In today’s workplace, performance management isn’t just about setting goals and measuring results, it’s also about how those conversations are handled. When approached poorly, performance discussions can do more harm than good, potentially creating psychosocial risks and even leading to workplace injury claims. But when done well, they build clarity, trust, and accountability.
At Be Recruitment, we often support organisations navigating the intersection between performance management, psychological safety, and compliance. One recurring theme we see? Many leaders aren’t given the tools they need to hold safe, fair, and constructive conversations, especially when performance concerns arise.
What Can Go Wrong?
Performance conversations can become harmful when:
Expectations aren’t clearly set
Feedback is delivered without preparation or process
Discussions feel punitive rather than supportive
There is no opportunity for the employee to respond or reflect
Public criticism replaces private, respectful dialogue
These missteps can escalate quickly. Workers may feel blindsided, anxious, or even humiliated. Without clear procedural fairness or support structures, what was intended as a feedback session can become a psychosocial hazard.
In a recent Personal Injury Commission matter*, the employer attempted to defend a psychological injury claim under section 11A of the Workers Compensation Act 1987, asserting that their actions were reasonable performance management. However, the Commission disagreed. It found there was no formal process, no support person, no advance notice, and no evidence of performance goals or a disciplinary framework. The approach was ultimately deemed aggressive, deprecating, and objectively unreasonable.
This case is a clear reminder: without structure, transparency, and empathy, performance management can become a legal and safety liability.
The Psychosocial Risks to Watch For
SafeWork Australia and other WHS regulators have outlined a number of psychosocial hazards that can arise in performance-related conversations, including:
Poor role clarity – when workers aren’t sure what’s expected of them
High job demands – excessive workloads without appropriate support
Lack of procedural fairness – no notice, no support person, no structure
Aggressive or demeaning behaviour – real or perceived hostility from leaders
Public criticism – feedback delivered in front of peers
Under WHS laws, employers have a duty to eliminate or minimise these risks so far as reasonably practicable.
Practical Steps for Safer Conversations
Start with clarity
Ensure every employee has a clear job description, KPIs, and regular check-ins to confirm shared understanding of expectations.Structure the conversation
Give employees advance notice of any formal performance discussion, clearly outline the purpose of the meeting, and offer them the option of a support person.Train your leaders
Equip managers with training on respectful communication, active listening, and how to approach performance issues with empathy and fairness.Document fairly
Keep records of performance conversations, but ensure the tone and content of documentation are objective and balanced.Build support mechanisms
Regular supervision, peer support, escalation pathways, and access to Employee Assistance Programs (EAPs) can all contribute to a psychologically safe environment.Collaborate across teams
HR, WHS, and injury management teams should work together to proactively identify risks, support leaders, and reduce the likelihood of claims.
Why This Matters
When performance conversations go wrong, the impacts can extend far beyond employee engagement. They can result in mental health injuries, prolonged absences, and workers’ compensation claims. But with the right preparation, policies, and people in place, these conversations can become powerful tools for development, not distress.
At Be Recruitment, we support organisations in reviewing their performance management frameworks, helping ensure your processes aren’t just compliant but genuinely protective of your team’s wellbeing.
If your organisation is ready to build safer, more effective leadership practices, we’d love to help.
*Wright v Findex (Aust) Pty Ltd [2025]
