Performance Improvement Plan Template

Enhance employee performance with a tailored Performance Improvement Plan (PIP) template, outlining steps for addressing gaps and boosting productivity. Utilize PIPs to foster better management-staff relations and improve job satisfaction.

By Douglas Wade, Attorney

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Table of Contents

1. What is a performance improvement plan?

2. The purpose of carrying out a performance improvement plan

3. What a successful PIP should include

4. When to put a performance improvement plan into action

5. When not to use a performance improvement plan

6. A performance improvement plan’s advantages

7. The drawbacks of a performance improvement plan

8. Checklist: Developing a Performance Improvement Plan

9. How to monitor PIP targets with metrics

10. Examples of performance improvement plans

11. Advice: How to provide your staff a PIP in an effective way

12. To sum up

What is a performance improvement plan?

A performance improvement plan (PIP) allows you to create an individualized, action-oriented, step-by-step plan that will boost the performance of workers who fail to meet their manager’s or supervisor’s expectations or might profit from a more organized action plan.

Employees can use a performance improvement plan (PIP) to better understand their talents, pinpoint areas for training, and establish clear expectations for their job duties. A PIP is usually applied when a worker doesn’t perform up to par. But when done right, it can be a useful tool for bringing management and staff together, improving job satisfaction and performance.

Every PIP is specific to an employee’s needs. It notes gaps, outlines the necessary actions to close them, and brings improvements that align with expectations and job tasks. There isn’t one solution that works for all situations. Thus, managers, supervisors, staff members, and HR should all be involved in its creation.

The responsibilities of HR include:

Deciding if a PIP is suitable in the given circumstance.

Collaborating with managers to develop the PIP to eliminate bias and produce the best results.

Supporting managers and staff at every stage of the process.

Verify milestones are being met regularly. This is because PIP objectives must always have due dates to guarantee accountability.

The purpose of carrying out a performance improvement plan

A performance improvement plan (PIP) has typically been the final option considered when an individual has not performed up to par on the job. Because of this, PIPs are now perceived by workers, managers, and even HR specialists as the initial stage of terminating an employee.

Conversely, a PIP may also be an effective communication tool that promotes a growth mindset culture of ongoing learning and development. This is because it is based on a well-defined process that finds gaps in employee performance and skills compared to work duties. This helps employees set goals and accomplish growth targets by providing them with a clear roadmap for improving the standard of their work. It’s also a useful resource for anyone moving into a new position.

Rather than encouraging a positive culture fostering personal progress, PIPs will always be linked with performance gaps and failures.

However, suppose the organization’s culture is to adopt a performance improvement plan as soon as a performance problem is recognized. Then, individuals are given the authority to take charge of their own improvement. In that case, employees will accept and even demand PIPs.

Remember that happy workers are productive workers who believe they are contributing value to their companies. People will likely be more productive when they know what is expected of them. According to Gartner research, employees want their worth to be acknowledged on a human level.

Deeper connections, a strong sense of belonging, and purpose-driven work are crucial. You have a better chance to get things back on track if a valued employee isn’t performing up to par with a targeted PIP that outlines the problems and offers a solution.

What a successful PIP should include

Determine if a PIP is the appropriate remedy for the performance problem. Poor performance can occasionally be a sign of more serious issues. For instance, a worker’s performance might be affected by personal problems. Ensure you understand the causes of non-performance and that the PIP’s goals align with them before you begin.

PIPs are carried out with the worker, not for the worker. This needs to be a jointly developed action plan with specific deadlines and goals that both parties can agree upon. The employee needs to be actively involved in the process for any PIP to be successful.

Be honest about the results, both positive and negative. Additionally, the results of a successful or poor implementation should be stated in detail in a PIP. When will the next evaluation be held, if the goals are met? What should be done if the objectives are not met? Fair and open communication depends on being clear from the outset.

Establish a setting that facilitates the PIP. As crucial as the plan is to set up the necessary resources and encourage the atmosphere, a PIP is not a “simple way out” for the management or company. Employees frequently lack the required tools and assistance to meet their performance objectives. Therefore, the company must provide them with it.

When to put a performance improvement plan into action

For most managers, few things are more difficult than dealing with subpar performance. But without a strategy in place, expecting better performance is rarely, if ever, successful. This is where HR can be extremely helpful to managers and staff alike.

Determining if a PIP is acceptable and will bring value is crucial. Begin by posing the following queries:

Does the worker’s performance affect the attitudes and work output of their peers?
Has the worker’s output significantly altered, or have they consistently fallen short of goals?
Is the management merely attempting to establish a record that would validate the termination of an employee?

