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Performance Management
Policy
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CONTENTS
1. Introduction 3
2. Scope 3
3. Key principles 3
4. Expectations 3
5. Our approach to performance management 4
6. Objective setting 4
7. Measuring performance 5
8. Those new to role 7
9. Equality, diversity and inclusion 8
10. Supporting Documents 9
11. Review 9
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1. INTRODUCTION
Post Office is committed to creating a culture
of continuous improve, and development,
driving individual success as well as sustained
business success. We communicate a clear
company Vision, supported by a statement of
Intent and Strategic Priorities to which all
teams and colleagues contribute towards
delivery. We link bonus to the achievement of
company targets and individual performance
to drive success in the business.
We have a transparent and fair approach to
performance that supports our employees in
understanding contribution towards the
business direction. Employees progress,
development, and achievement against their
personal objectives.
Our employees are entitled to ongoing
feedback and assistance with development so
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that they can continually improve
performance. We encourage continuous
conversations and recommend a minimum of
a monthly check-In (frequently determined by
the line manager, shorter more frequent
conversations are encouraged). The purpose
of regular Check-In conversations is to discuss
performance against Objectives and Key
Results, demonstration of Ways of Working
and career and personal development.
Everybody's Conversations launched in April
2022 and is Post Offices performance process
to support an agile, responsive, high
performing and sustainable organisation.
This policy does not form part of contracts of
employment. We reserve the right to amend
this policy from time to time.
2. SCOPE
This policy applies to all employees within a
management grade (2b, 2a, 3b, 3a, B4 and
SLP) within Post Office Limited.
3. KEY PRINCIPLES
Post Office is committed to:
"= Clearly defining performance expectations
for our employees.
= Linking personal objective setting to
business objectives.
= Promoting a balance of behaviours that
will drive our business success.
* Encouraging regular and continuous open
discussions between employees and
managers about the performance required
and how performance is measured and
linked to reward.
= Providing frequent and specific feedback
on employee performance.
= Supporting employees with career and
personal development aspirations.
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* Promoting equality of opportunity in all
aspects of performance management.
4, EXPECTATIONS
Our expectations of employees:
Employees should take responsibility for their
own performance and have regular
performance discussions with their line
manager.
This will include setting objectives and key
results, using the ways of working (which will
help deliver objectives and key results),
attending regular 1:1 check-in meetings with
their line manager, and completing half year
and full year reviews.
Our expectations of line managers:
Line managers must take the initiative to
understand and monitor the performance of
their direct reports through regular
discussions (minimum of a monthly
discussion).
This will include providing direct reports with
aclear understanding of what is expected of
them when setting objectives and key results,
discussing how the ways of working can
support delivery of objectives and key results
and completing reviews.
5. OUR APPROACH TO PERFORMANCE
MANAGEMENT
The performance management cycle
The performance management cycle provides
a timetable and framework for consistently
reviewing individual performance across the
business.
The aim is to ensure everyone is contributing
to the overall success of the organisation over
a specified period. Employees and the line
manager have a shared responsibility for
making it work.
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Approach
The performance year incorporates the
following steps:
1. Business objectives: Overall business
objectives are set. Functional objectives
should be cascaded by the General
Executives to their to direct reports. The
link should be made between business
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strategy and what should be achieved by
every role in the business.
2. Objective setting: Function strategy and
objectives are cascaded to all teams.
Agreed individual performance objectives
and key results should be defined and
reviewed regularly with a clear line of
sight into Functional objectives and a link
to the corporate strategy.
3. Personal Development Objectives
All employees are encouraged to discuss
and set personal development objectives
which aligns to their personal
development, learning and career
aspirations.
4, Regular 1-2-1s/Check-Ins: Employees
should receive ongoing feedback from
their line manager on performance
against their objectives and key results,
and demonstration of Post Office Ways
of Working, Personal Development
Objectives through regular formal 1-2-1s
and informal discussions. Employees
should have a minimum of a monthly 1-2-
1 check-in conversation with their line
manager, in addition to the half and full
year reviews.
5. Reviews: Employees must complete a
half year and full year review which will
measure progression and provide
feedback towards achieving full year
objectives and key results. The review
outcome is an Individual Performance
Rating. The performance rating is an
assessment considering achievement
against objectives and key results and
demonstration of the ways of working. To
ensure consistency across functions
ratings application may be assessed.
6. OBJECTIVE SETTING
Setting objectives and key results
Employees must have agreed individual
performance objectives and key results in
place by the end of May recording them within
SuccessFactors.
