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Nobody wants to be the employee who falls behind, and it's tough for them and you as a manager.
Research shows that 75% of employees feel they don’t receive feedback frequently enough to improve their performance, and 73% wish their managers were more transparent about goals and expectations.
So, what can you do about those underperforming employees?
Provide a helping hand instead of letting things go!
This is where you'd want to introduce a performance improvement plan (PIP).
A PIP is a second chance for employees who need some guidance and helps them get from where they are to where they need to be.
PIP is not a punishment but a chance for improvement where you'd give them clear expectations, support, and an opportunity to better their performances.
And guess what? PIPs often work! Especially when you have robust employee management software in place.
A poll by Blind found that 41% of employees on a PIP met their goals and performed better at work.
This shows that a PIP can be helpful for both the employee and the company.
But creating a good PIP takes thought and care. You need to consider the employee's needs and how you can best support them.
In this article, we'll explore the steps to create a PIP that truly helps your employees succeed.
» What is a Performance Improvement Plan?
At its heart, a PIP is about clarity and collaboration.
It lays out what’s expected, how progress will be tracked, and what support the employee can count on. Here, you are not just setting goals but also crafting a process with regular check-ins, open communication, and actionable steps to drive improvement.
When handled thoughtfully, a PIP becomes a growth tool that helps employees understand where they stand, what they need to work on, and how they can get there. For businesses, it’s a way to address challenges constructively, often leading to more robust performance and better results.
› What Does a PIP Focus On?
You’ll be creating a Performance Improvement Plan (PIP) that addresses performance challenges with precision and purpose.
To implement it, you’ll have to keep management responsible for focusing clearly on specific areas to drive measurable improvement.
Below are the key areas that PIP should look to address:
Highlight Specific Problems: A PIP should spell out exactly where an employee is struggling to understand. This will help employees determine what needs to be fixed.
Set Simple and Clear Goals: The plan must lay out specific, easy-to-understand goals and steps so that employees know what to do and how to reach those goals.
Recommended: Top Employee Goal Setting Software
Offer Help and Resources: A good PIP will not just set goals but also offer employees all the necessary tools to succeed—training, mentorship, or extra guidance from their manager.
Create Timelines for Improvement: Clear deadlines are a must so that everyone can stay on track while employees get a timeframe to make progress.
Encourage Regular Check-Ins: Regular meetings and feedback sessions are critical parts of the PIP since they include the necessary support for employees while keeping everyone on the same page throughout the process.
› What Results Does PIP Offer?
Now that you know what a performance improvement plan is and what areas it should address, let’s talk about the results it should aim to achieve.
In general, a PIP is designed to drive noticeable improvements in the employee’s performance.
This could include:
- Drive Productivity: Helping the employee complete tasks more efficiently and meet deadlines consistently while introducing them to productivity applications.
- Enhance Quality of Work: Ensuring the output meets or exceeds the company’s standards.
- Improve Skills and Knowledge: Equipping the employee with the tools and expertise they need to excel in their role.
- Ensure Positive Behavioral Changes: Encouraging teamwork, better communication, or other traits that improve workplace dynamics.
» How to Create an Effective Performance Improvement Plan (PIP)?
Let’s break this process into actionable steps, focusing on the “how-to” aspect to make sure you get the actionable tip for each step when creating a PIP.
› Step 1: Identify the Performance Issues
The first step in creating a PIP is to identify where the employee is failing. To do this, you will need to gather specific, measurable data to avoid vague or subjective feedback.
At this step, you’ll also document the specific areas of concern and prepare examples to share with the employee during your initial discussion.
Key steps at this juncture would be:
Reviewing Performance Data: Analyze metrics like deadlines missed, quality of completed work, or customer complaints. Use data-driven insights to identify patterns. For example, If a sales employee invariably misses their monthly sales targets, track their performance over the past six months to quantify the shortfall.
Using Data to Support Observations: Whenever possible, use data to back up your claims. This could include sales figures, pr metrics, or customer satisfaction scores.
Seeking Input from Supervisors and Team Leads: Speak with those who work closely with the employee to get a complete picture of the performance gaps.
Avoiding Subjective Language: Focus on observable actions or outcomes, not personal traits or assumptions. For example, say, “John missed 4 out of 6 project deadlines this quarter,” instead of, “John isn’t committed to his work.”
› Step 2: Set Clear and Achievable Goals
Once you identify the issues, define the goals the employee needs to achieve. Make sure these goals are realistic, specific, and aligned with their role so that they guide the employee toward better performance.
At this stage, you’ll take the following actions;
Use SMART Goals: Let’s break this down;
- Specific: State exactly what the employee needs to accomplish.
- Measurable: Define how success will be tracked (e.g., a percentage, number, or deadline).
- Achievable: Ensure the goal is within their capability given the resources provided.
- Relevant: Relate the goal directly to their job role or organizational objectives.
- Time-bound: Assign a clear deadline for achieving the goal.
For Example, Instead of saying, “Improve sales performance,” set a goal like, “Increase monthly sales by 10% within the next 60 days by conducting five new client meetings per week.”
Collaborate with the Employee: Involve the employee in the goal-setting process. This helps them take ownership of their improvement plan and increases their commitment to achieving the goals.
Document the Goals: Clearly document the goals in the PIP, ensuring both the employee and manager have a shared understanding of what needs to be accomplished.
Break Goals into Milestones: Large goals can feel overwhelming. Break them into smaller, actionable steps. For Example, For an employee struggling with project management, the milestones might include:
- Completing a project timeline draft within one week.
- Updating progress weekly in a shared tracker.
- Achieving 100% on-time task completion within the first 30 days.
