Are you an HR professional tasked with writing a performance improvement plan (PIP) for an employee? Are you unsure where to start or how to create a plan that will effectively address performance issues? If so, you're in the right place. In this blog, we'll walk you through the key steps to establishing a PIP that will set clear expectations and help employees improve their performance. By following our guide, you'll be able to create a plan that is fair, objective, and tailored to the needs of your organization and your employees.

What is a performance improvement plan?

A performance improvement plan (PIP) is a tool used by employers to help employees improve their performance when they are not meeting expectations. It is typically used when an employee has received negative feedback or is not meeting the standards set out in their job description or company policies.

The PIP is a formal document that outlines the specific areas in which the employee needs to improve, as well as the goals, expectations, and timeline for improvement. A PIP is often used as a last resort before termination, as it gives the employee a clear roadmap for improvement and the opportunity to turn their performance around. The PIP should be tailored to the individual employee and should include specific, measurable goals and timelines for improvement.

Reasons employees would need a performance improvement plan

Employees may need a PIP for a variety of reasons. Some common reasons include:

1. Performance issues: If an employee is consistently failing to meet performance expectations, a PIP may be necessary to help them improve.
2. Behavioral issues: If an employee is exhibiting problematic behavior, such as tardiness or unprofessional conduct, a PIP can help address these issues.
3. Career development: A PIP can also be used as a tool for career development, helping employees identify areas in which they can improve and grow within their current role or prepare for future opportunities.
4. Communication issues: If an employee is having trouble communicating with coworkers or clients, a PIP can help them improve their communication skills.

Overall, a PIP can be a helpful tool for employees who are struggling to meet expectations, as it provides them with a clear roadmap for improvement and can help them develop the skills they need to succeed in their job.

How to establish a performance improvement plan

Establishing a performance improvement plan (PIP) involves several key steps. Here are some of the steps that will help you create and execute a successful performance improvement plan.  

Step 1: Determine if PIP is Appropriate

The first step in establishing a PIP is to determine whether it is appropriate for the situation. A PIP is typically used when an employee is consistently failing to meet performance expectations, and other forms of feedback or coaching have not been effective. However, it's important to make sure that the situation warrants a PIP before moving forward.

To assess whether a PIP is warranted, HR should consider the following:

• Performance history: HR should review the employee's performance history and determine whether there is a consistent pattern of underperformance. This may involve reviewing performance evaluations, customer feedback, or other relevant data.
• Specific performance issues: HR should identify the specific performance issues that need to be addressed, and determine whether they are within the employee's control or the result of external factors.
• Previous feedback and coaching: HR should consider whether the employee has received feedback or coaching in the past, and whether these efforts have been effective in addressing the performance issues.
• Company policies and procedures: HR should review the company's policies and procedures to determine whether a PIP is the appropriate course of action based on the severity and nature of the performance issues.
• Legal considerations: HR should consider any legal implications of implementing a PIP, such as potential discrimination or retaliation claims, and ensure that the PIP is compliant with all applicable laws and regulations.

By carefully considering these factors, HR can determine whether a PIP is the appropriate course of action and develop a plan that is tailored to the individual employee's needs and circumstances.

If it's determined that a PIP is appropriate, the next step is to inform the employee of the plan and involve them in the development process. This will help ensure that the employee is committed to the plan and understands what is expected of them. It's important to approach the situation with a positive attitude and focus on improvement rather than punishment, as this will help create a supportive and productive work environment.

Step 2: Develop a Draft Plan

Once it has been determined that a PIP is appropriate, the next step is to develop a draft plan. This involves identifying the specific areas where improvement is needed and setting clear, measurable goals for improvement.

The PIP should be customized to the individual employee's needs and circumstances, and should include the following elements:

• Set Goals: Set clear, measurable goals for improvement, such as increasing productivity or improving quality. These goals should be realistic, achievable, and tailored to the employee's individual needs and circumstances.
• Timeline: Establish a timeline for achieving the goals, and set regular check-ins to monitor progress and provide feedback.
• Resources and support: Identify any resources or support that will be provided to the employee to help them achieve the goals, such as additional training or coaching.
• Consequences: Clearly communicate the consequences of failing to meet the goals, such as additional coaching, a performance improvement period, or termination.

It's important to involve the employee in the development of the plan and to ensure that they understand the goals, timeline, and consequences. The draft plan should be reviewed and approved by the employee's supervisor and HR representative before it is implemented.

Adding SMART Goals to the plan

To make the performance improvement plan more effective, it's essential to include SMART goals. SMART goals are specific, measurable, achievable, relevant, and time-bound, and they help ensure that the goals are clear, achievable, and easy to track progress.

Here's how to create SMART goals:

Specific: Goals should be specific and clearly defined. For example, instead of setting a goal to "improve sales," a specific goal would be "increase sales by 10% in the next quarter."

Measurable: Goals should be measurable so that progress can be tracked. For example, using the above goal, progress could be measured by tracking sales figures and comparing them to the previous quarter.

Achievable: Goals should be achievable and realistic. For example, setting a goal to increase sales by 100% in the next quarter is not realistic, but increasing sales by 10% is achievable.

Relevant: Goals should be relevant to the employee's role and the company's objectives. For example, setting a goal to improve customer service skills would be relevant for a customer service representative.

