Answers to questions MyHR receives from its members about the performance management process and how to deal with poor employee performance or behaviour.
Questions covered:
Some suggestions are:
What can you (or your business do) to make your team feel more connected, autonomous, or competent?
For further reading, you might enjoy Drive, by Daniel H Pink or read our blog post on strategies for motivating employees.
Toxic behaviour at work is bad for everyone – leaders, colleagues, direct reports, and customers – and ultimately bad for the business and your bottom line.
In dealing with an employee's toxic behaviour, you’ve got a few options:
For further reading, you might enjoy The No Asshole Rule, by Robert Sutton, or watch this TED talk about why civility is good for business.
Finding that balance is always tricky – micromanaging is often demotivating for employees (and very time-consuming for managers!).
Expect that some of your staff will always need a bit more support and guidance, especially if they’re new to the business. Some of these needs will reduce over time, as they become more confident, but depending on their own confidence and skill levels, you might find yourself always working more closely with a couple of your team members.
In terms of guarding against staff taking advantage, your best tool here is to set clear, measurable outcomes/targets/deliverables against which they can be held accountable.
If they’re consistently not delivering, then you can start addressing their poor performance quickly and clearly – they’ll either get it together and lift their game, or their employment will ultimately end (either because they’ve decided to move on, or because you’ve let them go at the end of the process).
For further reading, you might enjoy learning about situational leadership – an oldie but a goodie.
It depends on why they’re getting upset. For example, some people cry when they feel frustrated or annoyed – it’s not because they can’t carry on with the conversation, but it can definitely look like that to others!
However, if someone is experiencing extreme distress (whether from factors at or outside of work), you’ll need to manage this with care and compassion.
Getting upset is also a natural reaction to challenging circumstances – it doesn’t necessarily mean that you are “being mean”, or doing something wrong. As long as you manage it kindly, don’t let it deter you from having the conversation that you need to have.
I’d suggest:
It’s reasonable to provide support and accommodate your employees’ preferences, but don’t let tears or anger put you off doing what needs to be done. Agree on a pathway forward, then deliver.
All of us have different working styles: some of us are more direct/blunt, and others are more softly spoken/sensitive.
There’s nothing better or worse about any particular working style – different approaches are more suited to certain situations, and certain people, than others.
Figuring out how your employees like to be managed is a key management and leadership skill.
Some people want direct, immediate feedback – others will prefer to receive feedback in writing so that they can process it and reflect before discussing it with you. Some people are motivated by having strong personal relationships with their colleagues and customers; others are motivated by doing interesting work that stimulates them and isn’t boring.
You might find it helpful to do a working styles exercise with your team – who likes to get immediately stuck in when tackling a work problem? Who prefers to spend time thinking first, before getting involved in the problem? Who’s the person to check in with everyone and keep team morale positive? Who’s the person who likes to hang out in the details, and who likes the big picture?
There are heaps of models out there – a few that I’ve used and would recommend include:
If this hasn’t been addressed with the employee before, then call them out on it. This might be an informal conversation, along the lines of:
I’d like to give you some feedback about your behaviour and conduct at work.
I’ve observed… [provide examples]
This behaviour is concerning to me because it brings the mood in the office down, it distracts people from getting things done, and it makes it harder for our managers to do their jobs because they’re navigating unnecessary and distracting noise.
Do you have particular concerns or frustrations that you’d like to provide me/the management team with feedback on?
If yes – great, let’s schedule time for this to happen.
Going forward, my expectations are that any frustrations, concerns, feedback, or opportunities for improvement are brought to me directly, so that I can help improve things, or so that I can escalate them to the appropriate person.
Are there any reasons that this wouldn’t work for you?
Sometimes the squeakiest wheels are the people with the most ideas for improvement, or the people who are particularly committed to your business, so you don’t want to shut them down entirely, but you do want to give them constructive channels for their energy and ideas.
If the behaviour continues, start using your performance management tools to address this with them.
Broadly, if an employee has been doing something untoward for a long time – in this case, not following company processes or procedures – then you need to have a discussion with them to reset expectations.
You’re not going to punish them for behaviour that’s been allowed previously, but you will hold them accountable for not meeting expectations going forward.
This could be along the lines of:
"Susan, I’m aware that you haven’t been keeping your pool vehicle tidy on a regular basis.
I know that the previous General Manager didn’t mind this, but our company policy is clear that keeping pool vehicles to a respectable standard is required. I think this is important for several reasons, including that it gives a good impression of the brand when we’re out and about visiting customers.
Going forward, my expectations are that your pool vehicle is clean and presentable, beginning next week. Is there any reason this wouldn’t be achievable?"
Once you’ve made your expectation clear, you can then hold them to account. If they don’t do what’s required, you can start using your performance management tools to address the situation.
