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Performance Management and Employee Motivation


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Presentation by David Fox at the Tonkin Industrial Relations Summit on Performance Management and Motivation

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Performance Management and Employee Motivation

  1. 1. Presented by David Fox Principal Performance Management Doing it right! Review Act Perform! Assess
  2. 2. Do performance management systems motivate?
  3. 3. Advantages <ul><li>Recognition of the employee’s contribution to the team and business leads to higher levels of engagement and discretionary effort </li></ul><ul><li>Quality time between manager and employee </li></ul><ul><li>Clear visibility and understanding of what is required of the employee </li></ul><ul><li>Closure and goal completion creates energy </li></ul>
  4. 4. Disadvantages…if you get it wrong <ul><li>Unclear and/or unfair expectations leads to de-motivation and disengagement </li></ul><ul><li>Lack of equality in ratings and identification of high performers – leads to distrust in the process </li></ul><ul><li>Paper exercise that is time consuming and creates little value for the employee or organisation </li></ul>
  5. 5. Performance Management and Staff Morale <ul><li>Should you link performance to pay? </li></ul><ul><li>Should you link your annual performance review to your disciplinary process? </li></ul><ul><li>Can you afford not to? </li></ul>
  6. 6. Remember… <ul><li>High performers do not appreciate carrying the load of poor performers – especially if the organisation seems to be doing nothing about it </li></ul>
  7. 7. What is a KPI?
  8. 8. Using KPIs effectively <ul><li>Start with a job description- Why does this position exist? </li></ul><ul><li>Be clear on expectations of performance from the start </li></ul><ul><li>Ensure KPIs are measurable, achievable and relevant for the employee </li></ul><ul><li>KPIs and competencies- Are they the same thing? </li></ul><ul><li>How do you know that a KPI is fair? </li></ul><ul><li>Why should your employees want to achieve their KPIs? </li></ul>
  9. 9. Effective use of a probation period <ul><li>A probationary period is not automatic, employee’s must be notified in their contract or letter of offer. </li></ul><ul><li>Ensure you have the right to extend probation written in your contract </li></ul><ul><li>Qualifying period – 6 months for large employers, 12 months for small businesses (15 or less employees) </li></ul><ul><li>Set clear KPIs/ objectives for the first 6 weeks to 3 months. </li></ul><ul><li>At induction ensure that lines of open communication are established to ensure any issues are raised immediately and not held off until 6 week formal review. </li></ul>
  10. 10. Continued <ul><li>Review at 6 weeks. Handle any issues immediately. Don’t wait! </li></ul><ul><li>Should a performance issue arise you must inform the employee that there is a chance they will not pass probation. </li></ul><ul><li>Move to terminate employees who are clearly not meeting the performance standards or are not fitting in culturally during a probation period before they become permanent staff. </li></ul>
  11. 11. Getting a poor performer back on track <ul><li>Personal experience shows that you have to nip it in the bud </li></ul><ul><li>Waiting and hoping it goes away is never an option </li></ul><ul><li>Formal, verbal feedback is critical in avoiding Performance Management problems </li></ul><ul><li>Addressing performance issues will achieve one of two things: </li></ul><ul><ul><ul><li>The employee will leave of their own accord </li></ul></ul></ul><ul><ul><ul><li>The employee will step up to the expected standard </li></ul></ul></ul>
  12. 12. Continued <ul><li>Mini performance reviews should be done on a monthly basis </li></ul><ul><li>Use your organisation’s Performance Management System </li></ul><ul><li>Show your concern and be open to feedback from the employee about any potential organisational or team issues </li></ul>
  13. 13. Understanding the legalities behind Performance Management <ul><li>You must ensure that you follow any existing company policy or procedure </li></ul><ul><li>Procedural fairness is critical </li></ul><ul><li>Train your managers to ensure consistency of dealing with performance and conduct issues across your business </li></ul><ul><li>Don’t treat different employees with the same crime differently </li></ul><ul><li>Be aware of any terms regarding Performance Management in the employee’s contract or an Award </li></ul>
  14. 14. Continued <ul><li>Ensure your workplace policies are not directly tied to your employee’s employment contract </li></ul><ul><li>Employee’s could technically sue for Breach of Contract if you do not follow the terms of their contract which is outside the Unfair Dismissal Laws </li></ul><ul><li>However, ensure your policies and contracts are not too specific so that you can manage on a case by case basis </li></ul>
  15. 15. Warning Systems - lessons from kindergarten <ul><li>Can you go straight to a final warning (red)? </li></ul><ul><li>The difference between conduct and performance warnings </li></ul>
  16. 16. Dismissal Checklist <ul><li>Consider these before you dismiss an employee: </li></ul><ul><ul><li>Is the performance issue valid i.e. is it within the employee’s full control? </li></ul></ul><ul><ul><li>Can you prove the performance issue? </li></ul></ul><ul><ul><li>Have you stressed enough that the performance issue may lead to further disciplinary action up to and including dismissal? </li></ul></ul><ul><ul><li>Have you given the employee a reasonable time to improve an provided support? </li></ul></ul><ul><ul><li>Did you inform the employee of their right to have a support person present? </li></ul></ul><ul><ul><li>Have you considered alternatives to dismissal i.e. stepping down, demotion, transfer to another department or position? </li></ul></ul>
  17. 17. Questions and Answers (if you lucky)