› Step 3: Develop an Action Plan
Once your goals are clear, map out how the employee will achieve them.
Here, you’ll have to create personalized training plans that are specifically designed to enhance performance.
You’ll have to make of taking the following actions:
Identify Specific Actions: Break down each goal into smaller, more manageable steps where actions are concrete, and they clearly define what the employee needs to do.
Provide Resources and Support: Provide employees with the necessary resources and support to succeed. This could include training materials, mentorship, access to online courses, or job shadowing opportunities (more to be discussed in the next point). For example, If the employee needs to improve their writing skills, provide them with access to grammar tools, writing workshops, or a subscription to an online writing course.
Be Flexible and Collaborative: Work with the employee to customize the action plan based on their individual needs and learning styles. It is ideal to remain open to adjusting the plan as needed based on their progress and feedback.
› Step 4: Offer Resources and Support
A PIP is only as good as the support system that accompanies it.
If you want to implement PIP successfully, make sure your employees have access to the right tools, training, and guidance to meet their goals.
For this, you’ll need to create a list of the specific resources and support systems that the PIP employees will have access to.
At this stage, you’ll be taking the following actions:
Identify the Gaps in Skills or Resources: Identify what’s preventing the employee from succeeding. This could range from a lack of training to outdated tools. For example, If an employee needs help with data analysis, the gap could be sufficient training in the software they are required to use.
Offer Relevant Training Opportunities: Arrange for workshops, courses, or one-on-one mentoring sessions to address skill gaps.
Assign a Mentor or Point of Contact: A mentor can provide guidance, answer questions, and keep the employee motivated throughout the PIP. For Example, Pair the employee with a senior team member who can regularly check on their progress and provide constructive advice.
Provide Practical Tools: Ensure the employee has access to the software, equipment, or resources required to succeed.
› Step 5. Establish a Timeline and Review Process
A PIP without a timeline will be useless. So, to make it worthy of progress and results, you’ll have to set a clear timeline. This will help everyone stay focused and create momentum for meaningful improvement.
It will also provide a structured roadmap that sets expectations and adds a sense of urgency, making it clear that improvement is a priority.
You’ll have to take the below steps here:
Set a Duration for the PIP: Based on the complexity of the issues, decide on a reasonable time frame for the PIP. Most PIPs last 30, 60, or 90 days.
Break the Timeline into Checkpoints: Divide the plan into weekly or bi-weekly milestones to track progress consistently. For example, For a 60-day PIP to improve customer service skills, you might schedule checkpoints every two weeks to evaluate performance against specific goals.
Document Progress and Feedback: Keep detailed records of all check-in meetings, including the date, topics discussed, feedback given, and any agreed-upon actions.
› Step 6: Monitor Progress and Provide Feedback
Monitoring progress and giving feedback are essential parts of making a PIP successful. These steps ensure the employee stays on track and gets the support they need to meet their goals.
When done well, progress tracking and feedback create a collaborative environment where improvement feels achievable. For this, you’ll need to make sure of the following:
Use Measurable Metrics: Set clear, quantifiable markers to evaluate improvement. This could be weekly sales numbers, on-time task completion rates, or customer satisfaction scores. For example, If the PIP aims to improve time management, track the number of deadlines met on time over two weeks.
Document Everything: Keep detailed notes on the employee’s progress, including updates from regular check-ins. This ensures transparency and avoids confusion down the line.
Monitor Milestones Against the Timeline: Compare the employee’s performance to the milestones laid out in the timeline. If progress lags, identify why and adjust the approach if needed.
» The Role of Performance Appraisal Software in PIP Management
Managing a Performance Improvement Plan (PIP) is a lot to handle. You’re tracking progress, giving feedback, setting goals, and keeping everything on schedule—all at once.
Performance appraisal software makes this process smoother and helps you focus on what matters most: supporting your employees' growth.
Here’s how it makes a difference:
All-In-One Workspace: The software keeps everything in one place, so you don't have to juggle emails, documents, and spreadsheets. You can easily access progress reports, goals, and feedback whenever you need them.
Clear Goal Tracking: The software lets you set clear targets and track employee performance. Both you and the employee can see progress at a glance, keeping everyone on the same page.
Timely Follow-Ups: Forgetting check-ins or milestones can derail a PIP. With automated reminders, the software ensures that reviews and deadlines aren’t missed.
Quick and Easy Feedback: You can leave comments or updates directly in the tool, making it easier to share feedback in real-time without delays.
Visual Progress Reports: Numbers can feel abstract, but seeing them as charts or summaries helps you and your employees understand how far they’ve come and what remains to be achieved.
Pre-Built Templates: If starting a PIP feels daunting, the software often includes templates to guide you. You just fill in the details to customize it for your needs.
Connects with Other HR Tools: Many platforms sync with existing HR software, letting you tie PIP progress to overall performance reviews or team-wide reports.
Recommended: How Can 360 Degree Employee Review Help Your Organization?
» Conclusion
A Performance Improvement Plan (PIP) isn’t just a tool for addressing underperformance—it’s an opportunity to rebuild trust, foster growth, and create a culture of accountability. While this enhances employee relations, it can also have a positive impact on both the employee and the organization.
The key to success lies in approaching the process with clarity, compassion, and collaboration.
From identifying specific performance issues to setting achievable goals, offering support, and tracking progress, every step of the PIP is a chance to help the employee realign with expectations. It’s not about pointing fingers but about building a pathway to success.
Remember, communication is the cornerstone of a successful PIP.
Open dialogue ensures the employee feels supported rather than targeted. Regular check-ins, actionable feedback, and the willingness to make adjustments along the way show that the organization is invested in the employee’s growth.
