What Are the Laws Regarding Bonuses?

Employee Performance

How to Address Repeated Mistakes in Your Workplace

It can be frustrating if an employee repeatedly make mistakes. Sometimes mistakes can allow an employee to learn and grow within their role, but sometimes the mistakes may slow down workplace productivity or negatively impact other workers. So as an employer, how do you reasonably manage repeated mistakes? 1. Allow the employee to suggest a solution to their mistakes Often, it is not the fact a mistake occurred, but that it was inefficiently handled, causing stress and unease in the workplace. However, allowing your employee to suggest how they will amend the mistakes lets them proactively work out a solution and means they are less likely to repeat the mistake. 2. Provide further training if required Mistakes may occur due to the employee not fully understanding the requirements of their job, or how to adequately fulfil them. Provide training on the areas which the employee is struggling with, and even re-evaluate the training processes to ensure future employees do not experience the same issue in the future. Ensure the employee receives praise and encouragement when they are learning, as this reinforces the behaviour. Be as specific as possible when informing your employee of their mistakes and ensure your feedback is clear and precise. An employee who feels discouraged may leave the company if they do not understand how to improve. 3. Encourage questions An employee who is too afraid to ask for help or clarification, is bound to make mistakes. A workplace that encourages their employees to ask questions, is a workplace where an employee feels comfortable asking for help or assistance. 4. Will vs skill If an employee is not simply making mistakes, but is actively breaking company policy such as routinely being late to work, further action may need to be taken that can include a formal warning. When an employee is repeatedly breaking company rules, it may be a matter of will vs skill. The will vs skill matrix is a great way of determining whether your employee lacks the skills to excel at their job, or simply lacks the will to do so. An employee who lacks the skills can be trained and developed. An employee who lacks the will, will not excel in their role as they lack the desire to do so. If you have an employee who is repeatedly making mistakes in your workplace, Peninsula can help. Contact the team at Peninsula to discuss how best to manage your employees, so that your workplace does not suffer.

