February 20

Are Customer Surveys an effective Performance Assessment Tool?

Determining what tools to use to assess how an employee’s performance should be evaluated can be tricky for employers. In some professions and industries, it can be an easy decision. For example, employees in sales can be assessed based on the dollar amount of sales each month, or employees in manufacturing can be assessed on the quantity of items produced. In professions and industries that primarily provide customer service, the decision on how an employee’s performance can be evaluated becomes tricky.

Customer service cannot be quantified like sales and production. For these professions and industries, employers may choose to rely on customer feedback to evaluate employee performance. However, employers risk the employee making an unfair dismissal claim for using this method if the way customer feedback is collected and evaluated is not carefully considered.

This was shown in a Fair Work Commission (the FWC) case where an employee’s performance was assessed based upon the responses to the company’s customer service surveys.

Mr Kris Brennan v ASG Brisbane Pty Ltd T/A Audi Indooroopilly [2019] FWC 7630

Mr Brennan was employed as a Service Advisor for Audi Indooroopilly. Service Advisors are the contact point for Audi customers who require or want mechanical work for their vehicles. Mr Brennan’s performance was assessed using the average score of the five-question customer service survey, known as the Customer Experience Marker (the CEM). Mr Brennan and the other Service Advisors at Audi Indooroopilly were required to have a CEM score above the national average for each surveying month. In February 2019 Mr Brennan received a first and final warning letter. The warning letter set out that if Mr Brennan’s CEM score did not improve, his employment may be terminated. Mr Brennan’s CEM score continued to be below the national average. On 22 March 2019 Mr Brennan attended a meeting with Mr Nicholson, Aftersales Manager, who provided Mr Brennan with a letter of termination.

When determining that Mr Brennan was unfairly dismissed Commissioner Hunt disapproved of the requirement for the Service Advisors to have a CEM score above the national average. Commissioner Hunt set out the following deficiencies in relying on the CEM:

  • not all customers completed the customer service survey;
  • the questions in the survey concerned the overall service received by customers not only the service and delivery of services of the Service Advisors;
  • there could be a multitude of reasons for a low CEM score and not just for reasons caused by the Service Advisor;
  • requiring Service Advisors to be in the top 50% of all Audi Service Advisors disregards the fact that 50% of Service Advisors must be in the bottom 50%; and
  • just because a Service Advisor was in the bottom 50% of all Service Advisors did not mean that the Service Advisor’s performance of their duties was not satisfactory.

Commissioner Hunt held that there was no valid reason for dismissal due to the deficiencies in relying upon the CEM score for evaluating Mr Brennan’s performance. Mr Brennan was awarded 12 weeks wages minus two weeks for the payment of notice he received on his termination.

Tips

Employers should be aware of the deficiencies when relying upon customer surveys to assess employee performance. Not all customers will complete customer surveys. Those that do are usually customers who have had a negative experience and wish to lodge a complaint. There is also the risk that when completing the surveys, customers may be influenced by other factors or services received and not just the services provided by a particular employee.

Customer surveys should be used with caution to assess employee performance. They should not be the only assessment tool used when evaluating employee performance. Relying only on the customer surveys risks the chance of a successful unfair dismissal claim resulting in compensation for the terminated employee.

November 1

The Misuse and Abuse of the FWC’s Stop Bullying Order Applications

In a decision by the Fair Work Commission (the Commission), Deputy President Sams warned against Applicants’ improper use of stop bullying applications “as a deflection, or diversion, or even to overturn a justified disciplinary action”.

The detrimental effects of workplace bullying on employees are well known and include decreased productivity, reduced well being, and increased absenteeism. This, in turn, has detrimental effects on an organisation’s productivity and operational dynamic.

The Commission can make orders that it considers appropriate to prevent an applicant from being bullied at work, providing an avenue to stop workplace bullying.