The PIP needs to be a customized strategy. So, for instance, if a valued employee has always performed well and is unexpectedly missing deadlines or appears preoccupied, a PIP could find the issue and promptly fix it. It’s a focused strategy that will only highlight the areas where the worker needs to improve while highlighting their strong points.

A PIP can also be very helpful if an employee is unclear about what is asked of them or their job description or if they could contribute more value if given the proper assistance.

When not to use a performance improvement plan

Never use a PIP as a check-box exercise. Developing and implementing a performance improvement plan takes a lot of work and commitment. Thus, it should only be used when there is a good chance that an employee’s performance will improve. Furthermore, if your other staff members witness PIPs being utilized as a means of dismissal, they will not only be afraid of the procedure but also disrespect policies intended to enhance performance and results actually and jointly for the good of all.

Personal difficulties between managers and employees cannot be resolved via PIPs. Although they don’t have to be best friends, managers and staff members should be able to get along and collaborate. Moving the employee to a different team or position where they are a better fit could be the solution if there is a personality mismatch (a PIP can then be a useful tool to swiftly get them trained in their new position with clear expectations). Unfortunately, a PIP won’t be very helpful if an organization’s strategy has changed and an employee’s skills don’t match the demands of the new position.

A PIP shouldn’t handle issues that are neglected for extended periods of time. Some workers start off in an organization as average performers, and with time, this drops to underperformance. With prompt action, you have the potential to improve this situation. But your odds of instant success are low, if not nonexistent, if neglected for years.

Serious occurrences, such as stealing, assault, or flagrant disobedience, cannot be remedied with a performance improvement plan.

A performance improvement plan’s advantages

They are fair and encourage positive behaviors: Not all workers know that they aren’t doing their jobs properly, especially if they don’t know what is expected of them. PIPs give all employees peace of mind by assuring them that, in the event of performance concerns, they would receive fair treatment, criticism, assistance, and a chance to improve rather than being abruptly and involuntarily terminated.

PIPs give people power: Employees can show their dedication to improving and fixing problem areas by taking ownership of their behavior through performance improvement plans. Some employees improve due to a strong sense of accountability ingrained in the organization’s culture.

Minimize liability: A genuine, recorded procedure for improvement lowers the likelihood of legal action if an employee’s performance doesn’t improve and termination occurs.

Save time and money: According to Gallup, underperforming workers cause $78 trillion in lost output globally. Your bottom line will benefit from swiftly and effectively handling performance-related concerns. Additionally, attrition is decreased when you prioritize performance enhancement over letting staff members gradually become disillusioned and quit.

Boost dialogue: According to Clear Company statistics, 86% of workers think that poor performance is caused by ineffective communication and that the C-Suite is the first to lack openness. All expectations are controlled, shared, and documented in a transparent culture that supports and consistently applies PIPs.

Improved job roles: Developing a PIP frequently highlights areas where outputs and job roles are unclear.

The drawbacks of a performance improvement plan

They require work and time: As previously stated, PIPs are not universally applicable. They show that a well-defined procedure is in place, but every plan needs to be specially created with precise goals in mind. This indicates that they require work. If done properly, they are well worth the effort, but if done poorly, they are a waste of time and money.

PIPs may divert attention from the usual workflow: Nonetheless, there can be significant long-term productivity gains from improving performance and discovering discrepancies between an employee’s perception of their role and what management expects of them.

Conversations about performances can be awkward. HR may play a significant part by providing managers with the appropriate resources and talking points to help steer the process. They can also set clear expectations about what a PIP is and what it can accomplish (in a good manner). Plans for performance improvement can be very successful or very failed depending on whether supervisors follow through and help the individual whose performance is being reviewed. Once more, this shouldn’t be just another box to check.

They might be seen unfavorably because of prior encounters: There’s a chance that when an employee is placed on a performance improvement plan, they (and their coworkers) will see it as a precursor to being fired. They won’t take in or accept criticism after this. Rather, they will perceive themselves as being in a hostile environment and might turn antagonistic or quit. How you provide PIPs in a self-improvement culture will impact how employees perceive them.

Checklist: Developing a Performance Improvement Plan

When you are drafting your performance improvement plan, refer to this short checklist:

Determine if a performance improvement plan is required.

PIPs are time-consuming to plan, carry out, and maintain, and they hinder standard procedures.

