Managing underperformance: From informal support to formal performance management

Read the full series:

Part 1: Managing underperformance: How to identify and address underperformance early

In the first article of this series, we explored how Bright Build Supplies responded when performance concerns first emerged regarding its Customer Accounts Officer, Alex. Rather than immediately taking formal action, the business:

• Investigated the concerns
• Identified a training gap following the introduction of a new accounting system
• Provided additional training
• Updated procedures
• Conducted coaching discussions aimed at improving performance.

Despite training and support, Alex’s delays, errors and missed follow-ups continue, increasing workloads and disrupting the accounts team. After consulting HR, Alex’s manager moves to formal performance management. The process aims to clarify concerns and expectations and give Alex a structured opportunity to improve.

Preparing for the formal discussion

Before meeting with Alex, Bright Build gathers evidence of the ongoing concerns including examples of delayed invoice processing, records of data entry errors, missed follow-up actions and notes from previous coaching discussions. The business also compiles records showing the training and support provided.

The focus remains on objective performance outcomes and specific examples to help ensure the discussion remains constructive and focused on the issues that need to be addressed.

Alex is invited to attend a formal performance discussion and advised of the purpose of the meeting. Bright Build also informs Alex that a support person may attend if desired.

Discussing the concerns

During the meeting, Alex’s manager outlines the ongoing performance concerns using specific examples. The manager also explains the impact these issues are having on the business, including delays, inefficiencies and additional work for colleagues.

Agreeing on an improvement plan

Following the discussion, Bright Build and Alex agree on a structured plan for improvement.

Rather than using broad statements such as “improve performance”, the plan establishes clear and measurable expectations linked directly to Alex’s role.

The plan should clearly identify:

• The areas requiring improvement
• The standard that must be achieved
• How performance will be measured
• Any support that will continue to be provided
• Review dates and monitoring arrangements.

Clear expectations help ensure both Alex and their manager understand what successful performance looks like.

Monitoring progress

Over the following weeks, Bright Build conducts regular review meetings with Alex to assess progress against the agreed objectives.

These meetings provide an opportunity to discuss improvements, address any ongoing barriers, provide feedback and review performance against the agreed standards. Outcomes should be documented throughout the process, including examples of improvement, continuing concerns and any additional support provided.

Importantly, the outcome should not be predetermined. The purpose of a formal performance management process is to provide the employee with a genuine opportunity to achieve and maintain the required standard.

What happens next?

In the final article of this series, we will examine what employers should consider before making decisions about continued employment, and the procedural fairness obligations that become increasingly important when performance issues remain unresolved.

How the Victorian Chamber can assist

Victorian Chamber members can access support with performance management strategies, performance improvement plans, written warnings, procedural fairness requirements and termination risk management. Where matters are more complex or require hands-on assistance, enquiries can be escalated for tailored advice and support. Contact the Workplace Relations Advice Line on 03 8662 5222.