.webp)
.svg)
.svg)
58% of employees show improved performance after completing a performance improvement plan (PIP). [Workstatus]
So if your company faces challenges with low productivity and performance among teams, a performance improvement plan (PIP) might just be the solution you need to revitalize performance.
In this article, we'll cover:
A performance improvement plan (PIP) is a formal process designed to help employees meet specific performance standards set by their manager.
To help the employee succeed, a PIP usually includes:
- Clear, measurable goals tailored to address performance gaps.
- A defined timeline to achieve improvements.
- Support through training, mentorship, and regular feedback.
PIPs provide employees with a clear roadmap for improvement, helping them develop their skills, address weaknesses, and align with company expectations. With regular check-ins and structured guidance, a PIP fosters accountability, builds confidence, and encourages personal growth.
By using a targeted and collaborative approach, PIPs empower both managers and employees to work together towards achieving better performance and driving organizational success.
A performance improvement plan (PIP) typically includes five key elements.
- Identifying performance issues
- Measurable goals
- A clear timeline
- Help and resources
- Continuous feedback and monitoring
1. Identifying Performance Issues
The first step in a PIP is to identify specific areas where an employee’s performance falls short. This involves a thorough review of their work, such as meeting deadlines, maintaining positive relationships with coworkers, or adhering to company policies.
Input from supervisors, colleagues, and even customers (where applicable) provides a well-rounded perspective on the challenges. Objectivity is essential—focus on factual observations rather than opinions to ensure fairness and clarity in identifying issues.
2. Setting Measurable Goals
A PIP outlines clear, actionable goals using the SMART framework. These goals provide employees with direction, helping them understand what’s expected and how they can improve.
For example, aligning personal objectives with company goals through OKRs adds purpose and accountability. This approach not only motivates employees but also makes progress easier to track, celebrate, or address as needed.
3. Defining a Clear Timeline
Every PIP includes a defined timeline to guide the improvement process effectively. Timelines ensure both employees and managers have clear expectations for progress and provide structure to the plan.
Regular check-ins and progress reviews are key components, keeping everything on track and allowing for course corrections if necessary. Deadlines within the timeline foster commitment and help employees stay focused on achieving their goals.
4. Providing Help and Resources
Support is critical for the success of any PIP.
This might include access to training programs, tools, or guidance tailored to the employee’s specific needs. Coaching or mentoring can also provide employees with the insights they need to overcome challenges.
Offering the right resources demonstrates the employer’s commitment to the employee’s growth and success, creating a supportive environment for improvement.
5. Continuous Feedback and Monitoring
Ongoing feedback and monitoring are crucial to evaluate progress and adjust the plan as needed. Regular feedback sessions allow managers and employees to discuss achievements, address challenges, and refine strategies.
Providing constructive feedback on top of this builds trust and encourages open communication, making problem-solving easier and collaboration more effective.
And by monitoring frequently, you can ensure the plan remains dynamic, adapting to meet both employee and organizational needs.
A performance improvement plan (PIP) is one of the most effective tools to help employees enhance their performance while fostering personal growth. It offers employees a second chance to showcase their skills and capabilities, empowering them to meet workplace expectations. If your team’s performance has dipped below expectations, implementing a well-designed PIP can make all the difference.
Here’s how you can create a performance improvement plan in six simple steps:
Step 1: Assess Employee Performance
Step 2: Establish SMART Goals
Step 3: Collaborate on Action Plans
Step 4: Provide Support and Resources
Step 5: Regularly Monitor and Provide Feedback
Step 6: Evaluate and Follow-Up
Step 1: Assess Employee Performance
Before starting a PIP, conduct a thorough assessment of the employee’s current performance. Look at areas like work quality, communication, teamwork, and productivity. Involve the employee in self-assessment discussions to understand their perspective and foster a sense of ownership in the process.
Gather feedback from supervisors, colleagues, and even clients to get a well-rounded view.
Use both quantitative data (e.g., missed deadlines, output metrics) and qualitative feedback (e.g., communication style or teamwork issues). This collaborative approach ensures transparency and helps identify external factors, like workload imbalances, that might be affecting their performance.
With ThriveSparrow, assessing employee performance becomes easier. Both team managers and their employees can view their employees' strengths and blind spots giving an accurate assessment of the overall performance.
Moreover, GAP analyses charts give a more granular view of self-ratings against peer-ratings.
Learn how to maximize performance management. Schedule a free consultation with our product experts, and get a customized quote that suits your business' needs.
Step 2: Establish SMART Goals and Tailor them
Once you’ve assessed performance, set clear SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to guide improvement. Tailor these objectives to the employee’s role and any challenges they’re facing.
Break larger goals into smaller, actionable steps to make progress achievable.
For example, if the goal is to improve productivity, you might set a target for the number of tasks completed weekly.
You can use the OKR goal-setting framework also. With ThriveSparrow, tracking and managing goals and OKRs becomes easier. Managers can set team goals and check-in on their team's progress to ensure objectives are achieved consistently, all at one place!
Be sure to communicate expectations
When meeting with the employee, encourage an open and supportive conversation.
In addition to outlining the areas needing improvement, give the employee a voice in the discussion.
Ask for their input on the perceived challenges, and use their feedback to refine your strategy. A transparent conversation that allows the employee to express concerns and discuss potential barriers will encourage trust and create a collaborative environment for improvement.
