Performance improvement plans: getting them right

Performance improvement plans (PIPs) can be a tricky subject for employers. Employees can see them as the beginning of the end, while managers can be tempted to use them simply as a formal step towards dismissal. But that isn’t really what a good PIP should be about.

At its simplest, a PIP is a structured way of telling an employee: there’s a problem with your performance, here’s what needs to improve, and here’s the support and time we’re giving you to get there.

When should you use a PIP?

A PIP can be useful where an employee isn’t meeting the reasonable standards expected in their role and ordinary feedback or management conversations haven’t resolved the problem.
Before starting one, though, employers should understand why performance has dipped. Is the employee clear about what is expected? Have they had appropriate training and resources? Is the workload realistic? Could health, disability or another personal issue be affecting their performance?
Those questions matter. A PIP shouldn’t be used to paper over problems that actually need a different response.

What should go into it?

Keep it clear and practical. The employee should know exactly where their performance is falling short, what improvement looks like and how it will be measured.
Set realistic objectives and a reasonable review period. Avoid vague requirements such as “show more initiative” without explaining what that means in practice.
The plan should also spell out what support the employer will provide. That might include additional training, more regular one-to-ones, clearer priorities, coaching or extra supervision.
Don’t just hand it over and wait
A PIP works best as an active process rather than a document that disappears into a drawer until the final review meeting.
Managers should hold regular catch-ups, give useful feedback and record progress. If the employee improves, say so. If they’re still falling short, explain where and give them a fair opportunity to respond.

What happens at the end?

Ideally, the employee reaches the required standard and the PIP ends.

If there hasn’t been enough improvement, the employer may need to consider further formal action under its capability or performance procedure. Depending on the circumstances, that can ultimately include dismissal.

That’s why fairness matters throughout. Expectations should be reasonable, the employee should understand the concerns, and they should have a genuine opportunity to improve.

Used properly, a PIP isn’t simply a route to managing somebody out of the business. It’s a structured opportunity to get performance back on track – and that should be the aim from the outset.

Should you wish to discuss a PIP process then contact 121 HR Solutions to discuss how such matters should be managed to mitigate any form of risk. Contact us on 0800 121 9995 where one of our qualified consultants will discuss your options.

Performance improvement plans: getting them right

121 HR Solutions Ltd