Performance Improvement Plans (or PIPs) have a bad reputation. They have been misused and misunderstood for a long time. Many supervisors unwisely use them as a way to fire employees. Employees placed on a PIP often feel like they have one foot out of the door and the PIP is just the method of execution. This needs to change. While the seriousness of a PIP should not be ignored, a PIP should be used for what it is designed for, turning employee performance around by laying out a plan to make success achievable. In reality, a PIP is a tool designed to save a job that otherwise will be lost.
A PIP is defined as a formal documented plan that outlines a recurring performance issue or issues, along with goals or milestones that an employee should achieve to regain good standing at the company. PIPs should give a specific timeline to complete and repercussions for failure. A good manager who values their employee will use a PIP to retain an employee who is not succeeding in their role. The plan will help the employee understand that their performance issues are serious, and that if their performance problems are significant enough that they could result in demotion, transfer or employment termination
.
The beauty of the PIP is that the plan is well laid out for they employee to achieve success. Good plans remove gray areas regarding performance, and thrive when both the employee and the supervisor use good communication, and want to see improvement.
To build a successful PIP follow the steps outlined below
:
Step 1: Decide if a PIP is the Path to Success.
A plan should be used when the manager is serious about wanting the employee to improve, not as start of termination paperwork. Before drafting a PIP consider:
- Is the needed performance relevant to the job?
- Are there specific examples of the performance or behavior?
- Is the supervisor wanting to reform the employee, or are they just looking for a reason to fire the employee?
- Is the area for improvement quantifiable? Sales quotas, arriving to work on time, turning in quality work, etc. are quantifiable and are easy to determine if they are achieved. If the goal is not measurable, the expected outcomes must be able to be described in such a way that the manager, HR, and the employee can agree on whether the goals were reached or not. Listing items like the employee needs to improve their attitude is not quantifiable and is not suited to a PIP plan.
Step 2: Write a Draft Plan.
The hardest part of a PIP is writing the plan. A good plan requires a lot of thought, planning and research. A well put together plan shows an employee their manager cared enough to put a plan in place aimed at improving their performance. An improvement plan should include:
- Detailed description of what acceptable performance levels should be, and how the employee's current performance is deficient. This is known as "defining the gap." Many employees simply are not aware that a gap exists. Providing specific examples describing the unacceptable performance are critical to plan success. Employees cannot argue with accurate examples of performance. Examples should include dates, detailed information and comprehensive explanations. Other items to include are the job description and any relevant employer policies to further clarify expectations.
- Plans should be written so that a capable employee in that job can succeed. Plans that that are full of unrealistic inflated expectations are doomed to failure
- How the supervisor will assist in achieving the goals as well as any resources the employee can use to aid in achieving these goals, such as any additional training.
- All outlined goals should be SMART (Specific, measurable, objective, achievable, relevant and time-bound). PIPs usually last 30, 60, or 90 days, avoid creating plans that do not have a cutoff date.
- A concrete timeline on how often the supervisor and employee will meet to discuss progress. Usually meeting once a week is sufficient, but may vary depending on the need.
- Be very clear about the consequences for not meeting the goals of the plan. Options may include demotion, transfer to a different position or termination.
Step 3: Review the Plan
Always have the HR department review the plan as well as your management team. The key to this step is to ensure that the plan is attainable and fair. The third-party objective reviewer can determine if the supervisor who wrote the plan allowed their frustration with the under-performing employee to spill over into a PIP plan.
Step 4: Execute the Plan
Emotionally, this is the hardest step. PIP meetings have never been described as enjoyable meetings, but they are critical to a failing employee's positive transformation. The meeting is much easier when the employee knows upfront that their manager is committed to the plan and to the employee's success. Employee feedback should be encouraged to help identify areas of confusion and to help nurture ownership. Managers should be willing to adjust the plan based on the employee's input. After fully discussing the plan, the manager may make modifications based on employee feedback. The final plan should be signed by both manager and employee and forwarded to HR and management approval.
If the employee is unwilling to commit to the PIP process at this point, the manager will need to determine whether termination, demotion or another appropriate employment action should be taken. After all, at the onset you outline what would occur if the employee failed to succeed with the process, unwillingness to commit is plan failure, and the next step should be followed
Step 5: Check in on Plan Progress
It is the manager's responsibility to ensure that all progress meetings occur as scheduled and on time.
The manager's commitment is usually judged by how much interest and dedication they show at the follow up meetings. Documentation of plan progress toward the set goals is critical. The manager should discuss, seeking to identify why improvements have or have not been made. If gaps in training or required tools become apparent, provide those as soon as possible. Effective progress made toward the goal should be recognized as a means of motivating the employee to continued improvement.
Step 6: Plan Conclusion
Once the employee has successfully met plan objectives on or before the expiration date the PIP should be formally closed. At this point the employee's achievement should be recognized.
While a positive occasion for the employee, the manager must be sure the employee understands that continued good performance is expected.
Sometimes an employee will fall short. If the employee was committed to improvement, but fails to hit the objectives within the established timeline, it may be worthwhile to extend timeline to give them more time to succeed. Additionally, if objectives were found, in retrospect, to not be realistic or fully within the employee's control, the plan might be ended successfully, based on the improvements achieved.
If the employee is unsuccessful at performance improvement or if their performance degrades further, the PIP should be closed, and a possible reassignment, demotion or termination should be considered, based on the specific circumstances.
Clearly no one ever wants to go through the PIP process regardless of the side you are on. H
owever, the value of a properly executed
plan cannot be argued. It is an asset that develops employees and assists them in achieving their full potential when it is used correctly and with the right intention
, but pretending there is not a problem is never going to bring about positive change we all want to achieve.
