UNDERPERFORMANCE

C a u s e s a n d Re m e d i e s
What Is Underperformance
Underperformance or poor performance can be exhibited in the following ways:

Unsatisfactory work performance, i.e. a failure to perform the duties of the Non-compliance with workplace policies, rules or procedures Unacceptable behavior in the workplace Disruptive or negative behavior that impacts on co-workers

position or to perform them to the standard required

N.B. Underperformance is not the same as misconduct. Misconduct is very serious behavior such as theft or assault which may warrant instant dismissal. In cases of misconduct employers should seek specific advice, legal or otherwise, about how to proceed before taking any action.

Reasons for Underperformance

There are many reasons why an employee may perform poorly. Some of the common reasons include: An employee doesnt know what is expected because goals and/or standards or workplace policies and consequences are not clear (or have not been set) Interpersonal differences There is a mismatch between an employees capabilities and the job they are required to undertake, or the employee does not have the knowledge or skills to do the job expected of them An employee does not know whether they are doing a good job because there is no counseling or feedback on their performance Lack of personal motivation, low morale in the workplace and/or poor work environment Personal issues such as family stress, physical and/or mental health problems or problems with drugs or alcohol Cultural misunderstandings Workplace bullying

Characteristics of Underperformance
Dealing with underperformance can be challenging and confronting for employees and employers alike, but it does need to be addressed. Managers need clear procedures, organizational support and the courage and willingness to manage the issue.

Here are certain broad-lined suggestions: Provide training to managers on how to handle underperformance issues. It may be helpful to include role play workshops in the training material so that managers can learn how to approach matters in real-life scenarios. Well trained managers are better able to identify and address issues of underperformance.

If performance problems arise, it is crucial that they be resolved early. The longer that poor performance is allowed to continue, the more difficult a satisfactory resolution becomes, and, the more, the overall credibility of the system may suffer.

Not every underperformance issue needs a structured process. Explore other options for improving performance, such as the use of continuous feedback.

Remember that for performance management to be successful, the culture of the business should be one which encourages ongoing feedback and discussion about performance issues in open and supportive environments.

Underperformance should be dealt with promptly and appropriately by an employer, as employees are often unaware they are not performing well and so are unlikely to change their performance.

Best practice employers understand that issues that are not addressed promptly also have the potential to become more serious over time. This can

have a negative effect on the business as a whole as it can affect the productivity and performance of the entire workplace.

How to manage underperformance?

A clear system for managing underperformance is good for both a business and its employees. Best practice employers know that ineffective performance management can dramatically reduce the level of performance in a workplace. Employees that perform well can lose motivation if they have to carry the burden of poor performing colleagues. Also, most employees who are not performing well would like to improve themselves and need support in terms of feedback, training, mentoring etc. Negative attitudes to performance management, or a lack of credibility with the process, can be an indication of an inadequate performance management system. A consistent approach to performance management provides opportunities to address problems and generate effective solutions. A successful performance management process is one that supports the workplace culture and is accepted and valued by employees.

Step 1 Identify the problem

It is important to understand the key drivers of performance or underperformance within the workforce. It is also important to correctly and specifically identify the problem. Some common reasons for underperformance are identified later in this report.

Step 2 Assess and analyze the problem

The employer should determine: How serious the problem is

How long the problem has existed, and How wide the gap is between what is expected and what is being delivered.

Once the problem has been identified and assessed, the employer should organize a meeting with the employee to discuss the problem. The employer should let the employee know the purpose of the meeting in advance so they can adequately prepare for the meeting. The employee should be allowed to bring a support person of their choice or a union representative to the meeting. Employers working at best practice will inform the employee that they can bring a support person as a matter of process.

Step 3 Meet with the employee to discuss the problem

It is important that the meeting takes place in private and in an environment that is comfortable and non-threatening, away from distractions and interruptions. The employer should begin by holding a discussion with the employee to

explain the problem in specific terms. From this conversation, the employee should be able to clearly understand:

What the problem is why it is a problem How it impacts on the workplace, and why there is a concern. The employer should discuss the outcomes they wish to achieve from the The meeting should be an open discussion and the employee should have an opportunity to have their point of view heard and duly considered. The employer should listen to the explanation of why the problem has occurred or to any other comments the employee makes. When having this type of meeting, it may be useful in facilitating discussion

meeting.

to refer to recent positive things that the employee has done to show them that you also recognize and appreciate their strengths.

Key points for employers to remember when holding the meeting are to:
Talk about the issue and not the person explore the reasons why there is an issue clarify details Stay relaxed and encouraging, and Summarize to check your understanding of the situation.

And, when discussing shortfalls in any area, it is important to check that the employee:
Is aware that it is a task that is required of them has been shown what is required Understands the gap between what is happening and what is required.

