Ongoing performance management is essential for employee development and continued business success. Managers should regularly provide direction to employees in order to help them meet the performance and behavior expectations of the Company.
Performance management is not “one size fits all,” and the appropriate method to address performance/behavior or Company policy violations should be given careful consideration. These methods are collectively referred to as Corrective Action. They are intended to be flexible and used by management as deemed appropriate for the circumstances. They are not intended to be a rigid set of steps that must be followed in every situation or in any particular order.
Corrective Action methods include:
- Informal Corrective Action (ICAR): May be documented or undocumented depending on the nature of the performance/behavior issue and circumstances. This can include documented coaching/Employee Performance Record (EPR)/Associate Performance Record (APR) and Resets of Expectations.
- Performance Improvement Plan (PIP), and/or Action Plans: Provide detailed guidance on areas in which an employee must improve performance or behavior. This may be developmental or corrective.
- Record of Discussion/ROD (Canada Only): Formal discussion with a written document that outlines the unacceptable performance and/or behavioral issues and the expectations of the employee going forward. This occurs after an APR but before a Formal Corrective Action.
- Formal Corrective Action Record (FCAR): Formal discussion with a written document that outlines the unacceptable performance and/or behavioral issues and the expectations of the employee going forward
- Final Formal Corrective Action Record/FCAR (Canada only): Generally used after 1 or more Formal Corrective Actions have been given on a repeated behaviour. This outlines that it is a last chance agreement and if further incidents of similar type of nature occur, it will result in immediate termination for cause.
- Termination: Generally used for serious or repeated performance/behavior issues
The Company's corrective action methods do not create a contract of employment, and do not limit the Company’s right to terminate the employment-at-will relationship of each employee and manager of the Company. This information will not be construed or applied in a manner that improperly interferes with employees’ rights under the National Labor Relations Act.