Public Service and Merit Protection Commission

A joint PSMPC/Comcare publication

CONTENTS

Appendix B.
Application of the Safety Rehabilitation and Compensation Act 1988

• medical condition
• material contribution
• exclusionary provisions

Other issues

• employer statements
• section 71 of the SRC Act
• appeals processes

FOREWORD

While the Australian Public Service (APS) has undergone significant reform to its financial management and organisational structures in recent years, there is still much to be done towards achieving a working environment in the APS which truly fosters and encourages innovation and flexibility.

The APS cannot reach the levels of performance needed to take us into the next century and beyond unless effective strategies for managing people are an integral part of workplace culture. Future strategies will need to incorporate the principles of occupational health and safety and look to the relationship between management systems, work processes and people in the workplace.

The new Public Service Act and the workplace agreements that will be put in place as part of the reform agenda will give managers a greater opportunity - and at the same time a greater responsibility - to manage their people well. Managing for enhanced performance will be an imperative, not just an optional add-on.

In this environment, discussions about the way work is organised, the performance of individuals and teams, and training and development needs take on an increased importance. These discussions are critical to fostering in the APS a culture which recognises and values good performance and the management of performance.

Sometimes people's performance can slip below the required standard. Feedback and counselling are an integral part of addressing these problems if we are to achieve high performing organisations.

Managers need to be aware of the link between feedback and counselling and occupational stress. The advantages of applying occupational health and safety principles as well as human resource management principles to the counselling process are twofold: fewer occupational stress claims, with consequent reductions in workers'compensation liability; and greater opportunities for positive outcomes and future improved performance.

We think you will find that this publication will help you to make the right moves in managing your team's performance. It isn't always easy, but it is important that you do.

INTRODUCTION

This publication is intended to provide managers across the APS with an outline of their responsibilities, and with advice about best practice in relation to work performance counselling, including strategies to reduce the likelihood of people experiencing a stress response as a result of counselling.

The booklet deals primarily with performance counselling as a 'formal' process in relation to assessment and monitoring of an individual's work performance, but also contains advice on how to provide effective feedback as an 'informal' process.

The term 'counselling' is used in the sense of assisting people to achieve and maintain a satisfactory standard of work performance and should not be confused with the type of counselling provided by professionally qualified counsellors. Managers are not expected to be psychologists and they should not try to solve difficult personal problems which their people may experience. Employee Assistance Programs and staff counsellors have the skills to deal with such problems and managers should make use of these resources where appropriate.

COUNSELLING

Performance management and the responsibilities of managers

Performance management, in the context of people management, is about helping people to work more effectively and, by improving individual and team performance, increasing the overall effectiveness and productivity of your agency.

Effective managers are good people managers. It is your responsibility to foster. a workplace culture in which people can maximise and maintain their level of work performance. To do so, it is essential that you establish clear communication with your staff; counselling and feedback are two very important tools that you can use in that process.

As a manager, it is your responsibility to continually monitor the way your staff are performing and provide them with appropriate guidance and support. It is easy to take good work for granted and only provide negative feedback when something goes wrong. But if people are to feel that their work has value their achievements must also be acknowledged. Regular, positive feedback can be a powerful tool to motivate and enhance the performance of your staff.

Is there a difference between feedback and work performance counselling?

The purpose of both counselling and feedback is to provide your staff with the information, advice and assistance they need to contribute fully to the achievement of your organisation's objectives and, where a person fails to make the required contribution, to demonstrate that you have made an appropriate effort to assist them.

Feedbackis generally informal and involves you and your staff member exchanging information in a broad range of situations about how you can best work together to achieve the goals of your organisation. Feedback ranges from verbal comments on a person's performance to written reports, such as probation, increment or referee reports.

Many situations involve a combination of the two, or a progression from feedback to counselling. For example, when assessing how a probationer is performing, you are expected to provide feedback: to communicate clearly to the person what is expected in terms of work performance and conduct and regular!, inform them of the extent to which they are meeting those expectations. You also provide written feedback by completing probation reports. If, however, despite having given the probationer an appropriate level of advice and assistance, you identify a problem with their work performance or conduct, you may also need to initiate counselling.

