Performance Appraisal: A Guide for Organizations and Supervisors, Study notes of Business

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SUPPLEMENTARY GUIDE TO PERFORMANCE APPRAISAL March 2019 2 Supplementary Guide to Performance Appraisal | March 2019 CONTENTS Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 About This Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 How to Use This Supplementary Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Organisational Self-Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 What is Performance Appraisal? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 How is Performance Appraisal Different from Performance Management? . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Why is Performance Appraisal Important?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 What Does Performance Appraisal Involve? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Performance Appraisal Process Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Principles of Performance Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Top Tips for Performance Appraisal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Link with Other Guides . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Practice Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Planning and Setting Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Setting Key Performance Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Performance Planning and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Performance Appraisal Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 1. Planning and Setting Expectations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. Quarterly Discussions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 3. Half Yearly Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 4. Final Annual Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 The Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Managing Underperformance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 5 Supplementary Guide to Performance Appraisal | March 2019 ABOUT THIS GUIDE This supplementary guide has been developed as part of one of the foundation actions in the ACT Community Services Industry Workforce Plan. The ACT Community Services Industry Strategy recognised that workforce attraction and retention were issues for the sector and is seeking to address this through the Workforce Plan. This supplementary guide is part of a framework that encompasses onboarding, supervision, peer support, coaching and mentoring with supplementary information on performance appraisal and probation. It is envisaged that the availability of information, tools and templates across these areas will enable organisations in the Industry to streamline their policies and procedures. Further, the implementation of like policies and procedures across organisations will result in staff having a more consistent experience when moving within the Industry. This guide is focused on paid employees who work in the Industry. Volunteers are not usually subject to the same performance appraisal process as employees, though your organisation should have a policy and process on how it develops and recognises the performance of volunteers. It is recommended that all volunteer involving organisations implement Volunteering Australia’s National Standards for Volunteer Involvement. For more information on how to manage underperformance of volunteers and how to end a volunteer relationship, please see Not-for-Profit Law’s National Volunteer Guide. This supplementary guide was created using research obtained through an extensive environmental scan, as well as through consultation with the Industry. The information and tools provided throughout have been curated from research and developed to cater to the unique characteristics of the Industry. The research consulted, and the information provided are not exhaustive, but are examples of good practice that can be implemented by any organisation. Where a concept, statistic, model, tool or template has been copied or adapted from a specific source this source has been provided in the endnotes. This supplementary guide is by way of general information and is designed for discretionary use. It does not replace the requirement to obtain specific operational, legal, insurance, or other advice. Volunteering and Contact ACT accepts no responsibility for any errors in the information provided, nor the effect of any such errors. The project was finalised in March 2019. 6 Supplementary Guide to Performance Appraisal | March 2019 HOW TO USE THIS SUPPLEMENTARY GUIDE This supplementary guide is designed to give an overview of what is involved in performance appraisal, a key component of performance management. Performance management is a highly complex system including elements associated with organisational and team performance, organisational development, rewards and remuneration, training and development, performance appraisal and terminations. This supplementary guide provides high level information only on performance appraisal and managing underperformance. This supplementary guide should be read in conjunction with the Guide to Supervision. When using this supplementary guide, it is imperative that you consider the risk profile of your organisation. For example, some of the tools and templates, whilst providing a baseline, may not be enough if your organisation must adhere to specific legislation or national quality standards. In these circumstances it is recommended that you seek further advice, especially regarding policies, to ensure they are