Performance Management for All Ages

in Hospitality Businesses
THE NEED FOR PERFORMANCE MANAGEMENT
In an industry requiring good communication skills, many hospitality managers still find
conducting employee performance management a challenge because, in some instances,
poor staff performance needs to be addressed. Small businesses are particularly vulnerable to
issues of performance because each employee makes up a large part of the workforce.

Until recently, some businesses hospitality included - may have relied on high levels of staff
turnover or the mandatory default retirement age (DRA) as a method of resolving employee
performance problems. The removal of the DRA in 2011 has renewed the focus on good
workforce management and the necessity of dealing with poor job performance. In addition,
there is considerable evidence that improving workforce management techniques is good for
businesses both large and small.

Some employers believe that performance management is complex and burdensome, but
performance management need not be an elaborate appraisal process. It is a documented
conversation that focuses on competence, ability and potential without making assumptions.

Failure to conduct performance management can be unfair to all employees - regardless of

their tenure, age or job level - as they may feel that there isnt an opportunity to discuss their
personal performance, improve working patterns and advance in their careers. Employees
may also be unaware of a performance problem that could be resolved by simply talking it
through rather than allowing the matter to escalate to a more serious problem.

THE PERFORMANCE REVIEW PROCESS

Performance review discussions should provide both the employer and employee with an
opportunity to talk about job satisfaction levels and performance. The discussion provides an
opportunity for managers to set targets, provide direction and ensure employees understand
how they can contribute to business goals. Any development needs can be addressed, be they
in the form of training, shadowing, mentoring or project work.

It is important that this type of conversation is not seen as a one-off event, but is conducted on
a regular basis. Therefore, whilst you may commence a formal annual appraisal meeting,
holding regular one-to-one progress meetings mean that a problem doesnt wait until the
annual review and encouragement can be given more frequently and informally to motivate an
employee to successfully complete assigned objectives.

When conducting performance management, supervisors and managers need to determine

the reasons for poor performance. Is it laziness or could the cause could be a lack of
supervision or poorly communicated job duties? Is an employees poor conduct a behavioural

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issue or is it the need to reiterate to the employee the companys policies and expectations
regarding a professional demeanour? If there is diminishing performance, can the deficiencies
be addressed through adjustments, retraining, upskilling or even redeploying skills and
experience in another role within the organisation? Has there been a change in the employees
life or health that affects the ability to perform assigned duties? Does the change relate to a
disability or being bullied? If so, be aware of applicable laws regarding discrimination or
harassment and the need to make accommodations for disabilities in particular.

Under the Equality Act 2010, discrimination is unlawful if it is on grounds of a "protected

characteristic" (race, sex, disability, age, sexual orientation, religion or belief, gender
reassignment, marital status, civil partnership or pregnancy).

In instances where performance management and a discussion of job expectations relating to

issues of performance dont ultimately result in improvement, then managers and supervisors
may want to consider fair dismissal as a route. There are a number of organisations that can
assist with the disciplinary process when employees fail to satisfactorily perform job duties.
See the Further Resources section below.

BASIC PRINCIPLES IN DEALING WITH POOR PERFORMANCE

The basic principles of dealing with under-performing employees are simple and apply
regardless of an employees age. First, determine:
What is the problem?
What needs to improve?

Discuss this informally with the employee and seek resolution together. If counselling talks do
not show the required improvement, have a meeting with the employee to commence a
Performance Improvement Plan (PIP), documenting exactly what needs to be improved, what
the improvement will look like, what - if any - support will be given and when the improvement
is required. Provide a copy of this for the employee to sign and take away to work on.

The outcome should include the following, documented on the updated PIP if using one:
An agreed timescale for improvement.
Identifying where new skills may need to be learnt.
Consideration if any other issues are causing the problem e.g. any health or disability
issues, new or heightened caring responsibilities.
Whether advice needs to be taken on occupational health issues, and consideration of how
these could affect performance.
Agreed changes or adaptations e.g. reduced hours or different shifts, perhaps on a trial
basis.

Then:
Regularly review progress.
If progress cannot be sustained, refer back to the formal process.

Always:
Keep records of all conversations and review meetings. Clearly state what will happen if
there is no improvement (i.e. the possibility of receiving formal disciplinary action).

Ensure supervisors and managers know the principles of performance management, receive
training in performance management and corrective action and obtain support from higher
level management. If improvement is still not apparent, commence the formal disciplinary
process, which takes the employee from improvement note, to final written warning, to
dismissal. Always ensure the process is fair, including a written request to meet, giving the
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employee time to prepare (at least 24 hours) and the right to be accompanied. Write to confirm
the outcome afterwards and note the right of appeal.

TOP TIPS ON PERFORMANCE MANAGEMENT

Schedule a regular conversation with all employees (be aware, reviewing the performance
of a particular group of employees, e.g. only females or only younger or older workers
could raise concerns about unlawful discrimination).

