Performance improvement is a formal process used by employers to help an employee who is not meeting job expectations. The goal is to identify specific areas where the employee is falling short and provide a structured plan, with clear goals and support, to help them get back on track. This process is not a punishment; it’s a tool for both the employee and the manager to address performance gaps and create a path for success.
Why a Performance Improvement Plan (PIP) is Used
A Performance Improvement Plan (PIP) is the most common tool used in this process. It’s a formal document that lays out the steps. A well-designed PIP serves several purposes:
- Clarity: It leaves no room for ambiguity about what the performance issues are. It clearly outlines the specific problems, such as “missed three project deadlines” or “did not meet quarterly sales targets.”
- Structure: It provides a defined plan with measurable goals and deadlines. For example, the plan might state, “Improve customer satisfaction scores by 15% within the next 60 days.”
- Support: It identifies the resources and support the employer will provide to help the employee succeed. This could include additional training, coaching from a manager, or access to specific tools.
- Documentation: From a legal and HR perspective, a PIP creates a clear, documented record of the company’s efforts to help an employee improve. If the employee’s performance does not improve and they are eventually terminated, this documentation is essential for demonstrating that the company acted fairly and gave the employee a chance to succeed.
The process typically involves a meeting between the manager and the employee to discuss the plan, regular check-ins to monitor progress, and a final review to determine if the goals were met.