As discussed last week, managing an employee’s performance and providing feedback and support to improve performance can be a challenging process for all parties.

This week, we focus on how to minimise the risk of underperformance by proactively setting clear expectations, checking in regularly to make sure your employees are meeting those performance expectations, and correcting any issues early and proportionately.

So, what are the main myths about the performance review process?

Myth #1: A quick catch-up once or twice a year is enough

If an employee only hears about how they are performing once a year, there are bound to be some surprises in there. Many managers use the performance management system as an excuse to delay giving feedback until the formal review period, which can be problematic. The formal review period should be just that: a formal summary of status.

If employees are given feedback at appropriate times throughout the year, there should be no surprises. In other words, this should not be the first time an employee hears how he or she is tracking against goals and expectations. More regular check-ins will assist in a fairer and more reasonable and transparent process.

Myth #2: The confrontation avoidance approach

Ignoring or downplaying a performance issue can miss a golden opportunity to resolve productivity problems or help an employee excel in their role. Managers often mistakenly think that giving a performance review more favourable than the employee’s performance warrants will be a motivator – but instead it sends the signal that mediocre performance is acceptable.

Regular constructive and clear feedback can actually help motivate an employee to strive for greater mastery of their role, which can lead to improved engagement and satisfaction in their work.

It can create unnecessary conflict if the employee later receives a warning or is dismissed for poor performance after receiving overly ‘diplomatic’ or ambiguous feedback. It also creates greater risk for you if there is no record of performance reviews noting previous concerns.

Myth #3: Performance reviews take time away from ‘real’ work

Even if a performance management system is used reasonably well and employees are given appropriate feedback, the system can go awry if an employee needs to improve but does not clearly understand how to do so.

Be sure to allocate the necessary time for managers and employees to discuss what is needed and what each person is responsible for in the process. This isn’t just a compliance exercise – it can be a critical part of your business success.

The performance management system should have a clear path for employees to meet expectations and a clearly communicated plan for when they don’t.

We recommend asking some key questions to assist your business ensure a less risky and more effective performance review process.

• Do employees know what they are expected to deliver?
• Do employees know at all times how their performance is tracking?
• Do employees understand what they need to do to fix any performance problems?
• Are you providing sufficient and relevant support/training for success?
• Do employees know what will happen if they don’t meet performance expectations?

Next week's article in this series will address mitigating the risk of claims.

Read Part One: Common myths around performance management warnings

Read Part Three: Discussing and documenting employee performance

How the Victorian Chamber can help 

For assistance on any aspect of your employment obligations, please call the Victorian Chamber Workplace Relations Advice Line on 8662 5222. Our experienced team are here to give you over-the-phone advice about human resources or workplace relations issues.

We have a team of experts who can help your business navigate these complexities. We can assist your business by providing HR strategic advice to assist in minimising the risk of an unfair dismissal claim, or other claims, to the Fair Work Commission.