First, well done on measuring performance in your team/business. This is the first step to doing something about it!
I’d begin by treating them as an ally, and assuming that they’re operating in good faith to improve the business and deliver the necessary results. Have a conversation with them about your plans or goals for the next quarter/year, ask for their feedback about what would need to happen to achieve these goals, and set clear goals/objectives/targets for them to achieve and be responsible for that moves your business in the right direction.
Establish regular catch-ups, with clear milestones and goals. It’s a lot harder to hide in a week-to-week setting, than it is over several weeks and months. Ask what’s going well, what needs to change, and hold them accountable for what they’ve said they would deliver.
If performance starts to improve – great! That’s the outcome that you’re looking for.
If performance slips, or doesn’t improve - you’ve now got the paper trail to have tough conversations, make improvements where needed, provide training or support (if appropriate). And, ultimately, move this person on if they’re not right for the role.
Read our post on managing employee underperformance.
Absolutely. I’d recommend all managers have at least monthly one-on-ones with their direct reports, for that exact reason: to raise any niggles or concerns before they get blown up, provide coaching or guidance, connect them with the right people and resources for them to do their jobs, celebrate wins, etc.
No differently to the way that you’d manage it with someone who works onsite with you.
What will be key to your success is having clear outcomes/deliverables/targets for this person to achieve. If they’re not getting there, offer support and guidance, and if they continue to fall short, start your performance management process.
Good question. Absence from work isn’t a performance issue – if someone is repeatedly showing up late (with or without letting you know that they’re running late), or repeatedly missing shifts, that’s a conduct issue, because it reduces your trust and confidence in them as an employee.
If someone is repeatedly absent for “legitimate” reasons – sickness is the most common – then you’ll need to manage that in other ways, for example, agreeing with them that they’ll work reduced hours while they’re managing their health issue.
It all depends on whether the issues are relevant to the person's role and are causing problems with the tasks that they’re responsible for.
If so, they would amount to poor performance.
On the other hand, if a barista had poor spelling, but was only required to read coffee orders printed off the point-of-sale machine and didn’t ever need to write anything down, then it wouldn’t be fair to discipline them for a skill that wasn’t relevant to their work.
If you’ve already tried to resolve the issue, it sounds like a Performance Improvement Plan (PIP) or potentially a disciplinary process may be the appropriate next step.
It's important to be understanding and empathetic at work – are there accommodations you could reasonably make for this person? If they’re having a tough time being civil to their colleagues because of something happening in their personal life, could they work from home for a period of time and reduce contact with their colleagues?
Regardless of the reason for them (personal circumstances or otherwise), if these issues are persistent, negatively affecting the person's work and/or work relationships, then it sounds like it’s time to start formal performance management.
A Performance Improvement Plan (PIP) could be a good place to start.
Depending on their behaviour to date, you may need to prepare yourself for a hostile or aggressive response. Stay calm, don’t blame them, but reiterate that their performance/behaviour at work is not acceptable, and you need to see positive changes.
It sounds like there are two issues here: a conduct/behavioural issue, and a performance/output issue.
I’d tackle the conduct issue first – there’s no legal risk to doing it either way, I just think this will be most effective.
Broadly, if an employee has been doing something untoward for a long time – in this case, being snarky, distracted, reluctant to take on training and feedback – then you need to have a discussion with them to reset expectations. You’re not going to punish them for behaviour that’s been allowed previously, but you will hold them accountable for not meeting expectations going forward.
"[NAME], you’ve been in this business a long time, and I respect the knowledge and skills that you bring to the table
After working closely with you for a few months, I’d like to give you some feedback about your behaviour and conduct at work.
I’ve observed… [provide examples]
This behaviour is concerning to me because… [outline the reasons it makes life harder than it needs to be]
Do you have particular concerns or frustrations that you’d like to provide me/the management team with feedback on?
If yes – great, let’s schedule time for this to happen.
Going forward, my expectations are that you communicate appropriately and positively with myself and your colleagues, and bring any concerns that you may have to me directly, so that I can address them or bring them to the appropriate people
Are there any reasons that this wouldn’t work for you?"
Give it a week or two, then tackle the performance issue.
Have a conversation with them about your plans or goals for the next quarter/year, ask for their feedback about what would need to happen to achieve these goals, and set clear goals/objectives/targets for them to achieve and be responsible for that moves your business in the right direction.
Establish regular catch-ups, with clear milestones and goals. Ask what’s going well, what needs to change, and hold them accountable for what they’ve said they would deliver.
If performance starts to improve – great! That’s the outcome that you’re looking for.
If performance slips, or doesn’t improve - you’ve now got the paper trail to have tough conversations, make improvements where needed, provide training or support (if appropriate). Or, ultimately, move this person on if they’re not right for the role.
