When do I put someone on a Performance Improvement Plan (PIP)?

Have you ever been called into a room and been told the words no one wants to hear?

We will be placing you on a performance improvement plan to ensure you have clarity on where we see the need for you to improve. During this period there will be frequent reviews of your progress with your manager. We are open to discuss if you think somewhere else might be a better fit for you.

Those words hurt.

If you have never been on the receiving end of a PIP, just know that your world will feel shattered. This post outlines how and when to use a PIP as a manager in the right way to correctly support and get the most out of your team.

What is a Performance Improvement Plan?

It pretty much does what is says on the tin. It’s a formal document that outlines specific areas where an employee’s performance needs improvement. As a manager, it’s a tool used to help employees who are struggling to meet expectations or are consistently underperforming in their role. The ultimate goal is to provide a structured path for the employee to succeed and build a long term relationship with you and the company. Be warned though, it should never be used as a form of punishment.

Generally a PIP will always contain:

• Specific Areas of Improvement: The PIP identifies the exact areas where the employee is falling short, whether it’s meeting targets, improving the quality of their work, or addressing behavioral issues.
• Clear, Measurable Goals: (think SMART targets) The plan sets out specific, measurable goals that the employee must achieve within a defined timeframe. These goals are designed to address the identified performance issues.
• Support and Resources: A PIP should include the resources and support the employee needs to improve. This might involve additional training, mentorship, or more frequent check-ins with their manager.
• Timelines: The PIP includes a timeline, typically 30, 60, or 90 days, during which the employee must show improvement. Regular progress reviews are usually part of this process.
• Consequences of Non-Improvement: The PIP clearly states what will happen if the employee doesn’t meet the goals by the end of the plan, which could range from further action to possible termination.

When should I put an employee on a Performance Improvement Plan?

As a manager, this is a critical decision you need to make. Get right and you drastically increase your odds of bolstering the struggling employees performance. Get it wrong and you could easily deal a blow to one of your team’s confidence that might be hard to recover from. 

Generally if an employee ticks all the following criteria, a PIP is probably the right path to take with them.

1. Consistent Underperformance: If an employee has not met their goals, deadlines, or expected quality of output for some time, despite receiving feedback and support. It’s important to differentiate between a temporary dip in performance due to personal issues or external factors vs a persistent pattern of underperformance.

2. Failure to Meet Specific Job Requirements: If an employee consistently fails to meet the core requirements of their role. For this situation, it’s key that the expectations and job requirements were clearly communicated from the outset. 

3. Behavioural Issues Affecting Performance: Sometimes, the issue isn’t just about failing to meet targets or deliverables. Behavioural issues such as poor communication, lack of collaboration, or negative attitudes can significantly impact an employee’s performance and the overall team dynamic. If an employee’s behaviour is creating friction within the team or hindering their own work, a PIP can be used to address these specific behaviours.

4. Recurring Mistakes: Frequent mistakes or errors that affect the quality of work or the efficiency of the team can be another indicator that a PIP is necessary. Again, ensure the employee is aware of this before they are put on a PIP. 

5. Decline in Productivity or Engagement: A noticeable decline in an employee’s productivity or engagement can also warrant a PIP. This could manifest as a drop in the quality or quantity of work, a lack of initiative, or disengagement from team activities. Such changes in performance may indicate underlying issues, such as burnout, dissatisfaction, or personal problems that are affecting the employee’s work.

6. After Informal Interventions Have Failed: First, it’s essential to try informal interventions, such as direct feedback, additional training, or one-on-one coaching. Only when these options have been exhausted should a PIP be the next step.

7. Clear, Measurable Goals for Improvement: A PIP should only be implemented when there are clear, measurable goals that the employee can work towards. Otherwise the determination of sufficient performance is too subjective and progress can’t be tracked.

In Summary

As a manager you want your team to be at their best. In your pocket of tools, a Performance Improvement Plan is generally one you want to pick out later on, trying first with offering support, understanding how your team is feeling and what’s generally impacting them on a personal and professional level. When informal options aren’t helping a PIP can offer a transparent mechanism to help your teammate get back on track. When doing so, make sure you are setting the employee up for success through making sure it demonstrates a commitment to the employee’s development.