Missing deadlines. Not following standard procedures. Turning in poor-quality work. Struggling due to lack of training, unclear expectations or conflict with others. All these are signs that the employee might need a performance improvement plan (PIP) to save their job.
4 Tips For Making a PIP Really Work
- Have a pre-PIP conversation to outline expectations and procedures.
- Consider factors other than the employee that might contribute to their poor performance.
- Approach the PIP as a collaboration with the employee.
- Monitor the PIP and adjust it as it proceeds.
PIPs are a formal, classic HR process designed to improve employee performance. However, many employees see PIPs as a red flag, with a pink slip soon to follow. PIPs can fulfill their promise to promote employee improvement, but only when implemented skillfully. Here’s how.
How Does a PIP Work?
Employers use PIPs to communicate, address, document and, they hope, correct an employee’s performance issues. They outline specific areas where the employee’s performance is lacking, set clear expectations for change and provide a structured plan for improvement. The goal is to help the employees improve their performance to meet the required standards.
PIPs are not always punitive or disciplinary measures. Still, they usually induce significant fear and other negative emotions from the employees who receive them, often because managers do a poor job of delivering feedback before the institution of a PIP. The PIP surprises the employee, which can be demoralizing and damaging to their morale, and is why the vast majority of employees don’t survive the process. Instead, they quit or are fired later.
Conversely, when PIPs are done well, they can be an invaluable tool to help employees reset and put them on a path toward success. A successful PIP involves five important steps.
Have a Pre-PIP Conversation
The first step is to have the right conversation before instituting a PIP. Too often, leaders withhold feedback or deliver it only during a formal performance review process. They may do this because managing performance takes time and delivering constructive feedback can be difficult.
However, the more a leader offers feedback to support an employee before initiating a PIP, the more a PIP will support the needed development. This preliminary feedback should be clear, detailed and include a plan for support and accountability agreements. This feedback prepares the employee for the possibility of a formal PIP for performance if improvements are not made.
When a leader can intervene before problems escalate beyond the point of no return, the likelihood of success is improved.
Get to the Root of the Problem
To start, don’t automatically blame it on the employee. Sometimes, employees aren’t responsible for their inability to meet objectives if their leaders make errors that contribute to poor performance. In addition, research in systems theory postulates that most of the time, systems and processes, not people, cause failures.
Leaders benefit from considering the role of processes in any performance issues. An example of this might be an employee who didn’t follow an operating procedure because the policy lacked critical details or the employee was not adequately trained in it.
Accountability has three main requirements. Leaders should ask critical questions at each phase to ensure they are doing their part to ensure success.
- Establish clear expectations. How have expectations for performance been established? Is more clarity or communication needed? Are any barriers preventing this employee from performing as desired?
- Give the employee a voice. Has a forum been provided to address questions or concerns and ensure the employee is on board with expectations? Has the team member been allowed to actively participate in discussing their problem?
- Hold people accountable. Have the consequences for not meeting expectations been clearly communicated? Too often, managers jump right to the last step and fail to acknowledge the foundational pieces.
Make the PIP a Collaboration
Frequently, leaders spell out all the details of the performance plan without ever involving or listening to the employee’s perspective. This generally results in a lack of buy-in and follow-through from the employee.
If a PIP is to be successful, then it has to originate from a collaborative discussion with the team member. Both sides need to feel safe to communicate openly and honestly. When this conversation is done right, the leader builds trust with the employee and lowers their level of fear. If employees are to own the action plan, then they must have a voice and should help identify how to correct their behavior as well as any additional support they need.
Create a PIP that outlines the specific areas for improvement, the actions the employee needs to take, and the timeline for achieving these improvements. Remember that performance usually does not decline overnight and takes time to improve as well. Details are important at this stage, so clearly outline what is expected in terms of job performance, behavior, and outcomes. Make sure these expectations are specific, measurable, achievable, relevant and time-bound (SMART).
The more a leader can provide clear, specific and objective feedback about the performance issues, the better. Avoid generalizations, focus on concrete examples, and ensure the expectations are realistic. It is also important to describe how the employee’s performance is affecting the team and the organization, as this helps the employee understand the significance of the issue.
Provide Support and Resources
While leaders desire fairness in evaluating PIPs, they must remember to consider the unique circumstances behind each person’s performance gaps. Depending on the situation, support might mean additional training, mentoring and coaching.
It could also require peer support. When an employee’s performance falters, team members feel the effect. They might be resentful, frustrated and fed up, so helping your team support the employee can be another critical component. Leaders might also need to assist with prioritizing workload or offering access to employee assistance programs.
Finally, leaders should show a willingness to support team members with a PIP in place by understanding the human context of their specific situation.
Sometimes, an employee might be in over their head. Their diminished performance could also be situational (e.g.; a recent death in the family has led to a lack of focus). Different situations suggest different solutions.
Monitor and Adjust the PIP
For PIPs to be successful, leaders must regularly check in with the employee to assess progress toward goals and continue to give feedback. Leaders should also be open and willing to adjust the action plan if circumstances change, be transparent with documentation and celebrate successes and small wins.
Do not lighten up the feedback once the PIP requirements have been met. Employees should also be encouraged to continue offering feedback.
When implemented effectively, a PIP benefits the employee and contributes to a healthier, more productive organizational culture. By following the strategies above, managers can maximize their chances of turning an underperforming employee into a valued team player.
