Managing performance
Managing performance

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Managing performance
  • The aims of performance management
  • Linking performance to pay, bonuses and incentive schemes
  • Monitoring performance
  • Performance and capability procedures
  • Dealing with poor performance

All employers want to get the best out of their employees. Being aware of how they are performing is a crucial element of this. Where standards slip employers need to be able to manage employees' performance in order to allow them the opportunity to improve. If sufficient improvement is not forthcoming, employers need to know how to take steps to deal with the situation fairly which may ultimately include dismissal.

Acas has produced a guidance booklet, How to manage performance.

The aims of performance management

The principal aim of performance management is to ensure that employees contribute in the best way possible to the objectives of their employer.

If employers manage their employees well then the employees will be aware of:

  1. what the aims of the business are

  2. what their role is in achieving the aims of the business

  3. the skills they need to achieve that

  4. what level of performance is expected of them

  5. how they are doing measured against expectations

  6. how they can develop

For a discussion of why employees underperform and what managers can do about it, see Practice Note: Advising managers: management of under-performers.

In circumstances where an employee is not performing to the expected level or standard, the employer should first consider whether the reason for the under-performance is that the employee 'can't do', or 'won't do', the work:

  1. if