HR is not just about handling paychecks and benefits. A big part of the job is helping employees perform better at work, which is no small task. It’s one of the most important things HR does to keep a company running smoothly.
Did you know that, according to Deloitte, most business leaders (79%) say managing employee performance is key to success? If this isn’t something your HR team is doing, it might be time to take a closer look at your goals and make some changes.
On the other hand, if your HR team is focused on improving how employees work, they’ve probably come across something called a Performance Improvement Plan, or PIP. If you’re curious about what it is and how it can help, keep reading.
What is a Performance Improvement Plan (PIP)?
A Performance Improvement Plan, or PIP, is a formal plan designed to help employees who are struggling to meet job expectations. The main goal of a PIP is to give these employees a clear and fair way to address their performance issues and improve their work. PIPs aren’t meant to punish employees—they’re a tool to guide and support them in getting back on track.
Why Performance Improvement Plans (PIPs) Are Important
- PIPs Fix Performance Issues by identifying specific problems and showing employees where they need improvement.
- PIPs Set Clear Goals to guide employees on what they must achieve and outline the steps to reach those goals.
- PIPs Provide Support through resources like training, feedback, and extra help to ensure employees have what they need to succeed.
- PIPs Encourage Accountability by motivating employees to take ownership of their performance and commit to improvement.
- PIPs Keep a Record of the entire process, offering documentation that protects both the employee and the organization.
- PIPs Ensure Fair Timelines by giving employees a realistic amount of time to make necessary improvements.
- PIPs Highlight HR’s Role in Offering Support through tools, mentorship, and regular check-ins to show the company’s commitment to its employees.
Steps in the Performance Improvement Process
The performance improvement process is a clear way to help employees fix workplace challenges and succeed. It forms the basis for creating a helpful Employee Performance Improvement Plan (PIP). Here’s how it works, step by step:
1. Spotting Performance Problems
Start by figuring out where an employee is struggling. Use simple feedback from managers or coworkers, and look at examples like late work, missed goals, or trouble working with others. Make it clear what needs improvement.
2. Setting Easy-to-Understand Goals
Once you know the problem, create clear and realistic goals. For example, if someone misses deadlines, the goal might be to finish tasks at least a day early for the next two months. Goals should be specific and doable.
3. Providing Basic Help and Support
Give the employee what they need to succeed. This might include short training sessions, pairing them with someone for guidance, or having regular check-ins with a manager. The idea is to make sure they don’t feel alone in improving.
4. Creating a Simple Timeline
Set a clear timeframe for improvement, like one or two months. Break it into smaller checkpoints to review how things are going along the way. This makes it easier to adjust if something isn’t working.
5. Tracking Performance Progress
Keep track of how the employee is doing. Look at basic results, like if tasks are being completed on time or whether quality is improving. Regular check-ins give a chance to keep communication open and encourage the employee.
6. Giving Clear Feedback at the End
When the improvement period ends, review what the employee has achieved. Sit down with them to discuss progress. If the goals are met, thank them and talk about what’s next. If they’re not, decide on another plan to help them.
Timeline of How a Performance Improvement Plan (PIP) Works
A PIP is a structured approach to help employees improve their performance. Here’s a simple timeline showing how it works, step by step:
Week 1: Initial Chat
The first step is a conversation between the manager and the employee. They discuss the specific issues affecting performance, such as missed deadlines or errors, and provide clear examples. This meeting helps the employee understand what needs improvement and why it’s important. The employee should feel prepared to tackle the improvement process with clarity and motivation by the end of the conversation.
Week 2-3: Set Goals and Offer Help
Next, goals are agreed upon that are specific and realistic. For example, the employee might aim to complete tasks on time or improve the quality of their work. Alongside these goals, the manager offers support, such as pairing the employee with a mentor, providing short training sessions, or introducing helpful tools. This phase ensures the employee knows what steps to take and has the resources needed to succeed.
Week 4-6: Regular Check-Ins
Over the next few weeks, the manager meets with the employee every two weeks to check in on their progress. During these meetings, they discuss what’s going well, address any challenges, and make adjustments to the plan as needed. These regular conversations keep the improvement process on track, solve problems early, and help the employee stay motivated by recognizing their progress.
Week 7-8: Midway Review
At the halfway point, a more in-depth review takes place. The manager and employee assess the progress made so far and revisit the original goals. If needed, they revise the goals or offer extra support to keep the employee moving forward. This conversation shows the employee that their hard work is paying off and provides additional encouragement to continue improving.
Week 9-11: More Check-Ins
The next few weeks focus on solidifying progress through continued check-ins. During these meetings, the manager helps the employee address any remaining challenges and ensures their performance stays consistent. At this point, the worker develops more robust routines and has greater self-assurance in their skills.
Week 12: Final Review
Finally, a meeting is held to evaluate whether the goals were met. Together, the manager and employee discuss the results and decide what’s next. If the goals are achieved, the employee can feel proud and move forward with renewed confidence. If not, the manager and HR team might create a new plan or discuss other options for additional support.
The Benefits of Performance Improvement Plans (PIPs)
Performance Improvement Plans (PIPs) are helpful for both employees and HR teams. For employees, a PIP provides a clear plan to improve at work. It gives simple goals, useful feedback, and support like training or tools. This helps employees not only fix issues but also build new skills, feel more confident, and grow in their roles.
For HR teams, PIPs make handling performance issues easier and more consistent. They create a fair way to guide employees while encouraging open communication and accountability. PIPs also help improve employee morale and keep everyone working toward the company’s goals.
When used well, PIPs turn challenges into growth opportunities, benefiting both the employee and the company in a positive way.