiguity from turning into error.

Tip: Don’t rely on assumptions. Check for mutual understanding through recap or brief written summaries.

Step 2: Investigate the Root Cause Without Blame

Effective leaders know that behaviour is always linked to context. Repeated mistakes might signal:

• Gaps in training or onboarding

• Work overload or lack of prioritisation

• Tool inefficiencies or unclear systems

• Personal or health-related challenges

• Low engagement or role misalignment

Approach the conversation with curiosity rather than judgment. A simple “Can you walk me through how you handled this task?” often reveals gaps or constraints that can be addressed collaboratively.

Step 3: Offer Coaching and Development, Not Just Correction

Correcting an error once is not enough. Preventing it from happening again requires coaching. This might include:

• Creating standardised processes or checklists

• Offering micro-training sessions on weak areas

• Assigning a peer reviewer or mentor for a limited time

• Encouraging reflective practice and self-review

One proven approach is to return flawed work for correction, guiding the employee to identify the mistake themselves. This builds autonomy and accountability rather than passive compliance.

Step 4: Deliver Feedback That Drives Change

How feedback is delivered makes all the difference. In high-pressure SME environments, it’s tempting to address errors quickly and bluntly, but this can shut down learning and damage morale.

Use feedback to promote growth:

• Focus on facts, not personality (“This report missed key data” vs. “You’re not careful enough”)

• Ask forward-thinking questions (“What would you change next time?”)

• Keep the conversation private and focused on improvement

Over time, a feedback culture built on continuous improvement leads to fewer errors and stronger team cohesion.

Step 5: Set Measurable Performance Goals

If mistakes persist despite support, it’s time to define clear improvement targets. These should be:

• Specific (e.g. “Zero data-entry errors on invoices over the next four weeks”)

• Measurable and time-bound

• Supported by regular check-ins

• Documented as part of performance tracking

For SMEs without formal HR departments, this may feel procedural but it’s vital. It protects both the employee’s opportunity to improve and your business’s ability to act if needed.

Step 6: Assess Fit and Offer Adjustments Where Reasonable

Sometimes, the employee may be fundamentally misaligned with the role, whether due to skills, temperament, or external challenges.

In these cases, consider:

• Adjusting responsibilities to better match strengths

• Offering tools or accommodations (e.g. visual templates for someone with dyslexia)

• Exploring training paths or internal redeployment

This avoids a binary “improve or leave” scenario and may unlock untapped potential elsewhere in the business.

Step 7: Escalate Only After Support Has Been Exhausted

If repeated mistakes continue despite clear expectations, training, feedback, and support, you may need to take formal steps.

• Document the history of interventions and outcomes

• Issue a written warning outlining the consequences of continued errors

• Make termination a structured, fair process if necessary

Letting someone go is never easy, but sometimes is essential for the health of the business and the morale of the wider team.

Proactive Measures to Reduce Mistakes in Your Team

Prevention is always better than correction. To reduce future errors across your team:

• Invest in structured onboarding for new hires

• Regularly review processes and tools

• Create templates and systems for routine tasks

• Foster a culture where asking for clarification is seen as a strength

• Recognise and reward improvements in accuracy and reliability

In SMEs, a small investment in these systems has an outsized impact on productivity and quality.

In an SME environment, where every team member plays a crucial role, managing consistent mistakes from an employee is a strategic leadership challenge. It demands balance: between empathy and performance, support and standards.

With the right steps - clear expectations, open dialogue, training, and structured follow-up - you can turn mistakes into momentum. And when improvement isn’t possible, you’ll have the confidence to make difficult decisions with professionalism and integrity.

FAQs: Managing Employees Who Make Repeated Mistakes

What is the best way to approach an employee who keeps making mistakes?

Use a supportive, private conversation to understand why the mistakes are happening. Start with curiosity, not blame, and follow up with clear feedback and development opportunities.

How many mistakes are too many before taking action?

There’s no universal rule, but repeated errors, especially after support and coaching, are a red flag. Monitor frequency, impact, and willingness to improve before escalating.

What if the employee is great at some things but struggles with others?

Consider redistributing tasks to focus on their strengths. Not all performance issues require termination, as many can be solved through role design and better alignment.

Can I fire someone for making too many mistakes?

Yes, but only after offering fair opportunity to improve, documenting the process, and ensuring your actions are legally compliant and ethically sound.