In this well received webinar we will discuss the building blocks of performance management including the importance of defining expectations through job descriptions, policies and performance reviews. You will learn how to properly counsel and discipline employees, as well as when and how to terminate employment if necessary.

1. Performance Management
For Your Human Capital
Presented by:
Dawn Davidson Drantch, Esq., In-House Counsel
&
Bob Chanin, Director of Human Resources

2. This program has been approved for 1 General recertification credit hours toward
PHR, SPHR and GPHR recertification through the HR Certification Institute. To
receive a certificate of completion, please email: marketing@alcottgroup.com
with your request.
© 2012 Alcott HR Group LLC

3. About Alcott
 We are a Professional Employer Organization (PEO)
providing outsourced human resource services, support and
administration to small and mid-sized companies
 More than 25 years in business
 Accreditations:
- Employer Services Assurance Corp (ESAC)
- Certification Institute for
Workers’ Compensation Risk Management
 Industry Leadership
- NAPEO/NYSAPEO
- ESAC Board of Directors
3 © 2012 Alcott HR Group LLC

4. PERFORMANCE MANAGEMENT
The organized method of monitoring results of work
activities and collecting and evaluating performance to
determine achievement of goals, and using
performance information to make decisions, allocate
resources and communicate whether objectives are
met.
-Society for Human Resources Management, Performance Management Toolkit
4 © 2012 Alcott HR Group LLC

5. What We Will Cover
• Benefits of Performance Management
• Defining the Relationship
• Defining Expectations
• Counseling and Discipline
• Performance Reviews
• Points to Remember
• Questions
5 © 2012 Alcott HR Group LLC

6. Performance Management
BENEFITS OF PERFORMANCE
MANAGEMENT

7. Benefits of Performance Management
• Corporate success
– Employee retention
– Defined expectations
– Positive working environment
– Motivated workforce
• Individual success
– Motivation
– Achievement of goals
7 © 2012 Alcott HR Group LLC

8. Performance Management
DEFINING THE RELATIONSHIP

9. Defining the Relationship
• Employment-At-Will
• Employment Agreements
• Collective Bargaining Agreements
• Commission Agreements
9 © 2012 Alcott HR Group LLC

10. Performance Management
DEFINING EXPECTATIONS

11. Defining Expectations
• Handbooks/Policy Manuals
• Sets tone of workplace
• Consequences of non-compliance
• Job Descriptions
• Define major and minor responsibilities of position
• Indicate how position fits into workplace
• Appropriate and timely feedback, counseling and discipline
• Basis for performance review
• Performance Improvement Plans
• Sets expectations and goals in short, defined time period
• Performance Reviews
• Summary of feedback throughout year
• Define expectations and goals for next year
11 © 2012 Alcott HR Group LLC

12. Performance Management
COUNSELING AND DISCIPLINE

13. Counseling and Discipline
• Ranges from simple counseling to formal disciplinary
procedures
• Be careful with progressive discipline policies
• Should be able to terminate at any time
• Should not require employer to follow to the letter
• Fair, even-handed, consistent, non-discriminatory,
contemporaneous
13 © 2012 Alcott HR Group LLC

14. Counseling and Discipline
Counseling
• Praise in public/criticize in private
• Allow employee chance to explain
• Open door policies
• Immediate feedback
• Do not make excuses for employee’s action or inaction
• NO THERAPISTS!
14 © 2012 Alcott HR Group LLC

15. Counseling and Discipline
Discipline
• “Hot Stove Rule”
• Should happen very quickly after infraction
When considering discipline, ask yourself the following
questions…
15 © 2012 Alcott HR Group LLC

16. Counseling and Discipline
• Was there a rule, order, procedure or known performance behavior
expectation (a “workplace rule” or “order”)?
• Was the employee aware of the workplace rule or order?
• Has the workplace rule or order been enforced in the past?
• Was the employee forewarned of possible consequences of his/her
conduct?
• Before administering discipline, was an effort made to discover whether
the employee did, in fact, violate or disobey the workplace rule or
order?
• Was the investigation conducted fairly and objectively?
• In the investigation, was sufficient evidence obtained against the
employee to prove “guilt”?
• Has the workplace rule or order been enforced consistently and without
discrimination?
• Is the workplace rule or order reasonably related to the operation of
business? Is the penalty appropriate to the offense?
• Are there other employees with records of worse offenses who are a
lower level of the disciplinary process?
16 © 2012 Alcott HR Group LLC

17. Counseling and Discipline
The answer to all questions except the last must be “YES”,
and the answer to the last question must be “NO”.
17 © 2012 Alcott HR Group LLC