compliant with all requisite legislation, standards, and other safeguarding mechanisms. When considering your organisation’s performance appraisal process, it is important to consider your risk profile and the level of performance appraisal required to ensure staff feel supported in the workplace and organisational objectives are met. Not all the concepts introduced in this supplementary guide may be relevant for your organisation – they are provided so that you can decide what is appropriate for you. The tools and templates provided can be considered the foundational building blocks for performance appraisal and managing underperformance. They are not designed to be all encompassing, rather they provide a starting point that your organisation can adapt and improve. ORGANISATIONAL SELF-ASSESSMENT You are reading this guide because you are interested in performance appraisal. This guide has been structured to provide information on the key components of performance appraisal and how performance appraisal can be structured in your organisation. The following questions can be used to help you determine your organisation’s level of maturity and competence when it comes to performance appraisal. If you identify areas of deficiency in your organisation’s performance appraisal process example tools and templates have been provided to accompany the theoretical concepts in this guide. These tools and templates are included as appendices and are available as individual, editable PDFs and Microsoft Word documents. Performance Appraisal Self-Assessment Questions E Does my organisation have a policy on performance appraisal? E Does my organisation have a performance appraisal procedure? E Is the process for performance appraisal clearly documented and easy to follow? Could anyone in my organisation pick up the process and apply it effectively? E Does my organisation talk about performance appraisal and prioritise it? 7 Supplementary Guide to Performance Appraisal | March 2019 E Does my organisation dedicate resources to performance appraisal? E Does my organisation introduce our approach to performance appraisal during onboarding? E Does my organisation explain how performance appraisal is linked to probation? E Do staff in my organisation know about our performance appraisal process and what do they think of it? In addition to ensuring you have adequate policies and procedures in place to support performance appraisal there are other important aspects to consider, including: E How does my organisation store confidential information? Is this in line with privacy and confidentiality requirements and is this communicated with staff? E Does my organisation know if performance appraisal of staff is consistent? E How is my organisation monitoring compliance with our performance appraisal policy and procedure? E How often is my organisation reviewing our performance appraisal policy and procedure? E Has my organisation considered if and how it will appraise the performance of volunteers? INTRODUCTION WHAT IS PERFORMANCE APPRAISAL? Performance appraisal is an element of the overall performance management system and refers to a method by which the job performance of a staff member is documented and evaluated. Performance appraisal should be a constructive process that is applied to all employees in an equitable manner and with a view to support their success in the workplace. This supplementary guide will only focus on performance appraisal processes including the often-challenging function of managing underperformance. This supplementary guide does not include team and organisational components of performance management, disciplinary or termination procedures or rewards and remuneration strategies (all critical elements of performance management). Whilst acknowledging that volunteers are not covered by the performance appraisal policy, procedure and practice guidelines in this supplementary guide, it is important for your organisation to go through similar processes of setting expectations, providing ongoing feedback, and ensuring there is a good fit for both the organisation and the volunteer. The breadth and depth of this process with volunteers will be dictated by the roles being undertaken by your volunteers and the level of responsibility they have within your organisation. Supplementary Guide to Performance Appraisal | March 2019 10 E Get the right tools for the job – make sure that the resources are in place to help run the process, and to enable people to demonstrate performance improvement E ‘They perform, you perform’ – a supervisor's performance depends on the team; when they perform well it's easier for the supervisor to perform well E As a supervisor, be an example – set the standard by example and strive to be a better supervisor E Motivate, motivate, motivate – the often-missing element from most performance appraisal processes. People will only achieve superior performance if they want to.2 TOP TIPS FOR PERFORMANCE APPRAISAL E Develop a clear process and make sure you follow it to ensure fairness for all staff. E Document the process. Rigorous record-keeping is an important part of performance appraisal, to ensure procedural fairness and reduce the risk of a claim should the process result in dismissal. E Make expectations clear. Give staff every opportunity to improve their performance by making sure they understand the expectations of their role. Develop a performance improvement plan that all parties agree is realistic and achievable. E Listen to staff. There are plenty of reasons why staff may not be performing to the required standard – and not all of them will be related