Horizon Management Group

The topic of unfair dismissal legislation seems to be mentioned quite often as the Government looks at what it is going to change in its current term.

 

There seems to be a move to relax the legislation for smaller business but is this a good move for business in general?

 

Current legislation allows for people to be dismissed for lack of performance if a fair process is followed. This happens quite often, successfully, without it being publicised. We tend to only read about those cases that have gone wrong.

 

There are always people ready to tell their story about how they had to pay to terminate someone. Every story we have heard had a component where management had not followed a thorough process.

 

Recruiting carefully and effectively managing and developing people will give an organization an edge over the competition. Making it easier to discard the mistakes, the products of poor management in some cases, removes the hard-earned advantage the good manager has attained. This advantage is usually gained through good planning, caring management, investment and hard work. As we work with a variety of businesses we see some who do this well and deserve to reap the rewards. Others recognise the benefits and are trying to catch up.

 

Relaxing the rules is not the answer to building the capability of the organization. What it does allow is poor management to stay in the race, often at the expense of their employees.

 

Effective performance management can be carried out without major disruption. It's all about fair play.

 

Make sure people know what is expected of them, putting this in writing with specific measures removes misunderstandings.

 

Provide regular specific feedback on how they are progressing and act on the results.

 

Reward them when they do well.

 

Alert them to what is required when they don't. Help them make the grade. A fair process gives them the chance to lift their performance.

 

If they still can't, or won't, then use a fair process to either help them find a more suitable job internally or terminate their services fairly.

 

A verbal warning followed by three written warnings is usually considered fair if enough time is allowed and support given. If the issue is punctuality, as an example, the time allowed need not be much. If it is increasing sales in a business that has a long lead time, the time allowed may need to be months. This is why it is important to have measures and act promptly.

 

We currently have the facility to place new employees on a three-month probation period. Use this to set reasonable performance goals within the three month period. If they are not met this should be a good indicator that the appointment is not working. Either fix it by extending the probation period in writing, ensuring the employee is given every opportunity to perform, or cut your losses and start again.

 

Making the goal posts wider apart does not improve the standard of football. No matter what code you play.