Performance Management

As many publicans look to maximise the efficiency of their workforce, in many cases this is as much a human resources management issue than a numbers issue. In this month’s article we’ve leveraged the expertise of our Director of Perks People Solutions (our HR and recruitment consultancy - https://www.perks.com.au/people-solutions/overview/), Cecilia White (https://www.perks.com.au/staff/cecilia-white/) to discuss how to approach difficult performance conversations and some clear guidelines and watchouts.

Managing an underperformer is one of the more challenging tasks that managers face in workplaces. Underperformance can range in severity from a staff member that consistently arrives late or doesn’t pull their weight, to someone who misses shift or seems to make the same mistakes over and over again. Managing this difficult process takes time and often requires tough conversations, and if it isn’t done properly, it can backfire on managers, teams and morale.

Before commencing a performance management process, consider the following tips which will assist in ensuring the process is fair, transparent and effective:

BE PREPARED

To ensure you get the most out of any conversation about an employee’s performance, take the time before meeting with them to plan the discussion. Putting together an agenda outlining key points and feedback will ensure you stay on track and in control of the conversation. Consider the timing and location of the discussion – it’s important to have these discussions in a discreet setting and the timing can make or break a performance discussion. Avoid having performance discussions just before the employee is about to go on annual leave, for example. Consider whether they may be on a deadline, or consider what time of day is likely to be best – if there’s a reasonable chance the employee will be upset or distressed by your feedback, holding the discussion at the end of the day when they can easily head home without causing a scene might be a sensible approach.

BE CLEAR

A common mistake when managing underperformers is the failure to provide clear, specific examples of the areas in which the employee’s performance isn’t up to scratch, and to clearly articulate what good looks like. There is a tendency for managers to avoid giving negative feedback, as it can often feel harsh. While this can make the conversation feel more comfortable in the short term, in the long term you are not doing the employee any favours. As Brene Browns says “Clear is Kind. Unclear is

Unkind”. A fair and authentic performance conversation will be honest, clear and constructive. It is also important to ensure the examples you provide are evidence based, rather than opinion based – objective, rather than subjective. Consider what information or data you can provide to the employee which will clearly demonstrate to them that their performance is not up to scratch.

BE FAIR & OPEN

As important as it is to be well prepared for a performance conversation and to have thought about the outcomes you are seeking, it is equally important to listen genuinely to the employee’s perspective, before deciding on next steps. The employee may disclose issues that are affecting their performance (for example, personal struggles, mental health concerns or other medical conditions) that you were completely unaware of. It’s important to ensure the employee has a fair hearing and these matters need to be taken into account when working out next steps.

KEEP RECORDS

Tackling the tough conversation that you have been putting off is the first step – but don’t waste all that effort by failing to document what was discussed and agreed. There is a good chance that the conversation may be the start of a more formalised process, and so a written record, such as a Performance Improvement Plan (PIP), will be an important tool and point of reference for further discussions down the track. It may also be useful as evidence in the event there is a claim or dispute by the employee at a later date, and the process comes under scrutiny.

SEEK EXPERT ADVICE

Whilst it is critical to be brave enough to tackle performance concerns head on rather than avoid them, these conversations must be undertaken with proper care and caution, as a relatively common by-product of performance conversations handled poorly are complaints of workplace bullying or victimisation.

Before embarking on a performance conversation where risk factors are at play, you must ensure a best practice approach and avoid any potential exposure to an unfair dismissal or bullying claim. When looking for expert advice in this area, make sure that you talk to a Human Resources professional that has experience in Performance Management.

Pat Hodby and Tom Paine are Directors at Perks, South Australia’s leading privately-owned accounting and private wealth firm. They are the driving force behind the Perks Hospitality specialisation team and have both provided key advisory and operational support to a number of owner-operators in the sector, ranging from the structuring of their business, to back-of-house bookkeeping, to the streamlining and digitization of their support systems. Pat is also an active industry advocate for publicans and the hospitality industry and owns a successful pub in the Adelaide Hills.

Pat Hodby

Tom Paine