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.

Review

• Management should review the plan. 
• Is the performance issue stated, substantive? 
• Are the objectives fair and the time frames reasonable?

Implement

• 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.

Conclusion

• 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.