How to performance manage: Tips for employers

Do you need to performance manage an employee? It is no secret that performance management is challenging and can be a confronting task for a manager.

 

Managing an employee’s performance requires a manager to look at the quality of the work being done by the employee. It could involve failing to reach targets, producing inaccurate or sloppy work, or failing to meet deadlines.

 

However, addressing performance concerns early on, employers can improve overall employee performance and create a more positive and productive work environment. 

This article will provide some tips for addressing performance concerns in a workplace.

 

Here’s 7 tips to help you Performance Manage
  1. Comprehensive Policy: It is crucial for employers to have a robust performance management strategy in place before any performance issues arise. This involves the establishment of a disciplinary policy that must be made available to staff and employees. For example, a disciplinary policy should clearly outline how an employer will handle performance issues. It also lets employees know where they stand and provides valuable guidance for managers. For instance, a well-structured disciplinary policy can define the appropriate steps to take when an employee fails to meet expected performance standards.
  2. Minor performance issues: minor performance issues can be resolved through informal counselling, which can include a discussion between a manger and employee. During this discussion, managers should be clear and specific with employees about what is expected of them in terms of their job responsibilities, performance objectives, and goals. Without clear expectations, it is difficult to measure performance and identify where improvements need to be made. 
  3. Serious performance issues: formal counselling is necessary for addressing more serious performance issues. It involves a structured discussion about disciplinary matters between the employee and their manager. The employee should also be provided with a written notice of the formal counselling. At the meeting, the manager should outline their concerns regarding the employee’s performance issues and provide them with an opportunity to respond. At the conclusion of the meeting, it is essential for the manager to issue the employee with a formal performance improvement plan. 
  4. Provide regular feedback: during the performance management process managers are encouraged to provide specific, constructive and timely feedback to employees. This will help employees understand how they are doing and the areas they need to improve.
  5. Offer learning and development opportunities: providing employees with the right training and development opportunities will help them improve their level of competence, which will likely improve their efficiency. This could be in the form of workshops, training programs, or mentorships.
  6. Recording essential information: it is important for managers to document all meetings, warnings and actions taken related to an employee’s performance. This documentation may be necessary should any legal action be taken against the company for termination, discrimination, or other issues related to employment. 
  7. Failure to improve performance: If after the final formal counselling session, the employee’s performance does not improve or they do not comply with the requirements set out in the performance improvement plan is not complied with, the manager may either issue a further performance improvement plan or consider terminating the employee with notice. Managers should follow the appropriate policies and procedures, together with any legal requirements under the Fair Work Act 2009 (Cth), when terminating an employee. This is to ensure that the employee is not being unfairly dismissed. 
What this means for your business?

Effective performance management is essential to businesses and while there isn’t a one-size-fits-all solution, employers should proactively manage each situation on a case-by-case basis. For more information on managing underperformance visit the Fair Work Ombudsman page where you can download the best practice guide and find some practical tips and case studies to help you move your business towards best practice. 

 

National Employment & Labour Lawyers have a dedicated team who can assist you with your performance management queries. We offer a free and confidential initial consultation, where we can discuss your situation and provide you with tailored advice. Get in touch with us today!

 

Disclaimer: The information contained in this article is of a general nature and is not intended to be relied upon as, nor to be a substitute for, specific legal or professional advice.