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Top 5 performance management mistakes to avoid
Written by Kyle Williams on 23 December 2024
Poor performance can significantly impact an organisation, undermining efficiency, morale, and overall success. Effective performance management is key to addressing these issues and maintaining a positive, productive workplace where employees are motivated to reach their full potential. However, it can be difficult to get it right and, in our experience, is an area where many organisations falter.
In this blog, we highlight five common mistakes – and how you can avoid them – to help you tackle performance management challenges while protecting your business against legal risks.
1. Failure to implement a fair process
The cornerstone of effective performance management is a fair and transparent process. When performance issues arise, it’s important to investigate them thoroughly, providing the employee with both time and a chance to improve.
Consider factors such as disabilities or personal circumstances that might affect performance. For instance, if an employee’s performance dips due to health-related issues, exploring reasonable adjustments to their workload or environment may be necessary. A consistent approach is vital; if one employee is given one or two months to improve, all employees in similar situations should be afforded the same opportunity. This consistency lowers the risk of claims for unfair dismissal and boosts morale by fostering a sense of fairness.
Develop a documented performance management policy. Include clear steps for escalation and resolution, and ensure all managers are trained to apply this policy uniformly. Utilise Performance Improvement Plans (PIPs) that outline specific goals, timeframes, and supportive measures.
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2. Addressing performance issues as misconduct
A common mistake that employers often make is the confusion between performance issues and matters of concern that fall into the category of misconduct:
- Performance issues, which relate to an employee’s ability to fulfil their role to the expected standard, should be managed via the performance management procedure. This includes offering constructive feedback and support to help the employee improve.
- In contrast, misconduct involves breaches of company policy or conduct standards and should be addressed through the disciplinary process. Keeping these processes distinct helps ensure that performance management remains a growth-oriented exercise rather than a punitive one.
It’s important to ensure that managers are educated to identify and categorise issues correctly. Regular training and clear examples of what constitutes performance issues versus misconduct can prevent misclassification.
3. Insufficient support or opportunities for improvement
Employers have a responsibility to provide adequate support and opportunities for employees to enhance their performance. This means more than just annually reviewing performance; it involves ongoing feedback and a structured plan for improvement.
Employees should be given realistic targets and timelines for improvement, supported by training or resources if needed. Simply stating “you’re not performing, so you’re out” isn’t adequate or fair, and can affect the legality of any dismissal decision. By facilitating a supportive environment and clearly outlining pathways for improvement, organisations can foster a motivated and productive workforce.
Employers should encourage monthly check-ins between employees and managers to discuss progress and address any concerns promptly. Providing access to professional development programmes or workshops can empower employees to raise their performance levels.
4. Inadequate documentation
Proper documentation is a critical component of an effective performance management process. Employers should meticulously document every step, from meetings and feedback sessions to action plans and follow-ups.
This thorough documentation not only provides a clear record of the process followed but also supports any actions taken, helping to protect the organisation against legal risks. Documenting the rationale behind decisions, the support offered, and the outcomes can demonstrate fairness and transparency, which is invaluable if challenged.
5. Discriminatory practices
It’s crucial for organisations to ensure that their performance management procedures are equitable and free from discrimination. In situations where an employee’s poor performance is attributable to or exacerbated by a disability, it’s imperative for the organisation to adhere to a comprehensive and equitable capability process.
Initially, employers should engage in discussions with the underperforming employee to assess performance-related issues and understand how their disability influences both their personal life and job performance. It’s equally important for employers to clearly articulate the expected standards of work and, again, to explore plausible reasonable adjustments.
When determining what adjustments are reasonable, organisations should take into account both the nature of the employee’s disability and the specific demands of their role. The objective is to establish an environment where employees with disabilities can function effectively without encountering significant obstacles.
Examples of supportive measures that could be offered to any employee include providing additional training or support, enabling flexible working arrangements, modifying an employee’s role, reassigning non-essential duties, or even adapting performance assessments or capability procedures to consider the impact of their disability.
Employers should meticulously document the discussions held with the employee, detailing any agreed adjustments or those not implemented, along with the reasons why. Additionally, employers should gather and consider all relevant evidence, including Occupational Health assessments and other pertinent medical information, before progressing to formal action. Keeping a record of the employee’s perspective on how much time they might need to take off due to their disability is also beneficial.
Moreover, organisations should not shy away from addressing performance issues simply because an employee is disabled. If an employee isn’t informed that their performance is subpar and formal action is taken against them, the employer may risk facing disability discrimination and/or unfair dismissal claims.
Other key considerations in performance management include:
- Providing regular feedback to recognise accomplishments and address issues timely.
- Investing in employee development through training and resources.
- Standardising review processes across the organisation to ensure consistency.
- Promoting work-life balance and mental health for employee wellbeing.
- Celebrating achievements to motivate and inspire employees.
- Addressing challenging conversations promptly with empathy.
- Adapting strategies to align with evolving business needs.
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Avoid performance management missteps with WorkNest
Managing poor performance can be a lengthy process, as you cannot dismiss somebody straightaway. If you’re pressed for time or lack the necessary expertise, WorkNest’s Employment Law and HR specialists can help.
From providing management training to producing key documents like PIPs and outcome letters and advising on how to navigate the process efficiently and compliantly, we’ve got you covered.
For support specific to your situation, get in touch with our team on 0345 226 8393 or request your free consultation using the button below.