to work. E Be inclusive, taking into account the experience and needs of people of all genders and sexualities, from all cultures and with all abilities. E Allow time for staff to improve their performance. The goal of performance appraisal is not discipline; it’s about helping staff to perform at the required standard. E Provide coaching and supervision along the way. A key part of performance appraisal is not just outlining the required standard, but also helping staff to develop the skills to get there.3 11 Supplementary Guide to Performance Appraisal | March 2019 LINK WITH OTHER GUIDES This supplementary guide is linked to other guides in this series starting with an introduction in the Guide to Onboarding. The Guide to Supervision includes key information that forms part of the performance appraisal process including information on reflective practice and different supervisory and learning models. Finally, the Supplementary Guide to Probation includes information on how your organisation’s performance appraisal process is linked with your probationary process. POLICY Your organisation should have a performance appraisal policy that applies to all employees. The policy should be a high-level statement of intent about your organisation’s performance appraisal process. Organisational policies are usually endorsed by the Board of Directors or similar, and rarely change over time. When creating your performance appraisal policy, it is important to consider all the factors in your working environment that need to be reflected in your policy. This includes references to any legislative, insurance, quality standards, or other safeguarding mechanisms that apply to your organisation. There may also be specific provisions in your funding agreements that affect your policy, and this should be reflected in the content. A Policy Template is provided at Appendix A as a starting point, but it is likely there are additional considerations for your organisation based on your risk profile and the programs and services you deliver. This may be one area where you choose to seek further advice, such as legal advice. As volunteers are not usually subject to the same performance appraisal processes as employees, your organisation may choose to differentiate them in your policy. When differentiating the performance appraisal policy for volunteers it is important to be mindful of the roles your volunteers undertake and the level of responsibility they are assuming in their role. Your organisation should have a policy on reviewing volunteer engagements and providing feedback on performance. PROCEDURE Your organisation should have a performance appraisal procedure that sits alongside your policy. The procedure should detail how your organisation will approach performance appraisal, and what mechanisms you will put in place to support this function of staff performance. The performance appraisal requirements in your organisation will likely be dictated by the type of work you are undertaking and the services you are delivering. All employees should be participating in performance appraisal processes. A Procedure Template is provided at Appendix B. As with your performance appraisal policy, you may need to adapt your performance appraisal procedure for volunteers. This can be as simple as outlining the process you have for reviewing volunteer engagements and how you will provide feedback on a volunteer’s performance. The complexity of your procedure for volunteers will be dictated by the types of volunteer roles you have in your organisation and may differ between roles. Supplementary Guide to Performance Appraisal | March 2019 PRACTICE GUIDELINES Performance appraisal plays a critical role in delivering on organisational performance through monitoring, support and ongoing development of staff. Performance appraisal: E is a formally structured process that should encourage critical reflection that enables the supervisee to identify their own strengths and weaknesses; E should seek to empower the supervisee to recognise good practice and identify how practice could be improved; and, E should always be conducted with the aim to enhance the quality of services, the performance of the supervisee, and the outcomes for service users. It is the role of the supervisor to facilitate a conversation that allows the supervisee to share their experience in a safe, non-judgmental environment. In this supplementary guide the performance appraisal process does not include a performance rating system linked to formal rewards and remuneration. Set out in the remainder of this supplementary guide are the following tools to assist organisations to design, document and manage a performance appraisal process: E Definition and explanation of key performance indicators (KPIs) E A Performance Planning and Development Plan template to document agreed performance expectations and the appraisal of staff performance E A Personal Development Plan template to document individual development objectives including identified training and coaching E Guidance to structure performance appraisal meetings including how to prepare for those meetings E Managing Underperformance Guidelines to assist with managing this process PLANNING AND SETTING EXPECTATIONS SETTING KEY PERFORMANCE INDICATORS Key performance indicators (KPIs) are a set of quantifiable measures used to evaluate success in meeting objectives.4 KPIs are important because they enable organisations to understand how staff performance contributes to operational and strategic goals. In addition to providing measures for success, KPIs also hold staff accountable for their