Effective performance management is essential for maintaining the highest standards of employee performance and aligning individual contributions with organisational goals. The following guidance outlines a two-stage performance management process comprising of an informal and a formal stage.
Informal Stage (Performance Management)
The informal stage of performance management is a supportive process aimed at improving an employee's job performance without resorting to formal action.
Early Identification: Managers should monitor performance continuously and address potential issues early to try and prevent them becoming a major concern.
Constructive Feedback: Feedback should be specific, objective, and focused on observable behaviours and outcomes. While highlighting areas of concern, it is essential to highlight areas of strength, as not to completely demoralise the employee.
Target Setting: Together, the manager and employee should agree on realistic performance targets and set a reasonable timeline for achieving these targets.
Support and Resources: The employer should provide necessary support, resources, and training to help the employee meet their performance targets.
Follow-Up: Schedule follow-up meetings to discuss progress. These should be regular and documented.
This stage is designed to resolve issues through guidance and support, preventing the need for formal proceedings.
Formal Stage (Performance Management)
If performance does not improve after the informal stage, moving to the formal stage may be necessary.
If required, a performance improvement plan (PIP) should be drafted and discussed with the employee. The targets set should, again, be realistic and set within a reasonable timeframe for achieving these targets.
At the end of the set timeframe, a formal capability meeting should be held, at which the performance improvement plan would be discussed, the employee would have the right to a written invite and offered the option to be accompanied by a work colleague or Trade Union representative of their choice.
If the employee has failed to meet the required performance standards, then a formal warning could be considered, giving the right of appeal. The first warning would be a written warning, a new performance plan would be drafted, with a set review date.
A further capability meeting would be held to consider performance improvement against the performance improvement plan. If the employee has still not hit the set targets, a final written warning may result from the meeting.
After this, another performance improvement plan would be put in place, followed by a capability meeting. As a last resort, if there is no satisfactory improvement and all other options have been exhausted, termination of employment may be considered. Any dismissal, would be a dismissal with notice, as per the employee contract.
Through the formal stage, if the employee improves, then the performance management process could be ended. Alternatively, if there is some improvement, but not quite enough, the performance improvement plan could be extended as opposed to issuing a formal sanction.
Conclusion
Performance management is a crucial but challenging aspect of organisational management. The primary goal is to help employees succeed, with dismissal as a last resort. It is advisable for employers to consult with HR professionals throughout the process to ensure compliance with employment laws and best practices.
If you need advice regarding these the informal and formal stages of performance management in give us a call on 033 33 215 005
