12 Key Steps to Managing Underperforming Staff
Employee performance is bound to go through waves. Managing and providing assistance to your employees throughout these phases is crucial for maintaining productivity but also fostering growth and development for your team.
This can be achieved by following a best practice checklist. Best practice is more than simply complying with your industry law and standards, it is ensuring that any underperformance from staff is managed promptly, sensitively and appropriately - to ensure you are doing everything possible to retain the employee. We have outlined the key steps for managing underperforming staff below:
Performance System
Create and implement a Key Performance Indicator (KPI) system for your company. It should include; expectation goals, feedback processes, training, and regular review periods (either monthly or quarterly is recommended).
Reward and Growth Opportunities
Provide recognition to employees when performance is high. This doesn't have to be monetary, employees react positively to acknowledgement and appreciation, so think of ways that could make them both intrinsically and extrinsically rewarded. An example of an intrinsic reward could be to provide an opportunity to self-manage a project, and an extrinsic reward could be showing your appreciation for their work by providing a commission for the self-managed project.
Identify and Promptly Address
Identify underperformance promptly by showing and assessing examples of behaviours or actions that are contributing to an issue, whether it be from work they have or haven't produced or writing down any incidents you may have seen or been involved in.
Process
Research and follow any performance management policies relevant to the unique situation and refer to any contractual obligations you are required to provide your employee before organising a meeting. Use these policies as a reference point when finding a solution to the issue.
Meeting
Invite the employee to a meeting, ensuring they are offered a support person who can attend also, and make sure that it is held in an appropriate, yet comfortable, environment where no other employees can hear the conversation.
Be Specific
Provide clear examples and description of the issue and the direct effect it has on the business and the outcome you wish to see at the end of the meeting. Allow the employee an opportunity to respond and express their opinion.
Questions
Ask questions to prompt the employee on why they believe the problem is occurring. These questions should also provide an opportunity for the employee to express how they are feeling in the workplace and any potential indifferences they may be experiencing.
Listen
Practice active listening when the employee is expressing their opinion and answering your questions. Give them enough time to talk without cutting them off, and respond in a relaxed and encouraging tone to their contributions.
Solution
Work together to find a solution that will suit both yourself and your employee. Ensure that the solution; directly addresses the change required from the employee and reinforces the value the role, and therefore the employee, adds to your business.
Document
Once the solution is agreed upon, document this in the employee's performance management plan and explicitly state the areas of improvement that are going to be assessed in the future. Outline the actions that will be taken and the support the employee will be given to achieve this.
Monitor and Support
Make an active effort to provide the support systems promised to the employee and follow through with any training organised. Offer genuine support by regularly checking in on the employee and giving encouraging feedback and motivation. If the employee is suffering from personal circumstances, open a discussion with the employee for any necessary external support. Schedule a meeting to follow up with the employee after an appropriate period of time since the performance management plan was created.
Dismissal
If the employee fails to show improvement, ensure that dismissal is fair and the employee is allowed to respond before the final decision is made. The Small Business Fair Dismissal Code should be followed if you have less than 15 employees and are a small business employer.
If you have any concerns addressing performance management, contact the team at Optimum Legal today.