What’s an employer to do when there’s an employee with potential who simply isn’t quite meeting expectations?
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This is where a performance improvement plan (PIP) could be a useful tool for employers and employees to get on the same page in terms of expectations, as well as consequences if those expectations are not met going forward.
What’s a PIP?
A PIP (sometimes called a performance action plan) is exactly what the name implies: It’s a specific plan of action for the employee to take in order to improve his or her performance to meet employer expectations.
A PIP should be detailed and specific enough that the employee clearly understands what is required. He or she should be fully aware of what corrective actions must be taken within a certain time frame in order to meet the goals set forth in the PIP.
PIPs are often used for disciplinary issues that have straightforward remedies like behavioral issues, attendance problems, etc. There are clear expectations, timelines, and consequences for noncompliance.
A PIP could even include additional training or development for the employee to undertake as part of the improvement process.
Tips for Creating a PIP
The goal of creating a PIP is to give an employee a chance to remedy problems rather than simply disciplining or terminating the individual right away. Here are a few tips:
- Start by having clear documentation of the problem or problems that are being addressed. Be specific. Remain objective.
- Ensure the goals set forth for the employee are realistic. Sometimes, immediate improvement is required and realistic, such as in the case of attendance or tardiness issues. Sometimes, it’s more realistic to give the employee time to improve a skill before making another assessment, and that may take weeks or months. Overall, set “SMART” goals, just as you would for any performance objectives. (SMART = specific, measurable, achievable, realistic/relevant, and time-bound.)
- Always be sure that such a plan is documented in the employee’s file. If the PIP was put together as part of a disciplinary process, be sure it is noted. Get employee signatures when appropriate.
- Remember that sometimes, the employee may need help in improving performance. If feasible and appropriate, get him or her such help. For example, the employee may need additional training to better understand the job or to better perform job duties. Or he or she may require accommodation in some capacity. Employers have found that this type of discussion may open the door to larger discussions, including those of reasonable accommodations for disabilities. (When this occurs, keep the original performance discussions separate, and address the new information appropriately.)
- Train managers to give employees feedback as they go. If the employees are still having the same problems that the PIP is meant to address—and they’ve had some time to be able to at least begin the correction process—don’t wait to let the employee know that the problem is still ongoing. Not saying anything when the problem continues to occur could appear to be tacit approval of the employee’s performance. (In other words, the employee may think he or she has improved enough already, even if he or she has not, if nothing is said when the problem continues.)
- Establish clear follow-up periods to review progress to ensure the employee is on track.
- Establish clear consequences if the new performance goals are not met as described in the PIP. This may include additional disciplinary actions, demotion, or even termination, if warranted.
- Be aware that initiating a PIP is typically done as a disciplinary action, and employees may be frustrated, hurt, and upset even if there have been previous conversations about performance issues. Be prepared to handle the emotional conversation that may ensue during this process. Be ready to listen to the reasons for the employee’s flagging performance. While there may be things that come across as excuses, there may be legitimate barriers keeping the individual from performing the job to expectations. PIPs are often seen by employees as a sign they’re about to be let go. It may take some reassuring on the part of the HR and management team to let the employee know that if the goals are met, you’d like to keep him or her on board.
What has been your experience? Does your organization utilize PIPs for employees who are not meeting performance expectations?