SurvivingaPerformance

ImprovementPlan

29JUNE2016

ASEANINSIDERS

byoriginandpassion

YongHonCheong

Partner

2

ManagingPoorPerformers

ManagingPoorPerformers

•  You can’t just wake up one day and tell him he’s fired as he hasn’t beenperforming

•  HRcan’thelpifthegroundworkisnotthere

•  Warningsandopportunitiestoimprovearerequired

•  Evenforprobationers–warningsandopportunitiestoimprovearerequired

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SohowdoIgoaboutit?

Whattodo?

•  Fromthewordgo–communicateexpectations(e.g.haveaclearjobdescription)

•  Review,counsellingandadvice

•  UseaPIP

•  Warnings

•  Ultimatums

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What’saPerformanceImprovementPlan?

PerformanceImprovementPlan

•  Commonlyknownas“PIP”

•  Keyword–IMPROVEMENT

•  PIPdoesnotmean–“Pergi–IniPintu”

•  BasicallyacomprehensivePlaninformingtheemployeeofhis/herareasofweaknessesandareasforimprovement

•  Underlyingbasis–communicationorreiterationofexpectationsandhelpingtheemployeetoimprovetomeetthoseexpectations

•  NoregulatedtimeframeforPIPs–itsallaboutwhatisreasonable.Typicallyaround2–3monthsdependingontheareasthatrequireimprovement

TypicalPIP

•  Comprisesofasingledocumentsignedbybothemployerandemployeeatstartofreviewperiod;

•  Coversthefollowing:

Areasof

Weaknesses

Expectations Review

Deadline

Achievement Superior’s

Comments

Employee’s

Comments

What’sinaPIP?

•  Areasofweaknesses–  Mustbeprovableordemonstrable–Can’tjustbeanythingorstuffoutsideofthe

employee’sjobscope

•  Expectations(orKPI/Targets)–  mustbereasonableandachievable,Usemeasurablebenchmarksifpossible

–  Remember…you’rehelpingtheemployeetoimprove,notsethim/herupforfailure

•  ReviewDeadline–  Setwithinareasonableperiodthatwouldallowemployeetoachievethework

expected

–  ReviewsshouldbecarriedoutonaperiodicbasisduringthePIP–notamatterofintroducingthePIPandkeepingquietthereafter

•  Achievement–  Behonestaboutwhathasorhasnotbeenachieved

•  Superior’sComments–  Becandid.Givecreditwhereitsdueandgiveconstructivecomments.Butbe

cleariftheemployeeisnotachievingwhatisexpected.Neverpaystobetoo

kind.Helptheemployeetohelpyou!

JustonePIP?

•  NotallperformancecasesjumpstraightintoaPIP

•  Thereshouldbeengagementpreviouslythroughadviceandcounsellingsessions

•  Whenthereisstillnoimprovement,thenthinkaboutaPIP

•  NotnecessarilyjustonePIPwilldo

•  Dependsonthesituation

•  Wherethereisimprovementbutnotenough–extendthePIP

•  Wheretherearenewareas–introduceanotherPIPperhaps

Employee’sperspective

•  Beopen

•  Acknowledgeyourfaults

•  ReviewthePIPcarefullyanddetermine:

–  Isthiswithinmyscope?

–  Arethetargetsreasonable?(Notasubjectivebutobjectivetest)

•  Workwithyoursuperior–askquestionsandtakeinconstructivecomments

PIPisdonewhatdoIdo?

•  Review–  CarryoutafinalreviewofthePIPwiththeemployeeattheendoftheentirePIP

period

–  CarryoutareviewwithHRanddeterminehowtheemployeehasperformedoverall

–  Achieved,PartiallyAchieved,DidnotMeet?

•  Decide–  Basedonthereviewandachievementsmade,decideonwhetherto:

•  ExtendthePIP

•  CloseoffthePIP

•  Terminatetheemployee

•  Communicate–  Conveytheoutcomeinwritingtoemployee

Doneitall–canIsackhimnowplease?

