Performance Management
Structured performance management frameworks that help your managers tackle underperformance, run effective appraisals and develop your people. Practical support grounded in UK employment law.
Why Performance Management Matters
Performance management is the ongoing process of setting expectations, reviewing progress, and addressing underperformance in the workplace. Done well, it improves productivity, develops your people, and creates a culture of accountability. Done badly, or not done at all, it leads to frustration, resentment, and legal risk. Under the Employment Rights Act 1996, capability (which includes performance) is one of the five potentially fair reasons for dismissal. However, an employment tribunal will not accept a capability dismissal as fair unless the employer can demonstrate that the employee was made aware of the performance concerns, given a reasonable opportunity to improve, and supported through a fair process. The ACAS Code of Practice on Disciplinary and Grievance Procedures also applies to capability dismissals, and failure to follow the Code can result in compensation being increased by up to 25% at tribunal.
Many managers avoid addressing underperformance because they find the conversations uncomfortable, they are unsure of the process, or they are worried about getting it wrong legally. The result is that poor performance goes unchallenged, high performers become frustrated that standards are not being maintained, and by the time the employer finally takes action the situation has deteriorated to the point where dismissal feels like the only option. This is where businesses get into trouble, because dismissing someone for performance without a documented history of reviews, support, and warnings is very difficult to defend at tribunal. Informal conversations, clear objective setting, and regular feedback should be the foundation of performance management, not a formal procedure that only appears when things have already gone wrong.
At Rebox HR, we help employers build performance management processes that work in practice, not just on paper. We design appraisal frameworks, coach managers on how to have honest performance conversations, draft performance improvement plans when formal intervention is needed, and guide you through the capability procedure if performance does not improve. We also support managers through probation reviews, making sure new starters are assessed fairly and any concerns are documented early. Our approach is practical and proportionate. We help you manage performance proactively, so you rarely need to reach the point of dismissal.
What We Cover
Practical, expert support across every aspect of performance management for your business.
Appraisal Frameworks
We design appraisal systems that suit your business, whether that is annual reviews, quarterly check-ins, or a combination of both. A good appraisal framework gives managers a clear structure for reviewing performance, setting objectives, and identifying development needs. We create the templates, train your managers on how to use them, and help embed a culture where performance conversations are a normal part of working life rather than something everyone dreads.
Performance Improvement Plans
When informal feedback has not resolved a performance issue, a Performance Improvement Plan (PIP) provides a formal, documented framework for improvement. We draft PIPs that set out the specific areas of concern, measurable targets for improvement, the support the employer will provide, a realistic review timeline, and the consequences if performance does not improve. A well-drafted PIP protects the employer legally and gives the employee a genuine opportunity to succeed.
Capability Procedures
If a PIP does not result in the required improvement, a formal capability procedure may be necessary. This is the process that can ultimately lead to dismissal for poor performance, and it must be handled carefully to comply with the ACAS Code of Practice. We guide employers through every stage, from the initial capability meeting to the outcome letter, making sure the process is fair, documented, and defensible. We can attend capability meetings with your managers or chair them on your behalf.
Manager Coaching
The most common reason performance issues are not addressed is that managers lack the confidence or skills to have the conversation. We provide one-to-one coaching for managers on how to give constructive feedback, set clear expectations, and address underperformance early. This is not a generic training course. We work with your managers on the specific situations they are facing and help them develop the skills to manage performance independently.
Probation Reviews
The probation period is your first opportunity to assess a new employee's performance, and it needs to be managed actively. We help you structure probation reviews with clear objectives, conduct formal review meetings at agreed intervals, and make a fair decision at the end of the probation period. If performance is not meeting expectations, we advise on whether to extend the probation, offer additional support, or end the employment, and we make sure the process is handled properly.
Objective Setting and KPIs
Performance management starts with clear expectations. We help employers set SMART objectives and meaningful KPIs that employees can understand and work towards. Vague targets like 'improve communication' or 'be more proactive' are impossible to measure and even harder to hold someone accountable for. We work with you to define specific, measurable outcomes that align with your business goals and give managers a clear basis for performance reviews.
How We Help
A clear, structured approach from start to finish.
Assess
We review your current performance management arrangements, including any existing appraisal processes, documentation, and the specific performance issues you are dealing with. If you have a live underperformance situation, we advise on the best approach and the options available to you.
Implement
We put the right framework in place. That could mean designing an appraisal system, drafting a PIP for a specific employee, setting up a formal capability procedure, or training your managers on how to manage performance effectively. We provide all the templates, letters, and documentation you need.
Support
We support you through the process from start to finish. Whether that means attending review meetings, coaching a manager through a difficult conversation, or guiding you through a capability procedure to its conclusion, we are available when you need us. We also review and refine your performance management processes as your business evolves.
Frequently Asked Questions
What is the difference between a disciplinary and a capability procedure?
A disciplinary procedure deals with conduct, meaning the employee's behaviour or actions. A capability procedure deals with performance, meaning the employee's ability to do the job to the required standard. The distinction matters because the approach is different. With conduct issues, the focus is on whether the employee chose to behave in a certain way. With capability, the question is whether the employee is able to perform to the required level, even with support. Both capability and conduct are potentially fair reasons for dismissal under section 98 of the Employment Rights Act 1996, but the process for each must reflect the nature of the issue. A capability process should include support, training, clear targets, and a reasonable timeframe for improvement before any formal warnings are considered.
