30 October 2024
Your guide to performance management
The success of your business can significantly depend on the performance of your employees. Identifying where employees are not performing to the standard expected, and working with them to improve helps create a business environment where talent is nurtured, productivity is enhanced, and a culture of continuous improvement is fostered.
Performance management comprises of practices aimed at maximising individual and business effectiveness. From setting clear expectations to providing ongoing and regular feedback and recognition, each component plays a vital role in shaping employee performance and ultimately achieving your business goals and objectives.
Establish clear performance expectations
The first step in an effective performance management process should be the establishment of clear and achievable expectations. Ideally this is a process that commences upon an employee’s first day. Employers must clearly articulate position duties, responsibilities, and the performance standard required to be successful in a role. This can be articulated via a performance improvement plan (PIP) which outlines the specific performance goals/ standards that employees are required to work towards. By providing employees with a clear roadmap, it is easier to both apply and enforce standards of performance.
Regular and constructive feedback
Once employees clearly understand performance objectives, it is important to reinforce these through the provision of regular and constructive feedback. Where employees are placed on a PIP, employers should provide ongoing feedback, highlighting both strengths and areas for improvement. This is particularly important for individuals new to the industry who are still learning and coming to grips with industry standards. Establishing open communication channels fosters trust and transparency, enabling employees to feel supported in their roles. Regular and constructive feedback also ensures that employees placed on a PIP have a genuine opportunity to improve their performance standard with the guidance and support of the business.
Assess progress
Whilst regular and informal check-ins are important for fostering a culture of accountability, formal performance reviews provide a vital opportunity to assess progress and provide feedback. These reviews should be approached as collaborative conversations, where both employer and employee can discuss achievements and set new goals for the future. These meetings can also present an opportunity for discussion of recent challenges or failures to meet performance expectations. Consider whether the goals and objectives you set in the initial PIP are or have been met, or whether further adjustment is required.
Development and training
In applying performance expectations, you may wish to consider implementing further employee development opportunities. Employee development opportunities may include coaching, mentoring, and training opportunities to help employees enhance their skills and capabilities. By cultivating a culture of continuous learning, employers empower employees to stay on top of industry standards and continuously maintain and exceed company expectations.
Procedural fairness
When implementing a performance management process, it is important for employers to ensure practices are compliant with all relevant employment laws and regulations. It is essential to treat all employees fairly and equitably during performance management processes, avoiding any form of discrimination or bias in performance evaluations. If you are planning on meeting with an employee to
discuss underperformance, it is important that this is treated professionally, with the employee given advance notice of the meeting and the opportunity to bring a support person. Furthermore, employers should ensure that all performance meetings are documented, and copies of these notes kept on file for future reference. Implementing these steps is an important measure to avoid risk of any claims being made by employees in future.
The implementation of a fair and compliant performance management processes is an effective tool that can be used to ensure that your employees continue to offer high- quality outputs, and services to your stakeholders.
If you have any questions about the performance management process and whether your existing performance management procedure is compliant, please call the ADA HR Advisory Service on 1300 232 462.
