UK businesses are struggling to get rid of their underperforming staff, according to a study by global talent management consultancy Hudson. 

The report, “Cull or cure: the secret of an efficient company?”, shows that a majority (77%) of senior executives believes that a fixed quota for annual staff dismissal would boost financial performance and productivity.

Ensuring strong team members are not carrying weaker ones was cited as the main advantage (60%) of deliberately releasing average or below-average performers. Allowing underperforming staff to pursue a fresh challenge more suited to their abilities (50%) and increasing productivity (33%) were also rated highly. 

However, only 4% of companies deliberately dismiss a proportion of their staff currently, with almost one in four (22%) bosses admitting that the current employment climate, where available talent is scarce, means they would rather retain average or even below-average performers.  

John Rose, chief executive, Hudson UK, said: “Clearly, this is a massive – and, to date, relatively taboo – area of debate for British business. Shedding staff in a climate where companies are desperate for talent is counter-intuitive, with retention the focus for UK organisations.  But retaining for the sake of retaining will help solve neither the UK’s skills crisis nor its increasing productivity gap.  And we have found that it’s not good for a company’s long-term health or the career progression of the individual.”