How to Manage Employee Performance: Five Good Practices for Employers

A recent Employment Claims Tribunals Case involving an employee who was not confirmed after probation highlights important lessons for employers on performance management. The Tribunal found that the employer had not substantiated the poor performance relied upon to justify the dismissal.

The case illustrates why having a performance management framework and ensuring that it is properly implemented is important. Employers should ensure that performance expectations are understood, feedback is provided in a timely manner, assessments are supported by relevant evidence, and established processes are followed consistently. 

These principles are consistent with the Tripartite Guidelines on Fair Employment Practices (TGFEP), which set expectations for fair and objective performance appraisal.

Here are five good practices employers can adopt to support fairer and more transparent performance management. These practices matter throughout the employment relationship, including probation.

Be Clear: Do Employees Know What is Expected of Them?

Fair performance management begins with clear expectations.

Employees should understand not only what their work goals and responsibilities are, but also how their performance will be assessed, including what good performance looks like in practice. Where appropriate, employers can use SMART goals (Specific, Measurable, Achievable, Relevant and Time-bound) to set clear and measurable performance expectations.

Goal setting should also be a two-way discussion, giving employees opportunities to clarify expectations, discuss their development needs and the support required to meet their goals.

If performance criteria, scoring methods or weightages are changed during the assessment period, employers should communicate the changes before they are applied, and explain how they will affect the employees' assessments.

Tip: Set expectations early and check that they are mutually understood. Encourage employees to ask questions and seek clarification where needed.

Be Timely: Are Employees Receiving Feedback Early Enough?

Performance conversations should be ongoing, rather than limited to annual appraisals or end-of-probation reviews.

Regular check-ins give supervisors opportunities to recognise employees' contributions, raise performance concerns early and provide timely guidance. 

When performance gaps rise, employers should raise them in a timely manner, explain what needs to improve, and where appropriate, give employees a reasonable opportunity to address them. Provide specific examples and discuss the support employees may need, which could include coaching, training, or working with employees on a performance improvement plan with clear expectations and timelines.

Under the TGFEP, employers should conduct regular and constructive performance reviews to enable employees to take steps to improve their performance.

Performance management is a shared responsibility. Employees should be encouraged to take ownership of their performance and development through open communication, by clarifying expectations and actively seeking feedback where expectations are unclear, and acting on feedback received.

Tip: Don't wait until the next formal appraisal. Provide specific, constructive feedback when performance issues arise, and agree on steps to help employees improve.

Be Objective: Can Performance Assessments Be Supported by Evidence?

In line with the TGFEP, performance assessments should be based on measurable standards, observable work outcomes and relevant evidence rather than subjective impressions. This helps ensure that employees are assessed objectively and on the basis of merit.

Employers should also review their performance evaluation criteria regularly to ensure that they remain relevant to the job and do not result in discriminatory assessments.

Where low ratings or significant score deductions are given, employees should be able to explain the reasons and substantiate them with specific examples or evidence.

Employers should also document key performance goals, feedback, areas for improvement and reasons for appraisal ratings. Clear records provide a common reference point for employers and employees, helping to prevent misunderstandings and build accountability.

Tip: Keep clear records of performance assessments and feedback, and retain performance reviews for at least one year to support objective assessments during the next appraisal.

Be Consistent: Are Performance Management Processes Applied Fairly?

Even well-designed performance management processes may fall short if they are applied inconsistently.

Employers can promote fair and consistent implementation by equipping supervisors with the necessary skills, knowledge and resources. This could include training supervisors to evaluate performance fairly, conduct effective performance conversations and coach employees who may need support to improve.

HR teams can further support supervisors by providing ongoing guidance on managing performance issues and facilitating calibration discussions to promote consistency in how performance standards are applied across teams.

Tip: Establish simple checks to help ensure supervisors follow key performance management steps and apply assessment criteria consistently. This could include checking that performance goals are set, regular check-ins and reviews take place, and performance ratings are supported by relevant evidence and aligned with assessment criteria. A checklist can guide supervisors through these steps, while periodic reviews of completed assessments and feedback from managers and employees can help identify gaps and areas for improvement.

Be Open: Can Employees Raise Concerns and Seek a Review?

Employees may have questions or concerns about their performance assessments. Employers should provide accessible avenues for employees to discuss appraisals outcomes, raise concerns or request a review. These could include post-appraisal feedback discussions and grievance handling channels.

In line with TGFEP, employers should also put in place an internal appeal process to address employees' questions or concerns about their appraisals. 

Employers should ensure that employees know what channels are available, understand how to use them and feel able to raise concerns or seek a review without fear of retaliation.

Fair Processes Build Trust

Good performance management is not just about whether employees meet their targets. How their performance is assessed matters too.

By being clear about expectations, timely in addressing performance gaps, objective in assessments, consistent in applying established processes and open to employees' concerns, employers can build trust and strengthen their performance management practices.

For more resources on fair and progressive employment practices, visit tafep.sg.