Do you have an employee whose performance isn’t meeting job expectations? What are you doing to solve the problem? You have several options available:
\r\rA. Follow the organization’s disciplinary process:
\r\rB. Implement a Performance Improvement Plan (PIP)
\r\rC. Terminate per your policy of Employment At-Will
\r\rTo make the most effective choice, it’s helpful to take two preparatory steps:
\r\r1. Take a few minutes. Write down what you observed. Then, reflect on the situation, asking yourself questions such as “What have I observed? What have I done to ensure the employee understands what is expected? Am I certain the employee had access to information, resources and support needed? What could I have done differently? Did the employee understand the seriousness of not meeting this expectation? Has this issue occurred before with this person? If so, what were the specifics?” Make notes answering your reflective questions.
\r\r2. Now, you’re ready to initiate discussion. It’s important to hold a fact-finding conversation with the employee, promptly. You’ll need a private office location, a time that is mutually effective, and an open, positive frame of mind with intentions to help (not a time when you’re annoyed, angry or pressed for time). Your objective is to ensure you have all of the facts and information related to the shortfall in performance. Coupled with your reflections, a complete understanding of what happened, how and why is the best basis on which to choose the most effective corrective action.
\r\rWhat is a Performance Improvement Plan (PIP)? It’s a structured, documented, time-bound approach including frequent, regular feedback, to support an employee in bringing his/her performance up to meet standards/expectations.
\r\rLots of organizations use PIPs following an unsatisfactory performance review. But, this is the least effective time to implement a PIP; the chances of employee success are much greater when a PIP is put in place once unsatisfactory performance occurs more than once in one or more performance areas, rather than waiting until the end of an annual performance period.
\r\rManagers who are committed to enabling their people’s success act promptly and do not break trust by allowing an unsatisfactory performance review to occur without having first exhausted more proactive, supportive corrective measures. When a PIP is implemented following a bad performance review, after months or a year of unsatisfactory performance in one or more areas has occurred, it’s likely to fail. By then the employee’s work relationships and work reputation have probably been impacted, and his/her future in the organization has been insidiously curtailed. Delaying corrective action is an indicator that the manager may have failed to stay in touch and to be aware of employee behavior and actions, or that, worse, the manager may be avoiding a difficult conversation.
\r\rA PIP is set up as a written agreement between the company and the employee. It includes examples of performance deficiencies, dates of any prior related discussions, and SMART goals for improvement. The duration of a PIP is best determined considering how long it will reasonably take for the employee to make the necessary change and to sustain the required improvement. Generally, this might be 30-90 days, with a caveat that the improvement is to be sustained consistently into the future, beyond the life of the PIP.
\r\rA PIP is not the optimum tool to correct more concrete issues such as attendance and tardiness, which are effectively addressed using a company’s disciplinary procedure. In addition, when an issue has a low likelihood of correction, for example when an employee’s competencies are significantly misaligned with the job requirements, a performance improvement plan is not an appropriate solution.
\r\rA PIP provides a manager with an opportunity to help bring about a performance turn-around with an employee. It can be most effectively designed to address issues such as meeting deadlines, achieving goals and targets, work quality, and team behavior. In these types of situations, using a PIP can provide several benefits:
\r\rIf, after taking steps 1 and 2 (above) and assessing the nature of the problem you decide to utilize a PIP, following are the next steps:
\r\r3. Write the Performance Improvement Plan using a standardized template approved by your Human Resources department.
\r\r4. Review the PIP with your immediate manager and with Human Resources.
\r\r5. Discuss the PIP with the employee.
\r\r6. Schedule frequent, regular update meetings with the employee.
\r\r7. Describe update information and data the employee will be expected to provide for each update and when it needs to be submitted to the manager. We recommend using a standard PIP Progress Update template.
\r\r8. Express your confidence in the employee to succeed.
\r\r9. Provide signed copies of the PIP to the employee and to Human Resources, keeping a working copy for your ongoing reference
\r\r10. It’s critical that PIP update meetings are conducted on time, as scheduled. Complete a PIP Progress Update Template during each meeting, specifically describing performance results, action items taken by the employee and/or the manager, and evaluating the employee’s progress as of each meeting as being satisfactory or unsatisfactory. Signed copies should be provided to the employee and Human Resources as well as retained by you for ongoing reference during the PIP period.
\r\r11. A decision about the employee’s success or failure to meet PIP requirements needs to be made prior to the last PIP update meeting. To make a good decision, review all PIP Progress Updates.
