A performance improvement plan (PIP) is a formal process used by employers to address an employee’s underperformance or failure to meet specific job expectations. It is a fair tool that begins with a clear assessment of the employee’s performance deficiencies, which could be related to skills, productivity, behavior, or overall job performance. The PIP outlines measurable goals and objectives that the employee must meet within a designated timeframe—often 30, 60, or 90 days. It is aimed at providing support and guidance to the employee, often involving regular feedback and mentoring to help them improve. The document should clearly detail the areas for improvement, the expected standards, and the consequences if the performance does not improve.
While the goal of a PIP is to support the employee’s growth and success, it also serves as a formal record of the company’s efforts to address performance issues. If the employee fails to meet the goals within the specified time, the next steps might include reassignment to a different role, demotion, or in severe cases, termination. These consequences are not immediate, and the decision is usually made after a thorough review of the employee’s progress and the reasons for the lack of improvement. For employees, a PIP can be both an opportunity to correct course and a stressful challenge, depending on how it is framed and the level of support provided. For employers, it is a necessary step in managing performance and ensuring that all employees meet the standards required for their roles, while also protecting the organization from legal risks associated with performance management.
How Can a Performance Improvement Plan Help Employees?
The performance improvement process directly identifies specific areas where an employee’s performance is lacking and establishes clear, actionable goals to drive improvement. This structured feedback enables employees to recognize their weaknesses, prioritize essential areas for attention, and align their efforts with the company’s expectations. Through regular check-ins and coaching, employees are empowered to acquire new skills, boost their productivity, and refine their approach to work. This process is fundamentally supportive; managers play a crucial role in providing the necessary guidance and resources to ensure employee success rather than merely employing punitive measures.
Furthermore, a performance improvement plan (PIP) serves as a critical opportunity for personal and professional growth. For employees committed to improvement but unsure of how to proceed, the PIP offers defined benchmarks and a clear timeline, facilitating progress tracking. Completing a PIP not only strengthens job security but also builds confidence and fosters a strong sense of accomplishment. By emphasizing measurable improvements and delivering ongoing feedback, the PIP reinforces a transparent and supportive relationship between employees and their managers. Many employees find that successfully achieving PIP goals reinvigorates their motivation and commitment to their roles.
5 Steps to Create a Successful Performance Improvement Plan
Creating a successful performance improvement plan (PIP) requires a structured approach emphasizing clear communication, actionable goals, and ongoing support. Here are five essential steps to ensure the PIP is effective:
1. Identify specific performance issues
Start by clearly identifying the areas where the employee is underperforming. This may relate to skills, productivity, behavior, or adherence to company policies. Be specific about the observed problems, providing concrete examples to avoid ambiguity. This helps the employee understand exactly where improvement is needed. Avoid vague language and focus on measurable and observable actions that need to change.
2. Set measurable goals
Establish clear and achievable performance goals for the employee within a specific timeframe. These goals should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound. For example, if the issue relates to meeting deadlines, a goal could be to complete 95% of tasks on time for the next 60 days. The employee should clearly understand what success looks like and how it will be evaluated.
3. Provide resources and support
Offer resources and support to help the employee meet the established goals. This may include training, mentoring, or regular check-ins with their manager. Inform the employee about the resources available to help them succeed. The objective is to ensure that the employee has everything necessary for improvement. Support can also come in the form of feedback, constructive criticism, and praise for small wins along the way.
4. Set a timeline for improvement
Define a clear timeline for when the improvements are expected. Typically, a PIP might last anywhere from 30 to 90 days, depending on the severity of the performance issues. It’s essential to allow sufficient time for meaningful changes while holding the employee accountable for progress. Set checkpoints throughout the timeline to assess progress and make adjustments if needed.
5. Monitor progress and Provide feedback
Regularly monitor the employee’s progress toward the goals set in the PIP. This involves holding periodic check-in meetings where employees can request feedback, express concerns, and track their progress. Be sure to provide positive reinforcement for improvements and constructive feedback for areas that still need attention. If the employee is meeting their goals, acknowledge their progress; if not, offer guidance on how to stay on track.
By following these steps, a Performance Improvement Plan can become a constructive process that helps employees address performance issues while fostering growth and accountability.