Employee Performance

The Importance of Performance Reviews

A performance review is a highly individualised, constructive conversation between a manager and an employee about performance, successes, habits, development, weaknesses, and growth. They are formal assessments of individual abilities and sets goals for future performance. They are also known as appraisals, performance appraisals, performance evaluations, or employee evaluations. Employee performance reviews can be really vital in retaining employees, offering career progression pathways, and improving team morale. What is a performance review? Performance reviews are formal conversations between employees and managers at set periods of time (quarterly, six months, yearly) to discuss how they feel employees are doing and how they can do better if needed. Managers and supervisors usually drive the conversation and there is a formalised process that may differ from company to company. While performance reviews are traditionally formal, companies are now looking to integrate them casually and conduct them more frequently. What is the point of a performance review? Performance reviews have been debated by many. They are deemed outdated, don’t work, and are not effective. But there is data to suggest that employees are looking for constructive feedback and opportunities to improve. So, what’s exactly the point of a performance review? Encourages managers to observe consistently- While managers do keep an eye out for performance, success, strengths, and weaknesses, having a formalised performance review can ensure they observe employees consistently and identify potential. Open opportunities for dialogue- Performance reviews act as an opportunity to have an open and honest dialogue among employees and managers. Employees want to know (and they deserve to know) where they stand in terms of performance. Act as clear pathways for career progression- Performance reviews will help provide clear pathways of career progression for employees. What’s next? What do they have to do to reach to the next stage? Addresses underperformance- No one likes having difficult conversations about underperformance. Managers sometimes avoid starting conversations with employees who are not performing well or just coasting by. Such discussions are tricky and sensitive, and managers may not feel ready and equipped to conduct them. What are common goals for a performance review? Finding the right formula for successful performance reviews is not easy. Your company’s size, industry, location, values, and work systems all play an important role. Performance reviews need to be customised to your goals and how growth looks for your employee, not a template or a singular rating system. What are some of the common goals for a performance review? Be objective Subjective performance reviews can hamper employee progress and damage manager-employee relationships. Performance reviews should be based on data available from a variety of sources such as project management tools, one-on-one notes, recent recognition, goal progress, etc. Every statement and piece of feedback should be propelled by data- not thoughts or opinions. Be transparent Employees can get anxiety around the performance review process and it’s natural. How can you reduce this anxiety? Involve them in discussions and planning. Be honest about how this process works. Provide them with a detailed, collaborative agenda that covers main points of discussion. You can also provide a snippet of what to expect so there are no surprises or shocks. Look towards the future While performance reviews consider past performance, it can also be disengaging and demotivating to be evaluated on something they can’t change or improve now. Use the review to reflect on the past but not to focus on it. Instead focus on what they can do in the upcoming months to progress or succeed. Reduce bias It’s quite normal for managers to have biases. One of the goals performance reviews should have is to reduce and eliminate these biases. Managers may not see remote workers regularly but that doesn’t mean they are not contributing. Having a performance review gives a chance to eliminate proximity bias. Further it can also help tackle recency bias, which is basing a review on an employee’s most recent performance while ignoring or dismissing earlier efforts. When to do a performance review? It honestly depends on your business, structure, capacities, and approach. Every team is different, so leaders should decide what schedule is most appropriate for their departments and employees. You can have company-wide reviews once or twice a year and team wide based on their needs. Informal reviews can be conducted any time. Set performance goals and expectations at the beginning of each year so employees and staff understand their KPIs and responsibilities. 10 words to avoid during a performance review Words carry a lot of power. Managers should be very careful about the way you communicate to your employees. The right words can motivate your employees and the wrong ones can negatively impact them. Performance reviews can be tough for your employees. When meeting with your employees you should make sure to be thoughtful, considerate, and approach conversations with tact. What are the words or phrases to avoid during a performance review? ‘I have no feedback’- This sentence can be disheartening and bring forth an impression of disinterest or ignorance. Every employee has things they do well and things they need to improve upon. If you say this or say ‘no feedback’ employees may feel you pay no attention to them or do not care enough about their work. ‘Always/Never’– Words like ‘always/never’ can be blanket statements and can be detrimental to constructive criticism. ‘You always do this’ ‘You never do this’ can make your employee feel like they are on trial. ‘I promise you’- Don’t make promises and don’t make threats. Our recommendation would be to completely avoid ‘If you do ABC, I promise you XYZ.’ ‘You’re a good employee’- Employees want to hear specifics and details. ‘You’re a good employee’ is so vague and generic. Get into the nitty gritty of why they are performing well, what do they consistently well on a daily basis. ‘Compared to’- Don’t compare them to other employees or yourself. No one wants to be compared to their colleagues and doing so will only produce resentment, mistrust, and jealousy. Stick to their individual accomplishments and compliment them on their individual strengths. ‘Quick review’- Imagine working somewhere for 6 months or even a year and then being told that you get a quick 10-minute performance review. Employees want to know you are willing to invest time and effort in their career and progress. ‘For a raise’- Avoid bringing up compensation in a performance review. This review should solely focus on skills, abilities, and aptitude. Combining pay and performance review will make the employee unwilling to learn or improve anything that isn't tied to monetary gains. ‘People have said/I have heard’- Performance reviews are not popularity contests or a place to discuss personal opinions. If you as a manager were not able to observe the employee’s performance first-hand then do not base your review on it. Peer feedback does play a role here but that should be collected formally and recorded officially, not based on verbal conversations or office gossip. ‘Lucky’- Calling your employees ‘lucky’ to achieve something or perform demeans their individual capabilities. It comes across as petty and condescending. ‘Bad/Terrible’- Similar to good, saying a particular project was bad or they performed terribly does not give them any information to work with. What specifically about the project/job was not up to company standards? How can they use that as a learning opportunity? Can an employee have a self-performance review? Employees can also self-evaluate their performance. This can be done in conjunction with company performance reviews or separately. It can be hard to see yourself and your performance from an objective point of view but think of the bigger picture. Writing a self-assessment is a great exercise to see if you can identify your strengths and weaknesses accurately. We all think we are working hard but is that work turning into something productive, relevant, and does it have meaning? Some questions to consider when you are writing a self-performance review or self-assessment: Did you accomplish anything notable? What mistakes did you make? What did you learn? Was there a time you took initiative at work? What do you hope to achieve by the next performance review? If your business has self-performance reviews, managers should carefully read them and give feedback as necessary. Otherwise, employees may feel it is a futile exercise. Employees will be expected to honestly evaluate their performance over the course of a fixed period of time or however long they have been in the role including strengths, weaknesses, areas of improvements, and accomplishments. Total HR and WHS support for your business Peninsula has been around for decades, providing Aussie businesses with resilient policies and procedures. Our services are tailored to suit your business and industry. No business is too big or small, no problem too stressful for us. Chat with us today to access tailored advice and services for your business.