performance. Determining the metrics required to track the impact of performance on organisational goals can be incredibly difficult, especially in person-centred professions where outcomes are achieved over the long-term. Two conflicting maxims add to the complexity of setting KPIs in the Community Services Industry. Firstly, the maxim ‘what gets measured gets managed’ recognises that examining an activity and associated metrics/ outputs is an important pre-cursor to managing effectiveness and increasing productivity and performance. In contrast, the maxim ‘not everything that counts can be counted’ recognises that certain behaviours and actions that are conducive to success, such as investing time and energy into building trust-based relationships, may not be easily counted or measured. When setting KPIs for workers in the Industry, supervisors, managers, the executive and Boards need to support quality with KPIs that measure what matter. 12 15 Supplementary Guide to Performance Appraisal | March 2019 Staff member responsibilities include: E Verify details – confirm the date/location and availability to attend. E Gather information – including position description, development plans, and performance data to support appraisal. E Prepare – set aside time to prepare for the discussion. At the beginning of each new year, supervisors and staff will need to set expectations for the year ahead (this can also be completed at the annual review to combine meetings). This involves establishing key goals/KPIs for staff to achieve over the year. It is important to remember that these goals might change if there are changes in your organisation’s priorities throughout the year. All staff need to have a clear understanding of what their performance goals and expectations are and why they are important. This will ensure that there are no surprises during the performance appraisal process and will aid in driving behaviour towards achieving organisational objectives. The expectations set in this stage of the appraisal process should: E address staff member’s main accountabilities or tasks which fall under your organisation’s strategy and business plan and are documented in their position description; E reflect the areas for improvement identified, especially those highlighted in the staff development actions; E focus on a few critical expectations (between one and three) for each objective to avoid overwhelming the staff member; and, E be specific, measurable, achievable, relevant and time-bound (SMART). The planning and setting expectation stage will result in the development of a document that provides an accurate record of agreed planning deliverables and performance expectations. This provides an ongoing tool for managing performance. This document may also include areas for staff development and training (or your organisation can have separate staff development plans). 2. QUARTERLY DISCUSSIONS First and third quarter discussions are conducted to discuss performance and provide feedback and direction to staff. Quarterly discussions are relatively informal and focus on a conversation around how the staff member is progressing against the objectives set out in their individual plan including any areas for development. It is the responsibility of the supervisor and the staff member to prepare for these discussions and it is the supervisor’s responsibility to record the key points of quarterly discussions. These discussions can be recorded in the Performance Planning and Development Plan template provided at Appendix E. 16 Supplementary Guide to Performance Appraisal | March 2019 3. HALF YEARLY REVIEW A half yearly review is conducted to ensure staff have a clear understanding of their performance relative to their objectives and any personal development actions they have identified. The half yearly review is identical to the annual review and provides a mid-point formal and documented discussion to: E confirm the performance and development deliverables and expectations; E provide an assessment of successes in achieving objectives and in meeting performance expectations; and, E identify any areas for development or areas requiring attention to ensure delivery of individual objectives/KPIs. 4. FINAL ANNUAL REVIEW The final annual review is the most formal part of the performance appraisal process and is conducted at the end of each year to assess the performance of staff over the previous twelve-month period. This is the part of the process where you meet to assess whether performance expectations have been met. In undertaking the half yearly and annual review process the following needs to occur: Preperation The main objective of the preparation stage is to identify and consider key points for discussion relevant to the staff member’s work performance prior to the actual half yearly or annual discussion. The supervisor collates relevant feedback on the staff member and this may include discussions with other staff in the organisation. The outcome of this preparation should be that both the supervisor and staff member are ready to meet and discuss their key points with supporting evidence. To ensure an effective discussion about performance, it is crucial that the supervisor and staff member share the same understanding of how performance-related behaviours are valued. The supervisor should not make any conclusive judgements prior to the discussion. The supervisor must ensure that notes are kept to a minimum to avoid giving the staff member the impression that their performance appraisal is a forgone conclusion, which would otherwise undermine the discussion process. The Discussion The