If a new law meant you could never hire anyone new, would that affect how you approached performance improvement plans (PIPs)? You’d probably look at performance improvement plans as tools to help employees be happy, engaged, and productive, and not as documentation for an upcoming termination. They can and should be used for terminations as well, but their primary purpose should be retention.
If you want to focus on improving performance, it may be time to revise and update your performance improvement plans. Here’s why they are essential.
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What Is A Performance Improvement Plan?
A performance improvement plan is a written, formal document that details an employee’s changes to retain a job. Because of the retention focus, employees often see these as just the final step on their way to termination.
There are usually a set of performance goals with goal dates. PIPs generally run 30, 60, or 90 days, depending on the situation.
Generally, the employee, the manager, and an HR representative all sign off on a PIP. That way, you don’t end up with rogue managers designing performance plans that don’t reflect company rules or values.
Benefits of Performance Improvement Plans
Performance improvement plans can benefit both employees and the company if done correctly. Here are some of the benefits.
- Identifies root causes of employee performance issues
- Creates a clear pathway for success
- Provides documentation for performance appraisals as well as negative or positive action
- Encourages the manager and the employee to work together for success
- Forces (or should force) the manager to express goals and deficiencies in clear, actionable steps
- Can be tailored to the individual employee’s needs, rather than a general job description
- Places an employee on notice that they need to make profound changes to retain their position
Of course, these benefits only occur when managers write and follow an appropriate plan. A poorly written performance improvement plan or one with no follow-up will not benefit the employee or the company.
How To Write A Performance Improvement Plan
There isn’t one right way to do a performance plan, but all plans should have some key elements. Generally, companies have a template that managers must follow. Some managers may find this restrictive, but it’s essential to be consistent, especially with employees in the same department.
Writing a performance improvement plan can feel daunting, especially for a first-time manager. But, if you follow these steps, it can help significantly.
Identify the problem or problems
This can be the most challenging part of a PIP. You know that an employee isn’t performing well or relating to their coworkers well, but a good PIP breaks that down.
Problems can vary from punctuality to performance. For an example, consider Sally, a warehouse employee whose productivity rate is below the minimum expected for the group. A poorly written performance improvement plan would say something like:
- Bring productivity rate up to standard.
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But that isn’t helpful. It doesn’t tell Sally what she’s doing wrong or how to fix it. Remember, the goal is not to document for termination but to help an employee toward success. So, a manager needs to break down where Sally fails and figure out measurable solutions to help her succeed.
An in-depth look at Sally’s behavior and performance turns up the following information.
- She often comes late.
- She often takes extra breaks.
- She makes frequent data entry errors, which require time to fix.
With this knowledge, her manager can go to the next step.
Write clear goals/expectations
A general rule for goals is to use SMART goals. These are goals that are:
- Specific
- Measurable
- Achievable
- Relevant
- Timely
So, for Sally, examples would be.
- Arrive on time 90 percent of the time. (Late no more than once every two weeks.)
- Take only scheduled breaks (excluding bathroom breaks, as required)
- Undergo retraining on data entry within the next 30 days.
With each of these, Sally walks away with a clear specific, measurable, achievable*, relevant, and time-based goal (all things need to be accomplished during the PIP period, usually 90 days).
This is also a time a manager can discuss whether something is achievable. Sally may be late because she uses unreliable public transportation. Or perhaps, Sally is frequently late because her children’s school bus comes too late for her to make it on time. In these cases, the manager can rearrange Sally’s schedule to help her achieve punctuality.
Coaching
The best performance improvement plan loses effectiveness if the manager doesn’t regularly follow up. Sally’s manager should schedule regular meetings with her to assess her progress.
Managers should schedule these meetings at the beginning of the PIP, making them a priority. Managers who do this will experience greater levels of success because the employees know that the manager is there to help and not just using the PIP as a step toward termination.
Additional Resources
If you want to implement performance improvement plans, you may consider exploring performance management software. Performance management software can help guide your team toward specific goals while providing feedback.
Frequently Asked Questions
What should a performance improvement plan include?
The problems, proposed solutions, and how to get to those. If specific training is needed, managers should include that.
How long should performance improvement plans last?
Generally, plans last 30-90 days, depending on what needs to be changed.
Does a performance improvement plan mean I’m getting fired?
No. It means your manager has identified shortcomings. If you work and fulfill the requirements in the plan, you increase your chances of job retention.
How does a performance improvement plan work?
PIPs help employees see their shortcomings and allow them to fix those problems with support from management and HR.
The Bottom Line
Performance improvement plans don’t have to be scary--for employees or managers. If you work together, you can create an actionable plan to help everyone succeed and feel confident in their performance.
Think of them as a tool for success rather than a punishment for bad behavior, and you’ll be on the right track. Now that you know how to write a performance improvement plan, you may be ready to hire. ZipRecruiter allows you to post your first job for free.
