Performance improvement plans get a bad reputation. But that's simply because they are often misunderstood. Many view them as the step before termination but they are actually powerful tools for clarity and accountability. If implemented correctly, these plans can turn an employee's entire career trajectory around.
As Harvard Business Review puts it, “A PIP, when done right, can be a reset button, helping both the manager and employee move forward with clearer expectations and better communication.”
At its core, PIPs are all about unused potential. In fact according to SHRM, effective performance improvement plans “provide employees with a structured opportunity to succeed, while protecting organizations from legal risk.”
So without further ado, let's break down the essentials of building a strong PIP and everything surrounding it!
What is a Performance Improvement Plan (PIP)?
A PIP is a formal document that helps outline specific areas of improvement in an employee's professional life. The aim is to provide a structured path forward to develop in these areas and change their career trajectory through this process.
While the term can carry negative connotations, a PIP is often a sign that an organization wants to invest in an employee’s growth rather than move straight to disciplinary action. If such a plan is structured and put into use accordingly, it fosters transparency, accountability, and communication.
What is the purpose of a Performance Improvement Plan?
The purpose of PIPs is mainly to address underperformance issues in a constructive and measurable way. While it may seem to be a negative thing, PIPs are meant to create the opportunity to turn things around rather than let issues linger on and end up with a surprise termination.
So in that spirit, PIPs are meant to clarify expectations and support improvement. Through this process performance improvement plans will help create accountability and protect both parties as they help minimize any miscommunications.
Why are PIPs Used in HR/management?
From an HR perspective, PIPs are an imperative part of a healthy performance management strategy. They aren't tools that are only used when things go sideways, they are a part of an ongoing plan for employee development and organizational alignment.
They are utilized because of several reasons;
They provide a structured path.
They help minimize bias and favoritism.
They encourage open dialogue and accountability.
They help reduce turnover and boost retention.
They support legal compliance.
Are PIPs disciplinary actions?
There is no one answer to this question to be fair. It actually depends on the context and how a company chooses to frame PIPs. In some organizations a performance improvement plan can be more a of a final warning, a last trial run before termination. In others, it may just be a developmental strategy meant to help employees get back on track.
So even though PIPs may be a disciplinary action, they don't have to be. If used correctly, they help support alignment and are a crucial tool to help keep the workforce on track.
What should be included in a Performance Improvement Plan?
A successful PIP is thorough, objective, and actionable. It should clearly outline expectations and give the employee the tools they need to succeed. So make sure it includes the following;
Description of the issue with factual explanation, examples and data on where the employee is underperforming.
In relation, add in what the performance expectations are. Clearly define goals tied to their responsibilities.
Select a timeline and inform the employee of the expected duration to demonstrate improvement.
Offer resources and support whether it be trainings mentorship or additional supervision, plan out specifically how the employee would be supported.
Include milestones and check-ins in order to keep monitoring the progress and provide feedback where necessary.
Last but not least, make sure to clearly outline what will happen if the performance expectations are not met.
Include these components in your performance improvement plan and you will reap the rewards.
How to build a Performance Improvement Plan?
Creating a performance improvement plan involves more than just filling out a form, it requires careful thought, collaboration, and sensitivity. Here’s a step-by-step guide:
Identify performance gaps: Be as concrete and clear as possible and provide solid examples of what needs to be improved.
Consult with HR or senior leadership: Before you deliver a performance improvement plan, make sure to take feedback from HR or senior leadership, who may have valuable insights to make the PIP more effective.
Meet with the employee: Keep the conversation honest and open and voice concerns candidly yet professionally.
Set SMART goals: Make sure each goal is Specific, Measurable, Achievable, Relevant, and Time-bound. Vague objectives lead to confusion and failure.
Provide support and resources: Identify what tools, training, or mentorship the employee will receive.
Define a timeline: Establish a clear timeframe for the plan (usually 30, 60, or 90 days), along with milestone check-ins.
Monitor and document progress: Use regular check-ins to provide feedback, adjust goals if needed, and ensure the employee knows where they stand.