The following are particular situations where counselling and/or feedback may be appropriate:

• as part of a regular system of performance feedback;
  
  
• assessing the performance of a probationer;
  
  
• in relation to an increment report;
  
  
• in the context of performance appraisal;
  
  
• assessing staff training and development needs;
  
  
• in connection with a referee's report;
  
  
• after a selection process;
  
  
• if a person is planning to retire or resign from the service;
  
  
• where there is a decline in work performance;
  
  
• where the standard of conduct is not being met;
  
  
• where there has been particularly good performance;
  
  
• where a difficulty has been overcome; or
  
  
• to maintain continuing good performance.

Counselling is a formal process, initiated when a person has not responded to advice and assistance you have provided on a less formal basis, and will usually involve you taking the following steps:

• advise the person in advance that a discussion about his or her work performance or conduct is to be held at a given time and place, with sufficient notice to enable you both to come to the discussion prepared;
  
  
• arrange for the meeting to be held in private, although a support person for the person being counselled may be present, as well as someone you may have asked to attend as an observer; and
  
  
• keep a written record of the meeting.

When stress becomes an issue

All workers experience some degree of stress. Whether occupational stress makes a person ill, however, depends on a range of factors, including how their workplace is managed. Research by Comcare suggests that while feedback and counselling can be important tools to reduce occupational stress, if these processes are poorly managed, claims for workers'compensation can arise.

MORE ABOUT FEEDBACK

Feedback should be a two-way process

It is important for feedback to be a two-way process. Firstly, a feedback discussion should also give a staff member the opportunity to express his or her views on your performance. You need to receive 'upwards' feedback from your staff in order to accurately gauge how well you are fulfilling your own responsibilities. By giving consideration to upwards feedback you can reinforce the message that individual contributions to team performance are taken seriously.

Secondly, if you have a concern about a person's work performance it is usually more effective to work with the person to develop a solution rather than attempt to impose one from above. A co-operative, corrective approach will frequently achieve the best result. If feedback is balanced and constructive, your staff are more likely to respond to concerns about their performance with an effort to improve.

Providing effective feedback

To be fully effective, feedback should be:

• based on open, two-way communication;
  
  
• timely and regular;
  
  
• factual and specific;
  
  
• understood;
  
  
• honest;
  
  
• constructive; and
  
  
• followed up.

Timely and regular
Feedback is more effective if given on a regular, continuing basis. It need not, and should not, be limited to structured processes. Any concerns you have about a person's performance or conduct should be addressed promptly. Early intervention can often prevent more serious problems developing. Similarly, good performance should be promptly recognised.

Factual and specific
You should focus on measurable performance. Avoid making unsubstantiated judgements. Give tangible, specific examples whenever possible rather than generalising. You should also ensure that any information that you provide, e.g. concerning entitlements, is accurate.

Understood
Your staff need to understand why you are giving them feedback: that their individual performance is linked to the achievement of corporate objectives. It is also important, if you identify an aspect of a person's performance that requires improvement, that you make the person clearly aware of the established standards and in what way you consider that they are not being met. When you talk to staff about their performance you should clearly articulate your reasons for doing so and outline possible action that may result if there is no improvement. Problems may arise if managers and staff place differing interpretations on a discussion. In some cases a manager may feel that he or she has counselled a person while that person is under the impression that nothing more than a routine discussion has taken place.

Inform the staff member prior to any discussion what issues you wish to discuss with them and give them an opportunity to discuss it immediately or make another time (although you should not allow the discussion to be deferred for an unreasonable period).

Constructive
You should be honest, but not coercive or offensive. Frame the discussion around ways to improve performance rather than focusing solely on problems or perceived shortcomings. In many cases, even when a person is experiencing performance problems, there will be particular tasks which they still perform well. If you open the discussion by touching upon these positives, and then move on to the areas which require improvement, frequently a more constructive outcome can be achieved.

Followed up
Little will be achieved if feedback is not followed up. You need to continually monitor and evaluate the performance of your staff. When, following a feedback discussion, you agree on a course of action to improve a person's performance, e.g. to investigate the possibility of providing training or developmental opportunities, it is important that you follow up on your commitment. It is equally important for staff to be committed to improvement and to follow up on the actions to which they have agreed.

Be positive
Some managers may tend to focus on the negative aspects of feedback. However, while it is important to encourage improved performance in those not functioning to the required standard, you should try to adopt a balanced approach by also recognising and rewarding good performance.

Formal performance appraisal schemes provide an opportunity to recognise and reward good performance but there are many other informal opportunities, such as annotating a person's work with positive comments, especially if those comments will be seen by senior management; taking a few moments at a meeting to acknowledge someone's good work; allowing an individual to take on more challenging and responsible tasks; or praising good work in the presence of senior management.

