Scribd
Upload
217 views3 pages

Developing Performance Improvement Plan

A performance improvement plan (PIP) is used to document recurring job performance deficiencies and set measurable goals for employees to improve within a set time frame. A good PIP should include: (1) defined performance deficiencies (2) measurable improvement expectations (3) a reasonable timeline for improvement (4) consequences for not meeting goals. A PIP is necessary when periodic reviews or incident reports show an employee is not meeting work standards. The PIP sets specific and measurable objectives, provides guidance to help the employee, and details meetings to discuss progress. The PIP can result in consequences like demotion or termination if goals are not met or recognition and continued employment if improvements are made.

Uploaded by

Fidel Esteban
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
217 views3 pages

Developing Performance Improvement Plan

A performance improvement plan (PIP) is used to document recurring job performance deficiencies and set measurable goals for employees to improve within a set time frame. A good PIP should include: (1) defined performance deficiencies (2) measurable improvement expectations (3) a reasonable timeline for improvement (4) consequences for not meeting goals. A PIP is necessary when periodic reviews or incident reports show an employee is not meeting work standards. The PIP sets specific and measurable objectives, provides guidance to help the employee, and details meetings to discuss progress. The PIP can result in consequences like demotion or termination if goals are not met or recognition and continued employment if improvements are made.

Uploaded by

Fidel Esteban
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

DEVELOPING PERFORMANCE IMPROVEMENT PLAN

What is a PIP?

One of the effective ways to lift your employees from a slump in their performance
is to develop a performance improvement plan (PIP). A PIP is a tool which
documents recurring job performance deficiencies along with measurable
and achievable goals that an employee needs to achieve in order to regain
good standing with the Company.

According to Clarissa Cyrus of SilkRoad, a good PIP should include four key
elements: (1) performance deficiencies; (2) measurable improvement
expectations; (3) a reasonable, appropriate time frame for the employee to
improve his or her performance; and (4) detailed consequences of
continued underperformance.

When is a PIP necessary?

Whenever an employee suffers from performance deficiencies as shown by his/her


periodic performance appraisals or incident reports showing deviation from
established work standards, a PIP should be created and implemented.

Documents showing performance deficit must include a list of the performance


deficiencies, including dates, specific data or detailed explanations, and any
previous guidance given to the employee. A review of the most recent performance
appraisal must also be made in order to see if the issue is new or ongoing.

Problems with sales goals, quality ratings, quantity objectives and similar issues
may be well-suited to a structured PIP that helps identify why the deficiencies
occur.

What are included in the PIP?

A PIP should include:

 Information on what acceptable performance levels are and how the


employee's current performance is deficient. Specifics regarding the
unacceptable performance should be given, including dates, data and
detailed explanations. Attach the job description and any relevant employer
policies to further clarify expectations.

 Specific and measurable objectives that are achievable, relevant and


time-bound (otherwise known as SMART goals). PIPs usually last 30,
60 or 90 days, depending on how long it would reasonably take to improve
the specific issue.

Examples might be:


1. “In May, June and July, Jane Smith's quality errors must not
exceed 3 percent each month, and she must produce at least
150 units each month.”

2. “During this 90-day performance evaluation, John Smith must


have perfect attendance, with the exception of approved
medical or family absences. This means that he must clock in
and be ready for work by the start of each scheduled shift,
return from all scheduled breaks on time and remain at work
for his entire shift.”

 Guidance on what management will do or provide to assist the


employee in achieving these goals, such as additional resources,
training or coaching;

 Details on how often the manager and employee will meet to discuss
progress. This is often done once a week, but may vary depending on the
circumstances.

 Clearly stated consequences for not meeting the objectives of the


plan. Options may include demotion, transfer to a different position or
termination.

How to implement a PIP?

Progress toward goals should be documented and discussed, seeking to identify


why improvements have or have not been made. If gaps in training or required
tools become apparent, provide those as soon as possible. Encourage employees to
lead these meetings, to self-report on how they believe they are doing and what
realizations they might have made, or what else they feel they need to succeed.
Successful progress made toward the goal should be recognized as a means of
motivating the employee to continued improvement.

When the employee has responded positively by meeting plan


objectives, possibly before the expiration date of the plan, the employer should
formally close the PIP, recognize the employee's success and allow the employee to
continue employment. While a positive occasion for the employee, the manager
must be sure the employee understands that continued good performance is
expected.

If an employee is unable to improve or if his or her performance worsens,


the PIP should be closed, and a possible reassignment, demotion or termination
should be considered, based on the specific circumstances.

When the employee is committed to improvement, but falls short of the


objectives within the established timeline, it may be worthwhile to extend the
plan to give him or her a bit more time to succeed. Additionally, if objectives were
found, in retrospect, to not be realistic or fully within the employee's control, the
plan might be ended successfully, based on the improvements achieved.

References

1. “How to Establish A Performance Improvement Plan” by the Society for Human


Resource Management. Available:
(https://www.shrm.org/resourcesandtools/tools-and-samples/how-to-
guides/pages/performanceimprovementplan.aspx)

2. “How to Develop a Performance Improvement Plan to Fuel Employee and


Company Growth”. John Duval. 14 April 2016. Available:
(https://www.fuseworkforce.com/blog/how-to-develop-a-performance-
improvement-plan-to-fuel-employee-company-growth)

You might also like