5 Performance Improvement Plan Examples for Different Departments
To give you a clearer picture, let's take a look at a few different examples of performance improvement plan drafts. That way you can have a better understanding of where to begin and how to base your PIPs off.
When to put someone on a PIP?
Deciding to initiate a PIP is just as important as how you execute it. Because PIPs shouldn't be your first choice but they also shouldn't come in too late that they lose their touch. Ask the following questions so you can gain a better sense of your needs;
Has there been repeated feedback with no improvement?
Are the issues specific and fixable?
How much is their performance affecting the company or team?
Do you feel it's fair to provide a second chance?
Ask these questions and the answers will give you a clear path forward as to whether or not you need to start using a PIP.
1. Detailed Performance Improvement Plan Example For Sales
Scenario: A sales representative, Alex Johnson, has been unable to meet the quarterly sales targets for two consecutive quarters. The primary reasons identified are a significant decrease in client follow-ups and a lack of robust lead-generation strategies.
Employee: Alex Johnson Job Title: Sales Representative Date: February 2, 2024 Performance Issues: Alex has been consistently missing sales targets due to poor client follow-up routines and inefficient lead-generation processes. Expectations:
Achieve a 15% increase in sales figures by the end of the next quarter.
Enhance lead generation efforts, aiming for a 25% improvement.
Improve the quality and frequency of client follow-ups to ensure better client engagement and satisfaction.
Action Items:
Sales Training: Alex is required to participate in an advanced sales training workshop by March 15, 2024, focusing on innovative lead generation techniques and effective client follow-up strategies.
CRM Utilization: Implement the use of a custom CRM software to better organize and monitor client interactions, ensuring no follow-up is missed.
Weekly Reporting: Alex must submit detailed weekly reports outlining the number of new leads generated and the status of client follow-ups. This will be reviewed by the sales manager to provide targeted feedback.
Mentorship Program: Pair Alex with a top-performing sales mentor within the company to provide guidance, share best practices, and offer feedback on improving sales techniques.
Timeline:
Immediate: Assign a mentor and enroll in the sales training workshop.
Weekly: Submission of lead generation and follow-up reports for review.
Monthly Review: Evaluate progress with the sales manager and mentor to adjust strategies as needed.
Quarterly Review: Final assessment to determine if the sales increase and lead generation targets have been met.
2. Detailed Performance Improvement Plan Example For HR
Scenario: Brenda Lee, an HR Manager, has been struggling with managing the recruitment process efficiently. This has led to longer vacancy periods and growing dissatisfaction among departments due to delayed staffing.
Employee: Brenda Lee Job Title: HR Manager Date: February 2, 2024 Performance Issues: Brenda’s current recruitment strategies have resulted in extended hiring timelines, causing significant delays in filling critical roles within the company. Expectations:
Decrease the average time to fill open positions by 30% within the next quarter.
Achieve a department satisfaction rate of 80% or higher regarding the recruitment process efficiency and effectiveness.
Action Items:
Recruitment Process Optimization: Conduct a comprehensive review and optimization of the existing recruitment workflows by February 15, 2024, identifying bottlenecks and areas for improvement.
Recruitment Tracking System: Implement a sophisticated recruitment tracking system by March 1, 2024, to enhance visibility and management of the entire recruitment cycle.
Departmental Collaboration: Initiate bi-weekly collaboration meetings with department heads to better understand their staffing needs, gather feedback on the recruitment process, and adjust strategies accordingly.
Professional Development: Attend an advanced recruitment strategies workshop by March 31, 2024, to stay updated with the latest trends and techniques in talent acquisition.
Timeline:
Immediate: Begin the review of current recruitment processes.
Bi-weekly: Host meetings with department heads for updates and feedback.
One Month: Complete the implementation of a new recruitment tracking system.
Three Months: Achieve a reduction in the average time to fill positions and improve department satisfaction scores.
📚 Recommended Reading:U.S. employers lose $3,216.63 per employee per year to workplace conflict.
Scenario: Carlos Smith, a Customer Success Manager, has received consistent negative feedback regarding the lack of timely support and effective resolution of customer issues, impacting customer satisfaction negatively.
