Making Performance Management a priority

New "fair dismissal" laws aim to ensure that good employees are protected whilst underperforming employees are managed with fairness and confidence.

Making Performance Management a priority

The Federal Government is introducing new “fair dismissal” laws as part of their workplace relations system, coming into effect from 1 July 2009. Under the previous legislation (Work Choices) employees in businesses with up to 100 staff could be dismissed for any reason without the right of challenge. These employers only had to demonstrate that the dismissal was for “operational reasons” and the employee had no recourse to challenge the decision.

The new Government argued that this was too harsh and unfair. It was argued that Work Choices created feelings of insecurity for employees and substandard performance management practices in businesses who chose to use the “operational reasons” clause.

Preparing for the new rules

The objective of the new legislation is to ensure that good employees are protected whilst underperforming employees are managed with fairness and confidence. In preparation for the implementation date of 1 July, we encourage organisations to examine and, if necessary, upgrade their Performance Management practices.

Specifically you need to ensure that:
  • Each staff member understands what is expected
  • Expectations are supported by ongoing verbal communication and feedback
  • Each staff member’s performance is formally reviewed at the end of each performance cycle (i.e. annually)
  • Specific action plans are established for those employees who exhibit substandard performance. These plans should allow adequate time for correcting performance. Timeframes should be agreed and discussions documented.

Worthwhile for many reasons

Organisations that excel at Performance Management provide clarity and transparency regarding expectations (what needs to be done) and ensure that the behaviours that support how things should be done are clearly understood.

The benefits of auditing and enhancing your organisation’s Performance Management system are much greater than achieving compliance with legislation. Extensive research indicates that clear expectations, positive feedback, understandable improvement communication and on the job coaching are critical drivers of superior employee performance.

People Axis would be delighted to support you in auditing and enhancing your organisation’s Performance Management system as you prepare for the new workplace rules. For more information e-mail us on info@peopleaxis.com.au.