Performance Improvement Plan

What Is A Performance Improvement Plan?

In order for you to help your organization to achieve its business objectives, employee performance is the key. But, most often than not, some of your employees may not be able to meet the hiring manager's expectations. In that case, as an HR professional, you need to implement a Performance Improvement Plan (PIP).

This glossary will cover various topics, from the definition of the Performance Improvement Plan to the key elements of PIP. Let's get started!

The Definition

In short, an HR department develops a PIP as a structured document to help underperforming employees achieve satisfactory performance levels. The document clearly outlines specific goals, timelines, and actions that a worker must take to improve their performance.

Benefits of a PIP

There are several benefits of a Performance Improvement Plan, including:

1. Clarity: With a PIP, an employee has clear instructions on what they need to do to improve their performance. As mentioned before, the plan is a structured document that outlines specific goals, objectives, and actions that an employee needs must do to meet their job expectations.
2. Increased productivity: A PIP can help boost productivity by pointing up areas where the individual needs to improve. The individual is given clear instructions on how to boost their performance, which could result in improved outcomes for the business.
3. Career development: A PIP may present a chance for professional advancement. Feedback on the employee's performance and areas for development is provided. The person may be able to grow and advance in their profession by using this feedback to build new abilities and enhance old ones.
4. Retention: A PIP can aid in retaining key personnel. The business can show that it cares about an employee's performance by offering help and direction to one who needs it. As a result, the employee may become more devoted to the organization and more loyal, helping it to keep its top personnel.

Key Elements of a PIP

A well-crafted performance improvement plan (PIP) can be a useful instrument for raising employee performance. PIPs, however, are not all made equal. A PIP must contain specific components in order for it to be effective in ensuring that the employee understands what they must do to improve their performance and that the plan is attainable and measurable.

Let's dive into the essential components of a PIP to ensure a successful implementation.

1. Goals and objectives: The employee must achieve specific and measurable performance goals and objectives within a specified timeframe.
2. Support and resources: Details of the support and resources employers will provide to help their employees meet their goals and objectives.
3. Timeline: A specific timeline indicating when the employee must achieve the goals and objectives.
4. Evaluation and feedback: A system for monitoring and evaluating the employee's progress and providing feedback on their performance.
5. Consequences: A statement outlining the consequences if the employee does not meet the performance goals outlined in the PIP.

Conclusion

An effective tool for HR departments to assist underperforming employees in improving their performance is a performance improvement plan (PIP).

In addition to identifying areas where an employee needs assistance or training, a well-designed PIP can also provide proof to back up any potential disciplinary action.

The PIP must be created in cooperation with the employee and contain clear, quantifiable, achievable, pertinent, and time-bound goals and objectives (SMART).