Performance Improvement Plan

A PIP should be used when there is a commitment to help the employee improve, not as a way for a frustrated manager to start the termination process. Used as the latter, it’s nothing more than a document trail that should already exist, and it signifies to all employees that no such help is available. Bottom line: HR needs to assess if a structured plan with time-sensitive goals is the appropriate next step or if a PIP will be more of a detriment than an aid.

To assess whether a PIP is warranted, you should consider the following:

• Is there an actual performance or behavioral issue that can be substantiated? Ask the manager to create a list of the performance deficiencies, including dates, specific data or detailed explanations, and any previous guidance from the employee. Review the most recent performance appraisal to see if the issue is new or ongoing. Has the manager met expectations to prevent the need for a PIP?

• Do you feel the manager is committed to helping the employee succeed or is their intention to terminate the employee? This can be tricky to assess, but listen for whether the manager is concerned about the employee and wants to help or if they are at the end of the rope and cannot manage the situation. Insecure managers may feel threatened by some employees’ behaviors or may not understand that managing includes supporting and developing employees. If the manager doesn’t want employees to succeed, there is little point in starting a PIP.

• Is it likely that the issue can be “fixed” through a formal improvement plan? Problems with sales goals, quality ratings, quantity objectives, and similar issues may be well-suited to a structured plan that helps identify why the deficiencies occur. Insubordinate and insolent behaviors, on the other hand, might not lend themselves to improvement using the goal-oriented process of a PIP.

• Does the employee have received proper training to succeed at the task? A leave of absence or other time off may have resulted in missed training or informative meetings that were not made available to the employee later. Additional training may be warranted to correct the oversight.

• Is there a known personal issue affecting the employee’s performance? When personal difficulties strike, employees may have a dip in performance that employers often accommodate. A PIP may help a capable employee get refocused and back on track if the reasonable time frame for accommodation has ended.