PERFORMANCE MANAGEMENT PROCEDURE
Human Resources
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Performance Management Procedure 1.
PURPOSE
The aims of the performance management system are to provide clear direction within the College linking individual performance to the College Strategic Intentions, business/development plan and team objectives. A consistent and embedded performance management system is required to raise all aspects of organisational and individual performance and provide stakeholder ownership of performance levels (senior management, line management, employees, HR). The College aims to raise employee ambition and aspirations through challenging SMART objectives for all teams and individuals and to drive up performance standards across the College, linked to key performance indicators (KPI’s). This document outlines the performance management process for all employees who have concluded their probation period, regardless of employment status and number of hours worked (with the exception of casual employees). The purpose of the review system is to appraise and evidence the performance of employees against their objectives and the competency levels required for their job role. This procedure will not discriminate either directly or indirectly against any individual on grounds of gender, race, ethnicity or national origin, sexual orientation, marital status, religion or belief, age, trade union membership, disability, socio- economic status, offending background or any other personal characteristic. The purpose of the improvement process is to give positive support to the employee to ensure that they can meet the required standards. 2.
SCOPE
The annual cycle covers an employee’s performance over an academic year (from September to August). The formal reviews take place twice a year; the first in January to update the individuals progress and then the second towards the end of the year in June/July to agree objectives for the coming year and measure achievement against the previous objectives. There will then be a formal one to one meeting in October of the following academic year to finalise the objectives and communicate the performance grade based on the College’s published results and the moderation of grades. The review meetings are a two way process between an employee and their manager to review and record evidence to demonstrate what has been accomplished and what is yet to be completed.
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RESPONSIBILITY
All Managers and Team Leaders within the College are responsible for the performance management of all of their team members. Every employee is responsible for knowing the requirements of their own job description and should come to the meetings prepared to demonstrate how they have performed in the review period. The employee has the opportunity to record their own comments as well as discuss what grade is a fair reflection of their performance with their manager. All performance review forms are reviewed for balance and objectivity by the College Directors and Heads of Department. 4.
PROCEDURE
Annual Performance Review Cycle (See flow chart) 360 degree feedback conducted - April (Only applicable to SMT at present) Self-appraisal – May/June: Who: Employee in preparation for the Performance Appraisal Meeting. What: Structured self-appraisal of performance over the past year in the categories outlined below under review of performance for discussion at the Performance Appraisal Meeting with examples and evidence. In addition: What is most enjoyable about the job and how they may wish to develop the role. Learning and development needs and justification for specific training. Aspirations for the future. Suggested individual objectives for next year. End of Year Review of Performance – June/July: Who: Line Manager and Employee together at a structured Performance Appraisal Meeting. What: Free flowing conversation in which a range of views are exchanged frankly. Two way feedback about management style and support offered/required in an open, honest and trusting environment. Positive reinforcement emphasising what has been done well and giving constructive criticism about what can be improved. Full consideration of the following:
Team Performance Individual contribution to team performance identified in relation to the SAR (Self-Assessment Report), KPIs (Key Performance Indicators), Team SMART objectives, Performance Panel and any other team performance measurement. 3
Job Role Performance Job description discussed and updated where required (unless standard JD for College role e.g. Lecturer, Assessor etc.). Individual performance reviewed against the requirements of the job role. Clear expectations set through review of performance standards relating to the job role.
Individual Objectives Clear expectations expressed as individual SMART objectives. (See objective setting guidelines on the Hub) Review of achievement of individual SMART objectives set at the previous Performance Appraisal meeting and Interim Review (January). Consider the factors that have affected performance both within and outside of the employee’s control. Individual SMART objectives clearly linked to team and organisational objectives (Strategic Intentions). All Managers objectives to include people management, resource management, information management and financial management. New objectives agreed for the next year.
Competencies Review of performance against the role-specific competencies as identified in the Job Description and described in the College Competency Framework. Review of individual performance against the behavioural indicators of the competencies. (The way in which objectives have been achieved i.e. not at the expense of colleagues’ morale for example)
Lesson Observation (if applicable) Review of the latest lesson observation.
360 degree feedback (if applicable). Review of the feedback report highlighting competencies, strengths and improvement areas. Review of the development plan
Identification of Training and Development Needs Aiming to increase performance levels in a structured way. Address improvement areas highlighted as a development need. Personal Development Plan created and agreed. Training needs communicated to the Training and Development Officer for inclusion in the College Training Plan for the next year. CPD reviewed and planned for the coming year. Review the impact of Training and CPD undertaken on the College and learners
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Overall Performance Grade Agreed The full review of performance to be considered and measured based on the categories detailed above (as also listed below):
Contribution to team performance Job role performance Individual competencies and behaviours Achievement of individual objectives Lesson observation (if applicable) 360 degree feedback (if applicable) Employee attendance to be reviewed and discussed, in line with the Attendance Management Policy and will be considered along with overall individual performance. A grade from one to four will be given to all employees: One – Outstanding Two – Good Three – Requires Improvement Four – Inadequate A provisional grade, and the reasons for this grade, will be discussed between the Line Manager and Employee at the end of year review meeting Following the publishing of College results and SAR all the employee performance grades will then be moderated by the College Directors and Heads of Department to ensure consistency. Where an employee is rated at grade three or four, the Performance Improvement Process will be instigated (if the employee is not already being managed through this process). See flow chart. Where employees are rated as grade one or two, they will receive a discretionary bonus as approved by the Corporation in accordance with the scheme for that year see Appendix 3. . This bonus is not contractual and therefore the payment of this and the amount is subject to change based on the financial success of the College. Grade three and four employees will not receive a discretionary bonus.