Employee Performance

Tips, Tools and Tactics for Managing Poor Performance

It’s one of the hardest aspects of supervising staff or running a business: managing an employee’s poor performance. It’s a common headache for many employers that can strain personal and professional relationships while impacting the smooth operations of the business. There are right and wrong ways to address poor performance, and things can go wrong if not handled with care and respect to an individual’s unique circumstances. Fortunately, there are steps employers can take to manage the situation without impacting the working relationship. Regular performance reviews can assist in identifying any issues before they become larger and it is recommended employers deal with poor performance quickly, as the problem does not usually solve itself. Depending on the type of performance issue, this can be done in an informal or formal manner. Examples of poor performance Poor performance or underperformance is a person’s inability to do their job and failing to meet the standards required of the company. Poor performance can manifest in the workplace in a number of ways, such as: Inability to fulfil the standards and expectations of an employee’s role Failing to ensure work is completed within a required timeframe Repeated errors in work Some of these contributing factors are the responsibility of the employee. However, it is important to not assume an employee is intentionally underperforming, but instead find out why the employee is underperforming. Many cases of poor performance are unintentional. Sometimes an employee will be unaware they are underperforming and won’t change unless they are told otherwise. Common reasons for poor performance Many cases of poor performance come from a simple misunderstanding or lack of ability to satisfy the assigned role or position. Some cases are more complex and require a tailored approach to manage the situation. Some of the most common reasons for poor work performance include: Misunderstanding of standards and expectations for the job Not enough training or support Personal reasons or sickness Work-related stress Workplace bullying Low morale or job satisfaction When it comes to new employees who are underperforming, they might not fully understand the job description and performance expectations. In this case, extra guidance and support will help ease them into their role. If an employee is a long-term member who has performed well in the past, there could also be a deeper underlying issue needing to be addressed. How to manage poor performance Managing poor performance can be done through an informal or formal process. Depending on the type of performance and scale of the problem, one method may be more effective than the other. Not all cases of poor work performance need a structured process. Sometimes informal intervention is the quickest and most effective way to resolve minor issues. This may include: Giving verbal feedback on the spot Allocating a buddy to help the employee Providing extra coaching and mentoring Giving the employee a written list of tasks to manage their duties If an informal approach does not address the issue, it may be necessary to establish a performance improvement plan (PIP). Performance Improvement Plan (PIP) A Performance Improvement Plan is designed to give employees the support they need to improve their skills over a reasonable period of time. By encouraging an open dialogue and constructive feedback, both parties can work together to identify the key issues and work towards improving performance. Transferring, demoting or dismissing an underperforming employee If the PIP proves to be unsuccessful, there are a range of options that an employer may have open to them, depending on the circumstances. By mutual agreement, an employer may be able to transfer or demote the employee into a role more suited to their ability, or decide to terminate their employment entirely in accordance with correct procedure. In any case, an employer should be sure to follow the correct process and keep a record of all relevant information to avoid any chances of a claim against the business (for example, an unfair dismissal claim). Support is available Managing an employee’s poor performance is a tricky and often difficult task for managers and business owners. If you need support, advice or guidance in managing an underperforming employee or want to know your obligations, reach out to Peninsula today.

