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Performance Management Procedure

This procedure ensures a fair and transparent approach to managing employee performance in compliance with New Zealand employment law, supporting optimal performance and addressing issues legally.

Scope

This procedure applies to all employees at Envirocon, including full-time, part-time, permanent, and fixed-term employees.

Key Principles

  1. Fairness and Natural Justice: All performance management processes will be conducted with respect for fairness, transparency, and the principles of natural justice. Employees will have the opportunity to respond to any concerns raised.
  2. Legal Compliance: The process will comply with New Zealand laws, including but not limited to:
    • Employment Relations Act 2000
    • Human Rights Act 1993
    • Health and Safety at Work Act 2015
  3. Support for Improvement: Employees will be provided with clear feedback, guidance, and support to improve performance before any formal action is taken.
  4. Confidentiality: All information regarding performance issues will be kept confidential and shared only with those directly involved in the process.

Procedure

  1. Setting Performance Expectations

Job Descriptions and KPIs: Employees are provided with a clear job description and key performance indicators (KPIs) at the commencement of employment or when there are changes to their role.

Performance Reviews and KPI Review Timelines: KPIs will be reviewed at the following intervals to ensure they remain relevant to the employee's role and the organization's objectives:

  • Quarterly (every three months)
  • Every six months
  • Yearly
  • As needed to respond to significant changes in business objectives or role responsibilities.

Regular performance reviews aligned with these timelines will allow for ongoing feedback and development planning.

2. Identifying Performance Issues

  • Monitoring: Managers are responsible for regularly monitoring the performance of their team members.
  • Documentation: Any performance concerns should be documented, providing specific examples of where performance is not meeting the required standard.
  • Health and Safety Concerns: If performance issues relate to breaches of health and safety requirements, immediate action must be taken in accordance with the Health and Safety at Work Act 2015.

3. Addressing Performance Issues

  • Initial Informal Discussion: If an employee’s performance is below expectations, the manager will hold an informal discussion to:
    • Identify the areas of concern.
    • Provide examples of where performance is lacking.
    • Offer support such as training, coaching, or additional resources.
    • Set a clear timeframe for improvement.
  • Performance Improvement Plan (PIP): If informal discussions do not result in improvement, a Performance Improvement Plan will be implemented. The PIP will:
    • Outline the specific areas of concern.
    • Provide clear, measurable objectives for improvement.
    • Set a timeframe (usually 1-3 months) for improvement.
    • Detail the support that will be provided to the employee.

4. Formal Performance Management

If the employee does not demonstrate the required improvement within the PIP time frame, the formal performance management process will begin:

  • Written Warning: A formal meeting will be held, during which the employee will be:
    • Informed of their right to bring a support person or representative.
    • Provided with details of the continued performance issues.
    • Given an opportunity to explain their performance or raise any concerns.
    • Issued a written warning if appropriate.
  • Second Written Warning: If there is still no significant improvement, a second written warning may be issued, following the same process.
  • Final Written Warning: In cases where performance does not improve after two warnings, a final written warning may be issued.

5. Termination of Employment

If, after the final written warning, performance does not meet the required standards, termination of employment may be considered:

  • Consultation: Before making a decision, the company will engage in a formal consultation process with the employee, ensuring that all legal obligations under the Employment Relations Act 2000 are met.
  • Right to Respond: The employee will have the opportunity to respond and make representations before any decision is made.
  • Dismissal: If the company decides to terminate employment, the employee will be given notice in accordance with their employment agreement.

6. Appeals and Grievances

Employees have the right to raise a personal grievance if they believe the performance management process has been unfair or unjust. This must be done in accordance with the procedures outlined in the Employment Relations Act 2000.


Support and Development

  • Training and Development: Employees will have access to training and development opportunities to support them in meeting their performance expectations.
  • Employee Assistance Programme (EAP): Employees may also be referred to external support services, such as an EAP, if appropriate.

Roles and Responsibilities

  • Managers: Responsible for setting clear expectations, providing feedback, and managing performance issues fairly and transparently.
  • Employees: Responsible for meeting the performance expectations and engaging with any support offered.
  • Human Resources (HR): Responsible for ensuring the process is fair, legal, and documented, and providing support to both managers and employees.

Review of Procedure

This Performance Management Procedure will be reviewed annually to ensure it remains compliant with New Zealand legislation and reflects best practices.