Career Planning Discussion Aspirations for the future discussed honestly and recorded. Comments of the Employee, Line Manager and Senior Manager Summary of the review Summary of the performance Response to the grade given and agreed Constructive comments on future career aspirations Complaints about the process or grade to be made through the Grievance Policy and Procedure. Continuous Performance Management
Interim review - January 5
Who: Line Manager and Employee at a structured Interim Performance Review Meeting What: Update the job description. Enable amendments to SMART objectives if priorities have changed. Review progress against SMART objectives Review the Training and Development Plan One to Ones Formal one to one – October Who: Line Manager and Employee in a formal meeting What: To finalise the Employee’s objectives and confirm the final performance grade. Regular one to ones: Who: Line Manager and Employee on an informal basis What: Monitoring of progress against SMART objectives Ensure clear standards are set for performance at work Provide regular objective feedback on work performance Line Manager to receive feedback from employee Performance Improvement Process Who: Line Manager and Employee (with HR support where required) What: Poor performance to be tackled promptly, firmly and fairly and not confused with misconduct. When: As soon as the Line Manager identifies that the level of performance is not to the required standard the Performance Improvement Process will be instigated. For example if a valid complaint is received, following the outcome of a disciplinary, a second grade three or a grade four lesson observation is conducted or a grade three or four is identified within the performance appraisal process, The purpose of the Performance Improvement Process is to give positive support to the employee to ensure that they can meet the required standards; however, the employee should be clear that the ultimate outcome of the process could be the termination of employment. If the employee is a member of a trade union it is advisable to request support through the improvement process from their representative. Meeting One: Line Manager and Employee (accompanied if required) Set clear standards - ensure the employee knows what the standards are for performance at work. Provide precise rules and guidelines. Assessment of capability to do the job role – skills, ability, aptitude and knowledge in relation to the job role.
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Provide feedback – review regular feedback given at one to ones, provide practical and recent specific examples of where performance is of concern, having fully established the facts. Create and agree a Performance Improvement Plan with SMART targets, training needs and reasonable timescales for improvement. Issue the improvement plan with an accompanying letter to the employee outlining the actions identified. This letter constitutes an informal warning. Identify any other reason that may have impacted on the employee’s ability to perform at the required standard e.g. medical issues and refer to occupational health for assessment and support. Explore all possibilities for support to improve performance to the required standard.
Meeting Two: Line Manager and Employee (accompanied if required) Review the Performance Improvement Plan. Provide feedback – review regular feedback given at one to ones since the first meeting, provide practical and recent specific examples of where performance is of concern or has improved, having fully established the facts. If there has been insufficient improvement the employee will be issued with a letter stating the improvements required which constitutes a first formal written warning. Agree continued support and monitoring of the Performance Improvement Plan for a further reasonable period of time. Meeting Three: Line Manager and Employee (accompanied if required) Review the Performance Improvement Plan. If there has been sufficient improvement, provide feedback and offer ongoing support. If there has been some improvement, however, performance is still not at the required standard, a further period of support and monitoring of the Performance Improvement Plan will be agreed. If there has been insufficient improvement the employee will be issued with a letter stating the improvements required which constitutes a final formal written warning. If there has been insufficient improvement and all options for supporting the employee to improve have been exhausted, provide feedback and arrange a Formal Capability Meeting. Formal Capability Meeting: Senior Post Holder (Deputy Principal or Assistant Principal) and Employee (accompanied if required) The employee has the right to reasonable notice of the meeting and to be accompanied. (Letter of invitation) A full review of the Performance Improvement Plan to take place.
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5.
MONITORING
6.
A full review of the support that has been given and any adjustments that have been made. A decision to be made about the employee’s ability to meet the standard required. If no further adjustments can be made to help them and every aspect of their capability to do the job has been explored and supported, the employee will be dismissed with contractual notice. If suitable redeployment is available this will be offered as an alternative to dismissal however is not guaranteed. The employee has the right to appeal against the dismissal and this will be addressed by the College Principal.
The effective use of the performance management system will be monitored through the completion of the formal one to one, interim and final performance review meetings. The levels of performance within the College will be monitored by analysis of the performance grades.
