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58% of employees show improved performance after completing a performance improvement plan (PIP). [Workstatus]
So if your company faces challenges with low productivity and engagement 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.
To help the employee succeed, a PIP usually includes:
- Clear, measurable goals
- A timeline for improvement, and
- Training and mentorship support
By providing structured feedback and regular check-ins, PIPs give employees a roadmap for improving their skills, addressing any gaps, and aligning with the company's expectations. A PIP also fosters accountability among individuals and encourages personal growth, thereby contributing to both employee and organizational success.
A targeted approach like this helps both management and employees work together towards better performance outcomes.
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. Identification of Performance Issues
A performance improvement plan begins with a detailed review of the employee’s performance to pinpoint specific areas needing improvement. These areas might include meeting work commitments, fostering positive coworker relationships, or adhering to company policies.
This step often involves input from supervisors, coworkers, and, in some cases, customers to gain a well-rounded understanding of the challenges.
It’s essential to remain neutral and rely on factual observations rather than opinions. Identifying these issues is the foundation for developing targeted solutions to enhance performance.
2. Measurable Goals
A performance improvement plan sets clear, specific growth targets for employees.
Using the SMART goals framework that sets clear expectations, employees can improve specific areas or competencies of their job performance. SMART goals help motivate employees by providing clear directions and deadlines while also fostering accountability, as progress is easily measurable.
Personal OKRs can also support this process by aligning individual goals with broader team and company objectives, creating a sense of purpose and connection.
This approach helps identify both successes and areas requiring additional support.
3. Timeline
The performance improvement plan displays a clear timeline for achieving those performance improvement goals and initiatives. This schedule is crucial as it helps in managing and guiding the improvement process effectively.
The timeline also includes regular check-ins and reviews of progress to ensure that everything is on track.
These clear deadlines help both managers and employees understand what needs to be accomplished and by when, facilitating better tracking of progress.
Additionally, having a defined schedule reinforces accountability, encouraging staff to meet their targets and contribute to their personal and organizational growth.
4. Help and Resources
Employees are provided with the necessary support and resources to meet the goals set in their performance improvement plan.
This support might include access to training, resources, guidance, or coaching tailored to their needs. Offering support and resources not only demonstrates your investment in their success but also enhances the overall work environment.
5. Continuous Feedback and Monitoring
Regular feedback and tracking are essential components of performance improvement plans to evaluate progress and implement necessary adjustments.
Feedback sessions are scheduled to discuss and measure employee performance, achievements, and challenges. Feedback is provided in a constructive manner helping both managers and employees identify strengths and weaknesses. This allows for effective monitoring of the plan. These sessions also foster open communication and trust, simplifying the problem-solving process.
The best way to increase the levels of employee engagement and performance of your employees is to develop an in-depth performance improvement program. It is an excellent way to give your employees a second chance and is an opportunity for them to showcase their skills. So if your workforce falls sub-par, give this performance improvement plan a try.
Here are 6 simple steps to create a performance improvement plan.
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 initiating a performance improvement plan (PIP), conduct a thorough and collaborative assessment of the employee’s current performance. Evaluate areas such as work quality, communication, teamwork, and productivity.
In addition to gathering feedback from clients, coworkers, and supervisors, engage the employee in self-assessment discussions.
Here are 101 self-evaluation examples to help your employees better evaluate themselves during performance reviews.
Managers should involve the employee from the start, discussing their perceived strengths and challenges to foster engagement from the outset. Ensure the employee feels heard, which can increase commitment to the PIP (performance improvement plan) process.
This will not only provide a clearer understanding of their perceived strengths and challenges but also foster a sense of ownership over the PIP.
Ensure you gather both quantitative data and qualitative feedback (e.g., communication style) to identify patterns of underperformance. Be sure to account for external factors, such as workload imbalances or personal challenges, that could be affecting 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.
Step 2: Establish SMART Goals and Tailor them
Once performance has been assessed, set SMART goals to ensure the goals you set for your employees are achievable and measurable. This will help set a robust framework for improvement plans.
