Managing employee performance is one of the most critical responsibilities for any employer. When implemented effectively, performance management can boost productivity and minimize legal risks. Conversely, if handled poorly, it may lead to underperformance and expensive employment disputes.

Performance Management

When carried out effectively, performance management should reflect a systematic process through which an employer evaluates, supports and improves employee performance to meet organizational objectives. It should include setting expectations, monitoring performance, giving feedback and taking corrective actions, if necessary.

To help guide you, we’ve outlined the best practices and common pitfalls for employers when performance managing employees.

Do’s

• Do Set Clear Expectations
  • Clearly communicate job responsibilities, performance metrics, and behavioral expectations from the outset of the employment relationship.
  • Ensure employees understand how success is measured, ideally documented in job descriptions or onboarding materials.
• Do Implement a Structural Performance Management Process
  • Stay on top of regular performance discussions, check in’s, and provide employees with real-time feedback.
  • Implement and rely on a progressive discipline policy to guide actions when performance issues arise.
  • Policies should clearly outline stages such as verbal warnings, training, performance improvement plans (PIPs), and possible terminations.
  • Ensure any performance-related action aligns with your documented policies.
• Do Provide Opportunities to Improve
  • Offer mentoring, coaching, or additional training to help employees improve.
  • Regularly check in on progress and provide actionable feedback.

• Do Use Performance Management as Development Tool
  • Frame feedback and PIPs as opportunities for growth, not solely as punishment.
  • Encourage two-way communications, allow employees to provide explanations or suggestions.
• Document Everything
  • Keep written records of performance issues, feedback sessions, and follow-ups.
  • Ensure documentation is factual, specific, and free from subjective or discriminatory comments.
• Do Engage Legal or HR Expertise
  • Consult HR or legal counsel when considering serious disciplinary action or any termination, in particular a termination for cause.
  • Ensure your actions comply with employment contracts, human rights and legislation.

Don’ts

• Don’t Ignore Performance Issues
  • Failing to act promptly may harm productivity and weaken your legal position if termination becomes necessary.
• Don’t Make decisions based on Assumptions or Bias
  • Avoid relying on stereotypes or assumptions. Decisions must be supported by documented performance evidence.
• Don’t Neglect monitoring progress after feedback, training, or PIPs.
  • Failure to follow up can undermine the process and legal defensibility.
• Don’t Skip Documentation
  • Verbal warnings or informal conversations without follow-up records are legally weak. Therefore, always create written records.
• Don’t be disingenuous
  • Never manufacture or exaggerate performance issues to justify termination.
  • Ensure all actions are genuine, documented and job-related.
  • Do not use performance management as means to terminate.

Looking to create a well-rounded performance management program and don’t know where to start? Check out MaxPeople’s recent blog to learn more about How to Make Performance Reviews Most Effective for Managers and Employees

Performance management gone wrong? If you are dealing with an employee’s performance  issue that has become difficult to manage, we would be happy to help and explore options with you.

If you are navigating any of the issues outlined above or have any employment law concerns, please feel free to contact Rodney Employment law at info@rodneyemploymentlaw.com or by completing our contact form here. We are happy to provide copies of any of the cases referenced if you would like to review them in full, or to discuss how these principles may apply to your specific circumstances.