DOCUMENT REVIEW INFORMATION Procedure Date: Reviewed March 2013 Equality Impact assessment completed? Yes EIA Date: 30th April 2013 Completed By: C Preston and N Mistry Procedure Review Date: 12 months (April 2014) Trade Unions consulted in term 3 year 2010/11, in term 3 year 2011/12 and in term 2 of 2012/13
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APPENDIX 1
Hopwood Hall College T
DISCRETIONARY BONUS SCHEME ER 1 Introduction
It is one TITLE]
of the College‟s strategic intentions to achieve „high quality, high expectations‟. The College‟s Performance Management System provides clear direction, linking individual performance to its strategic intentions, business plan and team objectives. As an important element of this approach, the College is committed to recognising the successful performance of its employees through the use of financial reward. The College Performance Management System was developed and consulted on in Term Three of 2010/11 as part of the Business Transformation Plan (BTP). Input was considered and the system was adopted and it has now completed its first cycle. However, this did not include any element to reward high performance and a commitment was made by the College to continue to explore and consult on this issue. The College‟s initial proposal to address this issue, included a proposed variation to contracts of employment, and linked performance to the award of pay increments. Following representations from trade unions in the course of the consultation process, the College agreed to withdraw this proposed scheme. However, the College committed to further consultation with the unions on how the high performance of College employees could be rewarded. Following this further consultation the College has now developed the following new model for rewarding high performance. This is an entirely discretionary, noncontractual scheme, which does not impact on the existing terms and conditions of affected staff. In addition, it will not affect the College‟s commitment to reviewing all staff salaries on an annual basis, in line with the terms of employment contracts. In doing so, the College will continue to aim to award annual pay increases to all staff, regardless of performance, subject to (amongst other factors) the affordability of any increase and also having regard to any current nationally agreed AoC recommendation. The aim of this scheme is both to acknowledge and reward the achievements of high performing staff but also to offer an incentive to the minority of staff who may have failed to meet the College‟s target performance levels. In this latter respect, it will complement the College‟s existing systems for developing and supporting underperforming staff. 2 The Scheme The College may award employees an annual non-contractual bonus to reflect their performance over the year. The decision whether to award a bonus will be 9
based primarily on the grade awarded to staff under the annual Performance Management Process. An employee will only be considered for a bonus payment if they have been graded “good” or “outstanding” for the year to which the payment relates (at a differentiated rate for “good” or for “outstanding”). In determining whether to make a payment in these circumstances the College may also have regard to other factors, which may include, for example, the affordability of any payment and also circumstances specific to the individual employee (which may include, for example, any disciplinary matters relating to the employee). Should the College decide to award a bonus, it will determine the level of any payment, which it will decide on a case by case basis. Again, in determining the level of an award, the College will consider all relevant circumstances, which may again include the affordability of any payment and the circumstances of the individual employee. However, it is anticipated that any payment made will represent a percentage of the employee‟s annual salary. The College may also choose to make a pro-rata payment if an individual has been absent from College for part of the year to which the bonus relates. It is intended that that any decision on whether a payment will be made under this scheme (and, if so, the level of any payment), will be confirmed in early November of each year (following confirmation in October of employees‟ grading under the Performance Management Process), to allow any payment to be made before Christmas. In exercising its discretion under this scheme the College will act fairly and in accordance with the objective of rewarding high performance and incentivising underperforming staff. Employees are entitled to opt out of the scheme if they do not wish to be considered for a bonus payment. The decision to make a bonus payment, and if a payment is to be made the level of any payment, will be at the absolute discretion of the College. Any payments made under this scheme will not form part of an employee's contractual remuneration and will not be pensionable. Payment to an employee in respect of a particular year will not give rise to an entitlement to subsequent bonus payments. The College will not normally exercise its discretion to make a payment to an employee who has not been employed throughout the whole of the relevant year or where their employment terminates for any reason or they are under notice of termination at or prior to the date when a payment might otherwise have been made. At the request of an employee, the College may, at its absolute discretion, choose to substitute a monetary bonus payment for a noncash benefit. The College may alter the terms of this scheme or withdraw it altogether at any time without prior notice.
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College Strategic Intentions
College Business Plan / SAR
Hopwood Hall College Performance Management Process Employee Self-Appraisal
Team Objectives/Plan Performance Appraisal Meeting
Human Resources
Career Aspirations – Talent Management/Succession Planning
College Training Plan
Provisional Grade Agreed
Comments of the Employee and Senior Manager One to One: Objectives & Grade Confirmed
Grade One or Two
Discretionary Bonus Paid
Grade Three or Four
Regular One to Ones
Performance Improvement Process (Separate Flow Chart) 11 Activities Development
Interim Review
Performance Appraisal Process grade three or four
Line Manager identifies that the level of performance is not at the required standard or two grade three or four lesson observations are conducted Meeting One
Hopwood Hall College Performance Improvement Process
Performance Improvement Plan (PIP)
Support to achieve Performance Improvement Plan
Meeting Two
Review of Performance Improvement Plan (PIP)
Yes
Improvement
No
Demonstrated? Continue to Monitor (PIP)
Provide further support and improvement targets (PIP)
Meeting Three (or Four)
Review of Performance Improvement Plan
Sufficient Improvement Demonstrated?
No Dismissal or Redeployment
Formal Capability Meeting
Yes
Some Improvement but not to the required standard 12