Poor performance has to be handled correctly

Performance reviews may seem like a lot of paperwork, but the benefits make the work worthwhile.

Performance reviews are a great way for employers to manage employee performance, ensure workers understand what is expected of them and help avoid future problems. They can also be used to manage poor performance where problems have already arisen.

An employer is not legally obliged to hold performance reviews (unless it was agreed on in an employment agreement). Many employers conduct performance reviews once a year, to provide feedback and set goals for the next 12 months.

Many employers also link these performance reviews with salary reviews, so good performance is rewarded with an increase in pay. It is a good idea to have some form of performance feedback system and criteria in place that is understood by both the employer and the employee.

Managing poor performance
If you are a party to a Federated Farmers employment agreement, there is a procedure set out to deal with performance below expectation. Refer to clause 30 of the permanent employment agreement and/or clause 27 of the fixed-term employment agreement, as applicable.

When disciplining an employee for poor performance, employers must be able to point to legitimate (and measurable) performance concerns.

Performance is about how the employee fulfills his or her job requirements. The level of performance is determined by an employee's knowledge, skills, behaviours, qualifications, and abilities.

Poor performance is different to misconduct; however there can be some overlap, for example, poor timekeeping or lateness. Poor performance is not usually "one-off" bad behaviour, but is more likely to be ongoing and often unintentional (although attitude can contribute to poor performance).

Misconduct, however, is more like an instance in which an employee does not perform because he/she intentionally does not perform, or does so negligently.

Employees' rights and fair procedure
When employers have concerns about the way an employee has been performing, theyshould discuss these concerns with theemployee, with the intention of improving the performance in question as well as the employment relationship.

The employer should first organise a meeting to discuss performance concerns, then send a letter to the employee inviting them to a meeting to discuss performance concerns. This letter must set out in detail exactly what the performance concerns are.

At the meeting, the employee has the right to:

*Be told about the required standard (of performance, attitude and/or behaviour). Employers can point to job descriptions and past performance reviews to show what this required standard is
*Be told when and how that standard is not being met (the employer should explain the problem, using examples of poor performance)
*Be told what needs to occur for the standards to be met
*Be heard (to explain or comment on the performance problem)
*Have their explanation considered (the employer should take time, have an open mind and undertake any further investigations as necessary).
After the meeting, the employer and employee must work together to improve the level of performance over a set period of time, including:
*Meet regularly to review performance
*Get help to meet the standard (including training and coaching)
*Give reasonable time and encouragement to improve.

At the end of the performance-improvement period, the employer needs to inform the employee whether the required standard has been met, and if not what the consequences may be. These could include extending the performance-improvement period or disciplinary action.

Performance management takes time, effort and commitment from both the employer and the employee. It is not a "quick fix".

Formal disciplinary action
If performance problems persist, despite performance management, the employer can consider a formal warning procedure. If problems continue after issuing a first warning, the employer may issue a further warning or a final warning. If the employee's performance does not improve following a final warning, the employer can consider dismissal.

*If you have any questions about performance management, call 0800 FARMING to get free, independent legal and employment advice.