Performance management for SMEs webinar FAQs

There’s no legal rule on who must run it. The key is procedural fairness. Have clear reasons, a chance to respond and offer a support person. Managers can lead day to day and HR could step in where risk is higher or consistency is needed.

HR is not required to sit in. Manager-only meetings are fine if notes are kept and the employee can bring a support person. HR may be brought in for complex matters or if termination is being considered.

If you have a subscription to the HR Advisory service, we can provide guidance on how to proceed.

Warnings are part of performance management. Use them when the issue is clear and improvement is achievable. The key is telling the employee the problem, the consequences, and giving them a chance to improve.

Yes, if they accurately capture discussions. Best practice is to send a copy to the employee with wording such as, “Here’s a copy of the notes from our discussion for your record. We’ve reviewed it, and it covers all the key points discussed. If anything is inaccurate, please let me know by [X date].”

No. As long as you’ve already informally counselled the employee and documented your efforts, you can proceed to a PIP if issues remain unresolved.

Have another person present to take notes/be a witness. After the meeting, send an email summarising what was discussed and agreed on.

Document your performance management process in Employment Hero

Integrating clear and consistent documentation into your performance management process is key to protecting your business. Employment Hero makes this simple with our suite of performance tools.

Our platform provides a central, secure space to record every step of the process, from jotting down informal notes and performance conversations, to formal letters of underperformance and records of PIPs. Instead of managing scattered emails or handwritten notes, you can easily log meeting details, store supporting documents and track progress. 

With everything documented and organised within Employment Hero, you’ll have a complete record that supports fair decision-making and compliance. If questions arise down the line, you’ll have everything you need at your fingertips, reducing the risk of confusion and avoiding the dreaded “he said/she said” situations.

The manager can minimise risk by putting clear goals in place straight away. Without them, the employee could argue that goals are unclear, shifting or arbitrary. Having clear goals, along with weekly coaching and training, will make the process much more defensible in the event of a legal dispute.

Make goals SMART (specific, measurable, achievable, relevant, time-bound). Ask employees how they’d like to be supported and incorporate their input.

The examples we gave tended towards tasks because the performance management process is best used to deal with shortfalls relating to tasks.

For behavioural issues, the performance management process is not the best tool. If an employee’s behaviour is inconsistent with employer expectations, it might be best addressed through informal counselling or, in more serious cases, formal disciplinary action.

Before taking formal action, it’s a good idea to obtain a medical opinion on:

• Whether the employee does have ADHD and/or autism.
• Whether there’s a material connection between the condition and punctuality.
• Given the role, what adjustments can be made and for how long.

Reasonable adjustments depend on the job and what can be accommodated. Common examples for ADHD include later start times or remote work.

You can manage performance, but expectations and support must be clear and adjustments considered. Otherwise, you risk a disability discrimination or general protections claim. A medical opinion can help clarify how the condition impacts performance and guide fair adjustments.

Only if the employee has first been told termination is being considered and has had a genuine chance to respond (“show cause”). Many employers hold a short follow-up meeting after considering the response.

Theft, fraud or assault are examples of “serious misconduct” that can justify summary dismissal, but a fair investigation and process are still required, including giving the employee a chance to respond.

Redundancy must be genuine. The role is no longer required and consultation obligations are met. Using redundancy to avoid performance management risks an unfair dismissal finding.

Yes.

• Employees: Performance management applies.
• Contractors: Not employees. Manage concerns according to the contracting agreement.
• Labour hire staff: Employed by the labour hire company, not you. Raise issues with the labour hire company.