Presented by

David FoxPrincipal

Performance Management Doing it right!

Review Act Perform!Assess

www.thehrpractise.com.au

Do performance Do performance management systems management systems motivate?motivate?

AdvantagesAdvantages Recognition of the employee’s contribution to

the team and business leads to higher levels of engagement and discretionary effort

Quality time between manager and employee

Clear visibility and understanding of what is required of the employee

Closure and goal completion creates energy

Disadvantages…if you get Disadvantages…if you get it wrongit wrong

Unclear and/or unfair expectations leads to de-motivation and disengagement

Lack of equality in ratings and identification of high performers – leads to distrust in the process

Paper exercise that is time consuming and creates little value for the employee or organisation

Performance Performance Management and Staff Management and Staff MoraleMorale

Should you link performance to pay?

Should you link your annual performance review to your disciplinary process?

Can you afford not to?

Remember…Remember… High performers do not appreciate

carrying the load of poor performers – especially if the

organisation seems to be doing nothing about it

What is a KPI?What is a KPI?

Using KPIs effectivelyUsing KPIs effectively Start with a job description- Why does this position

exist?

Be clear on expectations of performance from the start

Ensure KPIs are measurable, achievable and relevant for the employee

KPIs and competencies- Are they the same thing?

How do you know that a KPI is fair?

Why should your employees want to achieve their KPIs?

Effective use of a Effective use of a probation periodprobation period

A probationary period is not automatic, employee’s must be notified in their contract or letter of offer.

Ensure you have the right to extend probation written in your contract

Qualifying period – 6 months for large employers, 12 months for small businesses (15 or less employees)

Set clear KPIs/ objectives for the first 6 weeks to 3 months.

At induction ensure that lines of open communication are established to ensure any issues are raised immediately and not held off until 6 week formal review.

ContinuedContinued Review at 6 weeks. Handle any issues

immediately. Don’t wait!

Should a performance issue arise you must inform the employee that there is a chance they will not pass probation.

Move to terminate employees who are clearly not meeting the performance standards or are not fitting in culturally during a probation period before they become permanent staff.

Getting a poor performer Getting a poor performer back on trackback on track

Personal experience shows that you have to nip it in the bud

Waiting and hoping it goes away is never an option

Formal, verbal feedback is critical in avoiding Performance Management problems

Addressing performance issues will achieve one of two things:

The employee will leave of their own accord

The employee will step up to the expected standard

ContinuedContinued Mini performance reviews should be done

on a monthly basis

Use your organisation’s Performance Management System

Show your concern and be open to feedback from the employee about any potential organisational or team issues

Understanding the legalities Understanding the legalities

behind Performance behind Performance

ManagementManagement You must ensure that you follow any existing

company policy or procedure

Procedural fairness is critical

Train your managers to ensure consistency of dealing with performance and conduct issues across your business

Don’t treat different employees with the same crime differently

Be aware of any terms regarding Performance Management in the employee’s contract or an Award

ContinuedContinued Ensure your workplace policies are not

directly tied to your employee’s employment contract

Employee’s could technically sue for Breach of Contract if you do not follow the terms of their contract which is outside the Unfair Dismissal Laws

However, ensure your policies and contracts are not too specific so that you can manage on a case by case basis

Warning Systems - Warning Systems - lessons from lessons from kindergartenkindergarten

Can you go straight to a final warning (red)?

The difference between conduct and performance warnings

Dismissal ChecklistDismissal ChecklistConsider these before you dismiss an employee:

Is the performance issue valid i.e. is it within the employee’s full control?

Can you prove the performance issue? Have you stressed enough that the performance issue may

lead to further disciplinary action up to and including dismissal?

Have you given the employee a reasonable time to improve an provided support?

Did you inform the employee of their right to have a support person present?

Have you considered alternatives to dismissal i.e. stepping down, demotion, transfer to another department or position?

Questions Questions and and

Answers (if you lucky)Answers (if you lucky)