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News & Views Archive - 2005

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April 26, 2005

Making the hard decisions


Most executives and senior managers admit to facing uncomfortable decision-making in the course of their careers. One of the most challenging of these is invariably finding ways to manage or dismiss staff who are not performing.

In our survey last month, 59 per cent of respondents admitted to keeping an under-performing employee because they were not sure how to end the relationship.

True. It’s not easy telling someone they have no place in the company, yet there is plenty of advice available to employers to ensure the process is carried out fairly and appropriately.

There are well documented rules on the rights and obligations of being an employer today. So why aren’t we doing it? Forty five per cent of Rewards respondents last month admitted they did not always provide three written warnings to employees.

Most employers are mindful that if the termination process is not well managed, you could be up for a claim of unfair dismissal.

A climate of nervousness could be warranted as 66 per cent of surveyed companies have faced complaints of unfair dismissal.

It’s not surprising some employers are exposed, if workplace relations are not managed diligently, there are risks to business continuity as well as reputation.

Our survey showed companies are obtaining advice the following ways:

  • Internal HR or IR department - 40%
  • External recruitment or legal advice - 30 %
  • Industry associations - 21%
  • Other managers - 6 %
  • Don’t know - 3%

Employers who need some frank and simple advice can visit www.workplace.gov.au for information on workplace relations, seminars and workshops to assist in managing a range of challenging issues, including termination.

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