Employee Performance

Conduct vs Capability

Conduct at work is a separate issue to that of capability. It can be difficult to differentiate between the two. Employers must establish whether the employee is falling short of standards because of their capability or conduct before proceeding with formal action. Capability is when an employee is unable to achieve the expected standards of performance due to a lack of skill, ability, or training. Conduct relates to a person’s behaviour at work not reaching the required standards. The key difference is the level of control the employee has over the situation. When it relates to capability, the employee may be trying as hard as they can but simply cannot reach the expected standards. However, with regard to conduct issues, the employee could perform better but for whatever reason is choosing not to do so. Understanding conduct Some of the behaviours that may indicate poor conduct at work may include: theft, drinking or drug abuse at work, abusive behaviour, leaking confidential documents or information, misuse of computers, lack of punctuality, poor presentation, unauthorised absence, inappropriate conduct with other members of staff during office hours or outside work hours that impacts on the employee’s job. Understanding capability If there is a gap between the employee’s performance and the standards expected, then this is defined as a capability issue. Such issues should be drawn to the employee’s attention at an early stage and expected improvements, with measurable targets, should be laid out. The employee should feel both supported in improving their work performance and also understand the potential consequences if improvement is not attained with a certain time. As an employer, it is important to ensure that there is a consistent approach to the management of capability at work. The main aim with regard to capability issues is to ensure that, wherever possible, standards of work are reaching the performance levels required of the employee. All concerns about capability should be logged on personnel records and communicated to the employee as soon as possible. Capability should be assessed by measuring the employee’s skills, abilities and performance against clear standards and expectations. These expected standards of performance should have been communicated to the employee from the outset of their employment and be consistent with expectations of all employees in the same role. It may be that the employee needs extra support such as training in order to achieve the expected standards of work. Get complete HR support with Peninsula As Australia’s leading workplace relations specialist, we can assist you with understanding or managing poor conduct or poor capability of employees in your workplace. Contact Peninsula today to speak with our team members.