Motivate
Motivating your staff is an essential part of the job of managing people in the APS environment. Recognition can be an important element of motivation. How a person performs in the future will often be influenced by feedback on the way in which they have performed in the past. By acknowledging the achievements of your staff, and ensuring that they have as much information as possible about the work they do and what is required to do it better, you should be able to increase their motivation to perform well.

Develop
Regular discussions with your staff will enable you to assist them to identify any training they may require to improve their work performance and will also provide you with the opportunity to assist in their career development. A personal development plan can be a useful tool to help your staff to develop realistic training and development goals.

Participate
Performance problems can sometimes result from factors other than the capacity or willingness of staff. Limited resources, inappropriate job design and inefficient or outmoded procedures are among a range of things that may contribute to poor performance. Regular discussions with your staff will give them the opportunity to bring such factors to your attention, and they are likely to be more willing to accept the measures taken to address such problems if they have been able to participate in developing the solutions.

It is important for managers and employees to understand each other's needs. You should establish what your staff need to do their jobs more efficiently and your staff need to fully understand your requirements. A needs-based approach should help you to establish effective communication and thereby improve performance in your workplace.

MOVING FROM FEEDBACK TO COUNSELLING

When to counsel

Determining at what point a decline in work performance or a failure to observe the appropriate standard of conduct warrants formal counselling is a matter for your judgement. It is not always easy to decide when to move from providing informal comments on a person's work to a more formal approach. However, when you do decide to take that step, make sure that you begin documenting the steps you are taking to address the situation (see Recording the discussion below).

By intervening at an early stage you can often prevent a problem escalating and requiring more serious and possibly disruptive action further down the track.

If you encourage a free flow of information in the workplace and open, two-way communication is the norm, it will be easier for you to identify performance problems when and if they do arise, and deal with them promptly. A good management style will not eliminate performance problems, but good workplace communication should help you to identify some problems early, so you can do something about them.

Who should give the counselling?

In most cases it is your responsibility as a manager to provide counselling to your staff in relation to work performance and conduct. However, in circumstances where performance is affected by factors outside the workplace, for example if a person has a problem with drugs or alcohol or has difficulties in their private life, it may be appropriate, after an initial discussion, to refer the person to a staff counsellor or counsellor from an Employee Assistance Program (EAP). This does not mean that you should back away from the problem, but you should focus on ways to improve the person's performance at work and not attempt to solve problems that may be occurring in the individual's private life. In most cases, managers are not qualified to take on such a role.

Apart from providing a counselling service for staff, EAPs can also help you as a manager. For instance, if you are faced with having to give a person critical feedback about their performance and you feel uncertain about your approach, you may wish to contact the EAP to obtain advice on how to best frame the discussion. You may also wish to consult a more senior manager or contact your human resources area for advice.

In some cases it may be appropriate to involve a professionally qualified counsellor outside your agency, such as a medical practitioner. If you are considering an external referral you should not put pressure on the person to seek outside counselling. A referral should be arranged only with the person's consent.

Where should you counsel and who should be present?

Generally, people should be praised in public and criticised in private. However, some people may be embarrassed by unexpected public praise, and so you need to be aware of this and use your own judgement when delivering positive feedback. It is advisable to first let a person know they have done a good job and then, for example, tell them that you intend to mention this at the next meeting.

Where formal counselling is to be done, the discussion should ideally be held in a place which is private and free from distractions. Your office, if you have one, may be appropriate but, depending on the situation, a more neutral meeting place away from the immediate work area may be preferable. Where possible, a suitable time for the discussion should be agreed in advance and sufficient notice given to allow both yourself and the staff member to prepare adequately.

While it is desirable for a person to be given sufficient notice to prepare for a counselling session, there may be occasions when you decide that a person's behaviour warrants immediate action, particularly when the behaviour is causing disruption to other staff.

A counselling discussion usually involves a manager or supervisor and a staff member but, in some situations, you may find that a person requests the presence of a support person or independent observer. You may also wish to have an observer present. A person or persons attending a session in this capacity would not normally take part in the discussion and their presence and role should be clarified before the session commences.