Time-bound: Goals should have a specific timeline for completion. For example, the goal to increase sales by 10% in the next quarter is time-bound.

By including SMART goals in the PIP, the employee and their supervisor can work together to track progress, celebrate successes, and adjust the plan as needed to ensure that the employee is meeting their goals and improving their performance.

Step 3: Review The Plan

Once the draft PIP has been created, it's important to review it to ensure that it is thorough, clear, and effective. HR professionals and the employee's supervisor should review the plan together and make any necessary revisions before finalizing it.

During the review process, it's important to consider the following:

• Clarity: Ensure that the plan is clear and easy to understand. The employee should be able to easily identify the areas where they need to improve and the steps they need to take to meet their goals.
• Realistic goals: Ensure that the goals are realistic and achievable. The employee should be able to achieve the goals within the given timeframe and with the resources provided.
• Timelines: Ensure that the timeline for achieving the goals is reasonable and allows for regular check-ins and feedback.
• Resources and support: Ensure that the employee has the necessary resources and support to achieve their goals, such as training, coaching, or additional resources.
• Consequences: Ensure that the consequences for not meeting the goals are clear and reasonable.
• Employee input: Ensure that the employee has had an opportunity to provide input and feedback on the plan.

Once the plan has been reviewed and any necessary revisions have been made, it should be finalized and signed by the employee and their supervisor. The employee should be provided with a copy of the plan and a clear understanding of the expectations and consequences. The supervisor should be prepared to provide regular feedback and support to the employee throughout the performance improvement period.

Step 4: Implement The Performance Improvement Plan

Implementing a performance improvement plan requires a collaborative effort between the employee, their supervisor, and HR professionals. The supervisor is responsible for ensuring that the employee has the necessary resources and support to achieve their goals, while HR professionals oversee the process and provide guidance as needed.

During the implementation phase, it's important to communicate regularly with the employee to track progress and provide feedback. This can be done through regular check-ins, progress reports, and ongoing coaching and support. The employee should be given opportunities to provide feedback on their progress and to ask questions or raise concerns as needed.

If the employee is making progress toward their goals, it's important to acknowledge and celebrate their successes. This can help to build momentum and motivation to continue working towards their goals. If the employee is not making progress, it's important to address the issues and provide additional support or resources as needed. In some cases, it may be necessary to modify the plan or extend the performance improvement period.

Ultimately, the success of a performance improvement plan depends on the willingness of the employee to make the necessary changes and the support and guidance provided by their supervisor and HR professionals. By working together and providing ongoing feedback and support, it's possible to help the employee improve their performance and succeed in their role.

Step 5: Monitor the Employee's Progress

Monitoring the progression of the performance improvement plan is a critical step in ensuring its success. The employee's supervisor should monitor progress on a regular basis to ensure that the employee is meeting their goals and making progress towards improving their performance. HR professionals can also provide support and guidance throughout the process.

During the monitoring phase, it's important to:

• Track progress: Regularly track progress towards the goals outlined in the performance improvement plan. This can be done through regular check-ins, progress reports, or other monitoring methods.
• Provide feedback: Provide ongoing feedback to the employee on their progress and areas for improvement. This can be done through regular coaching sessions or feedback meetings.
• Address roadblocks: If the employee is struggling to meet their goals, it's important to identify the reasons why and address any roadblocks. This could involve providing additional training or resources, adjusting the plan, or addressing any other issues that may be affecting their performance.
• Celebrate successes: When the employee achieves a goal or makes progress towards their objectives, celebrate their success. This can help to build momentum and motivation to continue working towards their goals.
• Modify the plan: If the plan is not working or if the employee's performance is not improving, it may be necessary to modify the plan or extend the performance improvement period.

By monitoring the progression of the plan, HR professionals and the employee's supervisor can identify any issues early on and take steps to address them. This can help to ensure that the employee is on track to meeting their goals and improving their performance.

Step 6: Plan Conclusion

When it comes to concluding a performance improvement plan, the outcome will depend on the employee's response to the plan. If the employee has responded positively and has made progress towards their goals, then the plan can be concluded with a final meeting to review their achievements and discuss next steps for continuing their development.

However, if the employee has not responded positively to the plan or has not made sufficient progress, it may be necessary to consider other options, such as additional training or coaching, reassignment to a different role, suspension or termination of employment. In such cases, HR professionals and the employee's supervisor should work together to determine the appropriate course of action and ensure that all legal requirements and company policies are followed.

Regardless of the outcome, it's important to conduct a final meeting with the employee to discuss the results of the performance improvement plan and to provide feedback on their progress. This can be an opportunity to recognize their achievements, provide guidance for ongoing development, and address any remaining concerns or issues.

In conclusion, the performance improvement plan is an effective tool for addressing performance issues and helping employees improve their skills and capabilities. By following the steps outlined in this guide, HR professionals can work with supervisors and employees to establish a clear plan for improvement, monitor progress, and provide ongoing feedback and support. With commitment and collaboration, it's possible to help employees achieve their full potential and contribute to the success of the organization.

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Here at AllVoices we have a performance improvement tool that will help your organization resolve employee performance issues quickly and efficiently.