Performance Improvement Plans – What Are They and Should You Use Them?

While we hope our employees will perform their job duties flawlessly, life's challenges can sometimes affect their performance and productivity. Instead of immediately terminating employees for errors or declining performance, consider implementing a Performance Improvement Plan (PIP). 

According to SHRM, a PIP is a tool designed to give employees with unsatisfactory performance the opportunity to promptly turn around performance. PIP’s can help communicate areas in which employes are not meeting expectations and offer guidance toward improvement. 

Despite good intentions, PIP’s often carry a negative connotation. Employees may assume they are about to be terminated. This may cause their job performance to suffer, motivation to decline, and may even lead them to seek other job opportunities, which is the opposite of the intended purpose.

To execute a successful PIP, you must first develop a strategy. Identify the performance issues and outline the steps an employee should take to improve. Reassure them that while their performance may now be slipping, you value them and their contributions to the team. Work together to discuss ways to improve, and how you will measure that improvement. 

A PIP can be an effective tool if used correctly; helping you retain employees, and in turn, providing those employees with an opportunity to understand and overcome their shortcomings. If you need help implementing a successful PIP or if you are looking for a template to guide you and your managers through this process, reach out to our consulting team!