Step 4 Jointly devise a solution

Where possible, it is important that a solution is jointly devised with the employee. An employee who has contributed to the solution will be more likely to accept and act on it. When working out a solution, the employer should:

Explore ideas by asking open questions emphasize common ground Keep the discussion on track Focus on positive possibilities, and

Offer assistance, such as further training, mentoring, flexible work practices or redefining roles and expectations. A clear plan of action should be developed with the employee to implement the solution. This can be in the form of a performance agreement or action plan. A performance agreement or action plan can: Reflect an understanding of performance expectations and what is to be achieved over the specified time period (performance improvement milestones) Clarify roles and responsibilities of the employee Include strategies for training and career development

Include timeframes for improvement (these may vary depending on the

issue and needs of the business, however it is important to give an employee adequate time to improve their performance)

Reinforce the value and worth of the role being performed.

A date should be set for another meeting with the employee to review progress and discuss the employees performance against the agreed action plan. The employer should keep a written record of all discussions relating to underperformance in case further action is required. Generally, it may also be used as evidence if legal action is taken about the matter.

N.B. When devising a solution, make sure it is clear and easy to follow and does not rely on performance-management speak. Use everyday language to avoid alienating both managers and employees. For example, if terms such as KPIs (Key Performance Indicators) arent part of everyday language, dont use them in performance discussions and agreements.

Step 5 Monitor performance

The employer should monitor the employees performance and continue to provide feedback and encouragement. A meeting to review and discuss the employees performance should be held even if there is no longer an issue. This enables both parties to acknowledge that the issue has been resolved. The employer should provide both positive and negative feedback to the employee and should work with the employee to ensure that performance improvements are sustained. More serious action may need to be taken if the employees performance does not improve including further counseling, issuing formal warnings and ultimately if the issue cannot be resolved, termination of employment.

Common Performance Issues

The following table (overleaf) provides a summary of common issues faced by employers and employees when managing performance and identifies key ways to improve performance management systems in the workplace.

COMMON PERFORMANCE ISSUES

ISSUE
Employee does not undertake work as required, showing signs of apathy and laziness Inappropriate job fits Employee appears not to understand job requirements or directions Personal or external issues Job content and design

POSSIBLE CAUSES

ACTIONS
Begin with informal performance discussion Be clear about the performance requirements and

expected contribution of the role to the work of the business

Focus on interest in work tasks and how they

might be improved
Explore options for opportunities in other areas of

the business, if possible

Refer to counseling service if personal

circumstances are impacting performance

 Begin performance improvement process starting with

Employees will not follow directions or perform tasks as required

Failure to understand what is

informal discussions around what is required in the position. Look at possible options for training and development if a skill deficit is identified Commence formal Performance Management process if no improvement forthcoming

required

Inability to perform tasks Personal issues

Employees fail to acknowledge that they are underperforming

Performance issues have not been adequately explained

Re-establish expected outcomes, use evidence of how performance has failed to meet expected standards, explain the impact of this on the success of the business If necessary commence formal performance management process Identify training and development opportunities as part of performance Improvement plan

Process has not been adequately applied Employee does not accept management assessments

Employee does not complete work tasks to the required standard

If employee fails to develop required skills, progress

Lacks the required skills and capabilities

through performance management process to possible options such as reassignment of duties, or transfer to another area to achieve a better job fit (if possible) Review recruitment practices to ensure appropriate selection decisions are being made

Employee is cynical of work environment

Has become disillusioned with

Establish team culture based on respect and support

and tasks, bringing negative opinions to the work environment

the work environment

Re-establish role of the position, and the value of outcomes delivered by the organization If possible, explore opportunities for career transition and movement

Fails to understand value of

work being undertaken

Employee is regularly absent without cause

Job content & design Inappropriate job fit Management style Personal or workplace issues

Identify cause behind absenteeism Explore possible strategies for job redesign, job fit, changes to working arrangements, management of health issues Re-establish expectations of attendance

Checklist for employers when managing underperformance

Ensure employees clearly understand what is expected of them Clearly identify and then assess the problem Organize a meeting with the employee to discuss the problem

Give the employee time to prepare for the meeting Allow the employee to bring a support person to the meeting

Conduct the meeting in a private, non-threatening, comfortable and quiet Define and explain your concerns to the employee in specific terms Give the employee a genuine opportunity to respond before

location

considering your actions

Where an employees performance is suffering due to the employees Clearly outline the improvement required and the consequences of Devise a solution with the employee to improve performance

personal circumstances, refer the employee to professional help or counseling continued poor performance

Develop an action plan which includes performance improvement Schedule another meeting to review the employees performance against Document all discussions, including actions to be taken Monitor the employees performance and continue to provide feedback Follow any steps set out in an applicable industrial instrument (such as a

milestones and time frames for further review. the agreed action plan

modern award or enterprise agreement), the employers policies and procedures and the employees employment contract concerning performance management