Many employers still use traditional approaches to performance management that place people in boxes. David Liddle argues that the Employment Rights Bill makes it urgent to develop more proactive and human-centred methods to help employees flourish.
The new Employment Rights Bill is coming soon. People professionals and leaders of businesses need to reconsider how they manage performance in their organizations.
Performance processes are often reactive, inconsistent or disconnected from the things people need to be successful. The new legislation will shine a bright light on this.
The nine-box grid is one of the most popular yet flawed tools used in this area.
This model of performance management attempts to map the potential and performance of people onto a matrix consisting of static categories. Human beings are not neatly categorized.
These frameworks reinforce bias, create artificial hierarchy, and label people as “low potential” or needing improvement.
What is the result? The result? Demoralisation, disconnections, and a penalising system which does not encourage difference but rather punishes it.
Tick-box exercise
No surprise, then, that around 90% of cases I see in workplace mediation programs are related to performance issues. This is a staggering number.
It tells us that the traditional methods and mindsets used to manage performance are not working.
Performance management is often reactive, compliance-driven or, worse, weaponised. It turns a complex human issue into a tick-box exercise.
Performance isn’t a policy, or a procedure. It is not a spreadsheet or a form that must be completed once a calendar year. It is the lifeblood of any healthy organization.
You can tell when performance is flourishing by the energy and clarity of the team.
If it isn’t, symptoms like disengagement, conflict and absenteeism can quickly appear, as well as underperformance and attrition.
With the Employment Rights Bill’s increased scrutiny and the potential for legal complaints only increasing this urgency, it is important to get things right.
Employers must move beyond managing bad performance to enable great performance, at all levels, starting from the first day.
Why this approach fails
The traditional performance management tools, such as the 9-box model, tend to be based on historical reviews, isolated goals, and a culture that is more focused on appraisal than appreciation.
It can be used to control and correct. True performance is not driven by compliance, but by connection.
These models give a false impression of objectivity, while ignoring workplace complexity, where feedback is relational and potential is not fixed, but dynamic.
Performance cannot be imposed on people in a culture which values agility, inclusion, and psychological safety. It has to be co-created by them.
True performance isn’t based on compliance, but rather by connection.
What appears to be a problem of poor performance is often the tip of an iceberg.
Are they clear about their expectations? Are they feeling psychologically valued, safe and trusted? Are personal goals and organisational goals in alignment? Are they able to speak openly and honestly with their manager without fear of favour?
Legal Urgency
Employment experts say that the Employment Rights Bill could affect up to 76 types of complaints at tribunal.
The report will shed light on the way organisations manage performance, especially in areas such as fairness, early intervention, and transparency.
This is an opportunity and not a danger. The Bill emphasizes the importance of:
- Engagement meaningful during probation period
- Early identification and resolution of performance barriers
- Take on training, capability or support issues with a straight face
- Create a culture that values dialogue over deference.
The focus is now on enabling success, rather than monitoring failure.
Transformational Performance Management
In my upcoming book People and Culture I outline a Transformational Performance System, or TPS, which is a people-centred, practical alternative to outdated performance model.
The model is constructed around four quadrants that interlock:
- MAP Mastery autonomy purpose – reflecting emotional drivers of high performances.
- OKR Objectives & Key Results – Clarifying and aligning organisational goals.
- VBC : Values and Behaviours Capabilities – defining the ethical and behavioral standards of an organisation.
- PAC : Power Authority Control – Creating Fair and Transparent Governance and Compliance Systems at Work.
Together, they create the conditions that lead to optimum performance. This is not average or adequate performance, but thriving values-aligned and purpose-driven performance.
How can we improve the skills of managers?
This shift is centered on managers and people professionals. For managers to manage the four forces that are often in tension, it is important they have the right mindset, skillset and confidence.
These are the five core competencies that they should develop:
Empathetic Listening: Understanding issues of performance means listening beyond the words. What is really happening? What is being felt, but not spoken?
Constructive Feedback: It’s not about criticism. It is about giving clear and compassionate feedback, focusing on outcomes and behaviours, rather than personality or assumptions.
Coaching based on values: Great leaders ask questions, not just tell them. They help people link their values and strengths with organisational goals.
Competency in conflict: Performance discussions often bring up tension. Managers must be confident when navigating conflict without resorting either to blame or avoidance.
Co-creation of goals: Performance targets are best created in a collaborative manner. Motivation and engagement skyrocket when individuals understand the importance of their work.
A human approach
Structure is important, but it’s not the only thing that needs to be changed. Structure must be aligned with humanism, trust and clarity. It puts the growth of each individual at the core of an organisation’s success.
When we do it well, the conversations change from punitive and purposeful to meaningful, and objectives become meaningful instead of mechanistic. People feel supported, seen and heard when we conduct regular reviews.
The research consistently shows that workplaces with values aligned and a psychologically safe environment perform better. They have higher engagement, fewer turnovers, and a better level of customer satisfaction.
Performance management is not about catching people off guard. I repeat this at every coaching or leadership program I conduct. It should be all about lifting up people.
It can be something that people value. A culture of high performance is not built on bureaucracy or fear, but rather on trust, clarity and meaningful relationships.
Teams become stronger when we help people grow and succeed. Organisations also benefit.
Subscribe to our weekly HR news and guidance
Every Wednesday, receive the Personnel Today Direct newsletter.
