Performance Improvement Plan (PIP)

What is a Performance Improvement Plan (PIP)?

A performance improvement plan is a structured HR framework designed to help employees address and overcome performance gaps. It is often called an Employee Performance Improvement Plan and aims at developing a plan geared towards the achievement of certain goals. Contrary to popular opinion, a Performance Improvement Plan is not always the first step to get rid of an employee but rather an approach that sets expectations for an employee to match the performance standards of the organisation.

Key Features

For Managers: Creating a Fair PIP

• Focus on Facts: Provide factual information in order to avoid any unnecessary assumptions or speculations.
• Set SMART Goals: State clear and concise goals so that both the employee and the manager can track progress accurately.
• Offer Real Support: Ensure that the employee has the needed resources to perform their job duties efficiently.
• Schedule Regular Check-ins: Schedule weekly or bi-weekly meetings in order to guide and support the employee.

For Employees: Navigating a PIP

• Clarify Objectives: Carefully review the PIP objectives and understand them correctly.
• Overcommunicate: Communicate the work plan often and openly. Ask questions and share concerns frequently.
• Take Ownership: Take responsibility for the work process and for the improvement plan.

Example of a PIP

Imagine that a sales representative has been consistently underperforming and has not been able to meet the company’s monthly targets. Their manager decides to set up a performance improvement plan. With a timeline of 60 days, the employee must make sure to make 15 client calls per week and two new sales per month. Moreover, the manager set the responsibility for providing the needed mentorship and assistance to the more experienced member of the team. The progress is supervised weekly by discussing the current state of affairs. By day 45, the employee was able to demonstrate the required progress in accordance with the developed action plan, which allowed completing it successfully.

Why Performance Improvement Plans Matter

The implementation of a structured PIP is crucial in ensuring that an organisation operates within proper guidelines:

• Drives Accountability: Specifies the performance requirements and the consequences for failure to meet them for every worker.
• Supports Retention: Provides a formal way for underperforming team members to improve without having to be replaced immediately.
• Ensures Legal Compliance: Creates evidence of due diligence in the management of staff.