• News
• News Archive
• Media Contact

Deal quickly with poor performance

By Sarah Townsend, Associate

First published in The Press 28 December 2009

Most employers have to deal with issues of poor performance in their workplace at some point. Dealing with these issues can be frustrating and challenging but it is important to address them promptly and fairly.

If left alone, chances are the problem will only get worse. 

It is often tempting to try and sidestep the issue by ignoring it or reallocating duties to more capable members of the team.   But this is rarely effective and instead tends to delay and ultimately exacerbate the issue. 

Failing to deal with a performance issue in the workplace can have several adverse effects on the business.  Other staff have to pick up the slack and it also sends a message that poor performance is tolerated.  The employer often feels frustrated that they are overpaying a staff member for a role they are not fulfilling.   Worse still, taking duties away from an employee without explanation can leave them feeling undermined and expose a company to legal claims. 

Where there is concern with an employee’s performance, this should be identified and communicated clearly.  An employee can reasonably expect that if they are not given any feedback about their performance, things are going well.   Yet this is not always the case. Employers are sometimes too busy to deal with the issue, don’t know how to handle the situation or are nervous about a personal grievance being raised. 

By talking to an employee early, the employer may find that the employee did not understand the job properly, or needs more training or mentoring in specific areas.    Other times, a sudden change in poor performance could be the result of personal problems or health issues. These matters can often be resolved quickly and informally without the need for disciplinary action. 

Small employers, with fewer than 20 workers, should include a “90 Day Trial Period” in all employment agreements for new staff. This enables an employer to dismiss an employee without risk of a personal grievance if they do not meet performance standards or are not a good fit within the organisation. 

For larger employers, or where there are issues with long standing employees, following a fair process over a number of weeks is crucial.  This will ensure, as far as possible, that the employee is given a real opportunity to improve. It will also help minimise the risk of a successful personal grievance, if performance does not improve and the employee is ultimately dismissed.

If an informal approach doesn’t work, a more formal process may be necessary. This involves meeting with the employee to discuss specific performance concerns and providing an opportunity for explanation.   Employees can be represented at any stage of this process. Performance expectations should be clear, reasonable and, where possible, measurable.   Where issues have been identified, it is important to regularly monitor and review matters.  Generally speaking, at least two formal performance warnings, with a fair period of time between them to give the opportunity to improve will be required before any dismissal can be justified. 

Dealing with performance issues does need careful handling.  However proactive, early management can prevent problems from getting worse and contribute to a more productive workplace.

Sarah Townsend is an employment law specialist at national and trans-Tasman lawyers Duncan Cotterill. S.townsend@DuncanCotterill.com; www.DuncanCotterill.com

SUMMARY:

• Don’t leave performance problems unchecked.
• Identify problems early
• Review performance regularly
• Set reasonable and measurable goals
• Try to resolve problems informally initially

If problems persist, start a formal performance management process.

Disclaimer: the content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.