Typically, you don’t need a third person present for informal discussions with employees about their performance.
But there are some benefits to having a third person present, including:
The downsides include:
It depends on your comfort level, and on your employee’s comfort level. If it’s useful and serves a purpose, go ahead – if not, consider keeping it to just the two of you.
Firstly, I recommend you read our blog post that outlines the necessary steps in a disciplinary process.
Regarding investigations – this is where the terminology gets a bit tricky.
An “Investigation”, with a capital “I”, is a full-blown employment law process. You must provide terms of reference to all parties concerned, all interviews and evidence must be provided to all parties and a final report written up that provides the conclusions of the investigator. If your investigation is conducted by an external party, they must be a licensed private investigator.
Most disciplinary matters will not require a full investigation.
However, as you prepare for a disciplinary process, you might “investigate” – as in, “look into” or “find information about” – the matters at hand.
This could include reviewing CCTV footage to see if you can spot your wayward employee eating the bar snacks, or comparing emails that your employee has sent you with the actions that they’ve actually taken with the customer who’s complaining about slow service… and so on.
It's perfectly fine to “look into” the matter as part of a disciplinary process, or when your employee provides you with their response and you need to go back and check more information. This doesn’t amount to an “Investigation” – you are just fact-finding.
I would take a step back and suggest that you don’t have legal grounds to terminate them after 3 months, regardless of how clearly you made your expectations.
NZ case law is very clear that, in most circumstances, employees must be issued at least two written warnings for poor performance/misconduct (through two separate disciplinary processes) before termination can be considered (through a third disciplinary process).
This typically takes between 3-6 months total, depending on what type of work they do, and how frequent the issues are.
Whether you’re considering a Formal Warning, Final Warning, or dismissal on notice for continued poor performance, in each instance you must go through a disciplinary process – it is not enough to say “if you don’t hit these targets in 3 months, you’ll be issued with a warning and lose your job”.
Yes, you can.
Confidentiality obligations go both ways – you can’t talk to someone’s colleagues about the disciplinary that you’re running with them, but equally they need to keep these processes confidential too.
It depends on the circumstances – yes, you could take them through another PIP, or, depending on the severity of the issues, you might be able to go straight to a disciplinary process (with the potential outcome either a Formal Warning, Final Warning, or dismissal on notice, again depending on the circumstances).
Yes, as a fair and reasonable employer, you do.
For example, if someone had a week off because their partner caught meningitis and needed intensive care, it wouldn’t be fair to include that week of absence as “failing” the PIP.
Serious misconduct is any behaviour or issue that significantly undermines your trust and confidence in the employee.
It’s often described as “you’ll know it when you see it”, and typically it’s a one-off issue – a drunken employee groping a younger staff member, the front-of-house staff stealing from the till, a tradie failing to wear correct PPE in a hazardous environment, showing up to work intoxicated etc.
Examples of more chronic issues that would typically be serious misconduct include bullying, fraud (e.g. your office manager is skimming off the tops of accounts receivable for months), serious negligence, repeated and consistent failures to follow company policies and procedures, and so on.
Read our blog post on handling serious misconduct.
Ultimately, you don’t have to support an employee’s absence from work forever.
Case law has established that the default length of time you’re expected to support an absence from work is about 12 weeks, but you can specify a shorter period of time in your employment agreements (MyHR defaults to 5 weeks' absence in our standard employment agreements for clients).
You’ve got a few options:
The right choice will depend on what you want to prioritise – being a kind employer versus getting someone in the seat who can reliably do the work.
Read our blog post on managing sick leave.
Again, the default length of time you’re expected to support an absence from work is about 12 weeks (established by case law), but you can specify a shorter period of time in your employment agreements, e.g. 5 or 6 weeks' absence.
Check what the person's employment agreement says before you proceed.
Unless the subject of the “outside of work discussion” was serious - e.g. alleged bullying, harassment - I’d be inclined to leave it alone.
Employees are absolutely entitled to speak about issues outside of work – you certainly can’t punish them for talking about work if a member of the management team wasn't present.
If your director is gung-ho about saying something, ask them to consider how it will sound to these employees. If you already know that they felt uncomfortable speaking to management about their concerns, how will they feel when the director tells them it’s not acceptable to have these discussions or asks what was discussed?
Broadly, this sounds like a trust issue to me, and that kind of behaviour will further undermine their trust and confidence in the director (if not the whole workplace).
Without knowing the details, I’d suggest having a look at why they might not have felt comfortable raising their concerns with management. Are there changes you can make here? Have your leaders made promises before and underdelivered? Is there a “bad actor” on the management team that makes your employees feel nervous or uncomfortable?
Focus on being good employer and managers, and this kind of stuff is likely to die down.