discussion is an important part of the performance appraisal process as it provides an opportunity to review the staff member’s performance and to identify opportunities for improvement. A formal discussion is held at the half yearly and annual review points. The discussion should result in a mutual understanding between the supervisor and staff member regarding the staff member’s performance, be documented on the organisation’s agreed templates/system and signed by the supervisor and the staff member. The other important aspect of the discussion involves identifying opportunities for improvement, which are incorporated into the creation of new staff development actions for the year ahead. The annual review discussion is also a good time to discuss plans for next year including new goals and planned projects. Supplementary Guide to Performance Appraisal | March 2019 At the conclusion of the half yearly and the annual review discussion the supervisor should recap and ask the staff member the following questions: E Is there anything more we should discuss regarding your work performance? E Is there anyone else that I should be talking with to improve my understanding of your performance? E Is there anything more we should discuss regarding my leadership? FEEDBACK Feedback lies at the core of an effective performance appraisal process and should: E be provided on a regular and ongoing basis to improve performance; E be timely; and, E shape performance and behaviour of staff towards achieving organisational objectives. If feedback is given regularly then the appraisal process is easier and more effective. Effective ongoing feedback includes: E Setting goals – that are appropriate, measurable, achievable and that motivate and drive performance; E Monitoring performance – keeping track of staff performance, including both achievements and non- achievements; E Listening and understanding – making an effort to understand barriers to performance; E Constructive feedback – reviewing past and present behaviours and suggesting ways to improve performance, including ensuring feedback is not just focused on one recent event but provides a balanced view over time; E Positive reinforcement – giving positive recognition to reinforce behaviours that reflect high performance. This must be given in a timely manner to ensure effectiveness; and, E Empowering for performance – providing staff with the knowledge, skills, abilities and resources that will improve performance (for example, supporting identified training and development). Staff cannot be criticised for not improving performance if they have not been supported to do so by the organisation. MANAGING UNDERPERFORMANCE During the performance appraisal process, underperformance may be identified. Underperformance may be assessed as one-off or ongoing. It is important to remember that enacting a process to manage underperformance should only occur when your organisation has undertaken all the preceding steps in this guide. Organisations have a responsibility to support their staff to deliver on organisational and role objectives, which should be done through a robust performance appraisal process that includes ongoing support and development. One off underperformance should be identified in a timely manner and constructive and proactive steps should be taken by the staff member and the supervisor to address it. Generally, one off underperformance relates to performance that is not meeting the staff member’s agreed performance plan for a limited period e.g. for less than one quarter. It may have arisen in the short term due to a lack of skills/knowledge or experience. There should be an agreed development plan to address this through formal training or coaching. 17 20 Supplementary Guide to Performance Appraisal | March 2019 APPENDIX A – EMPLOYEE PERFORMANCE APPRAISAL POLICY TEMPLATE Policy Title Employee Performance Appraisal Policy Policy Owner Policy Approver Related Policies Related Procedures Storage Location Effective Date Review Date PURPOSE The Employee Performance Appraisal Policy governs the performance appraisal process for all employees at SCOPE This policy applies to all employees. DEFINITIONS Performance appraisal: a process which continuously identifies, measures and develops the performance of employees at connecting individual performance and objectives with the overall mission and goals of the organisation. POLICY STATEMENT is committed to delivering on organisational objectives through an empowered, skilled and high performing workforce. To ensure this, all employees will be involved in a robust performance appraisal process that meets good practice guidelines. recognises that performance appraisal plays an integral role in organisational and team performance, staff development, learning, and continuous improvement. The content of performance appraisal meetings will remain confidential between the supervisor and staff member except for agreed actions and goals, or where the disclosure of the information is consented to or required by law. PROCEDURE OVERVIEW The policy is accompanied by the Employee Performance Appraisal Procedure that provides detailed information on the process of performance appraisal at . The Employee Performance Appraisal Procedure details the persons responsible for performance appraisal. REVISION HISTORY Version Change Author Date of Change 21 Supplementary Guide to Performance Appraisal | March 2019 APPENDIX B – EMPLOYEE PERFORMANCE APPRAISAL PROCEDURE TEMPLATE Procedure Title Employee Performance Appraisal Procedure Procedure Owner Procedure Approver Related Policies Related Procedures Storage