In cases where the conduct constitutes bullying under the Fair Work Act 2009 (Cth) this can be useful. However, often times, employees may genuinely feel aggrieved by management decisions and feel ‘harassed, bullied or targeted’, despite objectively this not being the case. Though a worker’s feelings may be genuine, the legal test of what constitutes bullying does not consider the workers own belief, but rather is an objective test of what amounts to bullying. My colleague Jacob Reddie considered the overuse of the term bullying in the workplace in a previous post.

It is reasonable and at times necessary to manage workers’ performance, investigate complaints and provide disciplinary action. In some circumstances this may be robust. This, however, can fall within the scope of ‘reasonable management action’ which is taken in a reasonable way and is an exception to the definition of bullying under the Fair Work Act 2009 (Cth). Without this exception it could be extremely hard to manage difficult misconduct and performance issues. So long as the management action is reasonable, it does not need to be the perfect or ideal response. The action will be unreasonable if it lacks any evident and intelligible justification.

Some employees disconnect between what does and does not legally constitute bullying, combined with what to them is a genuine grievance, can lead to inappropriate stop bullying applications. The more concerning conduct is that of an employee who knowingly alleges conduct to be ‘bullying’ because they do not agree with or like the management’s decision, and attempt to circumvent that decision.

This issue is considered in the case below.

Tanka Jang Karki [2019] FWC 3147

Tanka Jang Karki (Karki) was a Bellman at The Star (the Employer). He first filed a bullying application that related to an incident where the Front Office Manager, Ms Jessica Sykes (Sykes), saw him using his phone on 27 August 2018, which was against the Employer’s policy. He claimed he was publicly abused, embarrassed and harassed by Sykes. He later alleged another incident of bullying, being a final warning he received for spitting into a bin in a public work area.

Phone use incident

Karki was directed to attend a meeting about his phone use on 27 August 2018. During this meeting, amongst other things, he claimed he was checking the time, quickly replied to a text from his son and was not using his phone as he was not talking on the phone. He claimed he was harassed by Sykes on 27 August 2018 in front of other people where she yelled at him.

Karki requested to see the CCTV footage as the Employer suggested his phone use was more than the 3 to 5 seconds that he alleged.

During this first meeting he said he was going to HR as he was being harassed.

Another meeting was arranged to show Karki the footage. At this meeting when Karki was told he would be receiving a written warning he replied “if you want to give me the written warning, you will see what will happen”.

Spitting incident

On 30 December Karki was seen spitting into a rubbish bin in a public area. A disciplinary meeting was arranged. Karki admitted to the incident claiming he was bleeding from his mouth, there were no guests in the area, there was dust from construction near the lobby area and the Employer did not have a policy relating to that conduct.

He did not agree with the final warning for this conduct and felt targeted by the Employer.

Commission decision

The Commission found the Employer and Ms Sykes’ conduct constituted reasonable management action carried out in a reasonable manner. Karki was therefore not bullied at work.

The Commission said that Karki’s disciplinary action was justified and his refusal to acknowledge his conduct showed he had little understanding of what bullying in the workplace really means and that any employer able to prove concerns about an employee’s conduct is entitled to take disciplinary action.

It also noted that Karki did not follow the Employer’s grievance process and usually the Commission would not intervene until an internal process was complete.

A concerning observation by Deputy President Sams was that stop bullying applications are being misused as a shield or diversion against justifiable management action.

Key takeaway

Employers have every right to properly manage, discipline and performance manage employee misconduct and poor performance. There are risks if management cannot show an objective and reasonable disciplinary process has been undertaken. It is important for employers to demonstrate a legitimate reason for the conduct being managed and that it is reasonable to manage it in that way, despite not necessarily being the perfect way.

Clear and known workplace policies ensure an employer is well placed to manage and respond to bullying allegations, and although there is scope for the misuse of the stop bullying jurisdiction with some employees quick to allege ‘bullying’ and ‘harassment’, the Commission has demonstrated those applications will not succeed.

April 8

The Five Golden Rules of Coaching Uncooperative Employees

Uncooperative employees are hard to deal with at the best of times, but what about when you are actively coaching them? It is not hard to understand why many managers resile from such a task. However, coaching is an integral part of a manager’s role and uncooperative employees are always going to exist.

