Navigating Performance Improvement Plans: Turning Challenges into Opportunities

The mere mention of the words ‘Performance Improvement Plan’ can strike fear into the heart of even the most resilient employee. While performance improvement plans, or PIP as they have come to be known, have been designed to help struggling employees get back on track, they have earned a bad rap as an early sign of impending dismissal. ?

But while employees may view PIP as a box-ticking exercise in the exit process, doing so overlooks the many positive aspects that they can offer. For many managers, they are a sincere attempt to help an employee improve their performance and fulfil their potential, rather than a route to demotion or termination.

The simple fact is businesses hire individuals because they believe in their skills and ability to do the job and a PIP signals that the company wants to continue to invest in their employees. Early intervention can help managers to correct employees’ behaviour or performance before it becomes too deep-rooted or habitual.

The ultimate goal of placing an employee on a PIP should always be to find a solution that works for both the employee and the organisation. By taking a structured approach, employees and managers can keep sight of the long-term objective, setting appropriate goals and providing the necessary support and guidance to help employees develop the skills they need to do their job effectively.

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Rarely does poor performance sit squarely with employees. Many other factors can contribute to an employee struggling, including a lack of clear objectives, inadequate training, little team support or a lack of motivation.

Managers should never use a PIP as a threat or as an avenue to vent their frustration. Instead, they should be framed as an opportunity to help the employee.

George Nolan, senior HR consultant at JourneyHR, says: “The key thing for me always is to remind managers that it starts off as informal. It is about creating a space to define opportunities for someone to be able to develop. Whilst it can be used throughout the management process, I think the good intention of a PIP is lost. In fact, we should just call it a development plan and use the performance management process for when we feel confident we have explored all options.”

As a manager, make sure that you provide clarity to the employee around why they have been placed on a PIP and what your expectations are. There may well be an underlying reason why an employee has been struggling with their performance so creating the time and space to talk through anything that may be troubling them is important. ?

It’s also important to be open to changes based on the employee’s feedback and work together to set clear, realistic goals and timelines.

HR Consultant Caroline Hughes sums it up perfectly: “It’s an opportunity to set clear expectations and ensure you and your team member are aligned on what success looks like. Objectives should be clear, achievable and most importantly, understood.

“Direct feedback is a kindness. It might be a little uncomfortable at times but it’s essential to a fair PIP. Without direct and honest feedback you cannot fairly assess your team member’s performance, something along the lines of ‘you don’t know what you don’t know.”

Helping employees to fulfil their potential is a lot more beneficial, both financially and reputationally, than hiring a new employee. According to Gallup, the cost of replacing an employee can range from one-half to two times the employee’s annual salary and that doesn’t take into account the disruption losing staff causes the wider team. However, as a manager you should ensure that there are clear, defined and transparent consequences outlined if employees fail to improve their performance after a PIP has been put in place.

Top tips for employees

It’s natural to feel anxious or defensive if your manager has placed you on a PIP. ?You should take the time to process your emotions and ensure you fully understand the situation and what drove their decision.

It can be helpful to write down any thoughts or questions you might have. When talking through the document with your manager, make sure that you raise any areas that you are uncertain about or disagree with. Equally, if you feel you have achieved certain accomplishments or overcome challenges, make sure these are highlighted when you have a conversation together. ?

Don’t be afraid to ask for help if you need it. For example, if your work isn’t up to the right quality but you’re not sure how to improve, ask for more detail on expectations and examples so that you understand what you’re working towards. Don’t shy away from asking colleagues for help or guidance on tasks if there’s something you’re not feeling confident about.

Also make sure that you check in with your manager regularly. Not only will this show that you’re committed to improving your performance but it helps you to understand that the steps you’re taking are leading you in the right direction.

Ultimately, a PIP is there to help you get back on track and succeed at your job so try and view it as an opportunity to help you be the best you possibly can.

If PIP is something your business is struggling with or you’re unsure of the next steps, JourneyHR would be happy to help.