As a people manager or HR professional, you may have come across the term "Performance Improvement Plan" or PIP and wondered what it meant. Simply put, a performance improvement plan is a tool used to help employees who are struggling to meet work expectations or goals. It's important to understand the ins and outs of PIPs, what they entail, and how to implement them effectively. In this guide, we'll cover everything you need to know about PIPs, including examples and best practices.
PIP is an acronym for "Performance Improvement Plan". This term is commonly used in business and HR contexts, and refers to a structured document designed to facilitate constructive discussion between an employee and their manager.
A Performance Improvement Plan, often abbreviated as PIP, is a formal document outlining any existing performance deficiencies along with detailed objectives that the employee needs to meet in order to improve their work and remain in the company. It serves as a constructive tool to guide employees who are underperforming and helps them understand where they need to improve. A well-structured PIP will provide clear and measurable targets for improvement, a timeline for achieving these targets, and a clear understanding of the consequences of not meeting these objectives.
A Performance Improvement Plan (PIP) should be used at work when an employee is consistently underperforming, is not meeting their job expectations or is displaying behavioral issues that affect their work or the team. The decision to implement a PIP should not be taken lightly, nor should it be used as a first resort. Initially, informal discussions or coaching sessions should be held to clarify expectations and offer assistance.
When implementing a PIP, it's crucial to act fairly and transparently. The manager should explain the issues clearly, providing specific examples of where the employee's performance or behavior has not met expectations. The PIP should outline clear, measurable objectives for improvement, a realistic timeline for achieving these goals, and the support that will be provided to the employee during this period. Regular check-in meetings should be scheduled to discuss progress and address any issues. It is crucial to document each step of the process, as this could serve as a record if the employment relationship eventually ends. Overall, a PIP should be used as a constructive tool to help employees improve, not as a punitive measure or a step towards termination.
Ideally, long before a performance improvement plan, you've progressed through the following steps:
If you're an HR professional or people manager and have identified an issue with an employee, best practice is to address the issue quickly. Sometimes, all this takes is a mention. When you notice a behavior or communication that is representative of the issue at hand, pull the employee aside and have a discussion that is specific and pointed. Often, this step is either skipped or ignored and can lead to significant issues if you progress and escalate to a more formal performance improvement plan.
Progress the first mention into regular, recurring feedback if there is no progress (or a regression) in the employee's performance. This shouldn't be a surprise to the employee, as you've already mentioned, with specificity, the behavior or performance you're trying to correct. Drive the employee to come up with their own solutions. The best kind of support allows the employee to own both the problematic behavior and the solution.
If, despite clearly specifying your expectations and regularly following up on progress, you still observe no substantial improvement or change, it is appropriate to escalate to a final mention. Address prior examples and strategies you've tried to help the employee back-on-track and let them know you care about helping them progress and seeing that change. If you don't see measurable action and progress, you'll have to move to a performance improvement plan.
Following these steps can help ensure that if a PIP does become necessary, it is not a surprise. Instead, it will be viewed as a structured and formal extension of an ongoing process aimed at driving improvement and success.
Setting up a standard or process for performance improvement plans can be tricky and is highly organization dependent. In general, your plan should fit with your company culture, standards of operating, HR practices and policies, and many other variables. There are some best practices that hold true.
When creating a PIP, it's important to:
Feels a bit pedantic at this point, but the best thing you can do for the employee and for improving performance is to be clear and specific about the elements of their performance that need progression.
For instance, consider the scenario of an employee, John Doe, who has been consistently late in meeting project deadlines in his role as a graphic designer. A specific incident that could be referenced in his Performance Improvement Plan would be as follows:
"On March 10, 2021, John was assigned a project to design a brochure for an upcoming marketing campaign. The deadline for the completion of the design was March 20, 2021. However, John submitted the brochure design on March 28, 2021, eight days past the deadline. This delay affected the overall timeline of the marketing campaign, causing a delay in the printing and distribution of the brochures. It's important to note that this is the third time in the past two months that John has missed his project deadlines."
This specific example would then be used as a basis for the performance objectives in the PIP, such as "Submit all assigned projects by the stated deadline" or "Improve time management skills to ensure timely project completion."
It's important to let the employee own the issue and the response, but they'll often need support. As a demonstration of your commitment to that employee and their improvement, be sure to help support the employee in their endeavor.
There are various types of support you might offer an employee as part of a formal Performance Improvement Plan (PIP).
