Addressing employee performance concerns early is becoming increasingly important. Avoiding a difficult conversation rarely makes the problem disappear and proposed changes to the Acas Code of Practice could make delays more costly.
Effective performance management isn’t simply about compliance…
But, unfortunately, many managers still lack the confidence, training or capacity to tackle poor performance.
From 1 January 2027, significant changes will be implemented regarding the Employment Rights Act 2025 around qualifying periods for most unfair-dismissal claims and removal of the cap on compensatory awards. This means it’s more important than ever for employers to identify and manage performance concerns fairly, consistently and without unnecessary delay.
How many formal management processes have you undertaken in the last year?
I regularly ask new or potential clients how many grievances, disciplinary cases, or formal management processes they have undertaken in the last year, including how many new starters have failed or had extended probation periods.
Why do I ask this? I’ve found this is the quickest way to discover what type of communication and leadership culture they have in their organisation or setting.
The answer I’m frequently given is ‘none’, or sometimes, ‘not enough’. This is often accompanied with a comment such as ‘we’re all too nice really when it comes to leadership.’
This is frequently followed with descriptions of ‘problem’ staff, the stress this is causing managers and the disruption caused in the team or wider organisation.
Why do I ask this? I’ve found this is the quickest way to discover what type of communication and leadership culture they have in their organisation or setting.
The answer I’m frequently given is ‘none’, or sometimes, ‘not enough’. This is often accompanied with a comment such as ‘we’re all too nice really when it comes to leadership.’
This is frequently followed with descriptions of ‘problem’ staff, the stress this is causing managers and the disruption caused in the team or wider organisation.
What’s the cost of avoiding performance concerns?
Failure to address performance concerns comes at a cost for organisations, no matter what the size or sector, but there are many reasons why managers fail to deal with these, including:
- Managers at all levels lacking confidence or training in having ‘difficult conversations’.1
- Managers lacking time and capacity, with operational firefighting taking priority. 2
- Risk aversion – either in individual managers or organisationally.3
Ignoring performance concerns doesn’t make them disappear…
Acas highlights’ the fact that whilst many concerns at work are ‘low level’ and don’t require formal procedures, failure to address these means they don’t just disappear. 5
There’s no magic wand here, instead they often evolve into bigger and more costly issues. This means employers can no longer afford to kick this particular can down the road.
This is also likely to become even more important if the draft revised Acas Code is introduced in its current or a similar form. The emphasis will be on early, informal resolution of issues, before any formal processes are commenced.5
The attention is understandably on the upcoming reduction in the qualifying period for most ordinary unfair-dismissal claims from two years to six months from 1 January 2027, but there are many other risks to organisations, including:
There’s no magic wand here, instead they often evolve into bigger and more costly issues. This means employers can no longer afford to kick this particular can down the road.
This is also likely to become even more important if the draft revised Acas Code is introduced in its current or a similar form. The emphasis will be on early, informal resolution of issues, before any formal processes are commenced.5
The attention is understandably on the upcoming reduction in the qualifying period for most ordinary unfair-dismissal claims from two years to six months from 1 January 2027, but there are many other risks to organisations, including:
- A greater likelihood that an informal concern develops into a formal dispute. 4
- Increased management time, disruption and financial exposure.
- Insufficient evidence from managers to support a capability dismissal. 5
- Inconsistent treatment across teams.
- Team discontent and demotivation.
- Reduced trust and collaboration between teams and managers.
- Disengagement or loss of the most capable employees.
It’s understandably easy to be worried as a leader about compliance, but the solution isn’t to panic and dump layers of new policies and procedures on leadership teams.
I’ve long talked to my clients about not only having better conversations from day one of employment, but also having a clear auditable trail when doing so.
Again, this doesn’t have to massively increase the workload of your leaders and in fact, if you get this right, it should in time, serve as an investment and decrease this. This would give leaders the opportunity to work proactively instead of the constant fire-fighting that makes up many managers’ working lives.
The answer isn’t just a policy, it’s a culture shift…
Policy alone is not the answer here. There’s also a fundamental need to generate a workplace culture where constructive, open communication is the norm. Talking to adults, as adults. Objectively and with understanding and curiosity. And if there is a more serious issue? You have the evidence to support the management decisions that were made.
Admittedly, this will be more of a challenge in some settings than others, but the potential for a culture shift is there.
Admittedly, this will be more of a challenge in some settings than others, but the potential for a culture shift is there.
What senior leaders should do now…
A consistent approach from leaders at all levels is necessary, which means senior leaders must lead from the front and provide role-modelling, training and support to inexperienced or nervous leaders and managers, so they can consistently do what’s needed.
This means training for managers and leaders around policies and procedures relating to performance management, but crucially, also having the confidence and skills to hold timely, supportive and practical conversations with all members of the team. Setting clear expectations and knowing when to intervene around actual or potential performance concerns.
That’s what a positive workplace culture is. It’s simply ‘The way we do things around here.’ 6 Not dogmatically following policies and procedures with minimal engagement, but ensuring your leadership team consistently responds to and builds positive performance in your organisation or setting.
If you’d like to build confidence in managing difficult conversations in your leadership role or for your team, check out the links below for your sector and find out more about our on-demand and in-house Managing Difficult Conversations training courses and more…
By Karen Amos – Executive Coach and Founder of BrightBird Coaching & Training
Reviewed/updated 1st September 2026
This article is intended to provide general information and is not legal advice.
1. Skilled Managers Productive Workplaces: Translating research into workplace practice that works | Acas
2. Analysis | Devolving HR management to people managers | CIPD
3. https://www.gov.uk/government/publications/keep-britain-working-review-final-report/keep-britain-working-final-report
4. Keep Britain Working: Final report – GOV.UK
5. Code of Practice on disciplinary and grievance procedures (draft) | Acas
6. Step up to leadership: 7 Developing an effective team culture | OpenLearn – Open University
This means training for managers and leaders around policies and procedures relating to performance management, but crucially, also having the confidence and skills to hold timely, supportive and practical conversations with all members of the team. Setting clear expectations and knowing when to intervene around actual or potential performance concerns.
That’s what a positive workplace culture is. It’s simply ‘The way we do things around here.’ 6 Not dogmatically following policies and procedures with minimal engagement, but ensuring your leadership team consistently responds to and builds positive performance in your organisation or setting.
If you’d like to build confidence in managing difficult conversations in your leadership role or for your team, check out the links below for your sector and find out more about our on-demand and in-house Managing Difficult Conversations training courses and more…
By Karen Amos – Executive Coach and Founder of BrightBird Coaching & Training
Reviewed/updated 1st September 2026
This article is intended to provide general information and is not legal advice.
1. Skilled Managers Productive Workplaces: Translating research into workplace practice that works | Acas
2. Analysis | Devolving HR management to people managers | CIPD
3. https://www.gov.uk/government/publications/keep-britain-working-review-final-report/keep-britain-working-final-report
4. Keep Britain Working: Final report – GOV.UK
5. Code of Practice on disciplinary and grievance procedures (draft) | Acas
6. Step up to leadership: 7 Developing an effective team culture | OpenLearn – Open University
Coaching and Training at BrightBird
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If you’re curious about our coaching and training support, even if you’re not sure what you’re quite looking for yet, then check out the support we offer your sector, or click the link to book an informal, no-obligation chat.
