In these uncertain times there is even more pressure on organisations to work smarter. In many cases there are now fewer staff to deliver the services and, therefore, there has to be an even greater emphasis on performance if organisations are to retain any sort of competitive edge. One of the features that distinguishes those businesses that can cope with an economic downturn is having effective performance management but it can often be a difficult area for managers and HR professionals alike.
Why is performance management so important?
- It clarifies roles and personal objectives
- It makes people feel valued
- It aligns personal contribution to the organisation’s goals
- It helps communication
- It raises awareness
- Identifies personal learning and development needs
It is when people are consistently underperforming that the difficulties tend to arise. These are the issues that we often don’t like facing up to or we deal with ineffectively.
Other staff, however, are often fully aware of the situation and it reflects badly on management if the problems are not addressed. In hard times they simply cannot be ignored.
The procedure for dealing with underperformance basically has 4 sequential stages all of which require face to face discussions with the employee:-
Informal discussion
- raise issues, consider support/training
First Formal Meeting
- agree a performance improvement plan (PIP)
Second Formal Meeting
- PIP and formal warning
Final Formal Meeting
- possible outcomes – transfer/demotion/dismissal
NB. The procedure can end at any of the first 3 stages if performance improves
At the Second and Final formal meetings you must ensure that the statutory procedures are followed. (These will not apply to dismissals contemplated after 1 April 2009 when the ACAS code of conduct will apply).
Ø Send a letter before each meeting detailing the areas of underperformance
Ø Comply with the employee’s right to be accompanied
Ø Send a letter after each meeting confirming warning/decision
Ø Explain to the employee their right of appeal
At each meeting:-
- Clarify work duties
- Review performance
- Explain concerns
- Identify the gap and potential causes
- Identify support/training to eliminate or reduce gap
- Complete a PIP
- Set time limit and date of next review
Whatever the ultimate outcome, to manage performance effectively you need the following key skills.
- Leadership
- Questioning and listening
- Ability to recognise the signs at an early stage
- Analytical skills – sensitive to issues that might impact on performance
- Coaching skills
- Ability to set clear objectives and performance measures. Remember, what can’t be measured can’t be managed!
Also, beware of the following common obstructions to an effective performance management process:-
v The employee raises a grievance
v The employee alleges bullying
v The employee alleges you are bullying them
v The employee goes off ill with stress
v The employee alleges they have medical condition affecting performance
Don’t act on impulse – seek advice
Remember, capability can be a fair reason for dismissal so long as you have:-
- dealt with it fairly
- tried to remedy problems effectively and in good time
- a procedure for managing poor work performance/capability and it is
- communicated, publicised and applied consistently
Mace & Jones provides advice on all aspects of performance management and can provide training for managers, which is tailored to suit your organisations needs. For further information contact Chris Ellis at christopher.ellis@maceandjones.co.uk; or visit our website www.maceandjones.co.uk
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