I have compiled my five golden rules of coaching uncooperative employees, along with explaining the key reasons that you must coach these individuals and detail what you can do if an employee simply refused to participate in coaching.

The five golden rules of coaching an uncooperative employee

  1. Don’t stoop to their level- Often uncooperative employees will whinge and whine about not wanting to undertake a required tasks. Whatever you do, don’t start telling them that you would prefer to be doing something else more worthwhile with your time than spending it with them. Rise above them and get on with the process in an engaged manner.
  2. Don’t become negative- So often by the time a manager is coaching someone they have a negative view about them and their performance. This translates very quickly into negative body language, tone, words and actions. Be careful to remain upbeat and positive when coaching an employee, no matter their initial attitude. You do need to give them a real chance to perform and who knows they might surprise you with a huge turn around when they properly understand what is expected.
  3. Don’t skimp on the important parts- If you have gotten to the coaching stage, well done! So many managers avoid this altogether. Now whatever you do don’t miss the important parts. You will need to reiterate the consequences to the employee if their performance or behaviour does not improve. This needs to be clearly said and it can be a good idea to have the employee repeat this to you to confirm it.Tell them if their performance does not improve to the required level their employment may be terminated.
  4. Don’t become reactionary- Sometimes the best reaction to disproportionate behaviour is no reaction at all. If an employee is getting angry or lashing out at you while you are trying to coach them, then best thing to do is to very calmly end the session and give them another chance to resume it later when they have calmed down. Do not yell back at them or think that being firm in response will help.
  5. Don’t stop following a coaching plan (unless you have good reason)- So many coaching or performance improvement plans start with the best of intentions. I have seen pre-organised weekly meetings decay very quickly into nothing. This will usually be followed by the underperforming employee claiming they have not been supported. Be realistic when setting a plan and stick to it.

Coaching

One of the first questions I ask a client that comes to me with an unfair dismissal claim relating to poor performance is: ‘what support did you provide to the employee before dismissing them?’ Many people are confused by this question. There is tendency to think that simply by telling someone they need to improve that this is enough. Unfortunately, this is not the case.

53228217_sPerformance issues can often require some proactive coaching from a manager, especially if the employee in question has been with the organisation for a long time. A good way to carry out coaching is via a performance improvement plan with set goals, time frames and predetermined meetings. The support required for an individual throughout this process will depend very much on what the performance issue is and what resources the company has available to it. Usually I would recommend setting a reasonable period of time to monitor the employee’s performance and scheduling at least 1-2 coaching meetings to discuss performance, provide advice and get feedback. In addition, but not as a substitute, you could also ask the employee to report back to you weekly via email so you can keep a broader tab on their performance.

Unfortunately, it is quite often the uncooperative employees that do not turn their performance around. You therefore may well find yourself in a situation, after implementing coaching with them, of having to terminate the individual. It is important that if you get to that point you have explored performance improvement with them. If you are unable to show an appropriate level of support, including coaching, it might be held by the Fair Work Commission that you did not provide a real opportunity for the employee to improve their performance and that their dismissal was therefore unfair. This could result in compensation or reinstatement to their position.

Enough is Enough

So you have followed the golden rules, you have implemented a coaching plan and stuck to it. What next? Well, if the employee has been warned of the potential termination consequences and they have remained uncooperative and their performance has not improved, you can, and should, dismiss them.

Some employees will out right refuse to undertake coaching or a performance improvement plan. If this occurs then you should at least try to have one session to see if you can change their mind, but if you cannot you can move to firing them. In such circumstances I would suggest given the individual a written ultimatum about either cooperating or being immediately dismissed before moving to the final step.

Whatever you do, don’t be afraid of getting coaching wrong. Being paralysed by fear into doing nothing will not sort out performance issues. Trying something is always better than avoiding a bad situation.

What coaching advice do you have? Have you ever found yourself in a situation with an employee refusing to participate in coaching?