What is a Performance improvement plan?
A performance improvement plan is a document that lists where an employee is falling short and what he can do to improve.
For instance, the performance action plan may detail skills or training the employee lacks. Alternatively, it could specify how the employee needs to change his behavior. In either case, the PIP will clearly state the steps the employee needs to take to make the necessary improvements.
An employee performance improvement plan is written by the worker’s manager and submitted to HR. It has a deadline for meeting the named objectives — usually 30, 60, or 90 days. It also states the consequences should the employee’s performance continue to fall short.
In other words, there is no clear cut answer to “What is a performance improvement plan?” Rather, a PIP is flexible enough to suit any issue. It can also be any length — all this depends on the number of objectives the employee needs to meet to perform to the desired standard.
The purpose and benefits of a performance improvement plan
Why do employers use performance improvements plans to resolve issues leading to poor performance when they could simply fire the employee? There are actually several benefits to using PIPs.
1. Better company culture
Using PIPs promotes a sense of accountability. Employees know that they must meet expectations or face disciplinary action.
This contributes to positive work culture. Hard-working employees feel appreciated, as they know that everyone must pull their weight.
Employees who are struggling know that managers will support them if they fall behind, by providing them with actionable objectives. Everyone better understands what is expected of them.
Bear in mind that you can use performance improvement plans for more than just problematic employees. A performance improvement plan is also appropriate for workers who want to move up in the company (but are unsure how to do so) as well as for employees who would be a better fit for a different position — i.e. they would like to move laterally.
In other words, PIPs help workers feel valued in the company, as they know their employer will support them to reach their long-term career goals. At the same time, performance action plans allow companies to improve their workforce with better-motivated employees.
2. Save time and money
Every employer wants to minimize staff turnover, as this saves time and money.
Helping current employees improve their performance eliminates the expenses associated with firing workers and searching for applicants to fill positions.
It also prevents the need to hold interviews and schedule training for new hires. Although the employee receiving a PIP may need training, it will still be less training than what a new worker would require.
3. More effective than reviews
Reviews rarely have consequences. Plus, some people react poorly to criticism, even when it is constructive feedback.
To make matters worse, most people believe that feedback is inaccurate. These factors combined mean that employees often dismiss reviews and continue performing exactly the same as before.
In contrast, PIPs provide employees with a clear idea of where they are failing and what they need to do to improve.
When framed the right "why", performance improvement plans can even encourage employees to try harder.
Performance improvement plan examples
After your initial conversation with the employee, his manager should draw up a draft performance improvement plan and send it to HR for review.
Here are a few performance plan examples you can use for your own PIPs.
#1 Example to improve customer service
Our first sample performance improvement plan is for customer service.
This kind of performance improvement plan could be necessary if clients are complaining about the attitude or support they receive from a particular employee.
Goal: The overall goal of such a PIP may be to improve interactions with clients.
Objectives: Possible objectives to meet such a goal could be to see better customer retention or engagement.
Action: To achieve the above objectives, the employee could work more closely with customers to resolve problems or attend a customer service training session.
Metrics: The most appropriate metrics would likely be the customer churn rate or customer satisfaction score.
#2 Example to improve the low-quality of work
In other situations, an employee may have little or no contact with customers, but he could still be delivering poor-quality work in other ways.
Goal: Improve the quality of work.
Objectives: Meet deadlines or produce work that is free from errors.
Action: The first objective is simple — the employees need to miss no deadlines within the timeframe set out in the PIP. The second objective requires collaboration with a senior team member to check for errors and judge whether the quality is acceptable.
Metrics: Number of late deadlines and quality of work (the latter may be subjective).
#3 Example for productivity
This next example is most suited to someone in a middle management position.
Let’s say that the employee is in charge of growing a program by increasing the number of subscribers. After several months, there is minimal (if any) change.
Goal: Grow program by X amount of subscribers.
Objectives: Increase the number of clients subscribed to the program and decrease the number of unsubscribes.
Action: Improve campaigns, better advertise (or increase) the benefits of the program, and implement a retention strategy.
Metrics: Subscriptions and unsubscribes.
#4 Example for unprofessional behavior
The last of our performance improvement plan samples is for unprofessional behavior.
This type of PIP could be necessary for a variety of situations, ranging from mistreatment of subordinates or coworkers to persistent lateness and unauthorized absences.
Goal: Cease behavior entirely.
Objectives: Arrive on time, treat others with respect, or attend all required meetings.
Action: Only miss work when authorized for personal or medical reasons. Receive appropriate workplace behavior training.
Metrics: Some behaviors are easily measurable (for instance, did the employee arrive no more than 5 minutes late every day?) Other situations are more subjective. For example, you may need to talk to subordinates who were finding it difficult to work with the employee.
Performance improvement plan template
You can create your own performance improvement plan by using our 5 step guide, also we recommend to check an existing and relevant template online to save you time.
How to write a performance improvement plan
Now you know what your PIP needs to include and you’ve seen some examples. All that’s left is to put everything together and start writing a performance improvement plan for a specific employee and issue.
To help you, here’s a step-by-step guide detailing how to write a performance improvement plan.
