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When an employee struggles to meet job requirements, a performance improvement plan (PIP) can help the employee get back on track – provided it is implemented at the right time as part of an overall progressive discipline process.
A performance improvement plan isn’t the starting point with an underperforming employee. Instead, it’s a measure small business owners and managers can take after they have exhausted other progressive discipline measures.
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A performance improvement plan is a written document that addresses an employee’s specific performance issues. It names substandard performance areas the employer has identified and outlines how and when the employee is expected to improve.
A PIP also identifies resources the employer will provide to support the employee and defines the consequences of failing to meet PIP targets in the designated time frame – for example, demotion or termination.
Performance improvement plans are typically the last step in the progressive discipline process and are appropriate when employers believe underperforming employees are capable of making improvements.
Whether a PIP is relevant in a given situation should become apparent through the process of first implementing progressive disciplinary measures.
Performance improvement plans should only be implemented toward the end of a progressive discipline process. In that process, the employee’s supervisor verbally communicates necessary performance corrections in real-time, with escalating consequences for lack of improvement.
A PIP may reinforce much of what was discussed during the real-time progressive discipline process – for instance, identifying undesirable performance or behaviors, providing tools to help employees succeed and making expectations clear.
Progressive discipline starts as soon as performance issues appear and continues as the employer monitors the employee’s response. The first steps in progressive discipline are making an employee aware of a performance deficiency, usually through a face-to-face conversation; talking about factors that are causing the employee to struggle; and coaching the employee on how to make progress.
This approach has good potential for success because it seeks to identify the root causes of the performance issues, opens the door to collaborative feedback between the employee and management and provides a path for the worker to make changes.
If the situation remains unchanged, despite ongoing conversations aimed at helping the employee improve, a manager using progressive discipline can consider initiating a performance improvement plan.
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A PIP describes in specific terms where the employee is falling short, clarifies the desired performance improvements and specifies tools and resources the company will provide to support the employee, like additional training or access to services through an employee assistance plan. Managers should review the PIP with the employee in person and reiterate the time frame the PIP covers while stating a belief in the employee’s ability to achieve the established metrics.
The PIP should also clearly convey what will happen if the employee fails to meet the performance targets by the designated deadline – which could be a demotion, suspension or termination.
A PIP should include:
Clear identification of specific performance deficiencies.
An honest assessment of performance and skill gaps.
Precise steps the employee must take to enhance performance.
Detailed training, coaching or other tools that will be provided to help the employee improve or that the worker should pursue.
How progress will be measured.
Deadlines for achieving the stated goals. Typical PIP time frames range from 30 to 90 days.
Next steps the employer will take if the employee fails to meet expectations.
A PIP’s goal is to help the team member succeed by putting specific measurements and timelines in place to provide complete clarity about the performance standards and how to meet them.
If your company has an underperforming employee, here are a few tips that will set the stage for productive progressive discipline.
Include language that poor performance or bad behavior will be disciplined, but don’t describe a specific escalation process. This approach limits an employer’s legal exposure while also allowing managers to use their best judgement in implementing progressive discipline on a case-by-case basis.
Employers should document each disciplinary measure, including verbal warnings, in employees’ personnel files.
Hold face-to-face discussions with employees who are on disciplinary notice. Have someone else present in these meetings and recap the conversations in a follow-up email.
Maintain a compassionate tone without being apologetic as you take disciplinary action. Underscore that the mutual goal is for the employee to succeed.
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Optimizing employee performance is paramount to small business success, and it’s something Axcet has been helping clients with since our founding in 1988.
If your small business faces employee performance challenges that don’t seem to be improving, our talent management consulting services can help. We address the root cause of employee performance issues and develop a progressive discipline structure based on your unique needs. And, should a PIP become necessary, we also can facilitate the development of that document.
Axcet HR professionals are experts at helping small businesses attract, recruit, engage and retain top talent for long-term growth. Schedule a consultation today.
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