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Download our free performance improvement plan template for Word to get started right away. Or read on for a comprehensive guide on what a PIP is, its purpose, the process of creating one, what it should include, and the benefits of using a performance improvement plan template.
What is a performance improvement plan?
A performance improvement plan (PIP), also known as a performance action plan, is a tool used by managers and human resources professionals to provide underperforming employees with the guidance they need to succeed in their role. It outlines the employee’s performance issues, sets improvement expectations, and provides a timeline for achieving these goals.
Purpose of a performance improvement plan
The primary purpose of a PIP is to help employees understand and overcome their work issues. It is not a disciplinary action, but rather a supportive guide in helping an employee improve performance and/or behavior that is below expectations.
This comprehensive guide will illuminate what a PIP is, its purpose, the process of creating one, what it should include, the benefits, as well as tackling some frequently asked questions about this useful tool.
How to create a performance improvement plan
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Identify the problem. Clearly outline the areas where the employee is not meeting expectations.
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Develop improvement objectives. These should be specific, measurable, achievable, relevant, and time-bound (SMART).
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Provide support and resources. Identify what the employer will do to assist the employee in meeting these objectives.
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Set a timeline. Establish a reasonable and concrete timeframe for improvement.
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Document the plan. Record all specifics of the PIP, including consequences of not meeting the improvement objectives.
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Communicate the plan. The plan should be discussed with the employee, giving them an opportunity to ask questions and clarify expectations.
What to include in a performance improvement plan
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Specific performance issues. Detail exactly what performance or behavior is not meeting expectations.
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Improvement objectives. Exact and measurable goals for the employee to achieve.
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Support and resources. How the employer will assist the employee in their improvement.
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Timeline. The time period in which the improvement should be made.
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Consequences. What will happen if the objectives are not met within the set timeline.
Benefits of a performance improvement plan
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Clarified expectations: Employees have a clear understanding of what is expected from them and where they need to improve.
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Support for employees: Through outlining resources and support available, employees can feel empowered to improve.
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Improved performance: Timely feedback and guidance can result in improved job performance and productivity.
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Retention of employees: Provides an opportunity for struggling employees to improve rather than leave or be terminated.
Performance improvement plan FAQ
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How is a PIP different than a Performance Development Plan?
A Performance Improvement Plan (PIP) is typically used to address poor performance, whereas a Performance Development Plan is generally used proactively to enhance an individual’s performance and develop new skills.
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What should a PIP include?
A PIP should include the specific areas the employee needs to improve, SMART goals, the support and resources the company will provide, and a timeline for them to achieve these goals. Also, it should clarify the consequences if the goals are not met.
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What are the steps of performance improvement?
The steps include: Identifying the problem areas, developing improvement objectives, discussing the plan with the employee, providing support, and tracking progress over the set timeline.
Author
Matthew Zane is the lead editor of Zippia's How To Get A Job Guides. He is a teacher, writer, and world-traveler that wants to help people at every stage of the career life cycle. He completed his masters in American Literature from Trinity College Dublin and BA in English from the University of Connecticut.
