Performance Management Policy Template

Performance Management Policy

Purpose of Performance Management Policy

This Performance Management Policy sets out the principles and practical processes [Company Name] uses to plan, monitor, assess, and develop employee performance. The policy aims to promote clear expectations, regular feedback, fair assessment, and professional development to support organizational objectives and individual growth.

Scope

This policy applies to all employees of [Company Name], including full time, part time, fixed term, and temporary staff. Contractors and consultants engaged by [Company Name] may be subject to similar processes as set out in their contracts.

Objectives of Performance Management

• Clarify roles, responsibilities, goals, and performance expectations.
• Provide regular, constructive feedback and coaching.
• Support employee development and career progression.
• Identify and address performance issues promptly and fairly.
• Inform decisions on rewards, recognition, and workforce planning.

Performance Planning

Managers and employees will agree on individual objectives and key performance indicators (KPIs) at the start of the performance cycle or upon commencement in a role. Objectives should be specific, measurable, achievable, relevant, and time bound. Objectives may be reviewed and updated when business needs or role requirements change.

Ongoing Feedback and Coaching

Managers are expected to provide regular feedback, coaching, and support throughout the performance cycle. Feedback should be timely, specific, and focused on behaviors and outcomes. Employees are encouraged to seek feedback and discuss development needs with their manager.

Performance Reviews and Appraisals

Formal performance reviews will be conducted at least annually and may include mid year reviews where appropriate. Reviews will consider objective achievement, competencies, behaviors, and development activities. Employees should prepare for reviews by reflecting on performance, progress against objectives, and future goals.

Performance Improvement

When performance does not meet standards, managers will work with employees to create a Performance Improvement Plan (PIP) that sets clear expectations, specific actions, support measures, and review dates. The PIP will document required improvements and provide opportunities for training and coaching.

Performance Ratings, Recognition and Development

Performance outcomes may be recorded using a consistent rating scale. Ratings will be used to inform development plans, recognition, and where relevant, compensation decisions. Development opportunities will be offered based on performance discussions and organizational priorities.

Documentation and Records

All performance conversations, objectives, review notes, and improvement plans should be documented and retained in accordance with [Company Name] record retention practices. Accurate records support fair decision making and follow up actions.

Roles and Responsibilities

Managers are responsible for setting clear expectations, providing ongoing feedback, conducting reviews, documenting outcomes, and supporting development. Employees are responsible for understanding expectations, participating in reviews, seeking feedback, and acting on development plans. HR provides guidance, tools, training for managers, oversight of consistency, and support for complex situations.

Approval Process

Approval for performance related actions follows these general rules:

• Objectives and individual development plans are agreed by the employee and manager. Significant or role level objectives may require manager chain approval.
• Performance Improvement Plans are initiated by the manager and reviewed with HR before finalization when there is a risk of formal action.
• Exceptions to standard processes, adjustments to timelines, or amendments to rating outcomes require approval from the manager and HR. Senior management approval may be required for outcomes that affect promotion, termination, or significant compensation changes.
• HR documents approvals and maintains records of decisions and exceptions.

Non-Compliance

Failure to follow this policy may lead to inconsistent performance outcomes and may expose the organization to operational risk. Manager non compliance with performance processes may result in corrective action, including additional training or other management action. Employee non compliance with reasonable performance requirements may result in formal performance management steps, such as a Performance Improvement Plan, and could lead to disciplinary action if performance does not improve.

Confidentiality

Performance information is confidential and should only be shared on a need to know basis. Managers and HR must handle performance records in line with [Company Name] confidentiality and data protection practices.

Note

[Company Name] may update this policy from time to time to reflect organizational needs or improvements to practice. Employees should review the latest version and are encouraged to contact HR for clarification or guidance on how this policy applies in their situation.