What is a PIP and when is the right time to employ one? Such questions are not uncommon within the workplace. Performance Improvement Plans are a key way for organizations to work on improving hired talent to ensure that teams are always performing to their full potential.
Performance improvement plans, or PIPs, are a straightforward way for companies to aid underperforming employees. They focus on polishing up the results that employees can produce, without turning to firing them as the first solution to the limitations in their capabilities. When employees present recurring problems in their performance on the job, PIPs serve as a strategy-based approach to addressing the issue, allowing employees to have a fair chance at improving themselves and matching the expectations of the organization.
Understanding what a PIP is and when to use it is an essential part of building a workforce that is consistently navigating towards growth.
Unsure about what a PIP is and when it should be used? Performance improvement plans are key to supporting talent within your organization. (Image: Pexels)
What is a PIP, and When Should They Be Enforced In an Organization?
A PIP or performance improvement plan is a traditional part of the performance review process in any organization, although they aren’t exclusively provided after a review. Most businesses conduct annual or quarterly assessments where they scrutinize employees to get a sense of their achievements and abilities. In most cases where there is room for improvement, recommendations are provided for the employee to pay attention to for the next evaluation period.
In cases where major improvements are necessary, managers and HR teams collaborate to create a performance improvement guide. The guide is used as an instruction manual for the employee, allowing them to strive towards fixed short-term and long-term goals within a specified time period.
Typically, deciding to use a PIP is a serious matter, where employees who fail to meet the guidelines set specifically for them are at risk of being let go. PIPs can be very stressful to create, announce, and enforce due to the consequences of failure, making it a taboo topic to bring up in the workplace. Still, a performance improvement plan is a much better alternative to firing employees directly without giving them a chance to better understand and work on the shortcomings first.
What Does a PIP Include?
PIPs are formal HR documents that clearly lay out the problem areas with an employee and mark the improvements that are deemed necessary. They ensure that there is a record of the issues that the organization has with the employee and showcase a clear effort from the employer to give the employee another chance. There are many reasons for underperformance that don’t always result from disinterest or a lack of talent, and PIPs often allow HR teams to take these factors into account.
Sometimes employees don’t have a clear understanding of the expectations. At other times, there are underlying issues within the organization that prevent the employees from performing to the best of their abilities. Deciding to use a PIP and creating a structured performance improvement guide opens up a conversation between employers and employees, allowing both parties to settle on the necessary changes.
A performance improvement plan typically includes:
- A clear description of the areas of improvement that have been identified
- Specific goals that the employee needs to meet in order to confirm that the PIP has been successful
- A stage-by-stage description of tasks the employee will be required to perform going forward, to showcase and record their improvements
- The metrics by which the employee will be evaluated to assess whether their performance has improved
- A timeline for the PIPs enforcement that is deemed sufficient to understand whether the employee is right for the organization
- Resources that will be made available for the employee to rely on as they work towards their new goals
When Should You Use Pips?
Once you have the answer to “What is a PIP?”, your next question might be about when it should be used. General feedback to employees is best when provided immediately as issues are noticed. This helps prevent the problem behaviors from turning into a habit. A performance improvement plan, on the other hand, is a more serious matter and isn’t prescribed at the first sign of fatigue or failure.
Creating such a formalized record of an employee’s shortcomings requires some deliberation and planning before they are created. These are best preceded by feedback from managers and HR teams to give employees a chance to adjust to the workplace and improve on their own first.
Rushing to provide a performance improvement guide too soon can be very hard on the employee’s morale. On the flip side, if you deliberate too long on when to use a PIP, your organization might suffer, and so will your other employees along with it. There are certain actions that you can take to guide the employee in the right direction. If the employee still doesn’t pick up the slack, a PIP might be the best way forward.
Use a PIP When:
- Regular feedback to employees has failed to result in an improvement in their performance
- The employee consistently underperforms in certain areas
- You have provided additional resources that the employee needed, but they still struggle with improvement
- There are clear gaps in the employees’ skills or their understanding of their responsibilities
- You have already addressed the external circumstances that might be affecting the employee’s performance
- There are undesirable behaviors showcased by the employee that the organization wants eliminated entirely
- The employee wants to advance in their career, but there are some key areas where significant improvement is necessary in a short time before they can progress
Performance Improvement Plans Can Help Retain Talent and Build Stronger Bonds
The idea of PIPs can be unnerving for everyone involved, but they are a necessary evil. Despite the initial shock of being on the receiving end of such formal action, employees will appreciate the chance to improve their performance rather than face unemployment. Adhering to PIP best practices can even help strengthen the bond between employer and employee, giving HR teams and managers a closer look at the employee experience while allowing employees to access the resources they need to truly improve their performance.
Most employees are willing to work past their limitations in favor of job security, and are unopposed to feedback, if provided correctly. PIPs may indeed help employees uncover their strengths and reach their full potential when enforced with great care and consideration. It is also true that they don’t always have to end with firing the employees if the goals aren’t met perfectly.
In many cases, the signs of improvement are enough to ensure the talent is worth retaining, and there is always room to utilize another PIP to keep the employee on the right track. Understanding what a PIP is and how it can be beneficial is not just useful knowledge for HR teams, but for the workforce as a whole. At the end of the day, working unitedly towards success is always a task worth undertaking.
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