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Performance Improvement Plan (PIP): A support mechanism for employees to improve their performance

Is PIP appropriate?
  • PIP should be used when there is a commitment to help the employee improve, not as a start to the termination process.
  • Create a list of the performance deficiencies, dates, detailed explanations, previous guidance given to the employee. 
  • Review the most recent performance appraisal to see if the issue is new or ongoing.
  • Could the issues be “fixed” through a formal improvement plan? 
  • Problems with sales goals, quality ratings, quantity objectives, and similar issues may be well-suited to a structured plan that helps identify why the deficiencies occur.
  • Has the employee received the proper training to succeed at his/her tasks?
Develop a Draft
  • Compare the job expectations to the actual performance and measure the outfall.
  • Set S.M.A.R.T. Goals. PIPs usually last 30, 60, or 90 days, depending on the agreed performance improvement period.
  • During this 90-day performance evaluation, expect perfect performance attendance.
  • Clearly stated consequences for not meeting the objectives of the plan. Options may include demotion, transfer to a different position, or termination.
  • Guidance and assistance regarding additional resources to be agreed upon.
  • Management should review the plan. 
  • Is the performance issue stated, substantive? 
  • Are the objectives fair and the time frames reasonable?
  • Introduce the employee to the process and the plan and give the employee an opportunity to become involved.
  • After disclosure and agreement on the plan, the final plan should be signed by both manager and the employee.
  • If the employee fails to commit to the PIP alternatives, demotion, transfer, etc. should be discussed and considered.
Monitor Progression
  • Progress should be measured and regular follow-up and feedback discussions to be documented.
  • Recognize and reward progress.
  • When the employee meets targets and goals set the employer has to acknowledge the achievements.
  • Recognize and reward and continue with normal job function.
  • If an employee is unable to improve or if his or her performance worsens.
  • Transfer, retrenchment, demotion, a second PIP potentially should be discussed.
Marius Joubert
Author: Marius Joubert

Founder of Restauranthub.co the first true community for the restaurant and hospitality industry.

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