When a Performance Improvement Plan Would Benefit Your Staff Member
A Performance Improvement Plan (PIP) is a formal method used to address employee performance shortcomings including those pertaining to behavior-related issues or particular work goals not meeting expectations. If one of your employees has recently been underperforming, resulting in a series of performance breakdowns such as missing deadlines, receiving bad client feedback, or changing team dynamics, you may be considering implementing a Performance Improvement Plan (PIP).
What is a Performance Improvement Plan (PIP)?
A PIP is a formal method used to address performance gaps including those pertaining to specific work objectives or behavior-related issues. The plan identifies the current problems and outlines the new outputs and actions required, along with a timeline for implementation. However, before deciding to move forward with a PIP, it’s important to consider whether it is the best option, how effective it will be, and whether the effort is justified. These considerations will help you determine if a PIP is the right course of action and, if so, how best to implement it.
Why Might You Consider a PIP?
It may seem reasonable to give an underperforming employee a chance to improve rather than imposing immediate punishment or termination. However, PIPs are often viewed negatively by employees as well as some executives and HR professionals who see them as punitive, harsh, and authoritarian. Critics argue that requiring an employee to meet a stringent set of criteria when there is no intention of changing the decision is unreasonable, and termination may be the logical conclusion of the performance improvement process.
The success of a Performance Improvement Plan depends on how and when it is implemented, determining whether it is a compassionate, supportive path forward or a forceful, punitive measure with little chance of success.
When Should You Implement a PIP?
Consider the following prerequisites for a PIP to be successful:
1. A clear path to improved performance.
Implementing a Performance Improvement Plan should only be considered when you have a clear plan in mind to help the individual improve. If you are not prepared to make changes or recognize improvements, using a PIP approach is cruel and unproductive. This is especially important if the employee has violated laws, principles, or rules that would make continued employment problematic.
2. Consistent performance management and check-ins.
Ensure that you have regularly engaged in performance management by setting clear performance expectations, providing skills development coaching, offering constructive feedback, and discussing the consequences of failing to meet goals before resorting to a PIP. If you have not already established a system of regular performance management, start there. Through ongoing support and monitoring, your employee may have room to improve without the negative repercussions of a formal PIP.
3. Providing the necessary tools and resources for success.
Consider external factors that may have contributed to the employee’s performance issues, such as unclear expectations, excessive workload, training gaps, or insufficient resources. Blaming the employee for their performance issues without addressing these supporting elements is not fair. Address any external factors before initiating a PIP.
4. Addressing any extenuating circumstances.
Have you considered any personal or health issues that may have impacted the employee’s performance? If they have mentioned significant events that could explain their performance issues, explore how your team, company, or you can provide support. If the employee fails to meet their obligations despite this support, you may then consider initiating the formal PIP process.
5. Seeking outside perspectives.
Performance issues may sometimes be related to interpersonal conflicts rather than actual performance deficits. Prioritize performance over personality and seek input from others, including HR, to evaluate the situation and determine if a PIP is appropriate.
To increase the likelihood of success, consider the following strategies if you believe that an employee’s performance gaps are due to factors within their control and that a formal improvement process is the best approach to help them:
How Can a PIP be Made More Successful?
A PIP should be a collaborative effort focused on achieving success together, rather than a one-sided imposition.
1. Address root causes.
Tailor the PIP to the individual and the underlying causes of their poor performance. It should not be a generic approach. An employee with strong skills but low motivation will require a different strategy than one with motivation but lacking specific skills.
2. Future-oriented approach.
While past performance issues may prompt a PIP, the emphasis of the plan should be on future improvement. Avoid dwelling on past mistakes and focus on what can be done moving forward.
3. Clearly define expectations.
Set performance goals with measurable metrics and specific objectives. For more qualitative expectations, clearly define acceptable job quality and avoid using ambiguous or subjective language. Use precise language that focuses on specific actions and outcomes.
4. Provide ongoing feedback.
Once the plan is in place, provide regular feedback to ensure the employee is making progress. Celebrate achievements, offer continuous feedback and guidance, and make adjustments as needed. Neglecting this aspect of the plan may reinforce the negative perception of PIPs as a punitive measure.
5. Set a specific timeframe.
A PIP should provide the employee with a clear timeline to make significant progress. Depending on the extent of the necessary improvements, set a timeframe of one to three months for the plan. If substantial improvement is observed within this period, acknowledge the progress and transition back to regular performance management, thus concluding the PIP. Many PIP processes include a six- or twelve-month follow-up period to ensure ongoing development.
6. Determine next steps.
If the employee does not make sufficient progress according to the plan’s commitments, you may need to consider reassigning them to a position where they can succeed or proceeding with termination of their employment.
It is important to involve HR throughout these stages for guidance on company policies, successful strategies, staff training opportunities, and an objective assessment of the best ways to support the employee. Having an impartial third party to provide input and support can be beneficial for both you and the employee.
What Does a Successful Performance Improvement Plan Look Like?
At the end of the PIP period, if the employee’s behavior or job quality has not improved enough to warrant retaining them, it may seem like the PIP process has failed. However, completing a PIP process has several benefits even if it does not result in the desired improvement.
By implementing a PIP, you demonstrate your commitment to fairness and due process, show that you have carefully considered both actions and results, and provide closure for your team members who may have been impacted by the underperformance of their colleague. Additionally, you can use the experience to gain insights into unclear performance standards, resource deficiencies, or ineffective recruitment practices, improving overall performance, culture, motivation, and team relationships.
When applied thoughtfully and effectively, a Performance Improvement Plan can lead to positive outcomes for both the individual and the organization, fostering growth, development, and success.
