As leaders in the fast-paced world of technology and manufacturing, you understand that every cog in the machine counts. Your employees are your most valuable asset and their performance can make or break your company's success. But what happens when you encounter underperformance issues? How do you tackle them legally, effectively and with the best interests of your business in mind? When your plate is already full with numerous responsibilities handling HR issues can be daunting. However, taking the drastic step of terminating someone’s employment should always be a last resort.
This blog aims to provide you with practical insights into managing performance issues legally and effectively whilst fostering a culture of continuous improvement and protecting your employer brand.
Well Laid Foundations
Create a recruitment process that will line you up for success in recruiting the right person the first time. Then set them up for success an effective induction and clear expectations.
Have Well-Defined Job Specifications
A robust job specification not only helps you refine your interview process but it’s clarity for your employees. It outlines the skills, qualifications, and responsibilities required for a role. This document serves as a point of reference, ensuring that you've made your expectations regarding job performance explicit. (By the way if you’re ever faced with a redundancy situation it’s also a must have to justify decisions and correctly pool roles. It makes life that much more difficult when you don’t have them then when so and so argues they’re doing the same job as x, so why aren’t they under consultation?).
Set Clear Objectives / Goals
The job spec sets out the role’s responsibilities but setting clear and measurable objectives or goals aligned with the business strategy is one of the fundamental keys to managing employee performance. Not only does the employee understand their contribution to the business success but expectations are crystal clear, employees understand what is expected of them and people managers have a benchmark to assess employees’ progress.
Communication is Key
Effective communication is the glue that binds your business together. Make sure your employees understand not only their roles but also how their work contributes to the wider business goals. When they see the bigger picture, they are more likely to feel engaged and motivated. Share your vision - host company update meetings where you communicate your company's vision and goals.
Regular Performance Feedback
Regular feedback is the engine that keeps your employees on the right track. Scheduled one-on-one discussions can help you identify and address potential issues before they escalate. Providing constructive feedback allows employees to understand their strengths and areas for improvement, fostering a culture of continuous growth.
Whether you prefer a more formal appraisal process or informal check-ins, regular performance discussions are your chance to assess and discuss your employees' progress. These meetings provide a structured platform to provide positive feedback, acknowledge achievements and address areas for development.
Clarity of purpose, role, expectations and regular feedback is the backbone of addressing underperformance and preventing it from happening in the first place.
Delivering Negative Feedback Constructively
Having conversations about underperformance can be challenging. No one likes having difficult conversations, but they are sometimes necessary. When performance concerns arise, it's crucial to approach these conversations with empathy and a focus on improvement. Address the issue promptly and give the employee an opportunity to explain their perspective.
When delivering negative feedback, focus on solutions rather than blame. Emphasise the steps the employee can take to improve and offer your support. Constructive feedback is a tool for growth, not punishment.
Informal Resolution of Performance Issues
In the first instance, people managers should try to informally resolve performance issues.
1. Tackle Underperformance Head-On: Identify the specific areas where an employee is falling short. Be objective and provide concrete examples of their underperformance. Engage in a constructive conversation to understand their perspective.
2. Set Clear Objectives: Work with the employee to set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives to address performance gaps. Ensure they understand their role and expectations.
3. Constructive Feedback: Provide feedback that is specific, actionable and future-oriented. Avoid dwelling on past mistakes; focus on improvement.
4. Positive/Negative/Positive Conversations: Start with positive feedback to highlight strengths, then address the specific performance issues, and conclude with encouragement and support.
5. Defining Goals: Ensure that employees leave these conversations with a clear understanding of their improvement plan and the support they will receive.
6. Empathy and Active Listening: Show empathy and actively listen to your employee's concerns. They may have reasons for their underperformance that you're unaware of.
7. Record of Conversation: Always document these conversations to create a clear record. This is crucial for tracking progress and addressing any legal concerns that might come up in future
Formal Resolution of Performance Issues
When informal attempts to address performance issues fail, then we suggest turning to using the formal Capability Procedure. This is often something people managers want to avoid and want to continue to try to resolve informally but leaving it too long will just lead to frustrated managers wanting to exit the person without further ado. If you haven’t gone through a formal Capability Procedure and given the employee formal written warnings then this approach leaves companies exposed to risk of unfair dismissal claims or expensive Settlement Agreements. The key is knowing when to switch between the informal and formal process.
Managing Out of the Business:
If, despite your best efforts, underperformance persists, you may need to consider managing the person out of the business.
1. Documentation is Your Safeguard: In the unfortunate event that you must terminate an employee due to ongoing underperformance, documentation becomes your lifeline. Properly documented conversations, feedback, and performance reviews can protect your business legally and demonstrate that you've provided ample opportunities for improvement.
2. Legal Considerations: Consult with HR or legal professionals to ensure all procedures are followed legally and ethically.
3. Exit Plan: Create a fair and dignified exit plan that minimises disruption to the team and the company.
Conclusion
By taking proactive steps such as setting clear objectives, maintaining open communication, giving constructive feedback and documenting conversations, you can address performance issues before they become insurmountable challenges. By fostering a culture of continuous improvement and addressing underperformance with a positive mindset, you can empower your employees to excel and drive your company toward success. Remember, every employee has the potential to contribute significantly; it's your role as a leader to unlock it. But if performance issues prevail, following the formal Capability Procedure and documenting conversations will help protect your business from successful employee claims.