How To Make A Performance Improvement Plan For An Employee

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Summary. Some employees have great potential, but they’re not quite hitting performance expectations. A performance improvement plan can help them get the boost they need to hit their goals and be one of your top performers. Read on to learn more.

A Performance Improvement Plan is a way to help an underperforming employee catch up and be a better worker. It’s not a tool for firing, nor should it be considered a reprimand. Learn more about how and when to implement a PIP.

Key Takeaways:

A performance improvement plan (PIP) can help an underperforming employee get up to speed.
A PIP is not the first step to terminating an employee. It should be used to help employees you want to keep become better workers.
Creating a PIP needs to be customized to the individual, the job, and their areas of focus.

What Is a Performance Improvement Plan?

A performance improvement plan (PIP) is usually designed to help an employee who is not meeting their performance goals or not working up to expectations. The purpose of a PIP is to break down the employee’s weaknesses or where they’re not as skilled as they should be and then create an approach to get them up to speed.

Most PIPs have objectives that must be met along the way to show improvement. There usually is a time factor involved in the PIP, and if the employee fails to improve within the pre-defined time period, they are demoted or terminated.

Why Do You Need a Performance Improvement Plan

There are a few different reasons to use a PIP. Some people think of it as the kiss of death and the first step toward being fired. To be fair, this is sometimes the case. It’s not a bad idea for a business to use a PIP to document its efforts to get an employee up to speed and justify termination if they don’t comply. It’s never a good idea to create a PIP that sabotages the employee.

All PIPs need to have the employee’s betterment at the center of the plan. The plan should be reasonably attainable and feature a practical time span. Again, a PIP is not a way to cover a company’s backside if they need to fire someone.

They can be useful if you need to fire someone if they show actual and legitimate efforts on the part of the company to bring the employee up to an acceptable performance level.

PIPs can be a great tool in your company when you have a good individual on the job, but they’re just not quite performing. This gives them a fair chance to get a little extra training and some additional time to learn how to do the job correctly. Remember, it’s costly to hire new employees, and you’re better off training the ones you have. Your goal is to keep the employee, not terminate them.

When Do You Need a Performance Improvement Plan

The timing of a performance improvement plan depends on your business and the individual employee. In general, when they have consistently missed key metrics or are deficient in one area on several occasions, it might be time for you to implement a PIP.

Some people have behavioral issues which require a PIP, and the leniency in this area is less flexible than in other areas. Whereas some people just have a bad day or are going through some personal stuff that might cause a slip in performance, behavioral problems can be detrimental to the health and welfare of other employees and the company’s reputation.

Management, the human resources department, and sometimes ownership needs to collaborate to discuss when it is time to put an employee on PIP. This is also the time to discuss if this employee is worth retaining or if they should be fired.

How to Establish a Performance Improvement Plan

If it’s been determined that a PIP is a good way to help an employee get up to speed and succeed in their job, then it’s time to set up their individualized PIP. While you don’t want to show favoritism in a PIP, i.e., letting one person have a year to improve and another only gets a week, you do want to customize the plan for the individual’s weaknesses and appropriate training. These steps will help.

Clearly define what the acceptable performance level is. Use metrics and measurements if at all possible.
Define where the employee currently is in their ability to do the job and outline areas of improvement. Again, any metrics that you have are extremely useful.
Create a well-defined plan that will demonstrate improvement steadily.
Craft a timeline for improvements and for the plan itself.
Define what steps will be taken along the way to adequately train the employee and give them the support they need to improve.
Schedule meetings or benchmark moments when management and the employee can talk about how the PIP is going, what’s working and what isn’t, and any other topics that crop up along the way. Use any and all metrics to illustrate the employee’s path.
When the plan and timeline are determined, review it carefully with the employee and make sure that they’ve signed off on the plan and are in agreement with the process. Answer all questions.
Continually refer to the plan to make sure everyone is holding up their end of the PIP.
When the plan is complete and/or the employee has reached the plan objectives, it’s time to end the plan and move ahead. You may want to include a provision if the employee slips in the future or their performance declines.

Performance Improvement Plan FAQ

Should human resources be involved in a PIP?

Yes, your HR department should review your PIP to determine if there is any bias against the employee or any treatment that might be seen as favoritism. It’s a good idea to involve HR immediately and have their input throughout the PIP process.
How long do I have to wait before putting an employee on a PIP?

How long you wait to implement a PIP is determined by your business. There is no blanket answer for when a PIP should be implemented. If employee well-being or safety is involved, it should obviously occur sooner rather than later, but this will be a case-by-case determination.
Do I have to use a PIP before I fire someone?

No, in fact, if you want to fire an employee, then a PIP is not the next course of action. A PIP is to be used when the employee has potential and is dedicated to their job, and they’re simply missing some benchmarks along the way. It’s a great way to help an individual improve and learn aspects of the job they might not have understood thoroughly.
Is a PIP a good idea?

If you feel the employee is an asset to your company and would be a great employee if they could hit their goals, then yes, a PIP is a great idea. If the employee seems like a bad fit and their presence is not good for your company, then a PIP will likely not help the situation.

In many situations, it’s better to hold onto an employee and work to get them performing better than it is to try and find a new employee.

Final Thoughts

A performance improvement plan is a tool that companies can use to help good employees become better. Its primary purpose is to support individuals who aren’t quite hitting their goals or performing as expected with some additional training and even one-on-one assistance.

Taking an employee from where they are performing to where you want them to perform requires a detailed plan of approach. This will help all involved determine what areas need improvement, how to improve, and when the improvement is expected. Having a written PIP clears up any misunderstandings, and when it’s completed, you’ll have greater confidence in that individual’s ability to do their job.

References

SHRM – Performance Improvement Plans

Process Improvement

Author

Kristin Kizer

Kristin Kizer is an award-winning writer, television and documentary producer, and content specialist who has worked on a wide variety of written, broadcast, and electronic publications. A former writer/producer for The Discovery Channel, she is now a freelance writer and delighted to be sharing her talents and time with the wonderful Zippia audience.