Employee Performance

The Problem with Presenteeism

Like delayed trains, broken down coffee machines and jammed printers, an employee calling in sick is an everyday event in working life. However, absenteeism is only a part of the picture when it comes to staff being unwell. For employers trying to run a productive and cost-effective business, presenteeism can pose a much bigger problem. What is presenteeism? Presenteeism is the act of being present at work without being productive, normally because of poor physical or mental health. Even if the term seems unfamiliar, presenteeism in the workplace is nothing new. If you’ve ever popped a few paracetamols and dragged yourself to work with a splitting headache, you’ve been involved in it yourself. Many employees feel the need to ‘show up’ for work despite being unwell due to anxieties about job security, or because of an unhealthy workplace culture in which sick days are confused with a lack of commitment. The problems of presenteeism When it comes to employers, is it better for sick employees to persevere and come to work, or stay at home and fully recover before returning? Most business owners would prefer the former. Why? Let’s explore some of the biggest problems that come with presenteeism. Reduced productivity: For your workforce to really be a force, your staff need to be fully fit. An employee who comes into work not at their best, either physically or mentally, is unlikely to maintain their normal job performance. This means you’ll be paying full wages for reduced productivity and work that’s strewn with unnecessary mistakes. The spread of illness: If an employee has a contagious illness like influenza or norovirus, it can quickly spread like wildfire through your workplace. In this case, one employee’s presenteeism can lead to multiple absences. Post-Covid, people are far more conscientious about containing the spread of disease and more likely to stay at home when unwell. However, there’s always somebody who feels the need to ‘soldier up’ at everybody else’s expense. Prolonged recovery time: It might sound simple, but the decision to persevere with work through an illness almost always delays the recovery process. Would you rather an employee had two days of paid sick leave and then returned to work ready to perform, or worked while sick for ten days at 50% of their normal productivity? It’s a no brainer. An employee who properly rests and recovers will return to their usual levels of productivity in the shortest possible timeframe. Digital presenteeism The trend toward hybrid and remote work arrangements has seen the rise of a new phenomenon known as ‘digital presenteeism’. You might think that the pressure to ‘show up’ for work when sick reduces in the world of remote work. However, working online can have the opposite effect. Because remote workers are out of sight, they tend to feel the need to prove their presence to managers and colleagues. This can result in an ‘always-on’ culture where employees feel obliged to stay online and respond to requests 24/7, even when they’re not well enough to do so. Additionally, working from home has seen the boundaries between work and private life blur, leaving many workers unable to switch off – metaphorically and literally. This lack of separation can lead to longer working hours and an increasing ability to switch off. The therapeutic work dilemma While most managers will almost certainly prefer physically unwell employees to stay away from work, employees with mental health issues are a more complicated matter. Work can sometimes help with mental health problems because it maintains routines, a sense of purpose and social connection. As such, an employee struggling with their mental health might choose to be at work for its health benefits, despite not being able to perform at normal levels. Small businesses can struggle to accommodate therapeutic work, firstly because of the financial loss that comes with paying an employee at the normal rate for reduced productivity, and secondly because the employee’s mental state may have a ‘ripple effect’ on other workers, impacting team morale and productivity on a broader scale. Therapeutic work creates a dilemma for business owners who are committed to supporting a mentally unwell employee but must balance this commitment with possible risk factors to the wellbeing of co-workers. Before you allow a therapeutic work arrangement, be sure to: Get a written recommendation from the employee’s GP, counselor, or mental health specialist. Make tailored adjustments to the employee’s role as needed. Regularly check in with the employee and ensure they have enough workplace support. If these measures are beyond your company’s means, therapeutic work might not be a workable option for your business. Practical steps for avoiding presenteeism If you want to avoid an unhealthy workplace culture and staff that subscribe to presenteeism, following these simple steps can help: 1. Clarify your position Adopting a ‘presenteeism-free’ culture can help nip the problem in the bud. Put your company position down in writing and include it in your employee handbook. You might even hold team meetings to discuss the issue and raise awareness. It’s wise to start by addressing presenteeism at senior management levels. CEOs and other business leaders should always take sick leave, setting an example for the other employees. 2. Ensure staff have enough paid sick leave An employee who knows they will not get paid if they take sick leave is much more likely to drag themselves into work unwell. Australia’s National Employment Standards (NES) demand that all full-time employees receive 10 days per year, while part-time entitlements are calculated pro rata (1/26 of an employee’s ordinary hours of work in a year). A registered agreement, modern award or employment contract can set out different entitlements to paid sick leave, but they cannot be less than the minimum laid out in the NES. 3. Implement EAPs An Employee Assistance Program (EAP) is a confidential counselling service offered by employers to their employees. EAPs are designed to support the social and psychological well-being of staff, both in the workplace and in their personal lives. Many large businesses will set up internal EAPs, although employee counseling is available through your local government’s mental healthcare scheme. This means your EAP may be as simple as connecting staff who are experiencing mental and emotional difficulties with an appropriate government service. 4. Set remote work boundaries Rather than assuming remote workers will take the initiative to set their own boundaries, you should actively encourage them to do so. Before a staff member starts working remotely, clarify their expected hours and when they will (and won’t) respond to work-related requests. You should also make it crystal clear that you don’t expect them to work when they’re unwell just because they’re working from home. 5. Conduct employee health surveys Conducting regular staff surveys can help you get valuable information about your workforce’s wellbeing; helping you better understand anything work-related that might be contributing to presenteeism. The information you get from these surveys can help you take steps to reduce unnecessary workplace stress and enhance the long-term health and productivity of your staff. Get employment relations support today Peninsula has years of experience working with Australian businesses, helping thousands of employers get the best out of their teams. If you’re a business owner with an employment relations question, talk to our team today.

Understanding Workplace Bonuses

Contractual obligations

Objective criteria

Other things to remember

Create productive workplaces with Peninsula

Have a question?

Related Blog Posts

How to Address Repeated Mistakes in Your Workplace

The Importance of Performance Reviews

Tips, Tools and Tactics for Managing Poor Performance

Conduct vs Capability

The Problem with Presenteeism

Do you have any questions regarding Employee Performance?