1. Determine acceptable performance
State what would be acceptable performance and compare this to what you are currently seeing from your employee. Be specific as to where exactly the employee is falling short, including examples of behavior and performance.
Tip: Collaborate
Instead of presenting an employee with a PIP unexpectedly, have a meeting beforehand where you discuss performance issues.
All parties (the manager, HR, and the employee) should have the chance to provide input. You want the employee to feel engaged and committed to meeting targets.
2. Create measurable objectives
Use the SMART framework to define the objectives your employee needs to meet. Determine how you will measure success.
Tip: Determine the Reason for Performance Issues
You need to be sure that a PIP is worth the effort. Find out what is causing the poor performance.
It could be that the employee feels overwhelmed by expectations at work or perhaps he is dealing with personal problems you are unaware of. Alternatively, the problem may be that the employee has no interest in staying with your company in the long term.
3. Define what support the employee will receive
List how the employee’s manager will help him reach the PIP goal. This could include training, coaching, or using additional resources.
Tip: Think of Ways You Can Best Help the Employee
The whole point of a PIP is to help the employee improve to keep him on your team. Rather than expecting him to achieve the objectives alone, consider what he may be lacking from you that could better his performance.
4. Draw up a schedule for check-Ins
Specify how often you will meet with the employee to provide feedback. Create a calendar of check-ins.
Tip: Don’t Wait Until the Deadline
It’s no use creating a PIP and then waiting until the deadline to check the employee’s progress.
Regular check-ins will allow the employee to voice any doubts or difficulties. Plus, they will allow you to confirm that he is on the right track or if further action is necessary.
5. State the consequences of a lack of improvement
Make it clear what the consequences are if the employee fails to meet the improvement goal.
By this point, you should know why you want to use a PIP, how to create a performance plan for your unique situation, and what exactly to include. There is still one thing left: your employee needs to know how to respond and pass the PIP. Share the following advice with your employee to ensure that the process runs as smoothly as possible.
Tip: Focus on Improvement Rather Than Punishment
It is critical that your employee doesn’t perceive the PIP as a sign he will soon be fired.
Remember to talk about where he is excelling and make it clear that you want to see him improve. Set a goal the employee feels confident he can achieve and that will be beneficial to everyone.
How to respond to and survive a PIP
As an employee, you need to know how to get past a performance improvement plan and gain something positive from the experience.
How to respond to a performance improvement plan
Your manager should have set performance objectives that are reasonable and attainable.
Now it’s up to you to decide whether these targets are worthwhile.
- If you are uninterested in staying at the company for much longer, you can save everyone time and stress by starting a search for a new job instead.
- If you do decide that your job is worth keeping (which should be the case the majority of the time), try to see the PIP positively. Consider it useful feedback to help you learn and grow both within the company and in your career as a whole.
How to survive a performance improvement plan
The next step is to survive your performance improvement plan and come out as a better-qualified, more valuable worker. This involves:
1. Making your job a priority
Avoid staying out late on work nights, accept all the optional invitations to work events, and spend your time at work on job-related activities only.
2. Seeking help when you need it
A PIP is often an indication that your company believes you are worth having as an employee. Talk to your manager or HR if you are unclear about anything.
3. Being positive
Go to work every day with a great attitude. Don’t let small challenges get you down.
A PIP is a great strategy to retain an employee whose performance has been lacking recently but who does have the potential and motivation to remain a strong team player.
Whether you are the employer or the worker, you should never see a performance improvement plan as a superficial step before termination. Rather, it should be a useful tool to transform a struggling employee into a valuable asset for the company.
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How to Improve Work Performance With a Performance Improvement Plan
A lot can be gained by giving struggling employees a clear path to improvement with a performance improvement plan.
Not every business is going to be filled with star employees who always meet or exceed all of the expectations placed on them. For employees who don’t fall into that category, the responsibility of helping them boost their performance often falls on their managers.
A popular tool to set them on the right path is a performance improvement plan. This document sets expectations with the goal of helping the employee improve their performance. To get the most out of a performance improvement plan, managers need to have a clear understanding of what it is, what to include in it and how to develop it.
What is a performance improvement plan?
A performance improvement plan, or PIP for short, is a document created by a supervisor or manager that outlines what employees can do to achieve their performance goals. In many instances, these plans are meant for struggling employees, though they can be used for employees who are already doing an excellent job but have opportunities to grow.
The document outlines the following:
- The expected behavior and an objective or two
- Resources available to achieve those goals
- A timeline for improving performance (or, in the case of employees who are not struggling, the timeline to reach additional goals)
Since performance improvement plans can have a negative connotation, many human resources professionals have long believed that they were best implemented when employees’ struggles became noticeable and action was needed to correct unsatisfactory performance.
However, as the workplace continues to evolve, some HR professionals are changing their tune. Seeing the benefit performance improvement plans can have on employees who are already doing an excellent job and have the potential for even better performance, these plans are no longer being used just for struggling employees.
“Employees who hear ‘performance improvement’ may assume that something isn’t right or there are dire consequences as a result of being placed on a PIP,” said Leanne E. King, president and CEO of SeeKing HR. “This is truly a negative reaction to what is often an attempt to correct or redirect the behaviors of an employee.”
