Performance Improvement Plan (PIP)

A performance improvement plan is a structured document used to guide employees who are struggling to meet expectations. It outlines clear objectives and deadlines to help them improve.

How can managers create a performance improvement plan?

Managers should review the employee's job description and employment agreement to ensure clarity and alignment. Managers should identify unfulfilled obligations and make a plan to address them. An effective PIP provides support through additional training and development opportunities, in addition to other resources. It may help to involve employees in the planning process.

What are the key elements to include in a PIP?

The PIP should include the employee's name, job title, department, and the date. It should list specific performance metrics that the employee needs to improve. The action plan should consist of SMART goals, which are specific, measurable, achievable, realistic, and time-bound. It should note available resources and a meeting schedule to review progress. There should also be a target date to complete the PIP and a space for signatures.

How do managers know if a performance improvement plan is working for an employee?

An effective PIP can empower employees to take ownership of their performance and drive their improvement. Managers can track employee progress through a talent management system. They'll know a PIP is working when the employee is engaged and meets outlined goals within the set timeframe, demonstrating lasting changes in performance.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.