Performance Improvement
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1 Performance Improvement
2 Managing performance issues Informal feedback Employee not meeting expected standards Performance improvement Disciplinary action Employee regularly not meeting expected standards or issue could lead to disciplinary action if not corrected Performance improvement has failed to assist employee in meeting required standards or issue is serious enough to treat as disciplinary matter
3 Managing performance issues Informal feedback Webinar #1 Performance improvement Disciplinary action Webinar #2 Webinar #3
4 Overview What is a performance improvement plan? Reasons for underperformance The performance improvement process What if..
5 What is a PIP? PIPs are dishonestly named processes since their real purpose is to create a paper trail to justify firing someone
6 What is a PIP? 99 percent PIPs of the are dishonestly time a performance named improvement processed plan isn t since about their helping real a worker purpose improve is to it s create about a gathering paper trail additional to evidence justify firing and setting someone. up the framework to boot them out the door
7 A PIP is A formal time-bound process That identifies performance issues to be corrected And creates a written plan of action to guide the improvement
8 A PIP is not Performance Improvement Plan Disciplinary action
9 Moretti v Heinz GM raised performance concerns with Sales Manager GM allegedly told Sales Manager he would be performance managed out Sales Manager maintained he had done nothing wrong and process had a pre-determined outcome Sales Manager dismissed for refusing to participate in discussions and sign PIP
10 Held: It was not unreasonable for the Sales Manager to insist that Heinz explain what he had done wrong before he would sign the PIP because of background of statements made by the GM No valid reason Sales Manager reinstated
11 Performance v Conduct Performance Poor quality of work Missed deadlines Not reaching targets Conduct Subordination Bullying and harassment Theft Fraud
12 Underperformance Declining performance Unacceptable behaviour Skill deficiency
13 Reasons for underperformance
14 Top 5 reasons 1. They don t know what they are supposed to do 2. They don t know how to do it 3. They don t know why they should do it 4. They think they are doing it 5. There are obstacles beyond their control
15 Performance management Recruitment Monitoring Performance planning Feedback & Coaching Reward & Recognition Learning & Development Performance appraisals Training Performance improvement
16 The performance improvement process
17 Mac v Bank of Queensland 2011 Lawyer commenced with Bank Assessed as competent at end of year appraisal 2012 New manager started Performance concerns almost immediately Assess as competent at end of year appraisal But specific performance issues required improvement 2013 Assessed as needs development Lawyer missed out on salary increase 2014 Put on Performance Improvement Plan (PIP) Banks performance policy did not refer to PIPs Potential for dismissal after 3 warnings Lawyer claimed workplace bullying
18 Held Bank s decision to place the lawyer on PIP was reasonable Shortcomings had been identified by her managers over a considerable period of time Performance plans are a legitimate and commonly used means to improve employee performance It was unsatisfactory that the Bank s performance management policy made no reference to the PIP process
19 Performance Improvement Plan Identify gap Ascertain reasons Set expectations Specifically identify the performance to be improved or the behaviour to be corrected Ascertain the reasons why performance or behaviour is inadequate Provide clear expectations about the work to be performed or behaviour that must change
20 Performance Improvement Plan Develop strategy Establish plan for review Specify potential consequences Identify a strategy to help the employee achieve the required improvements, including time frames Establish a plan for reviewing the employee's progress and providing feedback to them for the duration of the PIP Specify possible consequences if performance standards as identified in the PIP are not met
21 PIP process Prepare Monitor and review Conduct meeting Conclude or progress to disciplinary process
22 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
23 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
24 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
25 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
26 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
27 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
28 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
29 Checklist PIP preparation Identify performance/behavioural problem Identify the relevant KPI/capability/behaviour that has not been met Assess how serious the problem is and the potential consequences Consider the reasons for the gap Consider strategies to address and eliminate the performance/behavioural gap Determine what possible steps may need to be taken if performance/behaviour is not improved Determine if HR should be involved Plan the PIP meeting Source: hrinform.com.au
30 PIP process Prepare Monitor and review Conduct meeting Conclude or progress to disciplinary process
31 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
32 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
33 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
34 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
35 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
36 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
37 Checklist - Conducting a PIP meeting Outline reasons for the meeting State the performance or behaviour problem Explore reasons for the problem Agree on a strategy to improve the problem, incl time frame Confirm consequences if performance does not improve Close the meeting Document and complete PIP Conduct any agreed follow up Source: hrinform.com.au
38 Moretti v Heinz GM raised performance concerns with Sales Manager in June GM allegedly told Sales Manager he would be performance managed out Sales Manager maintained he had done nothing wrong and process had a pre-determined outcome Sales Manager dismissed for refusing to participate in discussions and sign PIP
39 Held: Some of reasons for the PIP could not be justified Low score for one goal was a company-wide score identical for all employees Discontent within his team was not explained Performance concerns were imperfectly, if not carelessly, formed
40
41
42
43 Individual SMART goals S M A R T Specific Measurable Achievable Realistic/Relevant Time bound
44 Not SMART SMART Improve customer satisfaction Improve overall customer satisfaction by 5% over last year based on the results of the after sales questionnaire sent to all customers
45 Not SMART SMART Improve customer satisfaction Improve overall customer satisfaction by 5% over last year based on the results of the after sales questionnaire sent to all customers
46 Not SMART SMART Keep delivery bays tidy Clear delivery bays daily of all waste and other material within 30 minutes of delivery vans leaving
47 Not SMART SMART Keep delivery bays tidy Clear delivery bays daily of all waste and other material within 30 minutes of delivery vans leaving
48
49 PIP process Prepare Monitor and review Conduct meeting Conclude or progress to disciplinary process
50
51 PIP process Prepare Monitor and review Conduct meeting Conclude or progress to disciplinary process
52
53 What if the employee refuses to accept there are any performance issues?
54 Mac v Bank of Queensland 2011 Lawyer commenced with Bank Assessed as competent at end of year appraisal 2012 New manager started Performance concerns almost immediately Assess as competent at end of year appraisal But specific performance issues required improvement 2013 Assessed as needs development Lawyer missed out on salary increase 2014 Put on Performance Improvement Plan (PIP) Banks performance policy did not refer to PIPs Potential for dismissal after 3 warnings Lawyer claimed workplace bullying
55 Performance concerns Time management Work output Amount of time spent on files Service levels not being met on contract reviews Allocation of general advice work
56 Held PIP was commenced in response to performance concerns that were reasonably founded Prior to being placed on PIP, performance shortcomings had been discussed
57 Tips Genuinely consider their point of view Be able to objectively justify allegations of underperformance with examples Treat all underperformers consistently Be clear about required level of performance Warn of consequences of refusal to participate in process Document
58 What if an employee alleges the performance improvement process is bullying?
59 Ms LP Unreasonable behaviour included: Swearing, name-calling, rudeness and demeaning sarcasm by head chef, and Initial lack of proper response to complaint about this behaviour
60 Applicant v Respondent Applicant being performance managed, incl informal feedback, mediation and PIP (extended twice) Applicant accused senior manager of bullying twice; Complaints investigated and dismissed; Performance management continued Anti-bullying application in FWC seeking orders to stop the bullying and to stop any dealings with his senior manager
61 Held Applicant had honestly held belief that performance management was motivated by a desire to terminate his employment No justification for this belief Evidence shows ordinary exercise of managerial prerogative and no evidence of bullying Confirmed on appeal
62 Tips Don t ignore bullying complaints Don t prejudge complaints Put PIP on hold while complaint is investigated Continue PIP if no bullying found Consider support for manager Document
63
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