How long should a Performance Improvement Plan last?
There is no legally prescribed length for a PIP, but it must give the employee a reasonable opportunity to improve. In practice, most PIPs run for between four and twelve weeks, depending on the nature of the role and the performance concerns. A sales role with clear monthly targets might have a shorter review period than a complex project management role. The key is that the timeframe must be realistic. Setting a two-week PIP for issues that have built up over months is unlikely to be seen as fair by a tribunal. We help you set a timeframe that balances the need for improvement with the practicalities of the role and gives you a defensible position if the situation leads to further formal action.
Can I dismiss an employee for poor performance?
Yes, capability (which includes performance) is one of the five potentially fair reasons for dismissal under section 98(2) of the Employment Rights Act 1996. However, the dismissal will only be fair if you can demonstrate that you followed a fair process. That means making the employee aware of the performance shortfall, giving them a reasonable opportunity to improve with appropriate support, following a formal capability procedure if improvement is not achieved, and considering alternatives to dismissal such as redeployment. The ACAS Code of Practice applies, and failure to follow it can result in a 25% uplift in tribunal compensation. We make sure every step is documented and the process is fair, so your position is as strong as possible if a claim is brought.
Do I need to give warnings before dismissing for performance?
In most cases, yes. A fair capability process typically involves an informal stage where the concerns are raised and support is offered, followed by a formal first written warning, a final written warning, and then dismissal if performance still does not improve. Each stage should be accompanied by a meeting, a clear explanation of the concerns, measurable targets for improvement, and a reasonable review period. The number of warnings is not prescribed by law, but the overall process must be reasonable. Skipping stages or rushing through warnings without giving the employee a genuine chance to improve is likely to result in an unfair dismissal finding at tribunal. We guide you through each stage and make sure the documentation supports your position.
What should I include in a performance improvement plan?
A PIP should clearly set out the areas where performance is falling short, referencing specific examples rather than general statements. It should include measurable targets for improvement, the support the employer will provide (such as training, mentoring, or adjusted workload), a realistic review timeline with scheduled review meetings, and the potential consequences if the required improvement is not achieved. The PIP should be discussed with the employee in a meeting, giving them the opportunity to ask questions and raise any factors that may be affecting their performance, such as health issues or problems at home. Both parties should sign the document, and a copy should be kept on file. We draft PIPs for our clients and attend the initial meeting to ensure the plan is communicated clearly and fairly.
What if poor performance is related to a health condition or disability?
If an employee's underperformance is linked to a health condition or disability, the employer has additional obligations under the Equality Act 2010. A disability is defined under section 6 of the Act as a physical or mental impairment that has a substantial and long-term adverse effect on the person's ability to carry out normal day-to-day activities. If the employee meets this definition, the employer is required to make reasonable adjustments under section 20 to remove any disadvantage the employee faces. This might include adjusting targets, providing additional training, modifying duties, or allowing flexible working. Proceeding with a capability process without considering reasonable adjustments, or dismissing an employee whose performance issues are connected to a disability, could result in a discrimination claim with uncapped compensation. We help employers navigate these situations carefully, involving occupational health where appropriate and documenting every step.
How do I manage a performance review meeting?
A performance review meeting should be structured, documented, and focused on outcomes. Start by reviewing the objectives that were set at the last meeting and discussing progress against each one. Be specific about what has gone well and what needs to improve, using concrete examples rather than general impressions. Give the employee the opportunity to share their perspective, raise any concerns, and discuss any support they need. Agree on new objectives for the next review period and summarise the discussion in writing. If the review is part of a formal capability process, the employee should be given advance notice of the meeting, told the purpose, and informed of their right to be accompanied under section 10 of the Employment Relations Act 1999. We coach managers through these meetings and can attend to provide real-time support.
Can you help set up a performance management system for my business?
Yes. Many of the businesses we work with do not have any formal performance management process in place, and we help them build one from scratch. This typically includes designing an appraisal cycle that fits the business, creating review templates, drafting a performance management policy, setting up objective-setting frameworks, and training managers on how to conduct reviews and give feedback effectively. We tailor everything to your business size, industry, and culture. For businesses that already have a system in place but are not getting the results they want, we review what you have, identify what is not working, and help you improve it. The goal is a practical process that managers actually use, not a form-filling exercise that sits in a drawer.
“Great HR advice and great support. Staff changes involving reducing your employee headcount can be distressing as well as being fraught with the risks of getting it wrong from a legal or procedural point of view. Thanks for your help with the initial who and the why and then the process and paperwork has been great. Also your support for the Directors has been invaluable. You are much more than just the technical stuff of HR!”
Related Services
HR Training
Practical training for your managers on performance conversations, giving feedback, and managing underperformance. We tailor every session to your business and the challenges your managers face.
HR Training →Disciplinary & Grievances
When performance issues cross into conduct territory, or when a capability process leads to formal action, we manage the entire disciplinary procedure on your behalf.
Disciplinary & Grievances →Dismissals
If a performance management process results in dismissal, we make sure the process is fair, documented, and legally defensible from start to finish.
Dismissals →Need Help With Performance Management?
Whether you are dealing with an underperforming employee or want to build a performance management framework for your business, we can help. Book a free, no-obligation consultation and let us support you.
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