Location Effective Date Review Date PURPOSE The Employee Performance Appraisal Procedure details the performance appraisal process for all employees. The procedure also details the roles and responsibilities associated with performance appraisal. SCOPE This procedure applies to all employees. DEFINITIONS Performance appraisal: a process which continuously identifies, measures and develops the performance of employees at connecting individual performance and objectives with the overall mission and goals of the organisation. RESPONSIBILITIES The has responsibility for ensuring all employees are aware of this performance appraisal procedure and their responsibilities under this procedure. The will delegate different parts of the performance appraisal process to members of the team who will be responsible for performance appraisal. Anyone who has been delegated responsibility by the to conduct an aspect of performance appraisal must comply with the Employee Performance Appraisal Policy and this procedure. Both supervisors and employees have a responsibility to participate in the performance appraisal process and recognise it as an important part of their accountability to the organisation, their professional development and career progression. values high performance in the workplace. Performance appraisal plays a critical role in ensuring clear expectations of performance and identifying areas for improvement. prides itself on being a workplace of choice and recognises performance appraisal as a powerful means of ensuring employees feel supported in the workplace and recognise their own potential for growth. Supplementary Guide to Performance Appraisal | March 2019 PROCESS The performance appraisal process at includes four formal occasions for reviewing and appraising performance. This is supported by regular and ongoing supervision and feedback. 1. Planning and Setting Expectations: This involves establishing and documenting agreed key goals/ key performance indicators for employees to achieve over the year. 2. Quarterly discussions: First and third quarter discussions are conducted to discuss performance and provide feedback and direction to employees. 3. Half yearly review: A half yearly review is conducted to ensure employees have a clear understanding of their performance relative to key performance indicators and identify any areas for development. 4. Annual review: A thorough review is conducted at the end of each year to appraise the performance of employees over a twelve-month period. This includes the discussion and documentation of performance achievements and any areas of concern. This annual review also includes creating new planning and development plans and setting new expectations for the year ahead. Per the Employee Performance Appraisal Policy, the content of performance appraisal meetings will remain confidential between the supervisor and employee except for agreed actions and goals, or where the disclosure of the information is consented to or required by law. 22 25 Supplementary Guide to Performance Appraisal | March 2019 APPENDIX E – PERFORMANCE PLANNING AND DEVELOPMENT TEMPLATE 9 Name: Review Date: Last Review: The purpose of the performance planning and development template is to: E Guide the performance planning and development of staff E Establish a holistic, quarterly performance review process E Increase the regularity of supervision between the staff member and their supervisor E Increase staff engagement, job satisfaction and performance E Improve feedback loops E Resolve issues in a timely manner E Ensure training and development are a priority E Focus on career progression E Check in to see how the staff member is tracking against their job expectations Before attending a performance planning and development review discussion you should: E Be prepared E Be ready to discuss the four key areas of job performance (shown in diagram below) E Be open to giving and receiving feedback E Consider what goals you should be working on, and those you would like to start working on (both personal and professional) E Openly discuss any areas for improvement E Discuss and set an action plan going forward You are encouraged to: E Monitor and reflect critically on your own performance E Follow up with your supervisor as required, which may be more frequently than your quarterly review E Action feedback and goals Key areas of performance to be delivered: 1. 2. 3. 4. 26 Supplementary Guide to Performance Appraisal | March 2019 Rating for the key areas of performance: 1. Exceeds expectations 2. Meets expectations 3. Expectations not met 4. Not rated My Wellbeing My Job My Behaviour My Contribution HAPPINESS & ENGAGEMENT How engaged are you and what can we do to improve your satisfaction and happiness? POSITION DESCRIPTION Are you performing all the duties in your position description? OBJECTIVES, EXPECTATIONS, KPIs, BUSINESS PLAN, RESULTS Are you achieving results and contributing to the Business Plan? ORGANISATIONAL VALUES & PRINCIPLES Are you behaving in a way that supports the organisation’s vision, mission and values? Supplementary Guide to Performance Appraisal | March 2019 ORGANISATION’S VALUES CULTURE AND CAPABILITY PILLARS FINALISATION OF APPRAISAL Please summarise below any comments on overall performance including any positive outcomes, as well as areas for growth/improvement. You can also comment on the effectiveness of your working relationship and ideas for future improvement. Is it essential that both the supervisor and staff member have reach consensus before signing off. In signing this appraisal form, I confirm that the performance appraisal process