Performance Management vs Disciplinary Action for NZ Salon Owners

The costly mistake I see salon owners make over and over

August 15, 2025

Teréze Taber

Co-Founder, BTB Salon Services – Written with Lynden Mason

Over the years, I’ve employed hundreds of stylists and managed dozens of salons. I’ve seen the best of people… and the worst. I’ve been in meetings where I’ve felt proud, inspired, and full of hope – and others where I’ve felt angry, frustrated, sad, confused, and, if I’m honest, even gaslit.

That’s the thing about staffing issues: they can feel incredibly personal and emotional. When someone’s behaviour or performance is affecting your business, your other staff, or your clients, it’s hard not to take it to heart. But here’s the truth (and I’ve had to learn this the hard way)you want the best outcome, you’ve got to keep a cool head.

When you’re in these situations, your golden rule is:

Just the facts, ma’am.

Even if you want to explode, call someone out, or throw your hands up in frustration (or a single finger!)… don’t. Keep it factual. Keep it professional. That’s how you protect your business, and yourself. And to be honest? How you grow as both a Manager and a person in general.

What is the Difference between Performance Management and Disciplinary Action?

Performance management is all about improvement and support. It’s forward-looking, aimed at helping an employee lift their game, fix mistakes, and meet expectations. Even if you’re feeling pissed, you have to keep it focused on how to IMPROVE the situation.

Disciplinary action, on the other hand, is a formal process used when an employee has breached rules, behaved inappropriately, or failed to meet their responsibilities. It is objective. This can lead to warnings, suspension, or dismissal.

For a disciplinary action, you must have a specific breach – not just something you personally don’t like or that doesn’t meet your own standards. There has to be a breach of the employment agreement or the law, not just something they do that grinds your gears.

When to Use Performance Management

The goal is not to punish, but to guide and support improvement.

Mental health issues can make this process more complex. That’s why I believe in creating a support plan – offer help, but also ask them to commit to steps they’ll take for themselves. That way, if they don’t follow through and the behaviour escalates, the accountability is theirs. This protects you while giving them a fair shot at a more positive work experience and better mental health.

You’d typically performance manage when:

Can I charge more in this area?

Will I get more walk-ins or repeat business?

Will my team feel proud to work in this space?

SIDE NOTE: This topic can be very delicate and seem complicated to navigate, remember we are here to guide you if you need guidance. Simply flick us an email.

The Usual Performance Management Process in NZ

1. Spot the problem – Identify what’s not working and confirm expectations were clear.

2. Give feedback – Sit down and talk through the issue constructively.

3. Set clear goals – Define what needs to improve with timelines and measurable outcomes.

4. Offer help – This could be training, mentoring, or extra resources

5. Regular check-ins – Review progress regularly. If you don’t do this, you’ll have to start the process all over again…and that will be on YOU.

6. Use a formal Performance Improvement Plan (PIP) if needed – A written plan makes expectations, timelines, and consequences explicit.

If there’s still no improvement after genuine effort and support, you may need to move to disciplinary action.

How a Disciplinary Process Works

A disciplinary meeting is structured, legal, and must follow fair process:

1. Written notice

Outline the issue, possible consequences, and the employee’s right to a support person.

2. Investigation

Gather all facts before making a decision.

3. Opportunity to respond

The employee gets to explain their side.

4. Fair consideration

Genuinely take their response into account.

5. Outcome decision

You must give this at a time AFTER the meeting. You can’t make it up on the spot, as you need to show fair consideration, which takes time.
This could be a warning, suspension, or termination.

6. Right to challenge

Employees can dispute the decision through the ERA or mediation.

Can You Do Both at the Same Time?

Yes… sort of!

It’s incredibly important to understand that the two processes cannot be intermingled – they have different purposes, rules, and outcomes.

However, if you’ve got a performance management issue and a disciplinary issue with the same person at the same time, you can run both – but they must be entirely separate.

That means:

Two separate processes

Two separate sets of notes

Two separate meetings

If the meetings happen on the same day, you must run them independently. Literally get up, leave the room for a minute or two, and then come back in to start the second meeting. Create a clear indication of separation.

Never blur the line between the two issues. If you do, you open yourself up to claims of unfair process, and the whole thing could be thrown out legally, even if your reasoning was sound.

What Happens if You Get it Wrong?

Mixing the two can lead to:

Unfair dismissal claims

Breach of good faith (not giving an employee a fair chance to improve)

Low team morale

Legal and financial consequences (compensation payouts can be painful)

Where We as Salon Owners Can Go Wrong

One last really important point. Let’s be honest – sometimes the root of the issue lies with us. We’ve let the salon culture slide, avoided confrontation, or failed to set clear expectations.
It’s important to take ownership and ask:
“What could I have done differently from a managerial perspective?”

But, and this is key, don’t hand that over as an excuse for poor behaviour. Use it as the moment you set the culture you do want. It’s a teachable moment in time for you as an owner/manager, so own it.
As I like to say, “You teach people how to treat you” – and sometimes, as my wife would say, it’s time for some new lessons.

Emotions vs. Professionalism

Oh yeah. I know first-hand how emotional these situations can get. You’ve invested in someone, supported them, maybe even bent over backwards for them, and now you’re having to address performance or behaviour that’s hurting your business.

That’s why it’s so important to train yourself ahead of time to keep things measured and professional. When you’re in the room, stick to the facts. Your feelings are valid – but they don’t belong in the process.

Employee Rights in These Processes

If you’re the employee:

Know your rights under NZ law and your contract

Bring a support person or lawyer to meetings

Ask for written clarification on which process you’re in

Get everything in writing

Provide a written response to concerns

Seek legal advice if you feel unfairly treated

Use mediation through MBIE or the ERA if needed

Final Thoughts

Whether you’re dealing with a skill gap or a rule breach, the way you handle it matters. The difference between performance management and disciplinary action isn’t just legal – it’s cultural. Get it right, and you keep your business protected while giving your team a fair chance to improve. Get it wrong, and you risk turning a solvable problem into a costly one.

Lynden Mason
Co-founder, BTB Salon Services

Performance Management vs Disciplinary Action: The Salon Owner’s Survival Guide