Set clear expectations for your employees
Performance management means setting goals for each employee and monitoring their progress. A clear performance management process can prevent issues before they arise and provide the tools to get employees back on track.
Performance management helps you achieve your business objectives by:
- identifying what employees are doing well and areas for improvement
- finding out what employees would like to do and how you can help them to do it
- ensuring that rewards and recognitions are fair and effective
- motivating employees in the right direction
- building an effective business culture.

Monitor progress and provide feedback
Many businesses hold performance appraisals to create a formal opportunity to evaluate each employee’s work and set new goals.
They help:
- get the best from people
- plan for learning and development
- keep your business running smoothly.
But you don’t need to wait for these opportunities to manage performance.
Regular informal check-ins help you to stay more plugged in to your team’s performance. They also give you a way to provide frequent feedback — including positive feedback.
Identify the root cause of performance issues
Sometimes, poor performance may continue — despite your best management efforts.
When this happens, remember to engage in good faith with your employee. That means making a genuine effort to understand the issue and support them.
Acting in good faith to resolve issues will also benefit your working relationship over the long term.
Keep an open mind when an employee is regularly falling short of your expectations. There may be various reasons why they’re underperforming.
For example, check whether:
- the scope of their role and the structure of your business are appropriate
- they know what’s expected of them, and they receive clear feedback
- they have the training and tools they need for the job.
Identifying and resolving the root cause of underperformance is better for you, your business and the employee. Not addressing the root cause may lead to more problems in the future.
Have a process in place to manage misconduct
Many things can be considered misconduct, including:
- repeated lateness
- behaving unprofessionally
- breaching confidentiality
- breaching clauses in the employment agreement – for example not wearing the company uniform
- unsafe behaviour.
Include what you consider misconducts in your employment agreement and policies, so that you and your employees are on the same page about what is not acceptable behaviour. Stick to your process to address misconduct before it becomes a bigger issue, and to avoid common pitfalls.
What's next
Deciding to hire
Advertising and hiring
Leave and holidays
Ending employment
Having a fair workplace
Leadership and culture
Upskilling employees
Looking after yourself
Looking after your people