Performance Improvement Plan (PIP)

What is a Performance Improvement Plan?

A performance improvement plan (PIP) is a structured system that can help facilitate a productive conversation between an employee and their supervisor, and is can be an effective tool to help an employee improve their work performance & results. When an employee displays recurring performance issues, employers provide a PIP. 

A performance improvement plan is a formal documents that contains the specifics of the employee’s performance issues, has a clear list of goals that an employee required to succeed at work, and is given a timeline to help them achieve those goals

How to issue a PIP?

Once an employer has decided to place an employee on a performance improvement plan, they may follow the following steps to help employees improve their behaviour and performance. 

1. Discuss the situation with the concerned employee

The first step of issuing a performance improvement plan is to have a discussion with the concerned employee to inform and make them understand the situation and how they can improve. Explain the specific performance metrics they need to work on. Ensure that the employee understands that the performance improvement plan is a performance-improving tool that will help them grow. 

2. Create a list of achievable goals

The second step is to create a list of goals that can be realistically achieved. Set the end goal and figure out the steps the employee needs to take in order to achieve that goal. Each goal needs to have clear start and end date, allowing the employee to plan accordingly. 

3. Maintain constant communication with the employee

Keep the employee focused on their target by maintaining constant communication with them about their progress. Schedule regular meetings with employees and find out what challenges the employee faces on their way to achieving their goals. This will give them the professional support they need and training resources that might be helpful.

4. Review the outcome

After the PIP deadline has passed, discuss the progress of the employee’s performance with their supervisor so as to get a detailed information from a direct superior. Review the employee’s performance, and after reaching a conclusion, invite the employees to a discussion in which you can ask them about the performance and communicate the outcome. 

How long should a Performance Improvement Plan be?

A performance improvement plan’s duration depends on several internal factors, such as the company’s size and profile, the employee’s job complexity and how far off they are from the company’s standards. Typical performance improvement plan durations are 30, 60 and 90 days.

How a Performance Management System Enhances Performance Improvement Plans

Using a performance management system can greatly improve Performance Improvement Plans (PIPs) by:

Data-Driven Insights: Performance management systems provide comprehensive data on employee performance, helping identify specific areas for improvement and track progress accurately.

Clear Objectives: These systems facilitate the setting of clear, measurable goals and objectives for the PIP, ensuring both the employee and manager understand the expected outcomes.

Consistent Monitoring: Performance management systems allow for continuous monitoring and real-time feedback, enabling timely interventions and adjustments to the PIP as needed.

Structured Documentation: They provide a structured way to document performance issues, action plans, and progress, ensuring transparency and accountability throughout the PIP process.

Enhanced Communication: These systems promote regular communication between employees and managers, fostering a supportive environment for improvement.

Automated Reminders and Notifications: Automated features ensure that both managers and employees stay on track with the PIP timeline, reducing the risk of missed deadlines or overlooked tasks.

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