“Employee underperformance can be incredibly costly, especially when it isn’t properly dealt with. Know how to handle it correctly and stay within the law.”

“Unfortunately, employers will often delay approaching underperforming employees, as the task of confronting them may seem difficult – and potentially perilous if the manager is unsure of how to avoid legal risks. 

However if you don’t act quickly to address underperformance, you may not only be failing your organisation and your team, but also the poorly performing employee. 

It is the employer’s responsibility to set standards of performance in the workplace and if an underperformance problem is left unresolved, it can dampen the morale of other workers and the company as a whole. Plus, managers who overlook underperformance may be viewed unfavourably.

Any underperformance concern needs to be tackled head on. But simply being proactive is not enough.

Strict laws govern exactly how you must handle underperforming staff. Veer outside of the law during any part of the management process and you can leave yourself liable to huge financial and legal penalties. 

If you mismanage an employee’s termination, the cost of merely defending an unfair dismissal claim can be tens of thousands of dollars. And unfair dismissal claims are at an all-time high, with over 33,000 claims lodged in the 2016–2017 financial year alone. On top of that, with the rise of lawyers offering no-win, no-fee services to their clients, the success rate of employers defending unfair dismissal cases is now lower than ever, below 40%. In this last financial year, the Fair Work Commission reported over 7000 settlements that involved money, including over 30 where the employee was awarded a payout in excess of $40,000.”

Employers need to be more careful than ever. Even the smallest procedural error, communication slip or oversight of a key legal requirement can easily lead to an expensive and disruptive claim.” Article taken from © 2007-2018 Portner Press Pty Ltd All Rights Reserved.

Luckily at HR Group we have a team of professionally trained consultants who have years of experience in this field that can help guide you through these often challenging times. For more information contact our friendly team on (02) 4936 6537 or email craig@hrgroup.com.au