How to Effectively Manage Performance & Conduct - Part 2
PART TWO
Managing performance and conduct issues across your teams is hard (and I dare say, inevitable!)! Not surprisingly, queries about how to do this effectively and efficiently are among the most common we receive. Sometimes we can easily ignore or bury our heads in the sand about performance issues that slowly become a pattern of behaviour…until the time they feel insurmountable. But fear not! If done correctly managing performance and conduct issues can mean your team member/s feel supported, and you achieve the outcome you want! In this three-part blog series, we delve into how to manage performance well, both formally and informally.
If you haven’t yet and would like to read parts one and three of this series, you can access it through the link below.
So, what are the options available to us as Managers and business owners? How can we achieve peak performance and behaviour from our teams and ensure the ship sails smoothly (and our expectations are clear)? Part two will be all about understanding the function of the different types of performance and conduct management processes. What process should you use? What are the determining factors for picking one process over another?
Find out below.
Informal Management of Performance and Conduct Issues
If a minor issue has arisen or a minor incident has occurred with minimal risk to the company, you may choose (and indeed you probably should choose) to address it via an informal discussion to understand the reasons behind it and to restate your expectations. An informal process is often sufficient (and certainly less time-consuming and upsetting than a formal one) to deal with smaller or one-off issues.
If you believe the issue is of low severity, a one-off and/or very out of character, and you feel that a reminder or some additional support will enable the employee to improve, an informal discussion is suitable. You may also be aware or suspicious of mitigating circumstances (such as personal issues or a lack of training) which may render formal action unsuitable (or unhelpful).
An informal process may be done within a general catch-up or one-to-one and is an open and frank discussion about what has occurred and what is needed for improvement (and/or clarification of expectations).
Performance Improvement Plans (PiPs)
A performance improvement plan is a tool or document which clearly outlines (in black and white):
· The areas the employee is underperforming in their role
· Specific examples of underperformance
· What level they should be performing at
· How they can achieve this
· When they should achieve this by
A PIP is often the first step for managing performance-related concerns and can be used as a tool for informal discussions. It can also be used to support improvement after a formal process has been undertaken.
For some employees, simply knowing what they can do to achieve the required standards may be enough to help them improve. Sometimes it can help to have these things spelt out clearly and plainly, alongside an open conversation where one can understand expectations. If you do need to undertake a disciplinary meeting at a later date, a PIP ensures you have documented the attempts to assist the employee in reaching the required standards and can justify why formal action is necessary.
Formal Processes
It can be extremely difficult for employees to recover from being taken through a formal disciplinary process as they can often be upsetting. They can feel demeaning or embarrassing and can truly make an employee question their confidence in their role. Careful consideration should be given to whether an issue should be managed formally or informally.
Having said this, formal processes should never be avoided if they are required. If an issue is reoccurring, informal discussions have fallen on deaf ears, or the issue is having a direct impact on business delivery (or indeed impacting others on the team) you have a duty to address it. In these cases, a formal process may potentially be more appropriate.
Disciplinary Outcomes
If we choose to go down a more formal path, (and it is fair to do so) a disciplinary process can be undertaken and there can be various outcomes. It’s worth noting that no formal warnings of any sort can be issued without a disciplinary process being undertaken first (you cannot simply issue a warning after a discussion!)
The outcomes of a disciplinary process may include:
· Informal management and support
· Performance improvement plans
· Formal verbal warnings
· Formal written warnings
· Dismissal/termination
Formal Warnings
A formal warning is a caution which is given to an employee following a formal disciplinary process. It will confirm:
· Their performance/conduct is not acceptable
· Why it is unacceptable.
· What acceptable performance/conduct is deemed acceptable.
· That any failure to improve puts the employee’s employment at risk (of further action, up-to-and-including termination)
A formal warning can only be issued after a disciplinary meeting has occurred. There is no set number of warnings or order in which warnings must be provided. The seriousness of the issue will determine what type of level or action may be appropriate. A common misconception is that there is a requirement to provide a verbal warning, followed by two written (first and final) warnings before termination is considered. If the offence is serious, it may be appropriate to terminate employment immediately with no warnings being issued (see dismissal/termination). Alternatively, it may be appropriate to issue a written warning as the first step.
If you do undertake a disciplinary meeting and decide (after careful consideration of the employee's response) that a formal warning is an appropriate action. You must first meet with the employee and propose this as an outcome for the employee's feedback. You may not simply issue the warning without consulting with the employee a final time. The employee does have the right to dispute your proposed level of action (i.e. that the ‘punishment’ outweighs the ‘crime’). You do not have to accept the employee's feedback and can proceed with the outcome provided you do first consider any feedback received and explain why you have decided to proceed. We would recommend providing additional time for this (for example 48 hours).
When you do issue your final decision, you must clearly outline the repercussions that will follow if an employee’s behaviour, conduct or underperformance continues. Following a warning, the employee must be allowed an opportunity to improve before any further action can be taken. Formal warnings can be given as either verbal or written (both of which, confusingly, are given in writing).
Dismissal / Termination
Another outcome of a disciplinary process can be a dismissal/termination. Dismissal is the end of an employment relationship. It usually comes about when it has become untenable to continue employment due to the employee’s conduct or behaviour.
Dismissal should only occur if the employee has been provided with multiple formal opportunities to improve (and has failed to do so) or for issues that would be considered serious misconduct offences. There must be a clear reason why the employment relationship is untenable i.e. the employee continues their behaviour or underperformance despite being given reasonable opportunity to improve and being aware of what the repercussions were going to be or, where the employee has performed an act of serious misconduct which immediately breaks their employer’s trust and confidence in them.
Dismissal is a very serious action and should be carefully considered. It is the last option in a disciplinary process and advice should always be sought prior to taking action. In cases where termination/dismissal is the proposed outcome, you should always propose a warning to an employee before your final decision is made. This will provide them with time to provide feedback on your decision before it takes effect. We would recommend providing additional time for this (for example 48 hours).
Hopefully, you’ll now have a better grasp of the “dos and don’ts” when it comes to performance management processes, as well as what types of employee behaviours are associated with what processes. As you may have noticed, the general sentiment to apply is careful consideration when conducting both formal and informal processes, something certainly made easier by experience and strong HR competencies.
If you or your company need assistance managing employee behaviour or conducting disciplinary processes with no legal slip-ups, we are always happy to help. Reach out to one of our experienced HR Business partners below and find out what we can do for you!