There are two things that employees must do
when setting individual performance
objectives and key results:
1. Link personal objectives to business
objectives
Objectives and key results describe what an
employee will focus on delivering. Employees
should be aware of the business priorities for
the year from the corporate strategy and use
this to base their individual objectives and key
results on. Employees should discuss this with
their line manager if they need to find out
more information about the business/function
or team objectives or priorities.
It is recommended that each employee should
have a minimum of three objectives.
2. Ways of Working
The individual objectives and key results look
at what an employee has achieved. Equally
important is how we achieve it, the ways of
working we demonstrate in our everyday
working life. Employees should discuss in their
regular 1-2-1 check-in conversations and they
will be reviewed against how they
demonstrate the ways of working alongside
objectives and key results. For all of us at Post
Office, what we deliver is as important as how
we deliver it.
7. MEASURING PERFORMANCE
How we discuss performance and provide
feedback
Ongoing feedback and development support
through the year is carried out:
1. Vision - Objectives & Key Results
The business sets the Intent and Priorities
to which all colleagues can be aligned and
contribute. This way everyone will be
working towards the same Vision and
understand how their work is contributing
to the bigger picture.
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Setting personal, specific and challenging
Objectives and Key Results supports our
culture of continuous and high
performance.
SLG members are required to set ED&l
objectives as per the communicated
guidance. All other employees are
welcome to set any relevant ED&dl
objectives although it is not mandatory.
2. Voice —- Regular Check-in 1-2-1's
Continuous development and
achievement is supported by monthly
Check-ins and coaching conversations.
This is the opportunity to capture what
has been achieved to date and reset for
the coming month.
This informal 1 to 1 conversation is
important for personal growth, discussing
progress, identifying new skills or learning
opportunities and offering support.
3. Value — Mid-Year & End of Year Reviews
Formal review points are at Mid-Year and
End of Year. This is the chance to review
progress against Objectives and Key
Results and discuss how the Ways of
Working have been demonstrated along
with development.
These discussions include reflecting
on continued alignment to 2025 Intent,
Priorities, achievements and
successes along with development
opportunities and how we are living the
Ways of Working.
A performance rating is applied at the
review point, the outcome of which can
inform decisions around bonus,
development, progression or deployment.
Each employee should be having regular
monthly continuous check-in conversations
with their line manager throughout the year.
The Mid-year and End of year Reviews
represent a roll up of all the regular continuous
conversations, there should be a good
understanding about progress and personal
performance when the review take place.
Reviews
Mid-year and end of year reviews are the
point at which we formally capture and assess
employee performance through the financial
year.
Before the review meeting employees should
submit evidence of their performance against
objectives and key results and of ways of
working to their line manger by updating the
relevant review form in SuccessFactors.
During reviews the employee, together with
their line manager, will review achievements,
personal development objectives, progress
against agreed objectives and key results,
how they have demonstrated Ways of
Working.
All employees with less than 3 months service
will be excluded from mid-year and end of
year reviews.
The following will apply for employees classed
as long term absence (over three weeks or
more e.g maternity, paternity leave, sickness
over 3 weeks) during mid-year or end of year
review:
= When performance ratings are issued if
you didn't have a performance discussion
beforehand, the performance rating that
was last issued will apply (subject to GE
discretion and if that was in the last six
months), otherwise you will be issued with
a rating 3. You've had a great year.
All managers and PSS employees should use
the Performance Module on SuccessFactors to
set their objectives and key results and
complete the mid-year / end of year reviews.
Performance rating
Employee performance against agreed
objectives and key results and Ways of
Working are combined in a rating matrix to
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create an overall performance rating
determined by the line manager. Performance
will be assessed against both performance
and behaviour — “the what and the how”. The
behaviour rating focuses on how you have
demonstrated our Ways of Working and
performance rating assesses what you have
delivered. The performance and behaviour
rating is combined to give an overall rating
using a five-point scale. (details of our review
rating framework are available on PeopleHub.}
This rating then feeds into the business
review which occurs at year end. The
business review provides the business with a
snapshot of the overall performance for the
year. Functional reviews might take place,
which involves facilitated discussions to
understand and compare team ratings to
ensure consistency and fairness in ratings
application.
This business review is needed because:
= It allows the business to understand the
nature of the overall performance for the
year.
= It enables the business to check whether
consistent performance standards are
being applied across
teams/Function/business.
= It improves consistency and fairness, so
performance is not measured in isolation.
Adhering to Business Standards and
Consequence for Non-Completion of
Reviews
Your performance review will take into
account timely completion of mandatory
compliance training and adherence to
business standards. If you fall short of our
business code, this could impact your
performance rating.
