A recent Employers and Manufacturers Association review of the 521 cases which went before the Employment Relations Authority last year showed that 67 per cent fell in favour of the employee.

Part of the problem is that in many cases employers have not followed the required process, which is particularly true when it comes to dealing with poor performance in the workplace.

Poor performance issues can seriously affect productivity, team spirit and workplace culture.

However the good news is that if you follow the process correctly when dealing with the problem, it may well remedy the problem in the early stages without the need for further action. Essentially, the required procedure for dealing with poor performance involves the following steps:

Discuss and give advice on how to improve
The first step in dealing with poor performance is to have a discussion with the employee about where they are not meeting expectations. An employer needs to give guidance and support as well as discussing what the employee needs to take responsibility for.

It's important to put this performance plan in writing, outlining specifically what is needed for improvement, and who will do what by when. The plan also provides written documentation of process having been followed, and should state that if improvement doesn't occur, then disciplinary action may be taken.

Work through a warning procedure
If there is no improvement as a result of stage one, then an employer may take disciplinary action and work through giving a warning. The time frames will differ depending on the situation.

Advise the employee in advance that you want to have a formal meeting with them, setting a date, venue and time, and telling them they have the right to bring a support person.

The employer must set out their concerns (using the performance plan as a base) and listen to the employee's explanation. The meeting must then be adjourned to decide whether a warning will be given or not. One of the biggest mistakes employers can make is giving a warning without first considering the employee's side.

Final warning and dismissal
If improvement still doesn't occur, this may lead to a further warning and dismissal.

Recent research in New Zealand showed that in a third of cases, employees will improve at stage one - largely because they have not even been aware they are underperforming.