Performance conversations are a critical part of managing teams. But if not handled well, they can have unintended consequences for employee wellbeing, psychological safety, and even legal compliance.
In recent cases, we’ve seen employers caught off guard when informal or unstructured feedback processes led to stress claims or toxic workplace allegations. That’s why it’s more important than ever to equip managers with the tools and training they need to lead these conversations with care.
Here’s our guide to having effective, safe and legally sound performance conversations.
The Risks of Getting It Wrong
When conversations around performance feel threatening, inconsistent, or unsupported, they can lead to significant issues:
- Formal complaints or bullying claims
- Psychological injury or mental health claims
- Loss of trust and engagement across the team
In a recent case before the Personal Injury Commission, a manager’s attempt to address performance was ruled unreasonable action under Section 11A of the Workers Compensation Act 1987 (NSW). Why? There was no clear process, no support person, no formal warning, and no evidence of structured goals or communication.
5 Steps to Safe and Effective Performance Conversations
1. Prepare and Plan Ahead
- Know the facts. Gather performance data, feedback, and examples.
- Review any existing performance plans or KPIs.
- Book a private space and give the employee notice.
2. Set a Positive Intent
- Start by stating the purpose: to support growth and success.
- Reinforce the value the employee brings to the team.
3. Be Specific, Not Personal
- Focus on behaviours and outcomes, not personality.
- Use clear, objective examples (“In the last 3 reports, X was missing…”).
4. Invite Dialogue
- Ask for the employee’s perspective. What are they experiencing? What might be affecting their work?
- Listen actively and acknowledge challenges.
5. Agree on a Way Forward
- Co-create clear goals, timelines, and support strategies.
- Offer training, mentoring, or role clarity where needed.
- Document the conversation and follow up regularly.
Legal Do’s and Don’ts
DO:
- Provide a support person if requested
- Follow internal performance management policies
- Keep written records
- Focus on reasonable, consistent expectations
DON’T:
- Ambush the employee
- Use aggressive or punitive language
- Ignore psychological safety or workplace stressors
- Let feedback pile up for months
Free Download: Performance Conversations Checklist
We’ve created a 1-page printable checklist you can use to guide every performance discussion. It includes:
- Pre-meeting planning tips
- A conversation framework
- Documentation and follow-up prompts
If you would like a copy of this, please email the team requesting the Performance Conversation Checklist from [email protected]
At Be Recruitment, we believe great conversations create better workplaces. Let’s support your managers to lead with confidence and care.