Step 3: Collaborate on Action Plans
Develop the action plan together with the employee to ensure it addresses their unique needs and challenges. Encourage them to share ideas on what specific steps would help them succeed.
Outline clear, actionable steps such as attending training sessions, improving specific skills, or shadowing peers. Breaking the plan into manageable tasks ensures progress feels attainable and encourages the employee to take ownership of their development.
With ThriveSparrow, you can break down tasks into checklists and ensure you don't miss out on anything.
Based on performance feedback, your managers can guide development, while your employees take ownership of their growth, all in one centralized platform.
Step 4: Provide Support and Resources
Support is key to the success of a PIP. Identify the resources and assistance the employee needs, such as training programs, mentorship, or workload adjustments.
Ask for their input on what type of resources would benefit them most, whether online courses, hands-on workshops, or peer coaching. Tailored support not only removes barriers but also reinforces that seeking help is a positive step toward growth.
Step 5: Regularly Monitor and Provide Feedback
Monitor the employee’s progress closely and provide consistent feedback. Schedule regular check-ins to discuss achievements, challenges, and areas for improvement.
Recognize their progress, address any concerns they have, and make adjustments to the plan as needed. Open communication during these sessions helps maintain engagement and ensures employees feel supported throughout the process.
Step 6: Evaluate and Follow-Up
At the end of the PIP, evaluate the employee’s progress against the goals set. Celebrate their achievements and recognize the efforts they’ve made. If certain areas still need improvement, provide additional development opportunities or extend the PIP if appropriate.
In cases where performance hasn’t improved despite best efforts, you may need to consider reassigning their role or, as a last resort, termination. Always approach this step with empathy and professionalism.
. . . . .
By following these steps, you ensure the PIP process is structured, supportive, and tailored to the individual employee’s needs, resulting in a higher chance of success for both the employee and the organization.
A performance improvement plan (PIP) is a formal document that provides a clear roadmap for employees to address specific performance gaps. Here’s what to include to ensure the PIP is effective and actionable:
1. Performance Issues
Start by clearly identifying the areas where the employee is underperforming. Use specific examples, data, or metrics to illustrate the issues, such as missed deadlines, low productivity, or poor communication. Providing concrete evidence ensures clarity and objectivity while helping the employee understand the problem areas.
2. Improvement Goals
Set SMART goals tailored to address the identified issues.
For example, if the employee struggles with meeting deadlines, a goal might be to complete 90% of assigned tasks on time over the next 30 days. SMART goals give employees clear, actionable targets to focus on.
3. Action Plan
Detail the specific steps the employee must take to achieve the goals. Break tasks into manageable actions, such as attending training, shadowing a peer, or adopting new work practices. This step-by-step approach makes progress achievable and provides a clear path forward.
4. Support and Resources
List the resources available to help the employee succeed. This might include access to training programs, coaching sessions, or workload adjustments. Demonstrating your commitment to their improvement fosters trust and encourages the employee to actively engage in the process.
5. Timeline
Set a realistic timeframe for the employee to achieve the outlined goals. Depending on the complexity of the issues, this could range from 30 to 90 days. A defined timeline helps maintain focus and urgency while ensuring the process remains fair and achievable.
6. Check-In Schedule
Establish a regular schedule for follow-up meetings to review progress and provide feedback. Weekly or bi-weekly check-ins allow managers to assess improvement, address any challenges, and make necessary adjustments to the plan. These meetings are an opportunity for open communication and collaboration.
7. Consequences
Clearly outline the potential consequences if the employee fails to meet the improvement goals. Communicate these professionally and with empathy, explaining next steps such as reassignment, further disciplinary action, or termination. Being transparent ensures the employee understands the stakes and remains accountable.
Use ThriveSparrow to Create Your Performance Improvement Plans in Seconds
With ThriveSparrow's AI-Based PDPs (personal development plans), HRs and people success managers don't have to spend time on coaching & educating the managers on creating an effective personal development plan.
Download a free sample of ThriveSparrow's performance review report and view how an employee is rated and what a personal development plan looks like.
.svg)
Moreover, your managers can quickly get an idea on how to create a useful, structured and effective PDP for their reportees. This saves ample time for managers especially when they have to review reports of many subjects.
Learn if ThriveSparrow is a good fit for your business.
Book a free call with our product experts, and start your journey with ThriveSparrow. Create personal development plans for your people in seconds.
FAQs
1. Does PIP mean termination?
No, a PIP isn’t an automatic path to termination. It’s designed to give employees a chance to improve their performance. However, if goals aren't met, termination could be a possible outcome.
2. How serious is a PIP?
A PIP is serious because it highlights areas where improvement is critical. It’s a structured way for employees to understand expectations and work toward meeting them, but it does signal that performance needs attention.
3. Can employees write their own PIP?
Employees don’t typically write their own PIP, but they can contribute to it by providing input on goals or areas where they feel support is needed. It’s a collaborative process with the manager.
4. Can someone resign on PIP?
Yes, employees can choose to resign while on a PIP if they feel it’s the right decision. However, it's advisable to weigh the options and discuss with your manager before making that choice.
5. How long is a PIP usually?
PIPs typically last 30 to 90 days, depending on the performance issues and the company’s policies. This timeframe allows employees to demonstrate improvement and meet set goals.
