A Performance Improvement Plan (PIP) can be a valuable tool for addressing underperformance and helping employees succeed. However, if not handled properly, it can lead to misunderstandings, disengagement, or even legal complications. This guide will walk you through how to use a PIP effectively, ensuring fairness and clarity while promoting employee development.
What is a Performance Improvement Plan?
A Performance Improvement Plan (PIP) is a structured document that outlines performance issues and sets clear objectives for improvement within a specified timeframe. A PIP is designed to provide employers with the opportunity to support and improve employee performance when that performance is below the standards required.
While certain employees will see the implementation of a PIP as being something negative, PIPs are not necessarily a precursor to dismissal. In fact, the use of a PIP can be a constructive way to help employees to get back on track. According to recent survey data 41% of respondents to a poll who had been on a PIP had improved their performance and remained in their roles which highlights that a PIP is not always the beginning of the end of the employment relationship.
When Should You Use a PIP?
A PIP should be used when informal feedback and coaching have not led to improvement. Typical situations when employers decide to put a PIP in place include:
- Consistently missing deadlines or targets.
- Poor quality of work.
- Regular customer or client complaints.
- Behavioural issues impacting individual and team performance.
- Lack of engagement or motivation.
It’s good practice that a PIP is not used as a surprise tactic. Employees should already be aware of their performance issues through regular feedback such as at 1-1 meetings or even during informal discussions.
Key Steps to Implementing a PIP
- Identify the Performance Issues
Be specific about the problem. Use tangible examples that you have evidence to support and avoid vague statements. For example, instead of just saying “your performance is poor”, be more detailed and say, ” you have missed 3 project deadlines in the last 2 months which has resulted in …..”. - Set Clear Objectives
Outline realistic and measurable goals. Use the SMART framework (Specific, Measurable, Achievable, Relevant, and Time-bound). An example could be, “Complete project tasks by agreed deadlines for the next 2 months with no more than one extension request”. - Create a Timeline
The duration of PIPs can vary depending on the complexity of the issues. Ensure that the timescales given for improvement are appropriate for the objectives set. It may be that objectives have different deadlines within the same PIP so some aspects can be completed and removed as time progresses and performance ideally improves. - Provide Support and Resources
Offer training, coaching or additional resources to help the employee to succeed. This demonstrates that the company is invested in their growth and removes perceptions of this being a negative process which is simply designed to move an employee out of the business. - Schedule Regular Check-ins
Regular reviews during the PIP period allow for adjustments and provide opportunities to acknowledge progress. Honesty and effective communication are crucial during these reviews to maintain progress in the right direction. - Document Everything
Keep detailed records of all meetings, feedback, and progress throughout the PIP process. This can be vital if disputes arise later.
Common Pitfalls to Avoid
- Lack of Clarity: Vague goals or inconsistent feedback can undermine the entire process.
- Bias or Unfair Treatment: Ensure consistency across all employees to avoid discrimination claims.
- Not Providing Adequate Support: A PIP should be a collaborative process, not a punitive one. As an employer if you don’t provide appropriate support then you are just setting the employee up to fail.
- Ignoring Legal Aspects: Dismissals following unsuccessful PIPs must follow a fair process and be in line with the standards set out in the ACAS code of practice.
Legal Considerations
Employers must remain mindful of employment law. Employees have the right to be treated fairly throughout the PIP process. Discrimination, unfair dismissal, or lack of reasonable adjustments can lead to legal challenges.
What Happens if the PIP Fails?
If the employee does not meet the objectives set out in the PIP, further action may be required. This could include looking at options to redeploy the employee, an adjustment of their role or ultimately in some cases, dismissal following a fair process.
A Positive Outcome is Possible
A well-executed PIP can result in significant improvements in employee performance and can enable an employee to understand clearly the expectations of them in order to sustain long term success. This is not only beneficial for the employee but also the employer as having happy staff who are able to thrive in their roles should always be the aim for any business.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog How to Support High Performing Employees
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
