Many employers still rely on traditional performance management approaches that put people into boxes. The Employment Rights Bill creates an urgency to build more proactive, human-centred ways to help employees thrive, argues David Liddle.
With the imminent arrival of the new Employment Rights Bill (ERB), there has never been a more urgent need for people professionals and business leaders to rethink how performance is managed in their organisations.
Too often, performance processes are reactive, inconsistent, or disconnected from what people really need to succeed – and the new legislation is set to shine a harsh light on these shortcomings.
One of the most widely used yet deeply flawed tools in this space is the nine-box grid.
This is a performance management model that attempts to map people’s potential and performance onto a matrix of static categories. But human beings don’t fit neatly into boxes.
These frameworks often reinforce bias, create artificial hierarchies, and reduce people to labels like “low potential” or “needs improvement”.
The result? Demoralisation, disconnection, and a system that penalises difference rather than nurturing it.
Tick-box exercise
It’s no surprise then that performance issues account for around 90% of the cases I see coming into workplace mediation programmes. That’s a staggering figure.
And it tells us something important: the traditional tools and mindsets we’ve used to manage performance just aren’t working.
Too often, performance management is reactive, compliance-driven, or worse, weaponised. It reduces a complex, human issue to a tick-box exercise.
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At its core, performance is not a policy or a process. It’s not a form to be filled out once a year, or a percentage target on a spreadsheet. It’s the heartbeat of a healthy organisation.
When performance is thriving, you can feel it in the energy of the team, the quality of conversations, the clarity of purpose, and the connection between people.
When it’s not, the symptoms show up quickly: disengagement, conflict, absenteeism, underperformance, and ultimately, attrition.
The Employment Rights Bill, with its increased scrutiny and potential for legal complaints, only heightens the urgency to get this right.
Employers need to move beyond managing poor performance and start enabling great performance – at every level, from day one.
Why this approach fails
Traditional performance management tools such as the nine-box model tend to rely on historic reviews, isolated objectives, and a culture of appraisal rather than appreciation.
At worst, it becomes a tool for control and correction. But true performance isn’t driven by compliance – it’s driven by connection.
These models offer a false sense of objectivity while ignoring the lived reality of workplace complexity – where growth is non-linear, feedback is relational, and potential is dynamic, not fixed.
In a culture that values agility, inclusion and psychological safety, performance can no longer be something done to people. It must become something co-created with them.
True performance isn’t driven by compliance – it’s driven by connection”
In many cases, what appears to be an issue of underperformance is actually the tip of a deeper iceberg.
Is the individual clear on expectations? Do they feel psychologically safe, trusted, and valued? Are organisational goals aligned with personal purpose? Is their manager equipped to have open, honest conversations without fear or favour?
Legal urgency
According to employment experts, the Employment Rights Bill affects at least 28 areas of employment law, and could result in up to 76 different types of complaints being raised at tribunal.
It will shine a spotlight on how organisations handle performance, particularly in areas like fairness, transparency, and early intervention.
This should be seen as an opportunity, not a threat. The Bill reinforces the need to:
- Engage meaningfully during probation periods
- Identify and address barriers to performance early
- Tackle training, capability, or support issues head-on
- Create a culture of dialogue, not deference.
This sees the emphasis shift from monitoring failure to enabling success.
Transformational performance management
In my forthcoming book People and Culture, I outline a new Transformational Performance System (TPS) – designed to provide a practical, people-centred alternative to outdated performance models.
The model is built around four interlocking quadrants:
- MAP: Mastery, autonomy, purpose – reflecting the emotional drivers of high performance.
- OKR: Objectives and key results – providing clarity and alignment to organisational goals.
- VBC: Values, behaviours, capabilities – shaping the ethical and behavioural standards of the organisation.
- PAC: Power, authority, control – creating fair and transparent governance and compliance systems at work.
Together, these forces combine to create the conditions for optimum performance. This is neither average nor adequate, but thriving, values-aligned, purpose-led performance.
How do we upskill managers?
Managers and people professionals are at the heart of this shift. To manage the four forces which often operate in tension, they need the mindset, skillset, and confidence to have better conversations – what I call quality conversations.
Here are five core competencies they need to develop:
Empathetic listening: Understanding performance issues means being able to listen beyond the words. What’s really going on? What’s being felt but not said?
Constructive feedback: This isn’t about criticism. It’s about clear, compassionate feedback that focuses on behaviours and outcomes, not personality or assumptions.
Values-based coaching: Great managers ask, not tell. They help individuals link their personal values and strengths to organisational goals.
Conflict competency: Performance conversations often surface tension. Managers need to feel confident in navigating disagreement without resorting to blame or avoidance.
Goal co-creation: Performance objectives work best when co-designed. When individuals see how their work matters, motivation and engagement soar.
A human approach
A transformational approach to performance is not about abandoning structure. It’s about aligning structure with trust, clarity, and humanity. It places the individual’s growth at the heart of the organisation’s success.
When we do this well, conversations shift from punitive to purposeful, objectives become meaningful rather than mechanistic. We see more regular reviews and people feel seen, heard and supported.
Research consistently shows that psychologically safe, values-aligned workplaces perform better – with higher engagement, lower turnover, and better customer satisfaction.
As I say at every leadership development or coaching program I run – performance management should never be about catching people out. It should be about lifting people up.
Rather, it can be something people value. A strong performance culture isn’t built on fear or bureaucracy, but on trust, clarity, and meaningful relationships.
When we support people to grow and succeed, teams become stronger, and organisations surely reap the benefits.
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