A recent Fair Work Commission decision involving GPC Asia Pty Ltd demonstrates what happens when an employer approaches performance management properly and genuinely invests in helping an employee succeed.

The result – The employer successfully defended an unfair dismissal claim, with the Commission describing the performance management process as effectively a textbook example of how it should be done.

The Case

The employee worked as a Supply Chain Planner and was responsible for maintaining and managing key supplier data.

Over time, concerns emerged about the quality and accuracy of his work. The employer identified ongoing performance issues and implemented a structured Performance Improvement Plan.

Like many employees facing performance concerns, the employee argued that the issues weren’t really his fault.

He claimed system problems, operational challenges and broader team backlogs contributed to the shortcomings identified by the employer. The Commission, however, wasn’t persuaded.

What stood out was not simply that performance concerns existed. It was the way the employer responded to them.

Why the Employer Won

The employer didn’t rush to termination. It didn’t ambush the employee. It didn’t create a PIP simply to build a paper trail. Instead, managers spent considerable time clearly identifying the performance gaps, setting expectations, providing support and conducting regular documented reviews.

The evidence showed consistent weekly meetings throughout the process, progress was monitored, feedback was provided and expectations were clearly communicated.

The employee was given genuine opportunities to improve.

Importantly, the Commission found the manager’s objective throughout the process was not to terminate the employee, but to help him succeed. That distinction mattered.

The Deputy President specifically noted that the manager worked hard and consistently throughout the PIP to identify what needed to be done to close the performance gap.

When performance ultimately failed to improve to the required standard, the employer was able to demonstrate that it had acted fairly, reasonably and with genuine intent.

What Employers Should Take Away

The strongest PIPs have several things in common:

• Specific examples of the performance concerns
• Clear and measurable expectations
• Regular review meetings
• Genuine coaching and support
• Accurate documentation
• A realistic opportunity to improve

What they don’t contain is a predetermined outcome. If you’ve already decided the employee is leaving, you’ve missed the point of performance management. The purpose of a PIP should be improvement.

Termination should only be the outcome if improvement does not occur despite reasonable support and opportunity.

The Bloom HR Take

I’ll be honest, some managers avoid performance conversations for years because they’re worried about hurting feelings, others go to the opposite extreme and suddenly produce a PIP once they’ve already decided they’ve had enough.

A PIP is a management tool. The reality is that many employees genuinely don’t know they’re underperforming until somebody sits down and clearly explains the gap between what’s expected and what’s actually being delivered.

I’ve seen employees completely turn their performance around when they’ve been given clear feedback, practical support and realistic expectations. Employees need to be open to the feedback, and that requires trust. Leaders must build trust to be able to constructively give feedback that is received with good intentions.

I’ve also seen organisations drag out PIPs. This is also not fair. Being on a PIP is stressful and time consuming for both the employee and employer.

I’ve also seen employers not address things quickly enough. This is also not fair. The employee doesn’t know where they stand and in the meantime, other employees are picking up the slack.

When performance improvement plans are undertaken with the intention of getting that employee to improve, its an act of genuine leadership, not a a punitive process.

Good leaders don’t avoid difficult conversations. They have them early, clearly and respectfully and sometimes, despite everyone’s best efforts, improvement doesn’t occur.

When that happens, a fair and properly documented process protects both the employee and the employer. That’s exactly what happened here. The employer was able to demonstrate a fair, clear and reasonable process that was well documented and genuinely wanted the employee to success, and that is precisely what the Fair Work Commission expects.

Need assistance with a difficult conversation or tricky performance issues? Bloom’s array of talented consultants are here to help. Set up your free 30 minute consultation here.

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