Benefits of Performance Management 

by Jun 16, 2023All Posts, Industrial Relations

It is time for employers to start focusing and aligning business and employee goals for the upcoming year as the End of Financial year approaches. Using Performance Reviews to evaluate and extend these goals can be exactly what your employees need to avoid the ‘mid-year slump’, enhancing motivation via collaborative targets and career opportunities. On the other hand, you might have an employee that isn’t quite meeting workplace requirements and role expectations. Have you informally discussed this with the employee only to see no notable changes? If you have answered yes, then it might be time to consider implementing a Performance Management process.  

What does this look like? 

The Performance Management process is initiated when an employee has been identified as performing poorly in consideration of expected workplace roles, responsibilities, and tasks. It is the aim of this type of intervention to see employees reach their full potential via additional training efforts and the establishment of a Performance Management Plan to develop employee skills and knowledge. All too often this process is directed at managing the noted ‘poor performance’, opposed to using it as an opportunity to motivate and empower employees to set goals and grow for increased satisfaction and productivity.

Performance Management should: 

  1. Define and manage the expectations and goals of the role, considering how the employee’s personal and career goals develop within this.  
  1. Involve regular communication to develop a trusting and supportive relationship with employees, enhancing opportunities to get to know employee strengths and weaknesses.  
  1. Encourage managers to increase ‘their’ performance capacity within leadership and coaching skills (such as feedback and communication), to strengthen performance management efforts.   
  1. Recognise and reward employee achievement of set expectations and goals, providing a working environment that notices and values individual efforts and contributions.  

Click here to read our 5 steps on how to make the Performance Management Process easier.

Reviewing Poor Performance

  • Determine ‘why’ or the ‘cause’ of the poor performance. As this reasoning could be related to workplace bullying and harassment, employee illness, or problems being experienced within personal lives.  
  • Provide additional support, such as increased flexibility of working hours and leave and referral to the business Employee Assistance Program (EAP).  
  • Continuously meet with this employee to review, adjust, and monitor the Performance Management Plan, documenting all interactions and efforts.  
  • Provide additional time and extensions to plans in the instance that employee goals have not been met or are found unsatisfactory.  

When Poor Performance Continues 

Sometimes intervention of a Performance Management Plan will not see the improvement of employee performance. It should be made clear to all employees at the beginning of the PMP process that the long-term consequence of poor performance can lead to disciplinary action, such as written warnings and ultimately dismissal.

Disciplinary Action 

According to employment law, the dismissal of an employee based upon ‘capability’ is fair reasoning for dismissal, AS LONG AS a fair process has been actioned. We cannot emphasise enough that performance management should be directed at improving employee performance. However, if actioned correctly it also acts as a fair process in evaluating and evidencing employee poor performance appropriate for fair dismissal.  

AHR act as a non-bias third-party for many businesses, with the capacity to initiate the performance management process on your behalf or to take over once it turns to an instance of disciplinary action. We are more than happy to tell you how to approach this process, provide you with templates and show you how to use these to collate evidence of employee efforts, and/or we can jump in and undertake the entire process for you. Contact The AHR Team on 1800 577 515 today to discuss your business needs.

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