\r\ra. Has the employee achieved success in each PIP update period? Is performance meeting job requirements? If so, the employee and you can sign off the final PIP Progress Report indicating the PIP is being successfully closed out. Remind the employee of the requirement to sustain this level of performance.
\r\rb. Has the employee successfully met almost all PIP requirements throughout the PIP period? Do you believe the employee will be able to meet and sustain the required performance if given a bit more time? You may want to consider extending the PIP Period by 1-3 weeks if this is the case, doing so by writing an addendum to the PIP. Discuss and get agreement on a short extension with your manager and with Human Resources, in time to have the addendum prepared for review with the employee at the final PIP Progress Update meeting.
\r\rc. Has the employee failed to meet PIP requirements? Is it unlikely the employee will be able to meet and sustain required performance? You’ll need to talk with your manager and with Human Resources to make a decision on termination of the employee’s employment. We recommend conducting the final PIP Progress Update meeting as scheduled, and inform the employee that he/she has not successfully completed the PIP. Briefly review the completed PIP Progress Update forms. Let the employee know you have set up time to discuss next steps with Human Resources and walk together to the appointment. If all termination tasks are complete and in compliance with state and federal employment laws as well as with company policy, you and Human Resources now conduct the termination discussion.
\r\rA PIP process is intended to be clear and positive, and it is highly structured, to help the employee to make the required improvements in his/her job performance. Experience shows that managers who genuinely want to support their people in achieving success and who implement a PIP in this way have the best results.
\r\rHave you utilized a PIP successfully in the past? Please share your experiences and suggestions for making them a success, and the benefits you’ve achieved in the process.
\r\rDo you have a pressing need to help an employee improve his/her performance? Order our PIP Timesaver Toolbox for just $24.77. You’ll receive a PIP Template and a PIP Progress Update Template, editable to meet your needs. Send an e-mail to Rosanna@PrismPerspectivesGroup.com .
","docType":"article","guid":"articles_bdf23a3703a5d4a7af362fa164a370e2","lastModified":"2016-09-19T15:56:00.000Z","published":"2016-09-19T15:56:00.000Z","structuredData":null,"subtitle":null,"template":"legacy","title":"Achieving Success Using Performance Improvement Plans","type":"article","author":{"avatar":null,"bio":"We are problem-solvers. We assist clients in optimizing organization performance, using specialized tools and internal research to build a framework for improving operating effectiveness, efficiency and profitability. We work closely with each client, assessing needs and tailoring services to fit individual organization needs. Our results are measured using our clients' organizational metrics.\r\r\r\rOur related specialties include leadership and management development, employee development, and human resources management services such as recruiting, employee relations, compliance and safety.\r\r\r\rAs the Principal and primary consultant, my qualifications include the following:\r\r- Bachelor of Science Degree, Education\r\r- 3 Professional certifications: SPHR, SHRM-SPC, and Prana Certified Partner in Strategy Execution\r\r- 20+ years experience including consulting and regular leadership roles in Human Resources, in a wide variety of industries including manufacturing, technology, services, non-profit, chemical, metalworking, plastics, paper and more. \r\r\r\rMy base of experience provides an uncommon perspective and approach to building organization performance, one that is people-centered, data focused and custom tailored to make a difference for each client.\r\r\r\rContact me for information or a free initial consultation at 603-878-1546 or Rosanna@PrismPerspectivesGroup.com","name":"Rosanna Nadeau","image":null,"slug":null,"social":{"facebook":"https://www.facebook.com/nadeauconsultants","linkedin":"http://www.linkedin.com/in/rosannanadeau","twitter":"rosannaprism","website":"http://www.prismperspectivesgroup.wordpress.com/"},"status":"limbo","title":null,"type":"New BDC Member","user":null},"breadcrumbs":null,"channels":{"primary":{"name":"Finance","slug":"finance"},"sub":{"name":"Finances","slug":"finances"}},"meta":{"robots":"index, follow","description":null,"title":"Achieving Success Using Performance Improvement Plans - business.com"},"parsedContent":{"toc":[],"json":[{"component":"p","children":["Do you have an employee whose performance isn’t meeting job expectations? What are you doing to solve the problem? You have several options available:"]},"\r\r",{"component":"p","children":[{"component":"strong","children":["A. Follow the organization’s disciplinary process:"]}]},"\r\r",{"component":"ul","children":["\r\r",{"component":"li","children":["Issue an oral warning"]},"\r\r",{"component":"li","children":["Issue a written warning"]},"\r\r",{"component":"li","children":["Terminate the employee if applicable based on his/her current status relative to your company’s disciplinary procedure"]},"\r\r"]},"\r\r",{"component":"p","children":[{"component":"strong","children":[{"component":"strong","children":["B. Implement a Performance Improvement Plan (PIP)"]}]}]},"\r\r",{"component":"p","children":[{"component":"strong","children":["C. Terminate per your policy of Employment At-Will"]}]},"\r\r",{"component":"p","children":["To make the most effective choice, it’s helpful to take two preparatory steps:"]},"\r\r",{"component":"p","children":[{"component":"strong","children":["1. "]},"Take a few minutes. Write down what you observed. Then, reflect on the situation, asking yourself questions such as “What have I observed? What have I done to ensure the employee understands what is expected? Am I certain the employee had access to information, resources and support needed? What could I have done differently? Did the employee understand the seriousness of not meeting this expectation? Has this issue occurred before with this person? If so, what were the specifics?” Make notes answering your reflective questions."