Tailor these objectives to the individual’s role and any personal challenges they might be facing.
In some cases, employees may require accommodations for work-life balance issues or other personal struggles. You can ask them this during the performance review conversation.
Breaking larger goals into smaller, actionable steps will ensure your employees' progress is realistic and achievable, while setting them up for success. It’s also essential to ensure these objectives align with the company's overarching goals.
To do this, you can follow the OKR goal-setting framework. And 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!
Learn how you can integrate performance management into your goal-setting process. Talk to our product experts today, and get a customized quote that suits your business' needs.
Be sure to communicate expectations
When meeting with the employee, encourage an open and supportive conversation. Exude empathy and clarify that the conversation is to contribute to their success.
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
Developing the action plan collaboratively with the employee is a crucial step you shouldn't skip.
In top of your plan to improve their performance, ask for their input on what specific actions they feel would help address their performance challenges. This ensures that the plan is tailored to their unique needs and encourages greater accountability.
Each goal or task should be broken down into clear, actionable steps—whether it’s attending training sessions, shadowing a peer, or improving a specific skill. The employee’s involvement will help ensure they are committed to the process and will feel empowered to take ownership of their improvement journey.
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
Identify the resources and support mechanisms needed to help the employee succeed in their PIP. (Extra training, mentorship programs, or workload adjustments)
Ask employees about their preferences on resources, whether it's online courses, in-person workshops, or peer coaching. By offering tailored support, you can address any barriers they may face and reinforce that seeking help is a positive action rather than a sign of weakness.
Regular monitoring and adjusting of these resources ensures a strong ongoing support for the employee.
Step 5: Regularly Monitor and Provide Feedback
Continuously monitor and provide feedback throughout the performance improvement plan (PIP). Schedule regular sessions to discuss the employee's activities, achievements, and any challenges encountered. These check-ins allow you to evaluate whether the employee is meeting the objectives outlined in the action plan.
Offer feedback on their work, recognize their progress, and discuss areas needing improvement. Listen actively to the employee's concerns and collaboratively address any issues, making necessary adjustments to the action plan as needed.
Maintain open communication, encouraging the employee to voice their opinions, questions, and concerns. Consistent monitoring and feedback are essential to keeping employees engaged and on track, offering the support they need to succeed.
Step 6: Evaluate and Follow-Up
At the conclusion of the PIP, evaluate the employee’s progress against the set objectives.
Celebrate their achievements and recognize their growth for completed objectives, and offer additional development opportunities where they may require it.
If the employee hasn’t met the targets, take time to investigate the barriers to their progress. In some cases, extending the PIP might help.
If performance has not improved despite best efforts, you may need to consider reassigning or terminating them.
. . . . .
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 is a structured document that outlines specific actions an employee must take to improve their performance in specific areas. Here's what to include:
Performance Issues: Clearly outline the specific areas where the employee’s performance is falling short. Include data, metrics, or examples to illustrate underperformance, such as missed deadlines, poor communication, or low productivity.
Improvement Goals: Set SMART goals that focus on the areas needing improvement. These should be actionable and attainable within the specified time.
Action Plan: Define the steps the employee must take to achieve these goals. Break down the tasks into manageable steps, including any additional training or resources provided to help the employee succeed.
Support and Resources: List the resources or support available to the employee, such as mentorship, additional training, or adjusted workload, to help them achieve the desired improvements.
Timeline: Establish a realistic timeline for the employee to meet the performance goals. It can vary depending on the nature of the performance issue but typically ranges from 30 to 90 days.
Check-In Schedule: Regularly scheduled follow-ups to review progress. Weekly or bi-weekly meetings can be scheduled to assess the employee's improvement and offer ongoing feedback.
Consequences: Outline the possible consequences if the employee fails to meet the improvement goals, such as further disciplinary action, reassignment, or termination. Ensure you communicate this in a polite and professional manner.
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.
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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.
