Establishing a performance improvement plan for employees

At one point or another, every manager is going to have an underperforming employee. Whether he/she isn’t meeting job requirements or is consistently exhibiting behaviours that are not in line with company expectations, the manager will reach a point where it is clear that the situation has to change.?

When an employee is not performing well or reaching their full potential, not only do the manager and employee suffer but the entire team and company also eventually feel the domino effect of these behaviours. The overall result is frustration, wasted time, and deflated people. Firing an employee might seem to be the logical course of action at this point, but a performance improvement plan can be more effective.

A performance improvement plan (PIP) is a tool to address employee performance issues. A performance improvement plan is meant to help employees resolve performance failures or deficiencies and be successful in their roles.

What are the benefits of a performance improvement plan?

A performance improvement plan shows the employee that the organization understands their current challenges and long-term goals and will take an active role in supporting them. Employees are more likely to be engaged and productive if they understand what the organization expects. PIPs outline in detail any issues or behaviours that are causing problems, corrective actions to take to improve, and what meetings and resources will be available to offer support.

Here are 3 steps to developing any performance improvement plan:

Set Clear Goals

Clarity is key: One of the primary causes of poor performance in the first place is usually a lack of direction. A performance improvement plan should put employees on the path to better performance through a better understanding of the expectations of their role.

?Prioritize Communication

Regular check-ins are essential. Schedule time on both your calendar and your employees. Regular check-ins enable managers to oversee the program and coach employees along the way.

Set Expectations

Set employee expectations of their performance improvement plan before beginning the program. Managers, employees, and HR representatives must all be aligned going into the process to produce the best outcomes. Develop a clear structure with plain metrics that allows managers to track progress at a glance.

What Should a Performance Improvement Plan Include?

• Area(s) of concern: Where performance has failed or consistently underwhelmed.
• Example: An employee in a call centre consistently fails to meet the company’s customer service standards.
• Goal (or expected outcomes): A brief sentence or list of what should be achieved by the employee.
• Example: To improve customer service conversations.
• Actions: A statement that explains the direct steps the individual will take to achieve the stated goal.
• Example: Shadow the top-performing customer service rep; review the customer service scripts; take over an escalated call from a peer.
• Metrics: Key results clearly laying out how the individual will be measured by HR and their manager to determine whether the goal was met.
• Example: The accumulated customer satisfaction scores over the set period.
• Scheduled checkpoints: A concrete timeline with expected actions to be completed before each checkpoint to keep the employee’s progress on track.
• Example: The employee must complete 10 hours shadowing top-performing reps by the end of the first two weeks.

Takeaway

Performance improvement plans are put in place to facilitate employee success and help them reach their full potential. Creating and implementing performance improvement plans in weak areas will keep your workforce on track to achieve business goals.