The importance of agreed outcomes

To achieve the best results, counselling, like feedback, should be based on open, two-way communication. You should work with a person to generate an agreed plan of action, establishing and articulating the needs of both the manager and the staff member. Focus on future outcomes rather than dwelling too much on what has happened in the past. Your aim is to produce an improvement in the person's performance or conduct and for this to happen you have firstly to agree that an improvement is required and then on the steps which should be taken to achieve it. It is also important that you establish a time frame to achieve your agreed goals and then to review the success of your strategy.

Recording the discussion

The keeping of APS records, including counselling records, is covered by the Information Privacy Principles (IPPs) contained in the Privacy Act 1988 and by theArchives Act 1983. These Acts cover the way in which personal information is collected and stored, how it is used and to whom it should be disclosed. It is particularly important to make sure you only record personal information about someone that is relevant to the purpose for which you are collecting the information, and that you clearly inform the person why you are making a record and who else will see it. More information about the IPPs can be obtained from the Office of the Privacy Commissioner (or call their inquiry hotline; 1800 023 985). The IPPs can also be accessed on the Privacy Commissioner's Home Page on the Internet (http://www.privacy.gov.au/publications/ipps.html).


If you initiate a counselling session in relation to poor work performance or conduct you should keep a formal record as evidence for both parties of what has occurred and as a basis for future action (e.g. training and development) or to show that counselling has taken place if a formal process, such as inefficiency, is later commenced.

You should make the record as soon as possible after the meeting, while your recollection of the events is still fresh. It will depend on the seriousness of the situation under discussion how much detail you record, but you should include relevant facts, such as the names of the people present, the date and location, the reason for the discussion and the main points covered, including the positives, and any agreed actions or outcomes, including time frames. You should not include unnecessary details about a person's private life. Recording information which is not relevant to the purpose may mean that you are in breach of the Privacy Act.

Both you and the person should sign the record, unless the person believes that the record is not an accurate reflection of the discussion, in which case he or she may attach their own signed version of the meeting. If other people are present as observers you should also ask them to sign.

Disclosure
You should inform the person that you have made a record, for what purpose, and who will have access to it. You are then responsible for storing the record securely, using an in-confidence file, and preventing any unauthorised access.

Matters raised in a counselling discussion should be treated confidentially, and disclosed to third parties only in line with the relevant Privacy Principles. You should generally inform a person if you are disclosing or referring a record of counselling to a third party, except where this is for a routine purpose, explained to the person at the time of the counselling.

Storage of records
If you consider that a formal process, such as discipline or inefficiency may be necessary, you may need to pass counselling records to your agency's human resources area. If, while you are reviewing a person's conduct or work performance, the responsibility for their supervision passes to another manager, it will usually be appropriate to pass on your records. This is particularly important in cases involving misconduct or inefficiency as in these cases there is a need to clearly establish what counselling and feedback has taken place. The processes can be unnecessarily prolonged if changes in supervision result in a lack of continuity in the recording of such action. If you change jobs any records of counselling that you have made which have not and are not likely to lead to further action should be destroyed.

Australian Archives' General Disposal Authority for Staff and Establishment Records (No. 17) provides that records of counselling may be destroyed from six months to seven years after the date of last action. You may destroy a record of counselling after a period of six months if you believe that no further action is necessary. Good practice suggests that in any case such a record should not be retained for more than two years. Where a record of counselling is placed on a personal file, e.g. if it relates to possible disciplinary action, inefficiency or unsatisfactory performance while on probation, the record should be retained as a basis for further action and to allow for periods of appeal or review. If no action is taken after two years, however, it is suggested that the record be destroyed.

You should be aware that any records of counselling that you create may be required to be produced in legal proceedings.

What are the options if counselling doesn't achieve the expected outcome?

The expected outcome of counselling is in most circumstances an improvement in work performance or conduct. If a person's conduct or work performance does not improve in response to counselling there are a number of options available. These include:

• re-arranging the person's duties;
  
  
• transfer to an area where a person's skills may be better utilised;
  
  
• voluntary reduction in classification;
  
  
• inefficiency procedures; or
  
  
• disciplinary action, in cases of misconduct.

If you are considering inefficiency or disciplinary action you should contact the human resources area of your department or agency for advice. It is essential to address problems with performance or conduct when they arise. If you use them appropriately the formal processes can be effective in dealing with under performance and misconduct and produce an outcome which is efficient both in terms of maintaining productivity in your workplace and in reducing the negative effects of a protracted, unsatisfactory work situation.