Consider this:

Does the worker have value?
Is there a solution to the performance issue?
Will things work out well in the end?

Your best option might be a performance improvement plan if the answers to these questions are “yes.”

Include the worker

Performance improvement plans ought to provide workers with more authority. Getting their buy-in from the start is a key benefit of involving them in the entire process. They have a stake in the PIP’s success as well as in achieving the goals and timeframes you all agreed upon.

Take this step:

Explain the desired performance for a particular role and point out any areas that need development. Ask the worker how they think they might improve their performance and what kind of support they think they need.

Prepare the performance improvement plan

HR plays a significant part in helping managers create a performance improvement plan. Help managers develop a PIP that is precise and comprehensive:

Describe the acceptable performance threshold.
Examine which particular performance did not meet this requirement.
Determine the source of the problem.
Establish quantifiable goals that the worker can achieve to satisfy performance standards.
Establish SMART goals so that staff members have a plan to achieve them.
List the steps and specify which deadlines need to be fulfilled.
Indicate the standards that will be evaluated along with the due dates.
Stress the benefits of increased performance to the company and the worker.

Specify the tools, instruction, or mentoring that will be offered

HR and the manager can collaborate to determine what assistance the manager and the employee require.
Additionally, workers should be allowed to ask for the kind of assistance they feel will be most helpful to them.
Is there a budget in place, and if so, was it established with the advantages of higher performance in mind?

Plan frequent check-ins to make sure benchmarks are reached

HR should follow up with management to see how the worker is doing.
Additionally, HR must ensure the manager plans frequent check-ins with the staff member.
The PIP should explicitly outline these check-ins along with their deadlines.

How to monitor PIP targets with metrics

The main goals of performance improvement plans are to identify the issue, provide a workable remedy, and outline the steps to success. Therefore, using the appropriate metrics to monitor staff performance is crucial for managers.

By using these important metrics, HR can assist managers in putting successful PIPs into practice:

360-degree feedback: Also known as multisource or multi-rater feedback, 360-degree feedback is a tool for gathering feedback and performance ratings from peers, superiors, customers, suppliers, and/or subordinates.

180-degree feedback: This is a condensed form of the 360-degree feedback instrument that concentrates on the manager and immediate coworkers of the employee.

Net Promoter Score (NPS) for employees who deal with customers: A crucial element of a 360-degree feedback process is inquiring about the customer’s interaction with an employee. A Net Promoter Score statistic ensures you get insightful customer input.

Measures of training: Time and resources are wasted when training is implemented without being evaluated for its impact on employee performance. Even after putting a PIP into action, you might be unable to tell if it was effective or whether the resources it included had a significant impact.

Performance evaluations: For most managers, performance evaluations remain the most widely used metric. We strongly advise using extra metrics to ensure your PIP is strong and accomplishes your main goals.

Assess performance using a scale: One excellent technique to compare performance to expectations is to rank performances using pre-established scales. Recall that the purpose of this exercise extends beyond simple data collection. Data must be monitored and evaluated to motivate behavioral adjustments and performance improvements effectively.

Examples of performance improvement plans

Example 1: Recurrent tardiness and absences

Objective: Lower absenteeism

Goals: Arrive on time for shifts and refrain from missing work for eight weeks.

Problem: To accomplish this goal, the PIP must make it abundantly evident to workers how their tardiness and absences affect their coworkers and the company. The primary reason for the absence should then be identified; for instance, is it a childcare or transportation issue?

Plan: A support structure can be established in accordance with the difficulties that an employee is encountering. To be able to care for a child, for instance, this person might need to alter shifts or have access to more dependable transportation.

Check-in: Over the next eight weeks, on Mondays at 9:00 a.m.

Metrics: Monitoring if a worker shows up on time for each shift.

Example 2: Consistently missing deadlines for design work

Goal: To make sure time frames are met

Objectives: To guarantee that a graphic designer fulfills design deadlines, allowing social media initiatives to launch on schedule.

Problem: Despite being a good designer, the employee struggles with meeting deadlines, which leads to social media marketing campaigns that are submitted past the deadline. For a company that sells products, this means lost revenue. Time management and excessive attention to detail are found to be the issues. It is concluded that an art director will act quickly to support the approval of artwork and that time management training will be helpful.

Plan: Establish the approximate duration of each task so that the designer knows the expectations about delivery time versus speed. To help the designer know how long to spend on tasks, provide them with time management training and tracking tools. Modify the procedure such that the art director grants permissions ahead of time (in accordance with a timeline) and the designer doesn’t have to worry about not being able to do a better job.