Performance Improvement Plan Example (PIP)
Here’s an example of a Performance Improvement Plan (PIP) that demonstrates how to structure the plan with clear objectives, support, and timelines. This example involves an employee who has been struggling with meeting project deadlines and poor workplace communication.
Performance Improvement Plan (PIP)
Employee Name: John Marigold
Position: Project Manager
Department: Marketing
Date: November 6, 2024
Manager Name: Sarah Jefferson
Plan Duration: 60 Days (November 6 – January 6, 2025)
1. Areas of Concern
John’s performance has been reviewed and the following areas of concern have been identified:
- Failure to meet project deadlines: Over the past three months, John has missed five out of seven key project deadlines, impacting the team’s ability to deliver projects on time.
- Inconsistent communication: John hasn’t been updating the team or stakeholders regularly on project progress, leading to confusion and missed opportunities for adjustments.
- Quality of work: The quality of completed work has been below expected standards, with frequent revisions needed after submission.
2. Performance Improvement Goals
- Goal 1: Meet project deadlines
John will complete 100% of all assigned tasks within their specified deadlines for the next 60 days. Any delays must be communicated with at least 48 hours’ notice and accompanied by a detailed explanation and an updated timeline. - Goal 2: Improve communication
John will send weekly status updates on all active projects to the project team and stakeholders. This includes outlining progress, challenges, and upcoming milestones. If any challenges are anticipated, John will notify relevant stakeholders at least three business days before they impact the timeline. - Goal 3: Improve quality of work
John will submit work that requires no more than one round of revisions in the next 60 days. To ensure quality, John will meet with a senior team member for feedback before submitting any final work.
3. Resources and Support Provided
To assist John in meeting these goals, the following support will be provided:
- Mentoring: John will have weekly check-ins with Sarah Jefferson (Manager) to discuss progress, challenges, and possible adjustments to the plan.
- Training: John will complete a time management and project management workshop (to be scheduled within the first two weeks).
- Project Management Tools: John will be trained on using new project tracking tools to better monitor timelines and resource allocation.
4. Timeline for Improvement
- Initial Review: December 6, 2024 (30 days) – Evaluate progress on meeting deadlines, communication efforts, and work quality.
- Final Review: January 6, 2025 (60 days) – Assess whether the goals have been fully met and determine the next steps.
5. Consequences of Non-Improvement
Failure to meet the goals outlined in this PIP by January 6, 2025, may result in further disciplinary action, up to and including reassignment or termination of employment.
Employee Acknowledgment
By signing this document, I acknowledge that I have received and reviewed the Performance Improvement Plan. I understand the areas where my performance needs to improve, the goals and expectations outlined in this plan, and the support available to help me succeed. I also understand the consequences if the expected improvements are not met within the given timeline.
Employee Signature: ______________________
Date: ______________________
Manager Signature: ______________________
Date: ______________________
This example shows a clear structure for addressing underperformance while providing the employee with the resources, feedback, and time needed to improve. It also outlines measurable goals and a defined timeline, ensuring both the employee and manager are aligned on expectations.
Conclusion
The Performance Improvement Plan (PIP) is an essential tool for addressing and resolving performance issues within an organization. When implemented effectively, it provides a structured approach to help employees enhance their performance by offering clear expectations, measurable goals, and the necessary resources for success. The plan emphasizes the importance of open communication, continuous feedback, and a supportive environment where employees can make adjustments and grow professionally.
The ultimate goal of a PIP is not just to correct deficiencies but also to help employees thrive in their roles, thereby contributing effectively to the organization’s overall success. Regardless of whether the employee meets the goals outlined in the PIP, the process offers valuable insights into both the employee’s potential and the support systems needed for improvement. When managed with care and respect, a PIP can result in increased job satisfaction, better performance, and a stronger, more capable team. However, if performance does not improve within the specified timeline, it is crucial for the employer to follow through with the consequences outlined in the plan to ensure fair treatment and maintain organizational standards.
When that happens, offering outplacement benefits can help the employee move forward with assistance to help them find new employment quickly. Contact us today to learn how we can help.
INTOO staff writers come from diverse backgrounds and have extensive experience writing about topics that matter to the HR and business communities, including outplacement, layoffs, career development, internal mobility, candidate experience, succession planning, talent acquisition, and more.