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["2. "]},"Now, you’re ready to initiate discussion. It’s important to hold a fact-finding conversation with the employee, promptly. You’ll need a private office location, a time that is mutually effective, and an open, positive frame of mind with intentions to help (not a time when you’re annoyed, angry or pressed for time). Your objective is to ensure you have all of the facts and information related to the shortfall in performance. Coupled with your reflections, a complete understanding of what happened, how and why is the best basis on which to choose the most effective corrective action."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["What is a Performance Improvement Plan (PIP)? "]}," It’s a structured, documented, time-bound approach including frequent, regular feedback, to support an employee in bringing his/her performance up to meet standards/expectations."]},"\r\r",{"component":"p","children":["Lots of organizations use PIPs following an unsatisfactory performance review. But, this is the least effective time to implement a PIP; the chances of employee success are much greater when a PIP is put in place once unsatisfactory performance occurs more than once in one or more performance areas, rather than waiting until the end of an annual performance period."]},"\r\r",{"component":"p","children":[{"component":"em","children":["Managers who are committed to enabling their people’s success act promptly and do not break trust by allowing an unsatisfactory performance review to occur without having first exhausted more proactive, supportive corrective measures."]}," When a PIP is implemented following a bad performance review, after months or a year of unsatisfactory performance in one or more areas has occurred, it’s likely to fail. By then the employee’s work relationships and work reputation have probably been impacted, and his/her future in the organization has been insidiously curtailed. Delaying corrective action is an indicator that the manager may have failed to stay in touch and to be aware of employee behavior and actions, or that, worse, the manager may be avoiding a difficult conversation."]},"\r\r",{"component":"p","children":["A PIP is set up as a written agreement between the company and the employee. It includes examples of performance deficiencies, dates of any prior related discussions, and SMART goals for improvement. The duration of a PIP is best determined considering how long it will reasonably take for the employee to make the necessary change and to sustain the required improvement. Generally, this might be 30-90 days, with a caveat that the improvement is to be sustained consistently into the future, beyond the life of the PIP."]},"\r\r",{"component":"p","children":["A PIP is not the optimum tool to correct more concrete issues such as attendance and tardiness, which are effectively addressed using a company’s disciplinary procedure. In addition, when an issue has a low likelihood of correction, for example when an employee’s competencies are significantly misaligned with the job requirements, a performance improvement plan is not an appropriate solution."]},"\r\r",{"component":"p","children":["A PIP provides a manager with an opportunity to help bring about a performance turn-around with an employee. It can be most effectively designed to address issues such as meeting deadlines, achieving goals and targets, work quality, and team behavior. In these types of situations, using a PIP can provide several benefits:"]},"\r\r",{"component":"ul","children":["\r\r",{"component":"li","children":["Fostering trust"]},"\r\r",{"component":"li","children":["Demonstrating intention of fairness and commitment to help the employee succeed"]},"\r\r",{"component":"li","children":["Providing a reasonable opportunity for an employee to succeed"]},"\r\r",{"component":"li","children":["Performance turn-arounds"]},"\r\r"]},"\r\r",{"component":"p","children":["If, after taking steps 1 and 2 (above) and assessing the nature of the problem you decide to utilize a PIP, following are the next steps:"]},"\r\r",{"component":"p","children":[{"component":"strong","children":["3."]}," Write the Performance Improvement Plan using a standardized template approved by your Human Resources department."]},"\r\r",{"component":"ul","children":["\r\r",{"component":"li","children":["Identify the performance areas in need of improvement"]},"\r\r",{"component":"li","children":["Provide examples"]},"\r\r",{"component":"li","children":["Identify dates of feedback discussions conducted with the employee by the manager"]},"\r\r",{"component":"li","children":["Set SMART goals to achieve the required improvement"]},"\r\r",{"component":"li","children":["Describe the resources available to assist the employee"]},"\r\r",{"component":"li","children":["Establish the starting and ending dates of the PIP"]},"\r\r",{"component":"li","children":["Include the requirement to achieve and sustain the improvement through and beyond the PIP period"]},"\r\r",{"component":"li","children":["Explain the consequences of failing to meet all PIP performance requirements"]},"\r\r"]},"\r\r",{"component":"p","children":[{"component":"strong","children":["4."]