How to Create a Performance Improvement Plan
A performance improvement plan is a tool that assists underperforming
employees in regaining their footing at work. Discover how to create an
improvement plan to help your employees.
Definition of a Performance Improvement Plan
A performance improvement plan (PIP) is a formal document
given to employees by a manager or human resources professional to address
areas for improvement at work. A PIP outlines specific steps or actions that
employees must take in order to regain satisfactory standing at work. A good
PIP identifies the root causes of poor performance, motivates employees to
improve, and tracks progress over time. PIPs can help to improve company
culture and employee retention rates.
When to Use a Performance Improvement Plan
If an employee receives a less-than-satisfactory rating in a
midyear or end-of-year employee evaluation, managers or human resources
representatives should issue a performance action plan, which is often a
step-by-step guide. If an employee consistently fails to meet goals or takes
more time off, creating a performance improvement plan for them to work on
before their next performance review can be beneficial.
How to Create a Performance Improvement Plan
Follow these steps if you are an employer looking to create
a performance improvement plan, or PIP:
1. Determine areas for improvement. Provide specifics about
the employee's areas for growth, such as communication skills, productivity, or
teamwork. Make a list of ways in which the employee can improve their work
performance or behavior, such as additional training or behavioral workshops.
2. Outline actionable steps. Make it clear what the employee
can do to improve their performance. In the PIP, include specific steps or
actions they should take and provide examples.
3. Establish success criteria. Outline the performance
improvement plan's goal and timeframe clearly. Set metrics to track progress at
regular intervals, such as three or six months.
4. Describe the consequences of failing to improve. Include
information about any disciplinary actions you will take (such as a demotion or
other employment actions) if the employee fails to meet the objectives.
5. Establish a check-in schedule. It is critical to check in
with your employee on a regular basis throughout the improvement process.
Include your communication strategies in the PIP to motivate the employee.
4 Suggestions for Developing an Employee Performance Improvement Plan
To create an effective performance improvement plan for a
team member, follow these guidelines:
1. Maintain a positive attitude. Throughout the performance improvement
plan process, it is critical to be encouraging and supportive. Make sure to
acknowledge the employee's efforts.
2. Check in frequently. Maintain open lines of communication
with your employee and conduct regular check-ins throughout their development
period.
3. Pay attention to your employees' needs. Your employee may
have a different perspective on the root cause of their performance issues
(such as personal issues or other workplace problems), and it's critical that
they feel heard right away. Consider how a PIP can help support a healthy
work-life balance when developing one.
4. Establish specific improvement objectives. When
developing goals and steps for your employee, make sure they are precise and
realistic so that your employee believes they are attainable.
