Research Series

Table of Contents

1. Background and Objective

2. Institutionalization of Rules on Low-Performer Management in Workplaces

3. Implementation of Rules on Low-Performer Management in Workplaces

4. Education and Training for Low-Performers and Feedbacks

5. Organization for Handling Issues Related to Low-Performers

6. Summary and Implications

Summary

• Current status of low-performer management system in workplaces was examined based on 「2015 Workplace Panel Study」.

- Low-performer management system was categorized into push-type (warning, wage cut, publication of evaluation results, limited promotion, layoff) and pull-type (training program, support for job transfer, reassignment transfer, mentoring). Based on these two categories, different attributes of workplaces were examined.

• Only 48.4% of all workplaces were found to have a system to manage low-performers.

- In terms of the push-type management system, the most common policy to be adopted is warning (22.3%) followed by limited promotion (19.5%), while in terms of the pull-type management system, the most common policy to be adopted is mentoring (16.9%) followed by reassignment trasfer (14.9%) and training program (12.9%).

•  Of the workplaces with a low-performer management system, 65.4% have actually implemented the system.

- In terms of the push-type management system, the most common policy to be implemented is warning (23.0%) followed by limited promotion (19.6%), while in terms of the pull-type management system, the most common policy to be implemented is mentoring (17.1%) followed by education program (13.1%) and reassignment transfer (11.6%).

- Layoff policy is relatively more prevalent in workplaces with no trade unions.

• The average annual duration of training program for low-performers is 11.9 days.

• 29.5% of all workplaces responded that they have a rolling feedback system for assesses and that the system is operating well.

• A survey about organizations that handle issues related to low-performers found that an average of 30.0% of workplaces handle issues related to low-performers through a HR committee.

• There is a growing perception that management of low-performers is directly related to strong business competitiveness and survival. Therefore, there needs to be continuous interest in related systems and practices.