18. Counseling and Discipline
Verbal Counseling (first level or minor infraction):
• Make time to meet (in private)
• Have witness present
• Explain verbal warning, the infraction, the consequences if
repeated
• Make note to file documenting “verbal” warning
18 © 2012 Alcott HR Group LLC

19. Counseling and Discipline
Written Counseling (next level or more than minor
infraction):
• Discuss in private with witness present
• Warning should include:
• Date of warning, date of infraction
• Employee’s name, supervisor’s name
• Specific facts about infraction (including dates of prior
infractions if applicable)
• Consequences for future infractions and/or failure to
improve
• Signature line for employee indicating receipt
• Signature lines for supervisor and witness
19 © 2012 Alcott HR Group LLC

20. Counseling and Discipline
Documentation:
• Employee acknowledgement
• If employee refuses to sign have him/her write “I refuse to
sign” on the document and date it = acknowledgement!!
• If they refuse to do that, manager should write “refused to
sign”, sign it and have witness sign
• Bad documentation is worse than no documentation!!
20 © 2012 Alcott HR Group LLC

21. Counseling and Discipline
Performance Improvement Plans:
• Issues and deficiencies
• Assistance from supervisor
• Steps that employee agrees to follow
• Goals
• Time frame for follow up
• Consequences of non-compliance
• Follow-up is critical otherwise employee is left with
impression that performance is satisfactory
21 © 2012 Alcott HR Group LLC

22. Counseling and Discipline
Suspension:
• Must be given in written format to employee (follow
guidelines for written warnings)
• Be careful of wage and hour laws for exempt employees
• Can also be “pending investigation”
22 © 2012 Alcott HR Group LLC

23. Counseling and Discipline
Termination (employee cannot be rehabilitated):
• Violent behavior/threats of violence
• Drug or alcohol use while on duty
• Having weapons on company property (state specific)
• Disregarding major safety rules
• Theft, destruction, falsification of company property or
documents
• Gross or repeated insubordination
• Repetition of unacceptable behavior or performance after a
series of warnings and discussions
23 © 2012 Alcott HR Group LLC

24. Counseling and Discipline
• All verbal warnings and counseling should be documented
• Always advise employees of consequences of non compliance
with corrective action
• If a performance improvement plan or time frame is given for
improvement, make sure the time frames are adhered to
• If termination is enumerated as the next step, it should be the
next step
24 © 2012 Alcott HR Group LLC

25. Performance Management
PERFORMANCE REVIEWS

26. Performance Reviews
Useful For:
• Training and development
• Employment decisions, compensation decisions and bonuses
• Promotions/demotions
• Layoffs
• Transfers/terminations
26 © 2012 Alcott HR Group LLC

27. Performance Reviews
To Be Effective:
• Established process
• Regular, timely and fact-based
• Accurate, consistent, objective
27 © 2012 Alcott HR Group LLC

28. Performance Reviews
Should Contain:
• Summary of accomplishments or lack thereof
• Goals, deadlines, expectations and measurements
• Clearly communicated expectations
• Realistic measurements and learning curves (S-M-A-R-T)
• Constructive criticism
• Positive reinforcement
• Expectation reinforcement
28 © 2012 Alcott HR Group LLC

29. Performance Reviews
Appraisal Pitfalls:
• Relying on memory
• Biases (“Halo” and “Devil” Effects)
• Basing current performance on past performance
• Overrating a poor performer as a motivational tool
• Rushing through appraisal
• Non-truthful information
• Not encompassing entire review period performance
• Surprises
29 © 2012 Alcott HR Group LLC

30. Performance Reviews
• Someone other than appraiser in upper management
should review and sign off on final appraisal before
appraisal meeting (e.g., HR manager, next level
supervisor, etc.)
30 © 2012 Alcott HR Group LLC

31. Performance Reviews
Consider employee self-appraisals:
• Use same criteria as supervisor
• Submit in advance to supervisor
• Aids in agreement on workable goals
• Common ground and easier preparation for appraisal meeting
• Produces additional information
31 © 2012 Alcott HR Group LLC

32. Performance Reviews
Appraisal Meeting:
• Make time/undivided attention
• Separate positive from negative
• No surprises
• Compensation discussions should be separate
32 © 2012 Alcott HR Group LLC

33. Performance Management
POINTS TO REMEMBER

34. Points to Remember
• The key to ALL performance management is good communication
• Manager to employee
• Employee to manager
• Employee to employee
• Address performance not the personality
• Make the time
• Make it routine
• Know when to step in
• Hearing v. listening
• Proactive v. reactive
34 © 2012 Alcott HR Group LLC

35. If you would like additional information about Alcott HR, and how we can help
your organization grow, please call 1-888-4ALCOTT or email:
marketing@alcottgroup.com
© 2012 Alcott HR Group LLC