Earlier this week, ACAS issued fresh guidance on Performance Management. The review of its guidance follows a survey of 1003 HR and general managers. The research was carried out by the NatCen Social Research on commission by ACAS. Published under the title ‘Improvement required?’, it found that one in ten employers said that their performance management system was a source of demotivation for its staff. It also found that only one in ten employers used performance management systems for planning and monitoring training and development.

One of the key outcomes from the research was that employers should more carefully consider adjustments that might need to be made for staff with disabilities. ACAS was also keen to highlight that performance management shouldn’t be seen as just a tool to identify poor performance or to measure staff against targets. Its Head of Diversity, Julie Dannis, was quoted as stating: “A good system can help an organisation to motivate their staff, recognise the work of their employees and identify development opportunities.”

The new guidance starts by explaining what performance management is and why it is important. It then goes on to explain, with reference to ACAS’ existing guidance on “How to get performance management right”, what organisations should be doing to achieve the aims of their performance management system. At all stages of the performance management process, an employer should be considering active consideration of workforce diversity and Equality Act provisions when assessing performance management arrangements.

The new ACAS guidance gives employers an opportunity to consider their own performance management processes. Often, policies and procedures are drafted and employers fail to carry out regular reviews of these processes. Poor performance management procedures can lead to claims of breach of contract, unfair dismissal and discrimination, and harassment. Failing to follow a fair performance management procedure can prove very costly for an employer.

Should you need advice on issues related to employee performance, or if you would like to conduct a review of your company policies or procedures then please contact our Employment Team on 01206 700113 or email [email protected].  

Credit – blog post written by Lawrence Adams.