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How can you use performance improvement plans for better results?

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Performance improvement plans (PIPs) are a useful tool for managers to address underperformance or misconduct issues with their employees, but they can also be used proactively and positively to help employees reach their goals, develop their skills, and increase their engagement. This article will explain how to use PIPs for better results. To start, you must identify the need for a PIP and set SMART objectives and expectations. You should also provide feedback and support, monitor progress and outcomes, and evaluate and reward success.

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Shanelle Reese

1 Identify the need for a PIP

A PIP is not a punishment or a threat, but rather a structured and collaborative process to help an employee improve their performance. When considering the need for a PIP, you should look at objective and measurable criteria such as performance reviews, KPIs, customer feedback, internal policies, and behavioral standards. Additionally, it is important to consider the root causes of the performance issue, such as lack of skills or knowledge, poor motivation or engagement, personal or professional challenges, or miscommunication or misunderstanding. By doing so, you can tailor the plan to the specific situation and needs of the employee.

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Shanelle Reese
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It is important that a PIP is set up in a way that encourages success, has realistic expectations and that the employees knows you are committed to their success. Setting that baseline from the first conversation I have found is key to achieving a successful and positive outcome.

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Ben Griffin

Empowering CEO's and Entrepreneurs to Navigate Growth, Optimize Leadership, and Achieve Their Full Potential.
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That statement - "A PIP is not a punishment or a threat"... is important... PIP's are too often used in a punitive way when you already know the likely outcome...'making someone available to industry'... If you've already decided, avoid the temptation to use the PIP as a punishment or threat...

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2 Set SMART objectives and expectations

A Performance Improvement Plan (PIP) should have clear and realistic objectives and expectations for both the manager and the employee. To help set these, it's useful to use the SMART framework: objectives should be specific, measurable, achievable, relevant, and time-bound. Furthermore, it's important to communicate the consequences of not meeting the objectives, such as disciplinary action or termination, as well as the potential benefits of meeting them, such as recognition or promotion. By following this framework, you can ensure that PIPs are effective in helping employees reach their goals.

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3 Provide feedback and support

A PIP is not a one-way street, but a two-way dialogue between the manager and the employee, so it's important to provide regular and constructive feedback and support. This could include acknowledging their strengths and achievements, highlighting their areas of improvement and gaps, offering guidance and coaching, sharing best practices and resources, encouraging questions and feedback, and addressing any concerns or challenges. Additionally, you should create a feedback schedule and a feedback format, such as weekly meetings, email updates, or performance reports to ensure consistency and transparency.

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Shanelle Reese
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In our organization all PIPs come with a weekly check-in. This ensures that there are no surprises and that any obstacles or roadblocks are addressed in a timely manner. It also reinforces that the process is a two way street.

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4 Monitor progress and outcomes

A PIP is not a static document, but a dynamic and flexible plan that can be adjusted and revised as needed. Therefore, you should constantly monitor the progress and outcomes of the employee by reviewing the data and evidence of their performance, comparing it with the objectives and expectations, identifying any barriers or difficulties, recognizing any improvements or achievements, and making any changes or modifications to the plan. Additionally, you should document the progress and outcomes of the employee using tools such as checklists, spreadsheets, or dashboards in order to keep track and record of their performance.

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Leena T.

HR Professional specialized in Resourcing, Compensation and Benefits, Employee Relations and Employee Engagement.
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PIP's are definitely a great two-way communication tool for providing clarity of 'what is expected'. Also, from business perspective it serves as a legitimized document, if things go sour. However, it has been observed that PIP's affect employees wellbeing as they are disturbed and stressed. Hence, from employees perspective it would be more beneficial if the name 'PIP' is replaced with a more sensitive term.

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5 Evaluate and reward success

A PIP is not an end in itself, but rather a means to an end - improving the performance and satisfaction of the employee. Therefore, it is important to evaluate and reward the success of the employee. This can be done by conducting a final performance review and appraisal, measuring the impact and value of their performance, celebrating their accomplishments and growth, providing feedback and recognition, offering incentives and rewards, and discussing future goals and opportunities. Additionally, you should solicit feedback from the employee through surveys, interviews, or focus groups to assess their experience and satisfaction with the PIP process.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use performance improvement plans for better results?

1

2

3

4

5

6

1 Identify the need for a PIP

2 Set SMART objectives and expectations

3 Provide feedback and support

4 Monitor progress and outcomes

5 Evaluate and reward success

6 Here’s what else to consider

Performance Management

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How can you use performance improvement plans for better results?

1

2

3

4

5

6

1 Identify the need for a PIP

2 Set SMART objectives and expectations

3 Provide feedback and support

4 Monitor progress and outcomes

5 Evaluate and reward success

6 Here’s what else to consider

Performance Management

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