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The performance management process
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When should members engage in the performance management process?
It is essential that members utilise an effective performance management process (PMP) when managing employees. An effective performance management process may help foster a harmonious and productive workplace that benefits both members and employees. It is appropriate to engage a PMP when an employee’s performance is not up to required standards. PMP can also be conducted at regular intervals to evaluate employee and business performance, assess strengths and weaknesses, develop constructive feedback, and assist with setting future goals. Without an effective PMP, it may compromise operational effectiveness, and members can expose themselves to legal risks. Two factors to be aware of before engaging in the PMP are skill (the competencies of the employee) and will (their motivation and desires within their conduct). Skill
In summary, skill is how competent your employee is at a specific task or how effective they are in their role. Skill is perhaps easier to measure as it can be evaluated objectively. Skill can be natural or developed over time. The PMP is appropriate to address deficiencies in skill. Will
‘Will’ can be a product of several factors within the workplace and can depend on the environment, professional goals, support systems, self-confidence and culture. It is centered on motivation or deliberate conduct, and typically, the PMP is not appropriate to address willful misconduct.
Conducting the Performance Management Process Best practice steps
Addressing underperformance or lack of ‘skill’ can be challenging for members and employees. If members fail to engage in the PMP in an appropriate, sensitive, and prompt manner, the culture and productivity of the workplace can be compromised. Issues to do with performance are unlikely to be resolved on their own; therefore, a proactive approach is recommended. When undertaking such a process, applying the following ‘best practice’ approach is advisable to minimise legal risks. 1. Identify the problem Members should commence this process by documenting examples of performance-related behaviour or actions that are causing issues. Identify when problematic instances take place and how frequently these occur. It is helpful to document specific cases that illustrate the underperformance. For example, information such as business statistics, customer feedback and examples of the employee’s work can be collected. 2. Assess and Analyse Once members have completed the first step, they should consider how serious the underperformance is and how long the problem has existed. Members should also analyse the gap between what is expected or required of the employee and what they deliver. Once members have assessed and analysed the nature of the problem, they should organise a performance review meeting with the employee. The employee should be advised in writing of the reason for the meeting in advance and with reasonable notice so they can prepare or seek independent legal advice. Members should also consider providing copies of relevant documents to the employee before the meeting. Employees should be permitted to bring a support person to the performance review meeting. This may be a co-worker, family member, friend, or union representative. They can support the employee during the meeting but are not to represent or advocate for them. 3. Meet with the employee Members should ensure that the performance review meeting takes place in a private, comfortable, and non-threatening environment. No other employees should overhear the discussion. The meeting should occur during reasonable hours, such as existing rostered work hours, and the employee’s attendance should be paid. During the meeting, members should outline what the underperformance is, why it is an issue and specify how the behaviour would ideally be modified or improved. Other relevant discussion points may include the following: • A clear description of the problem and reference to specific examples • Outline how the conduct is impacting the business, the employee’s work, or co-workers • Explanation of the reasonable outcomes to be achieved from the meeting and setting expectations of a reasonable timeframe in which improvement is required • Provision of an opportunity to respond and share views of the situation
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• Outlining potential consequences if the required improvement is not attained within the specified timeframe may include disciplinary action or further performance management.
4. Agree on a solution After discussing the problem following the previous step, you and your employees should work together to find an adequate solution. Employees are more likely to improve their performance if they feel they have contributed to this process. Members should record the agreed or required actions in a performance improvement plan, which is a document that outlines what the employees need to do to improve their performance, any relevant timeframes, and a summary of potential outcomes if performance does not improve. This plan should: • identify the performance that needs to improve or the behaviour that needs to change • outline how this will be done, and list any support that will be provided to help the employee improve • explain each party’s responsibilities • give the employee a reasonable time to improve their performance • set a date for a follow-up meeting to review progress and discuss the employee’s performance against the agreed plan • in cases of serious or ongoing underperformance, specify clearly and preferably in writing the possible consequences if the employee’s performance does not improve, such as disciplinary action up to and including termination of employment. • Members and the relevant employee should keep a copy of this plan.
5. Monitor and review Members should be aware that resolving an issue often takes more than one performance review meeting. Followup and progression meetings are a good idea as they offer a chance to acknowledge the employee’s progress and focus on the improvements that are still required. Members should remember to give the employee a reasonable period to improve. What is reasonable will depend on the employee’s role and the duties they perform. If performance is modified and improved to a satisfactory level, members should acknowledge that the issue has been resolved and discuss how this will be maintained. Conversely, suppose performance has not improved after a reasonable period. In that case, members may consider other options, including the continuation of the PMP, issuing of a formal written warning or other disciplinary measures such as termination. Members are reminded that any termination may create legal risks and that engaging in effective and appropriate performance management can assist in addressing these risks.
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