Managing poor performance can be tricky for any business, but it’s especially challenging for SMEs who are unsure of the legal sanctions when dealing with a dismissal based on performance. Article by Tom Evans, Associate and HR specialist at DTM Legal.
Often, the first question to arise is who is at fault? Is it the employee for a lack of work ethic? Or could it be the employer for a lack of support, training or investment? Here’s three top tips businesses should consider when welcoming a new employee and managing their performance.
Invest time from the start
Investing time in new employees is hugely beneficial for companies as it makes employees feel valued and welcome, heading off the natural negative thoughts about a new role from the very start. Commencing employment is always a tricky time. The quicker an employee feels comfortable with his or her surrounds and colleagues, the quicker he or she is likely to perform. Inductions and meet the team events play a very important role in welcoming a new employee. Regular informal one-to-one meetings with managers are also a great way to help new employees understand what is expected of them and set action points.
Use probationary periods effectively
There is no legally required length for a probationary period but a reasonable length is usually between three and six months. Any performance issues should be addressed during the probationary period rather than after when the legal risk of dismissal is far greater. If it is evident that an employee is not suited to the job role, termination before the end of the probation period is an option. However if the employer is still unsure after the initial probationary period, the business should have the contractual right to extend the probation. Employers should ensure that the end of the probation period is diarised and the employee is notified in good time. Missing this date can often lead to far longer notice periods and therefore contractual liability on the business.
Follow a fair dismissal procedure
Performance dismissals are usually case specific but the basic procedural process remains the same. Employers should take a fair and reasonable approach and although the process can be time consuming, following the correct procedure will mean the avoidance of a costly unfair dismissal claim. A lot of companies undertake a ‘three strikes and you’re out’ policy. The process often starts with a first written warning that addresses the performance issues and outlines targets for improvement. If the improvement targets are not met the process progresses to a final written warning and then finally a dismissal. Protected discussions are a powerful tool to put an exit package to poorly performing employees and avoid the lengthy formal performance management process.” DTM Legal has a highly experience employment and HR team working with businesses to make the most of their greatest asset. Their people.