Counselling and inefficiency
The inefficiency procedures state that, before a written warning is issued to a person, 'normal counselling' must have taken place. What constitutes normal counselling is not defined in the current Enterprise Agreement but best practice suggests that you should observe the following points:

• Before issuing a warning, you should discuss the work standards expected of the person and provide appropriate assistance to enable the person to meet those standards.
  
  
• You should make clear to the person where their work is below standard and set goals for improvement over an agreed period.
  
  
• You should make records of counselling sessions, signed by both parties.
  
  
• You should give the person the opportunity to explain any reasons for under performance.

You must use your own judgement to determine how long a period to allow a person for improvement once you have identified a performance problem but it is best to deal with the issue in a proactive way. There needs to be a balance between the need to treat people fairly and equitably and your responsibility for maintaining the effectiveness of your workplace, bearing in mind the impact one person's under performance may have on other members of your staff.

Counselling and misconduct
If you believe that a person's conduct does not meet the required standard you should first raise the issue informally. Drawing a person's attention to the problem may be all that is required. If, however, the behaviour in question does not subsequently improve it may be necessary to arrange a more formal discussion to ensure that the person clearly understands what the expected standards are and how he or she may have fallen short of those standards. You should also make the person aware of the possible consequences if there is still no improvement, i.e. disciplinary action. In arranging such a discussion the points listed in the preceding paragraph may be a useful guide.

If the person's conduct still does not improve it may be necessary to consult your agency's human resources area regarding formal disciplinary action.

Note that this does not apply to an episode of serious misconduct where you must take appropriate action immediately.

OCCUPATIONAL STRESS ARISING OUT OF FEEDBACK AND COUNSELLING

Providing negative feedback to, and counselling staff, can be stressful on both employees and managers. Being prepared in advance for possible staff reactions to feedback and counselling can greatly assist the effective management of staff. Planning the discussion and trying to anticipate the staff member's reactions and your response can be helpful.

• If the person becomes distressed you should have a strategy to manage the situation. The Comcare Australia publication Supervisors' Handbook: Managing Staff/with Stress Responses, provides more information and ways to handle these situations.
  
  
• If the employee does not attend work on the following day it is essential that the organisation implement an early intervention strategy, such as referral to the Employee Assistance Program or staff counsellor, or a further meeting to address unresolved issues. A return to work program using a suitable rehabilitation provider should be considered if the employee does not return to work within 5 days.

Note: Any administration expenses will be the responsibility of the organisation unless Comcare accepts liability to pay workers' compensation.

Where you have to provide feedback or counselling in a particularly difficult situation or where you are not sure how to proceed, it may be useful to seek advice and guidance from your Human Resources area or from your Employee Assistance Program (who will have people skilled in dealing with conflict and a variety of interpersonal situations). In particularly difficult cases of conflict, it may be appropriate to use a professional mediator.

Workers' compensation claims for occupational stress arising out of counselling and staff feedback

Claims for workers' compensation for occupational stress can arise out of counselling and feedback sessions. From Comcare's experience many of these claims seem to arise from:

• failure to afford procedural fairness to staff (including not giving a staff member an opportunity to present their reasons for poor performance);
  
  
• inadequate communication between supervisors and staff on expectations;
  
  
• failure to adequately explain to a staff member what the issues of concern before imposing some perceived penalty; or
  
  
• conflict between supervisors and staff on a variety of issues including differing expectations on performance.

Appendix B contains further information about the application of workers'compensation legislation to claims for occupational stress.

FURTHER READING

PSMPC, The Essentials, No. 1-Managing Poor Performance, AGPS, Canberra, 1996.

PSC, Managing People's Performance, AGPS, Canberra, 1994.

PSC, Knowing Where You Stand - Performance Feedback Schemes for ASO1-6 and Equivalent Level Staff in the APS, AGPS, Canberra, 1994.

PSC, Making Performance Appraisal Count-Effective Performance Appraisal for Senior Officers and Senior Executives in the APS, AGPS, Canberra, 1994.

Comcare, Quality of Working Life (QWL) Series:

Developing an Action Plan to Improve Health and Productivity, 1993

Supervisor's Handbook: Managing Staff with Stress Responses, 1993

Copyright

© Commonwealth of Australia 1997

ISBN 0 642 27138 0

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Australian Government Publishing Service. Requests and inquiries concerning reproduction and rights should be addressed to the Manager, Commonwealth Information Services, Australian Government Publishing Service, GPO Box 84, Canberra ACT 2601.