Performance Improvement Policy

This policy is applied when a colleague’s performance is not at the expected standard. It aims to offer a fair and supportive framework for addressing and improving underperformance related to their capability i.e. skills, ability, competency.

It applies when a colleague's performance falls below the expected level outlined in their job description. It does not cover issues of misconduct, negligence, sickness absence, redundancy, or probationary performance—these are addressed under other procedures, such as the Managing Attendance Policy and Disciplinary Policy.

The policy applies to all colleagues (regardless of contract type, e.g. part time or full time), but not to agency staff or contractors. It is not contractual and may be amended by the Society at any time.

Managers are encouraged to report performance concerns to their Operational/Area Manager to ensure early support is provided.

Informal approach– Identifying Performance Issues

We encourage managers to address performance matters informally through regular, open conversations. When a performance concern is identified, an initial Check-in (or Supervision in early years) can be held using the Society’s/Trading Group check-in document. These conversations should be honest and supportive—talking through what’s going well, where challenges are appearing, what might be causing them, and what support could help (such as training or coaching). Together, managers and colleagues should agree on clear, specific actions that will help build the desired improvements.

As part of this check-in, set a review date for a follow-up check in or supervision, and agree on a reasonable timeframe for progress. There is no fixed length at this stage, but managers should allow a reasonable period—typically at least 4 weeks—so colleagues have the opportunity to demonstrate positive change. If you need further guidance or support, please contact the People Team at  HR.advice@midcounties.coop.

At the second check-in, managers and colleagues should take time to openly review the progress made so far and agree on the most supportive next steps. These may include:

A)    Performance has improved sufficiently—no further action.

B)    Performance issues have been identified as conduct - refer the matter for investigation under our Disciplinary Policy; or

C)     Insufficient improvement seen—issue a Performance Improvement Plan document (PIP)

As these check-ins are informal, colleagues are not entitled to representation, and formal invitation letters are not required, however the documents should be sent to the people team via the HR.advice@midcounties.coop so they can be filed. 

The purpose of this meeting is to have an open and honest conversation with the colleague about their performance in a collaborative and supportive way. The goal is to agree on clear, achievable objectives that will help the colleague grow and succeed in their role.

Colleagues are encouraged to share any factors—whether personal or work-related—that might be affecting their performance, so that together we can identify the right support to help them thrive.

Setting a formal Performance Improvement Plan (PIP)

Stage 1

Managers are encouraged to use the PIP template (available in Colleague Connect, Managers Guides) to outline potential solutions and set SMART targets for each performance area.

It’s important that managers clearly explain any concerns while collaborating with the colleague to identify supportive actions, such as retraining or coaching. Targets should be realistic, achievable, and designed to help the colleague build confidence and succeed.

The PIP will outline:
a) Areas where performance standards are not being achieved.

b) Targets and required actions for improvement’s.
c) Support measures, for examples, training, coaching and regular check-ins / supervisions.
d) A timeframe for improvement.
e) How targets will be measured during the performance improvement process.

f) When informal discussions and feedback will be provided during the process

g) Outline and possible outcomes.

Mid- Point Review

A review date should be agreed upon and recorded in the PIP. This is an opportunity to provide constructive feedback and celebrate progress. Between formal reviews, managers are encouraged to hold regular check-ins to offer guidance, encouragement, and any additional support needed to help the colleague succeed.

Formal Stage 1 Performance Review Meeting 

At the end of the agreed timeframe, the manager should review the colleague’s performance through a formal Stage 1 Performance Review meeting. Managers should connect with the People Team to share the details of the meeting and provide any relevant supporting evidence or documents—such as work samples, emails, reports, or witness statements. These materials will be shared with the colleague along with the meeting invitation to ensure full transparency.

Any evidence provided should be familiar to the colleague and used to support a constructive discussion during the performance review, helping to clearly identify achievements, areas for growth, and next steps.

Following this, the People Team will issue a meeting invitation to the colleague on behalf of the manager, providing at least 48 hours’ notice. The invitation will also inform the colleague of their right to representation. As part of the process, Managers will be encouraged to arrange a confidential note-taker to capture the discussion accurately. The invite will clearly outline the purpose of the meeting and the potential outcomes.

During the review of performance against the Performance Improvement Plan, one of the following scenarios will be applied:

(a)  Satisfactory performance is sustained; no further action will be taken;

(b)  Performance remains unsatisfactory; the matter may be progressed to the next stage in the process and PIP plan continued; or

(c)   If performance has improved in some areas, however is still not satisfactory, the review period in the performance improvement plan may be extended for a short period of time.

The outcome of the formal performance review meeting will be determined by the manager leading the review (the chairperson), with guidance and support from the People Team and their line manager, on suitable outcomes. At this stage, a formal sanction may be applied if appropriate.

The chairperson should share the outcome verbally with the colleague promptly, followed by a written confirmation from the People Team to ensure clarity and transparency.

Stage 1-3

The Performance Improvement Process consists of three stages (Stages 1–3). Colleagues begin with a Stage 1 meeting (as outlined above). If performance improvements are not achieved at Stage 1, a formal sanction may be applied, and the process progresses to Stage 2 and then Stage 3 if needed. At each stage, colleagues are offered support, and performance is reviewed through a mid-point informal meeting, following by a Stage 2 or 3 formal performance review meeting. Sanctions may be applied and escalated at each formal stage of the Performance Improvement Process, if appropriate.