has been undertaken in a fair and reasonable manner, and all items documented are accurately represented by both staff member and supervisor. All performance growth/improvement areas have been agreed on and both staff member and supervisor commit to undertaking and achieving this growth/improvement. Employee’s Signature: ____________________________________ Supervisor's Signature: ___________________________________ 27 Date: _____________________ Date: _____________________ Supplementary Guide to Performance Appraisal | March 2019 STEP 5: MONITOR PERFORMANCE E Make sure you follow through with any training or other support that you offered to the staff member. E Monitor the staff member’s progress and provide ongoing feedback – be very clear. E Meet with the staff member to review their performance at the end of the agreed timeframe. . E If the staff member’s performance has improved, acknowledge that the issue has been resolved and discuss how to maintain the improvements – continue to offer support and encouragement. E If the staff member’s performance hasn’t improved, extend or repeat the process, or consider progressing to more formal steps. STEP 6: KEEP RECORDS E Keep confidential notes of your discussions with the staff member and the outcome of the process.10 30 31 Supplementary Guide to Performance Appraisal | March 2019 APPENDIX H – HAVING DIFFICULT CONVERSATIONS IN THE WORKPLACE RESOURCE It is highly likely that supervisors and managers will have to have a difficult conversation with their staff at some point during their tenure. These conversations may arise from misconduct issues, underperformance, or simply from leave requests or requests for a pay rise. Irrespective of the issue, it is important that any difficult conversations take place as soon as reasonably practicable. This ensures the staff member in question is treated with respect and the issue isn’t allowed to linger. It is imperative that all difficult conversations are undertaken carefully, and your organisation’s approach is considered and meets any legislative requirements. Privacy and confidentially requirements must be upheld with regards to the conversation and any subsequent follow-up, including the proper storage of documentation. The following practical steps can assist supervisors and managers to navigate difficult conversations with their staff: E When meeting with a staff member be upfront about what the issue is – state the issue straight away and be as direct as possible. Do not preface the conversation with small talk and do not sugar coat the issue. E Stick to the facts and use evidence to support your case – do not rely on opinions or hearsay and give the staff member the right of reply. Give as many examples as possible as to why the issue is impacting your organisation. E Focus on the issue and not the person – ensure nothing you say comes off as an attack on the person’s character. E Listen to the staff member and consider their point of view – there could be facts or situations you are unaware of that explain the behaviour/issue. Ensure you have an open mind going into the meeting and are open to an explanation from the staff member. E Be aware that the staff member could react emotionally – consider telling the person they can bring a support person to the meeting and be aware that it may be a legal requirement for you to provide this option, especially where there are ongoing issues. E Be aware of your own emotions – remain calm, objective, and focused on the issue at hand. E Ensure the conversation is solutions-focused – allow the staff member to help determine possible solutions going forward to address the behaviour/issue. E Follow up the conversation in writing and formally document the conversation on the staff member’s personal file – this step is important to clarify that you and the staff member are on the same page about the issue and agree on the proposed solution. Both parties should sign off on any documentation. Such documentation may be necessary if the behaviour or issue continues in order for you to institute a formal disciplinary procedure or terminate the staff member. If the staff member in question is a volunteer it is important to be mindful that they are willingly giving their time to your organisation. Be respectful of their voluntary contribution but do not allow it to be an excuse for inappropriate behaviour or underperformance. Difficult conversations can be harder with volunteers because they are under no obligation to attend the workplace. The ideal result of a difficult conversation is for both parties to come to an agreement on how to rectify the behaviour or issue going forward. Gaining a commitment from the staff member to an action-plan increases the likelihood that the identified solution will be successful. Make sure you follow through on any actions you have agreed to as a supervisor, manager, or on behalf of the organisation. Keep communication channels open so the staff member feels comfortable to re-visit the issue Supplementary Guide to Performance Appraisal | March 2019 with you and let you know if they are having difficulty following through on their actions. Unresolved workplace issues can be damaging to culture, morale, other staff, and can even threaten your organisation’s reputation or funding. When difficult conversations are executed quickly they are more likely to lead to successful outcomes, and they can improve staff engagement resulting in a happier and more productive workplace. These guidelines have been adapted from the Fair Work Ombudsman. To access a free, online course on having difficult conversations click here. 32