Many employers confuse employee misconduct with unsatisfactory performance. This can be costly for the employer if the confusion results in an incorrect process, exposing them to unjustified disadvantage or dismissal claims.
A disciplinary procedure is relatively short, which is intended as a corrective measure to address misconduct related to an employee’s wilful or negligent behaviour.
Whereas a procedure addressing unsatisfactory performance is ongoing for a longer period of time where the employee’s competence or skills are addressed in relation to their ability to do their job effectively.
What is Poor Performance?
Poor performance or underperformance is when an employee is not meeting the standards and expectations of their role in the company. Many cases of poor performance are unintentional. Sometimes an employee will be unaware they are underperforming and won’t change unless they are told otherwise.
Poor performance often appears as:
- Inability to fulfil the standards and expectations of their role
- Failing to ensure work is completed within a required timeframe
- Repeated errors in work.
The most common reasons for underperformance include:
- Misunderstanding of standards and expectations for the job
- Not enough training or support
- Personal reasons or sickness
- Work-related stress
- Workplace bullying
- Low morale or job satisfaction.
What is Misconduct?
Misconduct refers to wilful or negligent behaviour in the workplace which is unacceptable and breaks the rules, policies or that is inconsistent with the requirements of the employment agreement.
Specific types of misconduct and their consequences do not need to be listed in an employment agreement or employee handbook, although they often are.
Common examples of misconduct include:
- Repeated lateness
- Poor personal presentation
- Behaving inappropriately towards other employees
- Misuse of company computers and personal social media accounts
- Making threatening and abusive statements or gestures
- Drug and alcohol abuse in the workplace
- Theft
- Corruption.
Misconduct vs Poor Performance – Identifying the Difference
The difference is quite simple. Misconduct has more to do with the employee's behaviour (their will) where there has been a breach of the employment agreement or company rule or policy. Whereas unsatisfactory performance involves an employee's ability to do their job or their failure to meet the standards required of their role (their skill). It is important to be clear on the difference as misconduct and performance are addressed via different processes.
What is the difference in the processes in respect of misconduct and performance concerns?
In cases of misconduct, the employer will follow a disciplinary process, which will involve a disciplinary meeting where the employee is afforded an opportunity to respond to allegations against them, which response should be genuinely considered before the employer decides on an outcome. Potential outcomes of a disciplinary process could be a written warning, final written warning, notice dismissal or a summary dismissal.
Where there are concerns about the employee’s performance, the employer should follow a performance management process. This process generally sets out the relevant standards to be met when performing their duties and where the employee is falling short of these standards. Usually, a performance management plan is implemented which sets out the measures that will be taken by the employee and the employer for the employee’s performance to meet the required standards. This can include training and development or may be as simple as pointing out the steps the employee should follow when doing certain tasks. The employee is given a reasonable time to improve. If there is little or no improvement, it may be necessary to warn the employee and start another performance management process
Are you struggling to manage staff performance? Wondering what to do when an employee is underperforming? Peninsula works with Kiwi business owners offering them tailored HR resources and advice including performance management plans. Call our team on 0800 215 036 to find out how we can help you.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.