In any workplace, effective delivery of feedback is crucial to maintaining a productive environment, yet for many managers, performance management and having courageous conversations with employees can be daunting. These conversations are essential for employee growth, improvement, and for ensuring that performance issues are addressed early on, before they escalate.
Performance management is not just about identifying underperformance. It involves guiding employees through challenges, providing them with clear expectations, and supporting their development. By approaching performance discussions with confidence on an ongoing basis, managers can help employees improve and minimise potential misunderstandings and the legal risks associated with more formal performance processes.
The Power of Courageous Conversations
Courageous conversations are those difficult, yet necessary discussions about performance that can sometimes feel uncomfortable for both managers and employees. When carried out effectively, they foster an environment of trust, clarity, and accountability. These conversations are informed by the mutual duty of good faith, set out in the Employment Relations Act 2000, that requires parties to be active and constructive and responsive and communicative.
Managers may hesitate to engage in these conversations for fear of causing tension or being thought of as overly critical. Other common barriers to having these discussions are a lack of time and the perceived awkwardness of providing constructive feedback. However, failing to address performance issues in a timely and constructive manner can result in more significant problems down the line, making it more difficult to improve performance or implement a fair performance process and/or performance based dismissal. By having the confidence to hold these discussions early, managers can ensure that they are not only supporting their employees, but they are also setting strong foundations if a formal process becomes necessary.
Managers should get in the habit of providing regular, specific feedback to their employees and addressing any underperformance as and when it arises, rather than waiting for an annual performance review. This helps prevent issues from snowballing and gives employees clear expectations of what success looks like in their role and clarifies any misunderstandings before they become bigger issues. Regular, informal feedback makes it easier to transition to more formal performance management procedures if needed, and provides a documented record of ongoing conversations and actions taken to address performance concerns.
While it can be uncomfortable, active/constructive conversations become less daunting with experience. Managers should view these discussions as an opportunity to help employees improve and align with the expectations of the organisation. Keeping the conversation constructive, focusing on the employee’s strengths, and offering specific, actionable advice can make even the toughest conversations feel more like coaching sessions than confrontations.
Legal Considerations: Setting the Stage for a Fair Process
When performance issues escalate, understanding the legal framework becomes essential. A fair and well-documented process helps managers stay on track and ensures there is a paper trail to point to if a personal grievance is raised later down the track.
A fair performance management process requires:
- Clear communication of concerns to the employee;
- A reasonable opportunity for the employee to respond;
- Objective criteria for performance expectations; and
- A fair assessment of whether the employee has had a chance to improve.
If performance issues are not addressed promptly or if employees are not given a fair opportunity to improve, the process can lead to costly legal challenges.
By handling performance management informally at first, managers can be confident that they haven’t jumped the gun and are in a reasonable position to move to a more formal process, which shouldn’t be a shock or surprise to the employee.
Regular feedback and having courageous conversations when issues arise create an open, transparent, and supportive environment where employees know what is expected of them and feel empowered to improve. While these conversations may feel challenging at first, they are vital for long-term success and employee development. When managers approach these discussions with confidence, they set the stage for addressing performance issues promptly, avoiding legal complications, and creating a culture of continuous improvement.
Managers will not only improve their own leadership capabilities but also contribute to a more effective, fair, and supportive workplace.
Checklist for Managers
- Approach issues when they arise:
- Consider your management style and the employee’s communication style – would they be happy with brief phone call before the work is finalised, or would they benefit from a sit down discussion in person?
- Provide feedback on a one on one basis, and not in front of others.
- Identify the specific concerns and outline how they could have approached the task differently and obtain their feedback on that approach.
- Foster an Open and Supportive Environment:
- Approach any performance conversation with empathy and a focus on improvement.
- Make it clear that the goal is to help the employee succeed, not just to point out shortcomings.
- Be Clear and Specific:
- Provide specific examples of underperformance, avoiding vague feedback.
- Clearly outline the expectations and standards you would like the employee to meet.
- Explain how the employee’s performance impacts the team or organisation (if useful and/or relevant).
- Listen Actively:
- Give the employee a chance to explain their perspective or challenges.
- Ask open-ended questions to understand any underlying issues.
- Provide Actionable Feedback:
- Offer clear suggestions for improvement and practical steps to reach the desired performance level.
- Offer Support and Resources:
- Discuss any training, mentoring, or resources that may help the employee succeed.
- Encourage the employee to ask for help when needed.
- Document the Discussion:
- Take notes during the conversation and summarise key points.
- Record any agreed-upon actions, goals, and timelines for follow-up (if any).
- Follow Up Regularly:
- Arrange for regular check-ins, provide additional feedback, and offer further support.
- Acknowledge improvements and reinforce positive changes.
- Know When to Move to a Formal Process:
- If improvement is not seen after informal discussions and support, consider escalating to a formal performance management process.
- Ensure all actions are consistent with company policies and legal requirements.
- Maintain Consistency:
- Ensure that performance expectations are clearly communicated to all employees.
- Apply the same process fairly and consistently across the team.
Special thanks to Partner Mark Lawlor and Associate Nikita Bartlett for preparing this article.
If you need any guidance on performance management, please reach out to our employment team.
Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose.
