How to Implement an Employee Improvement Plan
By Marta Gongos A performance improvement plan for an employee is a growth opportunity if used correctly—not the company saying it’s time to replace you and recruit new hires. In this article, we discuss performance improvement plans and how to implement them to raise an employee’s performance effectively.
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What Is an Employee Performance Improvement Plan?
An employee performance improvement plan (PIP) is a formal written document outlining a worker’s poor performance, solutions required to help them improve, and goals they must achieve on defined deadlines.
Aside from helping employees improve, a PIP contributes to a positive work culture. Diligent employees thrive when they feel valued, recognizing the organization’s commitment to fostering their success and productivity. Furthermore, this document not only saves time and money but also reduces costs associated with terminations and hiring new employees.
Read more: Follow the Six Steps to Create a Personal Improvement Plan
Developing an Effective Employee Improvement Plan
Executing a successful performance improvement plan that achieves the desired results takes time, care, and effort. To help you get started, follow these steps to help employees meet expectations.
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Identify the Root Cause
PIPs are personalized to tackle specific issues unique to each employee. Before anything else, take time to dig deep and learn the root cause of their poor performance. Observe their work habits, current skill sets, and workplace environment. Here’s where you’ll find their shortcomings and what’s causing them.
Set SMART Goals
With the problem identified, next comes planning the solution. Use the SMART method to define clear expectations:
- Specific—Clarify performance goals to remove ambiguity
- Measurable—Create a standard to base an employee’s progress in achieving goals
- Achievable—Base the goals on an employee’s limitations to make them attainable
- Realistic—Ensure the PIP goals are practical and relevant to the employee’s situation
- Timely—Add urgency to the PIP by deciding on a deadline.
In short, specify the performance and metrics you require from the employee, make them attainable, and give a realistic deadline. This gives a goal to strive for and a baseline for the PIP’s success.
Start the PIP Conversation With the Employee
Next is having a meeting with the employee in question to address their recent performance issues. Present the facts and mention any failed corrective actions. This is when you introduce the PIP as an opportunity to learn and grow—not as a punishment. Allowing individuals the opportunity to respond fosters a sense of ownership and accountability.
Explain their personal SMART goals, ensuring the employee fully understands their goals and performance expectations. This prevents them from being in the dark and grants them direct autonomy over their decisions. Lastly, don’t forget to highlight the consequences of failing the PIP and ensure you’re both on the same page.
👉 Pro Tip: Never go ahead with an employee performance improvement plan without giving the employee a heads-up. It could demotivate them or lead to them bombing the process.
Track Progress and Provide Support
Implementing a PIP goes beyond mere execution. It entails ongoing monitoring of employee performance and the metrics outlined in the plan. Be hands-on with your employees; there may be a time when they feel lost during the PIP period.
Bolster their self-confidence by reminding them of their goals. Give positive reinforcement by recognizing their small wins and reassuring them that continuous learning will improve performance. Being their support pillar can further motivate them to finish strong and erase doubts about their progress.
Ensure Successful Plan Execution by Providing Resources
Your employee improvement plan should list resources needed to help an employee be successful in their role. These may include side-by-side mentoring, software tutorials, and training sessions, which should be available throughout the entire PIP period.
Encourage the employee to ask questions when something is unclear or they simply want to learn a new skill. Your guidance has the power to steer them back onto the correct path!
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Evaluate Performance Reviews
Assess the employee’s performance and see if they met all goals outlined in the PIP. Have an individual meeting with the employee and walk them through their journey. If they succeed, highlight their achievements and offer support in maintaining this momentum.
If an employee doesn’t meet expectations, it’s important to adhere to the consequences outlined in the PIP. Contact HR to ensure the correct implementation of disciplinary measures and assess whether it’s necessary to explore alternative solutions or reach a final decision.
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Preparing an employee improvement plan sets your team up for success. When every member has the support they need to improve, everyone becomes an unstoppable force that puts any organization at the top of the competition.
Ad Culture can help you build a team full of industry unicorns that’ll make your company stand out. Our effective recruitment services will match you with a pool of qualified talents who can take your business operations to greater heights.
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