Performance management
Managing how well someone does the job, and the process if it is not good enough.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Performance management covers objectives, feedback, appraisal and, where performance falls short, a capability process.
Why it matters
Capability and conduct are different processes for different problems: capability is can't, conduct is won't. Using the wrong one is a common route to an unfair dismissal finding.
What it looks like in practice
A fair capability process means setting clear standards, giving support and training, allowing a reasonable period to improve, and warning of the consequences — with everything in writing.
What to watch out for
Managing someone out informally. Six months of hints followed by a dismissal is a claim; six weeks of a documented process is usually not.\n\nAnd performance problems that are actually health problems, where adjustments are owed first.
Where to get proper advice
ACAS: free guidance, free templates and a free helpline. An employment solicitor for anything contested or senior.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
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