To support timely business reviews and our
ability to process bonuses, we need to ensure
the timelines are adhered to. For this reason,
ratings not recorded in the system by the
review period deadline (timelines are
communicated in advance of a review period
opening), bonuses will be withheld for the line
manager and/or individual.
We will apply the below criteria:
* Line Manager bonus withheld (unless the
manager/colleague is on long term
absence or there is good reason).
In addition:
* If the employee followed the process and
the delay is a line manager issue, the
rating will default to the last recorded
rating.
* If the employee hasn't completed their
self-assessment or failed to organise a
review meeting then a rating of 1 will be
applied.
Review outcomes
Review outcomes will be communicated to
employees via the line manager. The final
review rating is an important output of the
performance management process as it is
critically linked to other Post Office areas
including:
* Learning and development to ensure that
the appropriate support and development
is accessed.
= Talent management which links
performance data in with the identification
of potential/talent development and
succession planning.
= Recruitment to ensure performance
management data is integrated into
recruitment decisions, employees rated as
3. You've had a great year, 4. You've had
an excellent year or 5. You've had an
exceptional year may apply for internal
vacancies that would be a promotion
Employees rated as, 2. You've had an
inconsistent year, 1. You've missed delivery
this year may only apply for an equivalent
grade internal vacancy.
Managing unsatisfactory performance to
ensure there is a way of identifying and
managing poor performers.
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= Reward in some business areas, an
employee's overall performance data is
directly linked to bonus. This only occurs
where specific performance linked reward
frameworks have been agreed.
Once the review outcome is received, if there is
concern or employee disagrees with the
feedback and/or rating, the employee should
raise this with their line manager to discuss.
If the employee and line manager are unable to
resolve informally the employee is entitled to
raise a formal grievance against the feedback
and/or rating that has been applied. Typically,
the timelines to raise a grievance are 6 weeks
following the release on ratings from business
review stage.
8. THOSE NEW TO ROLE
Responsibility for reviews
Where people move to a new role their digital
form (on SuccessFactors) will move with
them. If the move happens within less than
three months before the review year end, then
the previous line manager should conduct the
review as they will have a greater knowledge
of the employee's performance during the
performance year. They should take feedback
from the current line manager on performance
for the short period spent in the new role.
The performance rating should also be agreed
between the new and the old line manager
prior to submission. Feedback on the first few
weeks of the new role should also be included.
In all other instances of employees changing
roles within the review year, it is the
responsibility of the previous line manager to
input into the review, which the current line
manager completes.
If an employee's line manager has left the
business before the full year review is
submitted, the half year review should be
used if available. The new line manager
should work with employee to collate
information to form a review rating. If there is
no information to base the review on then
please consult with your People Business
Partner for guidance.
Learning curve for those new to the role
We acknowledge that very often early
performance in a new role will be lower as the
new requirements of the role are learnt. This
should not be penalised through performance
ratings. We expect that performance should
then improve over time to a level that would
be ordinarily expected of the role.
This learning process will be taken into
account during performance ratings for the
following types of employees:
= New starters during the first six months of
the role (anyone with less than 3 months
service is excluded from mid-year and end
of year review)
= Newly promoted employees during the
first six months of the role.
= Employees returning from a period of
long-term absence or leave (absence
longer than 12 weeks e.g. maternity,
sickness) or a career break during the first
three months of their return (if they have
not been rated when they are away).
For the Mid-year review stage, the
Performance rating applied will be a reflection
of the current role at the time of the review,
recognising there is a further 6 months of the
year to deliver against Objectives and Key
results and to demonstrate behaviours.
Approach for New Starters
Employees eligible for a bonus joined the
business on or before 31 December.
If there is a review period whilst in the
probation period the following principles will
be apply:
Only new colleagues with 3 months service or
more will be included in a Mid-Year or End of
Year Review.
A6 month time period is in place during
probation to allow for settling into role and
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understanding the business, it is recognised
that performance may vary during this period.
The rating applied should be reflective of
performance and recognition of newest to
role. Any underperformance should already be
addressed as part of ongoing conversations
during the probation period and then
document alongside the formal review, with
an appropriate rating applied that’s reflective
of the underperformance.
Any performance rating of 4: Excellent or
above will be at GE/SLP discretion and agreed
in discussion with the People Partner and
Talent Manager.
Pay Grade / Role Change
When there is a pay grade or role change
within the financial year, the following
guidelines will be applied to the end of year
review:
= 0-3 months- Ratings should be reflective
of performance in the previous role/ grade.
= 4-6 months- Performance rating needs to
be reflective of both previous role/ grade
and current role/ grade within this period.
