It's a common but unfortunate reality that even the most rigorous recruitment practices don't always guarantee workplace efficiency. From individual training gaps to technical difficulties, multiple factors could contribute to an employee underperforming - none of them having anything to do with their hiring process! In these cases, it's essential to be aware of how you can address workplace inadequacies without damaging your company's reputation. Fortunately, creating a performance improvement plan is an effective way to manage employees who fail to meet expected standards and could be integral for getting them back up to speed.
What is a Performance Improvement Plan (PIP)?
An employee's success is a business's success, and performance improvement plans are one way to ensure that both the company and its staff enjoy long-term growth. A performance improvement plan (PIP) is a comprehensively structured system designed to maximize your employees' potential. This structured approach identifies your employee's deficiencies and areas of underperformance so management can devise solutions. Not only does it show that you are directly investing in an employee's career, but it also helps optimize talent management.
While PIPs are generally used to get employees back on the right track, they may also serve as a warning. Underperforming employees should be given a chance to improve before they are fired. This doesn't just reflect well on employer branding. The positive feedback and investment in employees increase employee engagement (which may be the thing you've been missing all along!).
What Should I Include in a Performance Improvement Plan?
The content of a PIP is often relative, depending on the position, employee's disposition, and company policies. Nonetheless, an ideal performance improvement plan should include:
The employee's name, position, supervisor, and responsibilities.
An exhaustive list of target areas that need improvement with necessary details.
The job expectations and acceptable performance levels.
SMART goals.
Resources, tools, and personnel needed to execute the improvement plan—mentoring sessions, a new PC, HR officers, etc.
The specific timeframe for plan execution—two weeks, three months, etc.
Consequences for not meeting stipulated requirements within the given timeframe. This could include demotion, reduction in salary, transfer to a different department, or termination of employment.
5 Simple Steps to Implementing an Effective PIP
Once you have determined that an employee needs a performance improvement plan, follow these five practical steps to implement it.
1. Identify and Analyze Performance Issues
Getting to the root of any performance issues starts with understanding. To identify an employee's defining flaws, you can look through their records or ask colleagues and superiors for input. You could even have the worker self-evaluate! Once all perspectives are gathered, take a close look at them - this will help determine if creating a written plan is really necessary. Whether it be time management troubles, lack of teamwork abilities, or inadequate efficiency in customer service interactions – get factual evidence before making decisions based on hearsay alone.
2. Open a Dialogue With the Employee
Finding the performance issues is only half the battle. To ensure a successful resolution, it's vital to have an in-depth discussion with management and employee present. The goal of this meeting should be constructive; both sides should engage openly about what went wrong and how to resolve or prevent similar situations from arising again. Tempers might flare, but stay calm as you discuss expectations - lay out specific goals that need improvement while being clear on applicable repercussions if these targets are not met.
Here is an example of how you can kickstart a conversation about performance issues:
George, your sales record has drastically reduced within the last three months. Recall we spoke about this last month, but not much has changed. What do you think about your performance? Are you experiencing any difficulty? And how best can we improve moving forward?
Next, set SMART goals to help bring the performance improvement plan to fruition. These goals will serve as a roadmap to guide the employee through the improvement journey. And by SMART, we mean:
Specific: Create a list of specific goals, using action words and objectives to help the employee improve.
Measurable: Ensure you can evaluate and measure goals during and after the PIP execution (helps track employees' progress over time).
Achievable: Most importantly, provide realistic and feasible goals. In a bid to improve an employee's performance, please do not give them tasks that are beyond their capabilities.
Relevant: Ensure the goals are relevant to the employee's responsibilities and jurisdiction.
Time Bound: Set deadlines. Each goal needs to have a start and end time/date to keep the employee on track while completing the PIP.
4. Offer Support and Identify the Necessary Resources
It's not enough to just hand off the improvement plan to your employees. You must be present - nurturing employees through the process. Offer support by taking advantage of professional development training, pairing the employee with a mentor, or temporarily reducing their workload. Before implementing the plan, you should also attempt to identify further resources needed to ensure success - software, tools, books, publications, etc.
Checking progress is extremely important in ensuring the effectiveness of a performance improvement plan. It assists in knowing what does and does not work. From there, you can make the necessary changes.
When scheduling progress checks, specify how often you'll meet, what goals are being evaluated, and what central questions will drive the conversation.
With staff shortages across various industries, firing employees isn't always the best option. A performance improvement plan is ideal for helping underperforming workers while minimizing expenses related to hiring new workers and employee turnover. By keeping tabs on your team, you'll be better equipped to identify any issues with their work early - giving them a chance at success before it's too late!