Employee: Carlos Smith Job Title: Customer Success Manager Date: February 2, 2024 Performance Issues: The primary issue is the delayed response and resolution times for customer queries and problems, leading to a dip in customer satisfaction ratings. Expectations:
Elevate customer satisfaction scores by 20% over the next quarter.
Cut down the average resolution time by 25%, ensuring faster and more effective support.
Action Items:
Customer Service Training: Carlos must complete a course on advanced customer service skills and problem-solving by February 28, 2024, to enhance his ability to efficiently handle and resolve customer issues.
Feedback System Implementation: A new, real-time customer feedback system should be introduced to promptly capture and address customer concerns and issues.
Weekly Review Meetings: Establish a routine of weekly meetings to discuss ongoing customer issues, resolutions, and improvements in customer service practices.
Communication Enhancement: Increase the regularity of proactive communications with customers, especially those with unresolved issues, to keep them informed of progress and solutions.
Timeline:
Immediate: Enrollment in the customer service course.
Two Weeks: Implementation of the customer feedback system.
Weekly: Conduct meetings to review customer service issues and improvements.
Quarterly Review: Assessment of customer satisfaction improvement and reduction in issue resolution times.
4. Detailed Sample PIP For Project Management
Scenario: Derek Wong, a Project Manager, has faced issues with meeting project deadlines, causing client dissatisfaction and additional costs due to project delays. This has been causing the entire project management process to stagnate and fall behind.
Employee: Derek Wong Job Title: Project Manager Date: February 2, 2024 Performance Issues: Repeated inability to deliver projects on time, leading to client frustration and financial losses for the company due to extended project timelines. Expectations:
Guarantee the on-time completion of the next three projects.
Achieve a 40% reduction in project delivery delays within the next six months.
Action Items:
Project Management Training: Derek should attend a specialized workshop on time management and efficient project planning by February 20, 2024.
Project Management Tool: Implement the use of a state-of-the-art project management tool to improve task tracking, team collaboration, and deadline adherence.
Weekly Status Meetings: Initiate weekly status meetings with project teams and stakeholders to ensure all parties are aligned and aware of project progress and any potential roadblocks.
Risk Management Planning: Each project must have a tailored risk management plan to identify potential issues early and develop mitigation strategies.
Timeline:
Immediate: Enroll in the project management workshop and select a project management tool.
Weekly: Conduct project status meetings.
Project Initiation: Develop and implement a risk management plan for each new project.
Project Completion: Evaluate the on-time delivery and efficiency of project completion.
5. Detailed Sample Performance Improvement Plan For Leadership
Scenario: Emma Torres, a Department Head, has been facing challenges with maintaining high team morale and productivity. The root causes have been identified as ineffective communication and unclear direction.
Employee: Emma Torres Job Title: Department Head Date: February 2, 2024 Performance Issues: The lack of clear communication and direction has resulted in decreased team morale and lowered productivity levels within the department. Expectations:
Enhance overall team morale and boost productivity by 20% over the next quarter.
Improve communication clarity and frequency to ensure all team members are aligned and motivated.
Action Items:
Leadership Development Program: Emma is to participate in a leadership development program focusing on effective communication, motivation techniques, and team building by March 1, 2024.
Regular Team Meetings: Implement a schedule of regular team meetings for project updates, feedback exchange, and transparent communication of department goals and challenges.
Goal Setting: Develop and communicate clear, measurable goals for each team member, providing a clear direction and expectations.
Open-Door Policy: Foster a culture of openness by encouraging team members to share their challenges, suggestions, and feedback directly with Emma.
Timeline:
Immediate: Enrollment in the leadership development program.
Bi-weekly: Hold regular team meetings to foster communication and alignment.
Monthly: Review and adjust individual and team goals as necessary.
Quarterly Review: Assess improvements in team morale and productivity metrics.
Building PIPs inside Microsoft Teams is made easy thanks to Teamflect! Teamflect's extensive talent development features like individual development plans, will help you empower employees and help your team plan their next career move with clear internal growth opportunities.
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