A discussion must take place between
existing and previous line manager of the
employee to agree a collective
performance rating for this period. Any
performance rating above or below 3.
You've had a great year, will be at GE
discretion and agreed in discussion with
the People Partner/ Talent Manager,
9. EQUALITY, DIVERSITY AND INCLUSION
At Post Office we are committed to the
importance of promoting equal opportunities,
valuing diversity and creating an inclusive
working environment for all our employees.
We are committed to an environment in which
each employee is able to fulfil their potential
and maximise their contribution.
Post Office aims to secure equality of
opportunity in all its activities, and in this
respect, the performance management
process must be objective, clear, transparent
and free from discrimination. Post Office will
ensure that the application of this policy does
not discriminate employees on the basis of;
age, disability, gender reassignment
(including, gender identify, gender
expression), marriage and civil partnership,
pregnancy and maternity, race, religion or
belief, sex or sexual orientation.
This policy will be applied and monitored in
accordance with the Post Office Equality
Diversity and Inclusion Policy.
10. SUPPORTING DOCUMENTS
You may find it useful to read the following
documents (available on PeopleHub) in
conjunction with this policy:
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= Everybody's Conversations User Guide
= Everybody's Conversations Rating Guide
= Frequently Asked Questions
= Learning and Development Policy
at. REVIEWS
The Talent team will monitor compliance of
this policy.
The Talent, Diversity and Inclusion Director is
responsible for the monitoring, revision and
updating of this policy.
Formal reviews will take place 2 years to
identify any trends and opportunities for
improvement.
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DOCUMENT CONTROL RECORD
SUMMARY
GE Policy Sponsor Policy Implementer Policy Approv:
Group Chief People Leadership and Talent Development Policy Sponsor
Officer Culture Director Manager Policy Owner
Karen McEwan Juliet Lang Leaf Norwood ¥
jate
1 2 Years 30/04/2012 UK
REVISION HISTORY
nges
Dats
- Removal of reference to a balanced
scorecard which is no longer applicable.
- Updated leadership behaviours in
section 6.
- Updates links to online performance
review system in SuccessFactors.
= Incorporation or equality, diversity and
inclusion statement in section 9.
- Incorporation of policy review details
section 7.
- Updated details on where to find further
information on PeopleHub.
- Changed name of rating indicators
shown in Appendix 1.
Updated ‘GE Policy Sponsor’, ‘Policy Owner’
and ‘Policy Approver’ contact.
- Update ‘Policy Owner’ and policy
Implementor.
4 09/02/21 - Updated GE Sponsor and Policy Janene Mellor
Approver job title.
- Updated HR references to People.
5 08/04/21 - Updated rating descriptors for 21/22. Janene Mellor
2 30/07/19 Janene Mellor
3 07/01/20 Janene Mellor
- Updated introduction to align with
launch of ‘Everyone's Conversations
(section 1, Pg3.).
- Added clarity the policy applies to Post
6 10/11/22 Office Limited and included clarity of Leaf Norwood
grades (section2, pg3).
- Addin process diagrams (section5, pg4)
- Ways of working have been updated
(section 7, pg5).
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- Updated section title 10 from ‘Related
Policies’ to ‘Supporting Documents’ and
added in new links (section 10, pg7.)
- Removed section 12 ‘Where to go for
further information’.
- Removed rating descriptor appendix.
- Changed language from ‘Business Area’
to ‘Function’ throughout.
- Updated ‘Appraisal’ language to
‘Review’ throughout.
- Removal of old company behaviours
including the New POL Ways of
Working.
- Updated to new POL branding.
- Updated Policy Sponsor, Approver &
Implementor.
- Updated review date.
Added consequences of non-completion of
z LOWDBI22 reviews (S7)
Juliet Lang
8 05/10/23 Updated policy sponsor Juliet Lang
- Added in Section to include SLP EDI
Objectives being a requirement.
- Updated Narrative on Performance
ratings guidance on equal importance of
achievement of objectives and
demonstration of Ways of Working/
behaviours.
- Updated long term absence policy to
provide clearer guidance.
- Included consequences for non-
completion and adherence to business
standards.
- Included guidance on the formal
grievance process for querying formal
reviews/ratings Updated approach for
new starters and internal role changes.
9 15/11/23 Juliet Lang
DOCUMENT DISTRIBUTION STATUS
Mark x a
Distribution Document Sensitivity
Internal x Non-sensitive x
External Sensitive
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QUALITY STATEMENT
ality Contr Review Date
This document is periodically reviewed, and at least on every 2 years
starting from the last effective date. April 2024
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