Tackle any issues about performance as they are happening; dont raise issues with an
employee that are months old and that will come as a surprise during an annual review.

Before meeting each staff member think about the requirements of their current job and
whether the businesss needs are being met. Compare this to the job description, ensure
that the job description reflects the true requirements of the role and update if not.

Ask yourself:
Will you need the employee to work differently in the future - what skills does the employee
need to have or develop for the future?

Do you know what the employees aspirations and expectations are for the future? By
building this into the conversation all workers are given an opportunity to discuss their
plans. Is the employee feeling demotivated or underused, struggling with new technology or
looking for a new challenge?

Does the employee understand the jobs requirements? Do they comply with specifications
and meet deadlines?

What needs to be done regarding unsatisfactory performance? What particular aspect is

causing a problem and has it been raised with the employee? If not, it is a good time to
inform the employee of any concerns as regular review and feedback are important.

Are there any circumstances outside of the employees control causing poor performance?

Discuss with the employee what needs to be changed and think about how to help the
employee to work better in the future. Perhaps training or coaching would be beneficial?

Consider whether there are any adjustments or alterations needed checking against your
own health and safety workplace assessments and any legislative requirements.

Is it possible to change the employees working pattern, for instance reducing hours or
moving the employee to a different role where skills and experience will be retained? In
such cases, ensure the employee is aware of the reasons for the change and that this is
being done as an alternative to a disciplinary warning, wanting to retain them, etc. Ensure
the employee signs the mutual agreement to the change.

Agree with the employee if there are actions or changes they need to take, provide the
employee with a written PIP and make sure that you take written notes of your meeting.
CONCLUSION
Under difficult economic conditions, hospitality employers need all staff to contribute through
good job performance to the businesss bottom line. Employers can no longer rely on staff
turnover to address poor performance; instead they should conduct performance management
for the benefit of all employees and the business. There is no legal requirement to carry out
appraisals but, if done properly, performance management can be an effective way of
motivating and retaining staff and improving the ways in which they work.

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The key to improving any poor performance is often communication. Ensure that you:
provide timely, specific and constructive feedback to employees.
establish why the shortfalls in performance exist.
discuss and agree what support, development and assistance are required to help the
employees improve their performance.
encourage employees by providing feedback on their performance when it is due.

Performance management can be a simple, regular conversation where actions are agreed
and recorded. In most cases, the desired result (improved performance) is obtained, however,
where the performance management process leads to disciplinary action, managers will want
to consult with and obtain support from higher level managers or Human Resources experts.

This guide has been produced by the Institute of Hospitality with BusinessHR, which provides
customisable templates of letters and contracts as well as supporting information and documents.
BusinessHRs website is free to Institute members and a BusinessHR Helpline is available to all
members at a specially negotiated rate. Institute Members (MIH) and Fellows (FIH) are entitled to one
free call annually to the BusinessHR Helpline. If you have any questions regarding BusinessHR,
contact the Institute at +44 (0)208 661 4902 or email: library@instituteofhospitality.org

FURTHER RESOURCES
ACAS - Produces an advisory booklet on How to manage performance available at:
http://www.acas.org.uk/CHttpHandler.ashx?id=2714&p=0

BusinessHR the BusinessHR website offers over 70 customisable documents for use in ones own
business, including step by step guides on performance management and conducting appraisals, plus
templates forms. Specially reduced rates for use of the BusinessHR Helpline. See:
http://www.instituteofhospitality.org/info_services/info

BusinessLink Information and support for new businesses. http://www.businesslink.gov.uk

Institute of Hospitality eBooks (held in the Online Catalogue) - A selection of ebooks providing
guidance on market research, start-ups, writing a business plan, etc.
201 Ways to Turn Any Employee Into a Star Performer. 2004. Hawley, Casey Fitts. McGraw-Hill.
Competency-based Performance Reviews : How to Perform Employee Evaluations the Fortune 500
Way. 2008. Kessler, Robin. The Career Press.
Developing Employee Capital: Setting the Stage for Lifelong Learning. 2004. Kalamas, David J.;
Kalamas, Joan. HRD Press.
Human Resource Management for the Hospitality and Tourism Industries. 2007. Nickson, Dennis.
Butterworth-Heinemann.
Human Resources Management in the Hospitality Industry: An Introductory Guide. {8Th Ed.} 2005.
Eade, Vincent H.; Boella, M. J.; Goss-Turner, Steven. Elsevier/Butterworth-Heinemann.
Improve Your Coaching and Training Skills. 2008. Forsyth, Patrick. Kogan Page.

DISCLAIMER
This document is intended as a guide only. While the information it contains is believed to be correct, it is not a
substitute for appropriate professional advice. The Institute of Hospitality and the authors bear no responsibility for
action taken solely on the basis of this information.

Institute of Hospitality, Trinity Court, 34 West Street, Sutton, Surrey, SM1 1SH, UK.
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Copyright Institute of Hospitality July 2011. Registered Charity No.326180