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A performance improvement plan (PIP) is a document that describes how you will improve your company’s efficiency and total cost of doing business over the next 180 days. This type of document, when properly developed, can be an effective tool for improvements in productivity and profitability
A performance improvement plan (PIP) is a management tool that helps a failing employee achieve by creating a roadmap. A PIP may assist an employee to improve whether they are failing to accomplish their goals or have excessive tardiness that needs to be addressed.
PIPs are often seen by employees as a prelude to the termination. While this is possible, make sure you are open and honest with your staff, assuring them that a PIP will help them get back on track.
What Should a Performance Improvement Plan Contain?
You need to include eight key items in every performance improvement plan, which should be just one tool within your employee management process. Whenever you put an employee on a PIP, use a Template for a Performance Improvement Plan to ensure you treat each one the same. This can help your company avoid legal trouble by removing the appearance of discrimination.
1. Determine whether a PIP is necessary
Determine if a PIP is suitable for the scenario at hand. A PIP should only be given after you’ve discussed the employee’s performance or workplace habits with them and made at least preliminary actions to assist them in improving. A performance improvement strategy should neither startle nor catch employees off guard.
It’s also a good idea to contact HR before making this decision. Working with HR will ensure that you stay compliant and use a PIP that has been authorized by the firm. HR may also assist you in discussing the strategy with the employee, relieving you of some of the burdens.
2. Determine what needs to be improved
It’s time to build a PIP after you’ve concluded that it’s necessary. Make sure you include enough information to illustrate why the employee’s current performance is poor and what they need to do to improve.
The job description should be included in the PIP, in my opinion. This serves as a reminder to the employee of the job’s minimal criteria and might assist you in keeping the employee accountable to their stated responsibilities.
These suggestions for improvement should be based on the manager’s past remarks on the employee’s performance, which may have been mentioned in earlier performance evaluations. If the employee hasn’t been informed of any problems, I wouldn’t propose placing them on a PIP as a first step. If at all feasible, address problems with staff in real-time, or at the very least during frequent check-ins. These check-ins will also provide management with recorded proof of how long an employee has been failing and what efforts have already been made.
3. Establish PIP Objectives
It’s time to develop objectives for how an employee will attain success now that you know where they need to grow. You should create objectives for the PIP in the same way that you set goals for departments and workers. SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound. A performance management system may help you set these objectives more easily.
You don’t want a PIP with a lot of objectives on it since it could overwhelm an employee and make them feel like you’re setting them up for failure. Choose one to three important objectives for your staff to concentrate on, and provide them the framework they need to accomplish them.
Assume you have an employee who has missed critical deadlines on the previous two projects they have been given. You attempted to assist them by discussing their performance issues with them after each project deadline was missed, but they haven’t improved. You want to make sure the employee meets the deadline for another project that is due in a few months. The following is an example of how you may arrange your SMART objectives in the PIP:
- Project X will be executed on schedule and to specification.
- Measurable: The employee will fulfill a Project X target of April 30 by using important milestones.
- Project X will be set up for successful on-time completion within the appropriate time frame allowed by identifying milestones and evaluating stages.
- Relevant: Milestones will be developed in collaboration with the manager and the whole team.
- Project X is scheduled to be finished by April 30.
Now let’s put it all together: Project X will be finished on time and under budget by setting up and achieving critical milestones to keep the project on track.
Finally, you want to assist the employee in achieving success and getting off PIP.
4. Create a timeline
Using SMART objectives to organize your PIP will assist you in creating a completion timetable. However, you’ll need to specify more than simply the PIP’s expiration date, which I suggest aligning with the performance you want to enhance. In our case, this deadline would have to coincide with Project X’s April 30 deadline. However, setting a PIP schedule of 90 days, six months, or whatever works for the scenario at hand is absolutely appropriate. Above all, the schedule must be realistic.
Throughout the PIP, you must also establish checkpoints. A PIP isn’t something you make, discuss with the employee, and then leave them to figure out on their own. As a manager, you must be willing to collaborate with the employee in order to provide them with every possibility for success. This entails scheduling frequent check-in times to answer queries and provide guidance.
5. Speak With the Employee & Provide Support
I suggest having HR present while reviewing the PIP with the employee to assist record the interaction. The presence of another person will help to keep the discourse on track.
You may start a productive dialogue by expressing your desire to assist the person to thrive. You should also urge the employee to talk honestly and recommend any revisions to the PIP during this meeting. They may have suggestions on how to succeed or need to ask clarifying questions. In any case, providing them the opportunity to be heard demonstrates that you appreciate their opinion.
Outline the assistance you will give in your conversation with the employee. Regular project meetings should be held to verify that the project’s pace is on track and that critical milestones are fulfilled. Prepare to help the employee with any problems that may occur.
6. Get everyone to sign
You must have the employee sign the PIP, indicating that they understand the objectives they must meet. You should also sign the PIP, attesting to the information contained therein and promising to assist the employee as needed. HR should also sign the PIP to recognize that they have examined the plan and found it realistic and feasible.
7. Keep an eye on your progress.
This is an important aspect of any effective PIP. Allowing an employee to work on their own is a recipe for disaster. However, by coaching them and assisting them in achieving little milestones, you may assist them in achieving the PIP’s ultimate aims and achieving a good conclusion.
As a manager, you must demonstrate your dedication to the employee. Prioritize them, establish planned check-ins, and be there to assist them in succeeding. Every check-in should be utilized to recognize even little victories, encouraging the employee to keep improving.
8. Finish the PIP
Hopefully, this will be a joyous occasion. The PIP is considered successful if the employee accomplishes the PIP’s stated goals by the deadline, or sooner. The PIP should be signed by both you and the employee to complete the plan. Ascertain that the employee knows that their increased performance will be maintained.
However, not all performance enhancement programs succeed. If an employee is unable to meet the PIP’s objectives despite their manager’s assistance, demoting or firing the person may be the next step.
However, if an employee has improved and is motivated but is unable to accomplish all of the objectives, you may choose to extend the deadline. If you look back over the PIP and see that the schedule and objectives were unrealistic and maybe too aggressive, altering the timeline is absolutely appropriate in order to offer the employee the best opportunity for success.
A good performance management system may assist you in quickly creating and tracking performance improvement strategies. For the finest alternatives, take a look at our top performance management system recommendations.
Conclusion
Employees who fail to fulfill business objectives may be placed on a Performance Improvement Plan (PIP). A well-structured and managed PIP fosters a culture of learning and investment in your staff, which may result in increased team engagement and productivity. Using the procedures indicated here, you can develop a tailored improvement plan that outlines precisely what your employee needs to improve while also providing them with the assistance and advice they need to complete the plan effectively.
Frequently Asked Questions
What is included in a performance improvement plan?
A performance improvement plan is a document that employees write detailing their current work situation, areas they feel could be improved on and strategies to do so.
What is an example of performance improvement?
One example of performance improvement is how quickly a company can grow.