}," Review the PIP with your immediate manager and with Human Resources."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["5."]}," Discuss the PIP with the employee."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["6. "]},"Schedule frequent, regular update meetings with the employee."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["7. "]},"Describe update information and data the employee will be expected to provide for each update and when it needs to be submitted to the manager. We recommend using a standard PIP Progress Update template."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["8."]}," Express your confidence in the employee to succeed."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["9."]}," Provide signed copies of the PIP to the employee and to Human Resources, keeping a working copy for your ongoing reference"]},"\r\r",{"component":"p","children":[{"component":"strong","children":["10. "]},"It’s critical that PIP update meetings are conducted on time, as scheduled. Complete a PIP Progress Update Template during each meeting, specifically describing performance results, action items taken by the employee and/or the manager, and evaluating the employee’s progress as of each meeting as being satisfactory or unsatisfactory. Signed copies should be provided to the employee and Human Resources as well as retained by you for ongoing reference during the PIP period."]},"\r\r",{"component":"p","children":[{"component":"strong","children":["11. "]}," A decision about the employee’s success or failure to meet PIP requirements needs to be made prior to the last PIP update meeting. To make a good decision, review all PIP Progress Updates."]},"\r\r",{"component":"p","props":{"style":{"paddingLeft":"30px"}},"children":["a. Has the employee achieved success in each PIP update period? Is performance meeting job requirements? If so, the employee and you can sign off the final PIP Progress Report indicating the PIP is being successfully closed out. Remind the employee of the requirement to sustain this level of performance."]},"\r\r",{"component":"p","props":{"style":{"paddingLeft":"30px"}},"children":["b. Has the employee successfully met almost all PIP requirements throughout the PIP period? Do you believe the employee will be able to meet and sustain the required performance if given a bit more time? You may want to consider extending the PIP Period by 1-3 weeks if this is the case, doing so by writing an addendum to the PIP. Discuss and get agreement on a short extension with your manager and with Human Resources, in time to have the addendum prepared for review with the employee at the final PIP Progress Update meeting."]},"\r\r",{"component":"p","props":{"style":{"paddingLeft":"30px"}},"children":["c. Has the employee failed to meet PIP requirements? Is it unlikely the employee will be able to meet and sustain required performance? You’ll need to talk with your manager and with Human Resources to make a decision on termination of the employee’s employment. We recommend conducting the final PIP Progress Update meeting as scheduled, and inform the employee that he/she has not successfully completed the PIP. Briefly review the completed PIP Progress Update forms. Let the employee know you have set up time to discuss next steps with Human Resources and walk together to the appointment. If all termination tasks are complete and in compliance with state and federal employment laws as well as with company policy, you and Human Resources now conduct the termination discussion."]},"\r\r",{"component":"p","children":["A PIP process is intended to be clear and positive, and it is highly structured, to help the employee to make the required improvements in his/her job performance. Experience shows that managers who genuinely want to support their people in achieving success and who implement a PIP in this way have the best results."]},"\r\r",{"component":"p","children":[{"component":"strong","children":[" "]},{"component":"strong","children":["Have you utilized a PIP successfully in the past? Please share your experiences and suggestions for making them a success, and the benefits you’ve achieved in the process."]}]},"\r\r",{"component":"p","children":["Do you have a pressing need to help an employee improve his/her performance? Order our PIP Timesaver Toolbox for just $24.77. You’ll receive a PIP Template and a PIP Progress Update Template, editable to meet your needs. Send an e-mail to Rosanna@PrismPerspectivesGroup.com ."]}]},"resource":null,"sponsorship":null,"thumbnail":{"path":null,"caption":"Prostock-Studio / Getty Images","isBlurred":true},"bestPicks":null},"related":{"relatedArticles":[{"title":"Achieving Success Using Performance Improvement Plans","canonical":"https://www.business.com/articles/achieving-success-using-performance-improvement-pl/","slug":"achieving-success-using-performance-improvement-pl","thumbnail":"https://www.business.com/images/channel/finance.jpg","dek":"Experience shows that 10% of employees are performing below job expectations in most organizations. But performance can be turned around, when managers use Performance Improvement Plans effectively. 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