Managing Performance What is performance management? Performance management is a process that allows an employer to deal with situations of poor performance, behaviour, conduct or capacity that impact on the organisation and the employee’s ability to perform their purpose. The process includes activities such as defining work, setting goals, providing feedback and encouraging development. Performance management is about shared responsibility and understanding of roles, expectations and standards. Why is performance management important? It is an opportunity that allows the organisation to bring the employee back to the standards required by focussing on issues that affect the performance of the employee and colleagues. effective and the employees should be aware of and understand all aspects of the process. What is the issue – performance or conduct? It is important to understand what the issue actually is – don’t forget that performance issues are very different to conduct issues and there may need to be a different process that is used to manage different situations. As an example – a performance issue would be an employee who is working below the acceptable standards under an employee’s job description or performance and development plan. Where as an employee who has unsatisfactory conduct there would be significant or on going difficulties with an employee’s conduct or behaviour that is not consistent with the code of conduct, policy, procedure or other instruction – and requires immediate attention and resolution. For many organisations, the thought of speaking to an employee about an issue that arises can be distressing. Many times, the issue will be ignored with the thought that “the matter will fix itself”. This is not always the case. Stage 1 – Informal Preliminary Discussion A matter that is not resolved can go on to be a huge burden with regards to time and resources. A performance management process will ensure that all employees are working to the same end result; the employees will know what is expected of them, and what the process will be if their performance falls below what is expected. Allow the employee to provide their input in to the issues, raise any concerns and discuss any relevant options or solutions. How do I performance manage my employees? There are no hard and fast rules that must be applied when it comes to performance management, however any process should allow for procedural fairness and natural justice. Best practice tips should be used to make the process simple, fair and Any concern regarding an employee’s performance should be addressed informally at an early stage to avoid the situation escalating. Choose a private and non–threatening place to meet with the employee that is removed from any distractions and interruptions. It may also be advisable to offer the employee the option of bringing a support person with them – particularly if the issue is quite serious. A support person may offer some comfort to the employee. Always check the applicable industrial instrument, the employee’s contract of employment and the employer’s policies to ensure that any provisions concerning performance management are met. Clearly indicate what the issue/concerns are about, whether it is about work underperformance or inappropriate behaviour. Explore the reasons for the performance/conduct issue with the employee. Allow the employee to discuss any issues that may be affecting their performance, and consider their response, but keep the discussion focused on the actual issue of why the employee is having difficulty. Always approach the discussion in a non judgemental way, ask simple questions about whether there is anything affecting the employee’s performance. Consider and agree on: • Inform the employee that their performance is still unsatisfactory and determine an appropriate PIP. A PIP may include: • The clarification of role requirements and expectations • An undertaking by the employee to increase their commitment to the performance of their duties • On or off the job training to develop skills and abilities • The use of professional counselling services • The use of a mentor • Mediation services • Any further assessment or information that may be required Stage 3 – Performance Improvement Period • Any further resources necessary to manage a health issue Regular meetings should be scheduled to assess and monitor the employee’s performance. • Any reasonable adjustments and how these might be implemented The manager should provide regular feedback to the employee regarding their performance. • Explain and be clear regarding behaviour expectations, including timeframes for improvement The employee should be offered support and assistance (e.g. training or an employee assistance program). • Make arrangements for a review process Stage 4 – Evaluation • Document all discussions • It is important that (if required) the employee receive a formal written warning as a part of the process and that this warning indicates the move to stage 2 of the procedure, and that there is a possibility that the employee – without improvement, may be terminated. Continue to monitor the performance of the employee. Stage 2 – Initiating the Performance Improvement Plan Where the employee’s conduct/performance has not improved, initiate a performance improvement plan (PIP). Employer and employee will need to meet to develop a PIP: • Identify the standard of performance or conduct required At the end of the performance improvement period, the manager and the employee should meet to discuss whether the employee has successfully completed the process. If not, clear and concise reasons should be given to the employee as to why there are on going issues. A decision should then be made as to what disciplinary action should be taken. This may include further warnings or termination. If there has been significant and sustained improvement this should also be acknowledged. Have a policy regarding performance management! It is an idea for each organisation to have a reasonable policy or a procedure that is followed for this process. All employees must not simply know that the policy exists, but they must understand the policy. Any employee who will be in charge of performing these reviews should also be well versed with regards to best practice and the performance management policies within the organisation. Follow polices and procedures! Once a policy is approved by the Board, it is important that the policy is followed properly. Many employers find themselves having issues because the employer and or the board have not followed their own policies and procedures. Should I wait for the scheduled performance reviews? If an issue occurs before a scheduled performance review, don’t wait – address the situation as soon as possible. Always be aware that poor performance or conduct of one employee can affect all employees in your organisation. What about termination of employment? Termination of employment should always be a last resort! Before deciding to terminate ensure that: • that there is a genuine issue that warrants a termination in the circumstances • Make sure that any performance management and other relevant polices have been followed • Refer to the appropriate modern award or enterprise agreement – make sure these have been complied with • that appropriate warnings have been given and that the warnings have been properly documented • that procedural fairness have been given to the employee – such as notice of meetings and the offer of a support person and giving the employee an opportunity to respond What are the key elements of a performance review? • Give consideration to and take in to account the employee’s response, length of service, performance history and personal circumstances • Be proactive and preventative • Process needs to start from the outset; • If necessary, seek legal advice in difficult situations • Develop detailed performance standards for each position If the decision is made to terminate an employee... • Recruit for performance and culture – always do reference checks • Provide a clear reason for termination, give the correct notice (or payment in lieu of notice), and pay all entitlements as per award/ agreement/contract and NES (National Employment Standards) • Clear communication of the acceptable standards to all employees • Make this a two-way process – make employees aware of the standards and assist employees to achieve them • Make sure that managers etc are well trained and are able to deal with these issues • Regular performance feedback(both formal and informal) as well as honest and regular feedback • Thorough documentation of performance/conduct issues as well as meetings and discussions • Ensure that adequate records are kept – meeting/ discussions, warnings a letters of termination. Where can I get more information? For more information regarding performance management, or for a copy of a draft performance management policy please contact Rae or Chris on 1300 361 968 or atsi@industrialrelations.nsw.gov.au