Document Details

Document Id	setting_up_a_performance_system_checklist.docx.pdf
Document Title	Setting Up A Performance System Checklist.Docx
Reference	https://docs.google.com/document/d/1VY-tYOKUEDa2lrQuyLUUOY0BzlrSY6XN/export?format=pdf
Publisher	Fair Work Ombudsman
Categorization	Human Resource Management Performance Management
Document Source	3799 characters in 0 pages. (pdf)
Tags	performance system, employee goals, performance review, feedback, training, performance agreement, monitoring, career goals, workplace relations, performance management

The document provides a comprehensive checklist for setting up a performance management system in a business. It is aimed at managers and business owners looking to enhance employee performance through structured goal-setting and regular feedback. The checklist outlines four key steps: Planning, Discussing, Monitoring, and Reviewing employee performance. Each step includes specific actions such as creating performance agreements, setting measurable goals, providing ongoing support, and conducting regular performance reviews. The document emphasizes the importance of clear communication and constructive feedback, offering a framework for managers to support their employees effectively. It also references additional resources available through the Fair Work Ombudsman for further guidance on performance management.

The checklist for setting up a performance system is structured into four main steps: Plan, Discuss, Monitor, and Review, each designed to facilitate effective employee performance management. **Step 1: Plan** involves aligning individual employee goals with broader business objectives. Managers are encouraged to create a performance agreement template and prepare discussion points for meetings with employees. This foundational step ensures that performance goals are relevant and contribute to the overall success of the business. **Step 2: Discuss** focuses on one-on-one meetings where managers and employees collaboratively set specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals are documented in a performance agreement, which also outlines the support the manager will provide, such as training. Establishing a timeline for achieving these goals and scheduling regular check-ins is crucial for accountability. **Step 3: Monitor** emphasizes the importance of ongoing support and feedback. Managers are advised to regularly assess employee performance, providing both positive reinforcement and constructive criticism. The document introduces the 'AID' approach to feedback, which includes discussing the Action taken by the employee, the Impact of that action, and the Desired outcome. This structured feedback method helps employees understand their performance in context and encourages open communication. **Step 4: Review** suggests conducting formal performance reviews every six to twelve months. These reviews should be held in a private setting to ensure candid discussions. Both the manager and employee should prepare by reviewing the performance agreement and reflecting on achievements and areas for improvement. The review process also allows for the discussion of the employee's career aspirations and the setting of new goals for the upcoming performance cycle. The document concludes by directing readers to additional resources on performance management available through the Fair Work Ombudsman, reinforcing the commitment to providing reliable advice. It also includes a disclaimer that the information is general and encourages seeking professional advice for specific situations. Overall, the checklist serves as a practical guide for managers to enhance employee performance through structured processes and effective communication.

Original content extracted from the source document.

Setting up a performance system checklist

how they can make this change and how you can support them.

The following checklist has been created to help you set up a performance system in your business.

Step 1: Plan

□ Look at your business goals for the year ahead. Think about individual performance goals for each employee that will help your business reach its goals.
□ Create a performance agreement template. You can use our performance agreement template.
□ Prepare some dot points to help remember what you want to cover when you meet with each employee.

Step 2: Discuss

□ Meet with each employee to discuss their individual goals - these should be specific, measurable, realistic and relevant to the employee's duties.
□ Agree on and record these goals in a performance agreement, along with the support you'll provide to help the employee reach their goals (eg. training).
□ Set a realistic timeframe for the employee to work towards their goals, and a time for you and the employee to meet to review their performance.
□ Both you and the employee should keep a copy of the employee's performance agreement.

Step 3: Monitor

□ Monitor your employee's performance and support them while they work towards their goals.
□ Give regular feedback (both positive and constructive) to the employee, and deal with any performance issues as soon as them come up.
□ Follow the 'AID' approach when giving feedback:

Action - describe the specific actions you want to give feedback on (ie. the 'what,' 'when' and 'where').
Impact - explain the impact of the employee's actions (eg. on their work, co-workers, customers or the business itself).
Desired outcome - explain what you would like to see continuing or changing. Where change is required, explore with the employee

□ Think about the impression that your body language gives - face the employee, adopt an open posture, maintain good eye contact and try to be relaxed.
□ Giving constructive feedback can be difficult. For more information about having difficult conversations see our online learning courses at www.fairwork.gov.au/learning.

