Progressive Performance Management Process
HOURLY EMPLOYEE
When an employee is not meeting the expectations of the job it is necessary to communicate, in writing, so that the performance deficiency and the expectations are clear. When an employee violates company policies/procedures, has unacceptable job performance, does not meet the client’s expectations, and/or is not working productively with a team, the following steps should typically be taken unless the Company determines that it is in the Company’s best interest to skip any or all of the steps. Gross misconduct or violations deemed egregious will not follow a progressive process and may lead to immediate termination.
1.Verbal Coaching and Counseling
When an employee displays behavior that he/she may not be aware is unacceptable, when an employee is new, and/or when an employee’s performance is falling below only some of the minor expectations, verbal coaching and re-training may be most appropriate. The manager will discuss the concerns and issues that have occurred in detail and will also relay the expectations moving forward.
2.Written Warning
A written warning should be issued when an employee displays an action that is more serious in nature than what would be appropriate for a verbal warning, or when past verbal counseling has been given and the issues have not been resolved and/or the employee has not improved. Also, if an employee displays behavior that he/she should have known was unacceptable (because it is written in the handbook or was clearly communicated previously) and/or their performance is not meeting the known job requirements, the manager should discuss the concerns and issues that have occurred in detail and also relay the expectations moving forward. The conversation will be documented and the document, which lists dates, events, etc., will be placed in the employee’s personnel file for future reference.
3.Second Written Warning
A second written warning should be issued when an employee has received prior warnings and continues to fail to meet the expectations they have been given or when the employee violates known company policies. The manager will discuss the continued concerns and issues that have occurred in detail and relay the expectations moving forward. The conversation will be documented, and the document, which lists dates, events, etc., will be placed in the employee’s personnel file for future reference.
4.Final Written Warning
A final written warning is issued when an employee commits an action that is extremely unacceptable, and/or the employee fails to resolve the issues from the previous warning(s).
5.Termination of Employment
Receiving more than three written warnings during a 12-month period could result in termination. If an employee is not able to meet the expectations listed in the prior warnings, displays any act of gross misconduct, and/or violates company policy, the employee may be terminated.
Suspension
Suspension should be warranted only in the event an investigation is needed. The employee may be suspended for the length of time needed to complete the investigation or gather information needed to make a termination decision. The suspension will be without pay, unless required otherwise by state or local law. Upon the conclusion of the investigation and if the employee is returned to work, the employee will be paid for any scheduled workdays that occurred during suspension. Suspension should not be used as a disciplinary tool.
The Company reserves the right to forego any steps and terminate employment in the Company’s sole discretion on a case-by-case basis.
SALARIED EMPLOYEE (EXCLUDING SALES)
When a salaried employee is not meeting the expectations of the job it is necessary to communicate, in writing, so that the performance deficiency and the expectations are clear. When a salaried employee violates company policies/procedures, has unacceptable job performance, does not meet the client’s expectations, and/or is not working productively with a team, the following steps should typically be taken unless the Company determines that it is in the Company’s best interest to skip any or all of the steps. Gross misconduct or violations deemed egregious will not follow a progressive process and may lead to immediate termination.
Performance
1.If a salaried employee is not meeting the expectations of the job, the expectations should be communicated to the salaried employee in writing. This may be via email or through memo. The document can be written as a recap to a conversation regarding the expectations that are not being met. The format of the document can vary, but at a minimum should state that the salaried employee is not currently meeting all expectations and should outline what the expectations are moving forward.
2.If a salaried employee continues to fail to meet expectations after being given them in email or memo form, a performance improvement plan should be issued to the salaried employee. The performance improvement plan outlines the areas that require improvement, the expectation that needs to be met, the measurement of success, and the deadlines to meet the expectations. If the expectations are not met by the deadlines, the salaried employee may be terminated.
Violation of Company Policy
1.Salaried employees are expected to know and enforce all written company policies. As a result, there is less leniency and progression in managing a salaried employee’s performance, as compared to an hourly employee, if he/she has violated a company policy. If a salaried employee violates a company policy, he/she should be issued a memo detailing the violation, the policy, the expectation moving forward, and consequence of failing to meet the expectation.
2.Depending on the severity of the violation, a salaried employee may be issued a written or a final warning upon first violation.
3.Salaried employees failing to follow attendance policies will be issued three warnings and then terminated if the attendance violations continue.
The Company reserves the right to forego any steps and terminate employment in the Company’s sole discretion on a case-by-case basis.
SALES EMPLOYEE (including Business Development Managers and Vice Presidents)
When a sales employee is not meeting the expectations of the job it is necessary to communicate, in writing, so that the performance deficiency and the expectations are clear. Sales employee should follow the same performance management process as a salaried employee, except when the SALES EMPLOYEE is not meeting his/her sales goals. If a sales employee is failing to meet his/her sales goals, the financial health of the company may be jeopardized and as a result, the sales employee is expected to meet expectations more quickly.
Expectation
A sales employee will be required to submit a weekly Scorecard by 9 am ET every Monday to the VP of Sales. These scorecards will be used to measure the individual performance for each person and will be reviewed weekly. Management will be reviewing the following items: Rule of 78s, pipeline, scorecard activity.
1.The sales employee should be greater than 75% of their “Rule of 78’s number” for the in-year revenue.
2.If the sales employee is not at 75% of their Rule of 78’s Target, then he/she should be greater than 90% of their pipeline goal.
3.If the sales employee is not meeting the first two requirements, he/she will be required to be at 200% of their weekly scorecard activity goal.
Failure to meet Expectations
1.If the requirements above are not met for a two-week period or six weeks in a quarter, the sales employee will be placed on a performance Improvement plan.
2.If the activity goal and pipeline goal are being met but the sales employee remains below 75% of their Rule of 78’s goal for more than a 60 day period, the sales employee will be required to produce a SMART business plan, detailing the specific actions they intend to take in order to increase their Rule of 78’s number in the next 30 days. Failure to meet the actions listed in the business plan may result in disciplinary action, up to and including termination.
The Company reserves the right to forego any steps and terminate employment in the Company’s sole discretion on a case-by-case basis.