This is why King added that the preferred term is “development plan” for employees who are doing well and ready for a new assignment or responsibility.
“The catch is in the culture of the organization,” King said. “It’s all in how the process is communicated with employees. Using a single-document performance plan with a check box for improvement and development gives employees a better indication of what may be the next steps, step up or step out.”
How a performance improvement plan works in 5 simple steps
Traditionally, a performance improvement plan follows a series of five steps:
- Determination of needs: The supervisor works on their own or with a member of the HR team to determine where the employee needs to improve.
- PIP write-up: The supervisor outlines these improvements in a templated PIP form.
- Formal meeting: The supervisor holds a formal performance review meeting with the employee to explain the document.
- Questions: The supervisor gives the employee time to ask any applicable questions to ensure they are on the same page.
- Signoff: The supervisor and employee sign the document as an acknowledgment that it was received, discussed and understood.
What are the benefits of performance improvement plans?
A performance improvement plan, or a development plan, can be beneficial for employers and employees. As an employer, you want to get the best from your employees. After all, higher-achieving employees can equate to a higher return on your business investment.
Simply telling employees they need to do better usually won’t have the desired result. Instead of sending these underperforming employees off on their own to figure it out, managers need to be proactive by clearly identifying areas for improvement and laying out a path forward for the struggling team member.
At the other end of the spectrum, identify your high performers and set benchmarks for them as well.
“Research shows that significant value for the company can be easily generated by benchmarking the top performers in a structured way, seeing how they operate, and then building those outcomes, tasks, decisions, and methodologies into how everyone else can improve themselves,” said Josh Rovner, an author and consultant in the space of building effective organizations. “This is how you can create and use a performance improvement plan for everyone in the company, not just the underperformers.”
These are some additional benefits of offering performance improvement plans:
It helps employees take responsibility.
If staff members are not aware of how management sees performance, they can’t take responsibility for it. A performance improvement plan equips team members with the information they need to take responsibility for their performance and work toward improving it.
It can increase staff retention.
As job roles evolve, your staff may not be aware of how their role affects the company or if it even matters. When employees know exactly what is expected of them, it can empower them by showing them they make a difference and give them goals to work toward, which can help you retain otherwise bored and unmotivated staff.
Feedback is valuable.
Offering a documented understanding of how employees are doing and where they can improve helps them feel engaged and improve within areas they may not have realized they were lacking in.
It removes the element of surprise.
If an employee ultimately needs to be terminated for poor performance, the process might be easier for both parties when the performance issues have been documented through a performance improvement plan. Workers who are terminated will already know their employers’ expectations and have some warning of what’s coming when they see they aren’t hitting their goals.
How to develop a performance improvement plan process and what to include
Developing and writing a performance improvement plan is a straightforward process.
Step 1: Identify if a PIP is needed.
Sometimes, having an informal conversation with a subordinate or documenting an issue by email is enough to improve performance. An example of when a PIP might be needed is with a sales agent who isn’t meeting their sales quotas. If a PIP is needed, move on to step two.
Step 2: Focus on behaviors.
Outline the behaviors that need to improve and get to the root cause of the issue. These are some examples of actionable goals:
- For a sales professional, it might be to make 50 sales phone calls a day.
- For a customer service representative, it could be to address 95% of customers by their first name for two weeks straight to improve relationships.
- For a marketing specialist, it might be to respond to all Facebook messages within 48 hours.
Step 3: Provide proof with specific examples.
If you don’t have specific examples of the problem to give the employee, hold off on submitting the performance improvement plan and start documenting them as you see them. Provide as much detail as possible in the examples. Outlining specific examples with dates is the best way to avoid legal issues.
Step 4: List your expectations.
As part of the performance improvement process, specify your expectations in the areas where the staff member needs to improve. Expectations are different from job duties; do not pull these expectations from the employee’s job description. Instead, as noted by Winston-Salem State University, “the basis of an effective performance plan is developing and communicating clearly defined performance expectations to assist the staff member in understanding how the duties and responsibilities should be performed. Performance expectations should focus on end results, not just activities.”
Step 5: Offer resources.
Expecting workers to improve on their own is not always realistic, especially if they have been struggling for a while and clearly aren’t sure where to turn for help. Offering resources can put a positive spin on the performance improvement discussion and give employees a way to succeed. These are some examples of resources you could include in the performance improvement plan:
- Connect them with other staff members whom they can lean on for guidance.
- Give them access to an online course they can take to improve their skills.
- Give them a book they can read to learn something new about their position’s subject matter.
Step 6: Create a timeline.
A defined timeline can help team members achieve their goals in a reasonable time frame and track their progress. A typical timeline for performance improvement is 30, 60 or 90 days. Your timeline should provide structure and offer realistic, achievable goals.
Step 7: Sign off on it.
Your performance improvement document should conclude with a place for all parties involved to date and sign.
Free performance improvement templates
You can find a wide selection of templates online to help you develop your PIP. These are some free templates to guide you in laying out the PIP: