Performance Issues - Don't Skirt Around Them

As an employer when performance issues arise you need to address them promptly to avoid the risk of a loss in productivity and ultimately profit. Managing your employees performance is key to ensuring your business goals and objectives are met.

Many employers in small and medium sized firms find managing their employee’s performance difficult as the relationship is not always just that of an employer/employee but also as mates.

The basics of a good performance management framework include:

- Clear agreed work and performance requirements (tasks, outcomes and behaviours) with agreed ways of demonstrating performance, processes for feedback and monitoring, and procedures for action to address non-performance.

- Clear Position Descriptions that holds both the employee and employer accountable

- Appropriate levels of support, skill development and encouragement for employees who are not performing.

- Processes that provide a fair and reasonable balance between the manager’s authority and the rights of the employee.

Communication is also paramount in a good working relationship.  If the employee is doing a good job, you should tell them.  If things could improve, talk to them, be clear on your expectations and provide the appropriate direction or training in the areas not up to the required standard. 

It is always best to deal with performance issues as they arise.  By raising matters promptly you can clarify and address any issues before they become significant or sustained.

Broaching performance can often be a real challenge for many managers but the important thing is not to skirt around the issue. Be clear and ideally follow up in writing.

If the poor performance continues you need to document your concerns to the employee.  This will provide clarity as to what the performance issues are, what support or guidance is available, and formalises the performance process should the issues continue.

A business that has communicated to its employees what is expected, how they are performing, and supported them to perform better will be in the best position to meet organisational goals, increase productivity and maximise profit.

Remember:  If you are considering exercising your right to terminate under the 90-day trial period and performance issues are to be referred to as a reason for termination of employment, you should have been communicating that to the employee before actually dismissing.  Good faith requires that you be communicative with the employee during the trial period regarding their performance shortfalls and give the opportunity to improve.  By not being communicative you may risk a claim of unjustified action.