Performance Management Policy

A performance management policy gives aged care providers a consistent, fair framework for setting expectations, conducting staff appraisals, and addressing underperformance. It applies to all roles across residential and home care settings, from care workers to clinical leads. Without a documented process, providers risk inconsistent practices, staff grievances, and exposure under the Fair Work Act 2009.

What This Policy Covers

A performance management policy for aged care typically covers the full cycle of employee performance. This includes how expectations are set at the start of employment, how regular appraisals are conducted, and what happens when performance falls short.

It also establishes how managers should document performance concerns, what support is offered before formal action is taken, and how decisions are recorded and escalated. A clear policy protects both the worker and the organisation.

Why It Matters for Aged Care Compliance

The Strengthened Aged Care Quality Standards place direct accountability on providers at the organisational level. Standard 2 (The Organisation) requires that governance systems actively support a capable, well-managed workforce. Performance management is one of the key mechanisms for meeting this requirement.

Providers must show that poor performance is identified and addressed in a timely way, and that staff are given reasonable opportunity to improve. Failing to act on known underperformance, particularly in clinical or direct care roles, creates serious risk to consumer safety and to accreditation.

The Fair Work Act 2009 adds a separate layer of obligation. Any formal performance or disciplinary process must follow procedural fairness principles. Employees must be informed of concerns, given a chance to respond, and not be subject to adverse action without proper process.

What a Good Policy Should Include

The table below outlines the core components a performance management policy should cover, along with the relevant standard or legislation each component addresses.

Policy ComponentRelevant Standard or LegislationSetting role expectations and KPIsStrengthened Quality Standard 2 (The Organisation)Regular appraisal and feedback processStrengthened Quality Standard 2 (The Organisation)Underperformance identification and documentationFair Work Act 2009, Standard 2Performance improvement plans (PIPs)Fair Work Act 2009Procedural fairness in formal processesFair Work Act 2009Roles and responsibilities for managers and HRStrengthened Quality Standard 2 (The Organisation)Links to training and development supportStrengthened Quality Standard 2 (The Organisation)

Performance management does not sit in isolation. It connects directly to how staff are recruited and what competencies they are expected to hold. Providers should read this policy alongside the Staff Recruitment and Selection Policy and the Workforce Training and Competency Policy to maintain a consistent workforce governance approach.

Common Gaps in Aged Care Performance Policies

Many providers have a policy in place but fall short on implementation. The most common gaps are inconsistent appraisal frequency, poorly documented underperformance conversations, and a lack of clarity around who is responsible for initiating formal processes.

Another frequent issue is failing to connect performance outcomes to training needs. When a staff member is underperforming, a well-managed provider identifies whether a skills or knowledge gap is contributing, and responds with appropriate support before escalating to formal action.

How Governa Helps

Governa gives aged care providers a single place to store, review, and act on their compliance policies. The Norma compliance bot can flag when a policy is due for review, map it to the relevant quality standards, and alert the responsible manager.

When an Aged Care Quality and Safety Commission audit is approaching, Norma can help your team quickly locate current policy documents and confirm they align with the Strengthened Standards. This reduces preparation time and gives compliance officers confidence that their documentation is current.

You can browse all workforce and governance templates in the Policy Templates Library to build out your full policy suite.

Download the Free Template

The performance management policy template below is ready to customise for your facility. Fill in your organisation name, review dates, and role-specific details, and you have a compliant, audit-ready document.

To see how Governa can manage your entire policy library and keep you aligned with the Strengthened Aged Care Quality Standards, book a demo today.