Performance management
Performance plan
The contract requires the employer to determine an annual performance plan, in consultation with the executive, within three months of appointment. The employer and executive share responsibility for ongoing performance monitoring and development, with the plan reviewed annually.
A performance plan must include outcomes and expectations aligned with the Employer's priorities, public sector values and leadership capabilities. An executive’s expectations should be clearly articulated and their performance able to be measured.
At a minimum, the performance plan should appropriately reflect the executive’s duties and responsibilities under the contract.
An executive’s performance must be measured against objective criteria. Employers should ensure they take all reasonable steps to remove any unconscious bias from performance conversations.
Performance review
An executive’s performance is reviewed and assessed under the performance management framework. Performance reviews should occur regularly. An employer can determine the frequency of formal reviews to best suit their operating environment.
The outcomes of a performance review may inform the content of the next performance plan and also the executive’s duties and responsibilities under the contract.
Where the performance of an executive is considered as requiring improvement, it is both the executive’s and the employer’s responsibility to:
- identify the cause(s)
- design a development plan with measurable performance standards – both the executive and employer should agree to this plan
- monitor improvement – the monitoring period should be between one and three months.
If the executive’s performance does not improve after the second review period, this may be considered as a basis for terminating the executive’s contract.
How to manage your CEO's performance
Executive Performance Management Framework*
* although this is intended for VPS executives, public entities may use this as a guide.
Grievances and disputes
Grievances or disputes that arise out of the contract may be resolved by following the procedure in the contract. This procedure requires parties to a dispute to undertake best efforts to reach a mutually satisfactory resolution in a timely manner. Work will continue with no party prejudiced by this.
Discussions must first occur between the executive and their immediate supervisor. The executive may then escalate the matter to the next reporting level.
If the parties have been unable to reach a resolution, the executive may choose to formally raise it with the employer. The employer then has 14 days to nominate someone who will conduct a further investigation, be involved in discussions and make a recommendation to the employer. The contract requires this nominated person must not have been previously involved in the dispute. The employer’s final decision is binding on all parties.
Suspension
An employer may suspend an executive (with no impact on remuneration) at any time during their employment. This can include amending the executive’s duties, restricting professional contact and/or exclusion from the Employer’s premises. This may be appropriate while an employer investigates a potential disciplinary issue.
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