More than half of employers are not grasping the nettle when it comes to dealing with under-performance, according to a new survey.

The poll showed the public sector to be the worst culprit, with 62% of civil servants claiming that their organisation does not deal effectively with underperformers.

While in the private sector, IT companies fared worst, with 58% of professionals in the industry saying that their company is failing to address this issue

The survey, of 400 companies, by consultancy Hay Group found that even in the most effective sector, pharmaceuticals, almost half (45%) of employees were critical of their company’s ability to deal with under-performance.

Ben Hubbard, manager at Hay Group, said: “Business leaders must act to address performance and ensure a motivated and effective workforce. And the public sector, in particular, must take steps to address dead wood if it is not to be seen as a haven for underperformers.”

The study also found that on average only 42% of employees felt their company had a fair system for evaluating employees’ performance. In the public sector, 62% believed that their organisation did not have a fair system for evaluating employee performance.