Step 4: Review

□ Conduct a review with each employee every 6 or 12 months to assess their performance against their goals and set goals for the new performance cycle.
□ Arrange to meet with the employee at a time and in a place where you won't be interrupted, overheard or rushed.
□ Make sure both you and the employee have time to prepare for the review. You should both read through the employee's performance agreement and think about how they've performed against their goals.
□ Prepare some dot points to help remember what you want to cover in the review.
□ Ask the employee how they think they've performed against each of their goals.
□ Give the employee feedback about how you think they've performed - both what they've done well and what they can do to improve. Your feedback shouldn't come as a surprise to the employee.
□ Give the employee the chance to share any feedback or concerns they have as well.
□ You may also want to discuss the employee's career goals and future within your business.
□ Finally, agree on and record goals for the next performance cycle (these might be the same goals or new ones) in a new performance agreement.

Find out more

For more information see our online learning course on

managing performance at www.fairwork.gov.au/learning.

The Fair Work Ombudsman is committed to providing you with advice that you can rely on.

The information contained in this template is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional.

Chunk 0 from Page 1 (Setting up a performance system checklist)

how they can make this change and how you can support them. The following checklist has been created to help you set up a performance system in your business.

Chunk 1 from Page 1 (Step 1: Plan)

□ Look at your business goals for the year ahead. Think about individual performance goals for each employee that will help your business reach its goals.
□ Create a performance agreement template. You can use our performance agreement template.
□ Prepare some dot points to help remember what you want to cover when you meet with each employee.

Chunk 2 from Page 1 (Step 2: Discuss)

□ Meet with each employee to discuss their individual goals - these should be specific, measurable, realistic and relevant to the employee's duties.
□ Agree on and record these goals in a performance agreement, along with the support you'll provide to help the employee reach their goals (eg. training).
□ Set a realistic timeframe for the employee to work towards their goals, and a time for you and the employee to meet to review their performance.
□ Both you and the employee should keep a copy of the employee's performance agreement.

Chunk 3 from Page 1 (Step 3: Monitor)

□ Monitor your employee's performance and support them while they work towards their goals.
□ Give regular feedback (both positive and constructive) to the employee, and deal with any performance issues as soon as them come up.
□ Follow the 'AID' approach when giving feedback:

Action - describe the specific actions you want to give feedback on (ie. the 'what,' 'when' and 'where').
Impact - explain the impact of the employee's actions (eg. on their work, co-workers, customers or the business itself).
Desired outcome - explain what you would like to see continuing or changing. Where change is required, explore with the employee

□ Think about the impression that your body language gives - face the employee, adopt an open posture, maintain good eye contact and try to be relaxed.
□ Giving constructive feedback can be difficult. For more information about having difficult conversations see our online learning courses at www.fairwork.gov.au/learning.

Chunk 4 from Page 1 (Step 4: Review)

□ Conduct a review with each employee every 6 or 12 months to assess their performance against their goals and set goals for the new performance cycle.
□ Arrange to meet with the employee at a time and in a place where you won't be interrupted, overheard or rushed.
□ Make sure both you and the employee have time to prepare for the review. You should both read through the employee's performance agreement and think about how they've performed against their goals.
□ Prepare some dot points to help remember what you want to cover in the review.
□ Ask the employee how they think they've performed against each of their goals.
□ Give the employee feedback about how you think they've performed - both what they've done well and what they can do to improve. Your feedback shouldn't come as a surprise to the employee.
□ Give the employee the chance to share any feedback or concerns they have as well.
□ You may also want to discuss the employee's career goals and future within your business.
□ Finally, agree on and record goals for the next performance cycle (these might be the same goals or new ones) in a new performance agreement.

Chunk 5 from Page 1 (Find out more)

For more information see our online learning course on managing performance at www.fairwork.gov.au/learning. The Fair Work Ombudsman is committed to providing you with advice that you can rely on. The information contained in this template is general in nature. If you are unsure about how it applies to your situation you can call our Infoline on 13 13 94 or speak with a union, industry association or a workplace relations professional.

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