Check-ins: Fridays at ten a.m. to review the week’s deadlines.

Metrics: Time spent on tasks, timely asset deployment.

Example 3: Poor group dynamics

Goal: Raising a mid-manager’s general drive and spirits

Objectives: To assist a mid-manager in motivating their staff to increase productivity by strengthening their own drive and optimistic outlook.

Issue: A team manager has noticed that one of the groups in their business unit is not performing up to par with the other groups in the unit. The management is the issue. They don’t seem driven, are pessimistic, and pay attention to team evaluations and meeting feedback. The first step is to determine changes in the manager’s life and perspective because the team used to be top-performing. This will allow an action plan to be implemented. It’s essential to demonstrate with data how their recent attitude shift affects the entire team.

Plan: A mentor will be assigned to deal with negativity and motivation, management training will be implemented, and key performance measures will be established in connection with performance bonuses to solve the problem.

Check-ins: On Wednesdays at 2:00 pm, review the performance highlights and next objectives for the week.

Metrics: Customer satisfaction and team productivity

Example 4: Inadequate client support

Goal: Raising the caliber of care that clients receive

Objectives: Better customer engagement and retention

Problem: The company is getting bad internet reviews and ratings, and customers are complaining about a certain employee’s lack of support. What led to the issue? Is the employee’s attitude the problem, or does he or she lack the skills necessary to assist customers? Additionally, it is found that, despite the average call duration of 15 minutes, this contact center agent spends five minutes on each call. Is the staff member speeding through calls or do they not know enough about the product to offer help?

Plan: Training on products and customer service, along with explicit guidance to raise the average conversation duration to 15 minutes. They will do further product training if this proves to be a problem.

Check-ins: Call logs are reviewed on Fridays at 10:00 a.m.

Metrics: Customer churn rate, call length, and net promoter scores.

Example 5: Regularly failing to meet sales goals

Goal: Increasing closed deals by 40%.

Objectives: Increasing revenue and overall sales targets.

Problem: Despite anticipating closing deals, a sales representative routinely fails to meet sales goals. These sales estimates form the basis of budgets. It is found that the sales representative is not bringing in enough new clients to fill their pipeline and is not making the necessary efforts to close deals.

Plan: To schedule six meetings with new clients each week, the sales representative needs to spend ten hours cold calling each week. Additionally, they should schedule two weekly meetings with clients at the bottom of the sales funnel and four with retention clients.

Check-in time: 8 a.m. on Mondays for the following six months.

Metrics: Closed deals, scheduled meetings, and sales calls.

Advice: How to provide your staff a PIP in an effective way

This post has explained the advantages of using a PIP and when to use one, and it has given you some examples. However, the finer points are critical to PIP success.

The following are some essential pointers to make sure that your PIPs benefit management, staff, and the company:

Start a candid discussion: Before putting a PIP into place, discuss any performance concerns that have been noticed with the employee. To understand them, attentively listen to them while they explain their viewpoint.

Make sure the PIP is worthwhile: Why is the performance so subpar? Is it fixable, and will the outcome benefit all parties involved? True? Excellent, press the trigger now.

Establish quantifiable goals: SMART goals are an excellent technique for ensuring that staff members are clear about their goals and the criteria for success.

Offer the required resources and training: Provide the instruments, instruction, or materials required to solve performance obstacles or skill gaps. These can be seminars, one-on-one coaching, or educational resources.

Emphasize support: A PIP is essentially paperwork that outlines goals, draws attention to issues, and then sends staff members on their way. They ought to explain in detail the kind of help the worker will receive, why they will receive it (this is related to root cause analysis), and how the results will be evaluated.

Adopt a cooperative mindset: Employee empowerment and collaboration are key to performance improvement plans. Establish recurring check-ins to monitor progress and address potential problems. Workers shouldn’t feel like they’re on their own.

Be honest about the consequences: Since changing and improving behavior is the aim, you should emphasize the positive aspects of improvement in your PIP. However, you should also be clear about the penalties for not reaching your goals. Communication and transparency are essential. But the key is to put more emphasis on growth than punishment.

To sum up

When evaluating whether a performance improvement plan is required and whether it can be used successfully to effect positive change, HR is a crucial factor to consider. When implemented properly, a PIP can be a tool for staff members to create gains that will aid the company.

Have a quick question? We answered nearly 2000 FAQs.

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