•  Onesizedoesnotfitall

•  Lookatwhathasbeenachievedandwhathasnot

•  Beobjective

•  Ifhemeetsbutisunabletomeetall–youmayeitherhavetoextendthePIPortakehimoffthePIP

•  IfthereisoutrightfailuretomeetexpectationsANDyoucanprovethatthePIPwasreasonable,thenitmaybepossibletoterminate

•  Alwaysremember–journeythroughthePIPisNOTtosackhim,it’sfirsttohelphimandthentoasasecondaryreason–tojustifyanyactiontaken

Stufftoremember

•  Yourbenchmarkstypicallyneedtobemeasurable

•  Maybeeasyforsalesfiguresetc.butbearinmindextraneousfactors–marketconditions,locations,competitionetc.

•  Attitudeandcharacteralwaysdifficulttobenchmark–e.g.interpersonalskills

•  Reviewsandcoachingareimportant–Notalwaysacaseof“youshouldknowwhattodo”

•  Meetingswithemployeeshouldbedocumented–AttheIntroductionofthePIP,duringthePIPanduponcompletionofthePIP

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Somecasestudies

Fortheemployee

MartinLawrenceBurkevEcoRefractoryProductsSdnBhd[2017]3ILR391

•  Whythecourtfoundthatpoorperformancehadnotbeenproven–  Noshowcauseorwarninglettersissuedpriortotermination.Noinquirytohear

hisexplanations,norwrittenwarningcounsellingnotesorminutesofameeting

directinghimtoimproveonhisperformance.

–  AsanR&DGM,althoughslowhedidmanagetoproducenewproducts.Noevidencethathewasincapable.Reasonableperiodshouldbegiven.

KhooPengWaivPembinaanTerasiaSdnBhd[2016]1ILR401

•  Whythecourtfoundthatpoorperformancehadnotbeenproven–  Noappraisalorreviewofperformance.Nodiscussionwithemployeeandno

opportunitiesprovidedforhimtoimprove.NoevidencetosupportCompany’s

contentions.

–  MaterialwitnessessuchastheClaimant’sbosswasnotcalled.Companyfailedtoproveitschargeofpoorperformanceagainsttheclaimant.

Fortheemployer

AhmadMohdKhairuddinvGlobalKnowledgeNetwork(M)SdnBhd[2018]1

ILR392

•  Whythecourtfoundthatpoorperformancehadbeenproven–  Althoughnoshowcauseletterorperformanceappraisalconducted,claimant

hadextensiveexperienceandwasnosomeonewhowhorequiredcoachingand

monitoring.Theclaimanthadalsoclaimedtobeseniorandexperiencedinhis

field,andtherewasnoneedtotreathimlikeajunioremployee.

–  Thecompanyhadrepeatedlyinformedtheclaimantofhisshortcomingsthroughemailsandconversationsbuttherewasrefusalbyclaimanttofollow

instructions.

TanChengLengvTropicanaMedicalCentre(M)SdnBhd[2017]1ILR383

•  Whythecourtfoundthatpoorperformancehadbeenproven–  Claimantdefiedsimpleinstructionssuchasclockinginandout.Attitude

problemsandlackofcommitmenttowork.Generalattitudetowardshissuperior

wasunacceptable,insubordinate,provocativeandapathetic.

–  Littleimprovementevenaftercompanyadvisedtheclaimantandextendedprobation.Nochangeinattitude.Afterthesecondappraisal,therewasstilllittle

improvement.

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Conclusion

Inanutshell…

DO

! CounselandWarn

! ConsultHR

! Givetheemployeeachanceforimprovement(e.g.viaPIP)

! Monitortheemployeethroughouttheperformanceimprovementperiod

! Givecreditwhereitsdueandreprimandswhendeserved

! Asanemployee–cooperateandparticipate

DON’T

×  Jumpthegunandsackwithoutpriorwarningofpoorperformance

×  Setunreasonabletargets,KPIordeadlines

×  Keepquietaboutperformanceissuestillitstoolate

×  Don’tberesistantunlessemployerisbeingabsolutelyunreasonable

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ContactDetails

Yong Hon Cheong

Partner

Tel : + 603 2087 9963 Fax : + 603 2094 4888 Email : hon.cheong.yong@zicolaw.com

Zaid Ibrahim & Co a member of ZICOlaw

Level 19 Menara Milenium

Pusat Bandar Damansara

50490 Kuala Lumpur

Malaysia

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ASEANINSIDERSbyoriginandpassion

Thankyou!

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