Remember, the aim of providing these resources is to help the employee improve their performance, and they should be offered in a supportive and constructive manner.
Change doesn't happen overnight. It's also important to give enough time to exhibit a change in behavior, which may require some staying power and longer observation.
A realistic timeline for a Performance Improvement Plan (PIP) would typically span over several weeks to a few months, depending on the extent of the performance issues and the specific role of the employee. Here's an example:
In the case of John Doe, who has been consistently missing project deadlines, a realistic timeline for his PIP could be structured as follows:
This timeline provides John with enough time to learn, adapt and improve his time management skills, with ongoing support and feedback to guide him along the way.
Establishing a regular check-in schedule is crucial when an employee is on a PIP. These meetings offer an opportunity for open dialogue, enabling the manager or HR professional to track progress, offer guidance, and address any concerns.
A sample agenda for these check-ins might include the following:
Example questions that could guide the dialogue in the check-in:
The goal of these check-ins is to foster a supportive and open environment where the employee feels empowered to improve and succeed. Remember to be empathetic, constructive, and patient during these meetings.
Documenting communication and action is a crucial part of implementing a Performance Improvement Plan (PIP). This practice ensures transparency, provides protection for the company, and creates a clear record of the employee's progress and interactions during the PIP period.
For a manager or HR professional, this might involve the following steps:
In summary, the documentation should provide a clear, factual, and comprehensive record of the PIP process, from the initial identification of performance issues, through the actions taken by both the employee and the company, to the final outcome of the PIP. It's also beneficial to use a consistent format for documentation to ensure the information is easy to review and understand.
Let's say you have an employee who consistently misses deadlines and produces work that is below the expected quality. Let's also assume you've had direct conversations with the employee to address the issue, set clear expectations, and identify any obstacles that may be preventing them from meeting expectations.
If the employee continues to underperform, you decide to create a performance improvement plan that outlines specific goals and action steps for the employee to take over a certain period of time. A very basic version of a plan with all of these elements can be seen below.
Employee Name: Alex Johnson
Position: Graphic Designer
Manager: Jane Smith
Performance Issue(s): Alex has been consistently missing project deadlines and the quality of his work has been below the expected standard.
Objectives: Improve time management skills and enhance quality of work.
Performance Improvement Plan:
Week 1-2: Alex will enroll in a graphic design refresher course and a time management workshop. He will also be paired with a senior graphic designer for mentorship and guidance. The projects "Creative Crayon" and "Visage Virtuoso" will be assigned to him.
Week 3-4: Regular weekly check-ins will be conducted to track Alex’s progress, provide feedback, and make any necessary adjustments. Alex will start implementing the time management techniques he learned in his work.
Week 5-6: Alex is expected to show improvement in meeting project deadlines and the quality of his work. Any required coaching sessions will be held during this period. Improvement will be assessed jointly by Alex's manager and HR business partner.
Week 7-8: Final assessment period. By this time, Alex should consistently meet deadlines and produce work at the expected quality as per the objectives set in the PIP. Specifically, the projects "Creative Crayon" and "Visage Virtuoso" will be assessed for timeliness and quality of delivery.
Support Provided: Training courses, mentorship scheme, and continuous feedback throughout the PIP duration.
Consequences of PIP Failure: If Alex's performance does not significantly improve during the PIP period, further disciplinary action may be taken, up to and including termination.
The goal of this PIP is to provide Alex with sufficient resources and support to improve his performance. Communication and transparency will be key throughout the process, with regular check-ins and feedback sessions. All parties involved should understand the importance of this plan and be committed to its successful execution.
Determining a good benchmark for the success rate of Performance Improvement Plans (PIPs) largely depends on the unique context and goals of each organization. However, some HR professionals opine that a success rate of 40% to 70% is considered fairly positive in terms of the number of employees who improve their performance and retain their jobs after undergoing a PIP. It's essential to bear in mind that the ultimate goal of a PIP is not to terminate employment, but to help employees improve their performance. Therefore, a higher success rate is always desirable, reflecting successful management and constructive support systems within the company.
Performance Improvement Plans can be a powerful tool for managers and HR professionals if implemented correctly. By understanding the purpose and best practices of a PIP, you can help support struggling employees while also protecting your company from potential legal issues. Remember to be clear and specific about expectations, provide support and resources, set a realistic timeline, and document everything. With these steps in place, your PIPs have the best chance of success.
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