There is no fixed length for each stage, but managers should allow a reasonable period—typically at least 4 weeks—so colleagues have the opportunity to demonstrate positive change. These stages cannot be skipped or fast-tracked, ensuring a fair and consistent process for everyone.

If a colleague’s performance or capability improves to a satisfactory level during any stage, the manager can conclude the Performance Improvement Process through a review meeting. In such cases, managers should consult with their line manager and the People Team for guidance to confirm next steps and recognise the colleague’s progress.

Possibles sanctions at each stage

• No further action

• Extension of current PIP

• Stage 1 – potential first written warning (9 months) and implementation of a further PIP

• Stage 2 – potential final written warning (12 months) and implementation of a further PIP

• Stage 3 – potential dismissal with notice

Please note that in the event of dismissal, this will generally be with full notice or payment in lieu of notice. In cases where performance could constitute gross misconduct, the Disciplinary Policy will apply, and a separate investigation will take place which could result in  dismissal without notice.

At each formal performance review meeting (Stages 1–3), outcomes may also include the continuation of a Performance Improvement Plan to provide further support for development.

Managers should always consult with their line manager and the People Team before confirming or issuing any outcomes, ensuring that decisions are fair, consistent, and well-supported.

Procedure at Formal Performance Improvement Meetings

The meeting will normally be held by the colleagues’ line manager or a more senior manager.

The aims of a performance improvement meeting will usually include:

(a)  Setting out the required standards that we believe the colleague may have failed to meet and going through any relevant evidence that we have gathered (including, but not limited to, any check in forms or existing performance improvement plan). 

(b)  Allowing time for the colleague to ask questions, share and respond to evidence and make representations. 

(c)   Establishing the likely causes of poor performance including any reasons why any measures taken so far have not led to the required improvement. 

(d)  Identifying whether there are further measures, such as additional training, guidance or supervision, which may improve performance. 

(e)  Where appropriate, discussing targets for improvement and a timescale for review. 

(f)    If dismissal is a possibility, establishing whether there is any likelihood of a significant improvement being made within a reasonable time and whether there is any practical alternative to dismissal, such as redeployment.

A meeting may be adjourned if we need to gather any further information or give consideration to matters discussed at the meeting.

We will inform you in writing of our decision and our reasons for it, as soon as possible following the performance improvement meeting. Where possible we will also explain this information to you in person.

Right to be Accompanied at Formal Meetings

Colleagues have the right to representation by a trade union representative or a colleague during the formal performance improvement review meetings. The companion can speak and confer with the colleague but may not answer questions on behalf of the colleague. The chosen companion must be notified to the manager in advance.

If either party cannot attend, the Society should be informed immediately to reschedule, usually within five working days of the original meeting date. If the colleague fails to attend without good reason or is repeatedly unavailable, the hearing may proceed without them, using available evidence and an outcome will be communicated in writing. Unjustified absence may be treated as misconduct.

Right of Appeal

Following a formal performance review meeting, if a sanction has been applied, colleagues have the right to appeal. Appeals must be submitted in writing to the named person in the outcome letter, stating full grounds within five working days of receiving the outcome.

Appeals will not delay any continued performance monitoring or dismissal processes. Where possible, an independent manager will hear the appeal and consider any new, relevant evidence.

If appealing a dismissal outcome, the dismissal date will not be delayed pending the appeal outcome. If successful, you will be reinstated with full continuity of employment and pay.

After the appeal, we may:
(a) confirm the original decision;
(b) apply a lesser sanction.

The appeal decision is final and will be communicated to you in writing.

Record Keeping

Notes must be kept for all informal (check ins or supervisions) and formal performance meetings and managers are encouraged to send these to HR.advice@midcounties.coop for filing on the colleagues IFS record. A copy of the performance improvement plan should also always be shared with the colleague.  All formal decisions will be confirmed in writing.

Confidentiality

We aim to handle performance matters with sensitivity and respect for privacy. All colleagues must keep information related to this procedure confidential.

Audio or video recording of meetings are not permitted by any parties, companion, or witnesses unless agreed by the hearing manager in conjunction with the People Team.

Performance Improvement During Sickness Absence

If illness prevents attendance at performance meetings, medical confirmation (e.g., GP or Occupational Health) may be required. Each case is assessed individually, but meetings may proceed in during a period of absence, if reasonable rescheduling efforts have been made. Where appropriate, contractual sick pay may be withheld, with only Statutory Sick Pay (SSP) provided.

Sickness absence does not automatically excuse un-met performance targets. Managers will consider its relevance and may assess performance as set, extend review periods, or adjust targets as appropriate.

Handling Grievances that arise during the Performance Improvement Procedure

Concerns about performance proceedings should be raised during the formal process and will typically be addressed within it. Unrelated grievances will be managed separately under the Grievance Policy.

Additional Support

For questions or support regarding this policy, speak with your line manager in the first instance, or contact a People Advisor at HR.advice@midcounties.coop.

The Society has partnered with GroceryAid to provide colleagues with a FREE confidential helpline service. For help and advice colleagues can contact the confidential 24/7 GroceryAid Helpline by calling 08088 021 122. A live webchat is also available here. There is also a wide range of guidance and support resources available at www.groceryaid.org.uk.

We also appreciate that any performance improvement process can be stressful and impact on a colleague’s mental health, colleagues can reach out to one of our Mental Health champions here.