What Is A Performance Improvement Plan?
When an employee is not meeting the standards required for their role, employers often face a difficult question: how can performance concerns be addressed fairly whilst giving the employee a genuine opportunity to improve?
A Performance Improvement Plan (PIP) can provide a structured framework for managing performance concerns. Used correctly, a PIP helps employees understand what is expected of them, identifies areas requiring improvement and provides support to help them achieve the required standards.
This article explains what a Performance Improvement Plan is, when it may be appropriate to use one and how employers can manage the process effectively.
What Is A Performance Improvement Plan?
A Performance Improvement Plan (PIP) is a formal document that sets out:
- The areas of performance concern.
- The standards required.
- The improvements expected.
- The support available.
- The review arrangements.
- The timescale for improvement.
The purpose of a PIP is to help employees improve performance, not to create a paper trail for dismissal.
When Should A PIP Be Used?
A Performance Improvement Plan may be appropriate where:
- An employee is consistently failing to meet performance expectations.
- Informal coaching has not resulted in sufficient improvement.
- Performance concerns have been clearly identified.
- The employee is capable of performing the role but is currently underperforming.
Before introducing a PIP, employers should consider whether the employee has received adequate training, support and clear instructions regarding what is expected.
What Should A PIP Include?
Whilst every situation is different, a Performance Improvement Plan will usually include:
- A clear explanation of the performance concerns.
- Specific objectives and improvement targets.
- How performance will be measured.
- Training, coaching or support arrangements.
- Review meeting dates.
- Expected timescales.
- Potential outcomes if improvement is not achieved.
Objectives should be realistic, measurable and directly linked to the employee’s role.
Supporting Improvement
The most effective Performance Improvement Plans focus on support as well as accountability. Employees are more likely to improve when expectations are clear and managers provide regular feedback throughout the process.
Review meetings should be used to discuss progress, recognise improvements, identify barriers and agree any additional support required.
What Happens If Performance Improves?
Where an employee successfully achieves the objectives set out within the Performance Improvement Plan, the process will normally conclude and the employee will continue in their role.
Managers should continue to provide regular feedback and monitor performance to help ensure improvements are sustained.
What Happens If Performance Does Not Improve?
If an employee fails to achieve the required improvements despite receiving appropriate support, employers may need to consider a formal capability process.
Any further action should be based on the circumstances of the case, the support provided and the extent of any improvement achieved.
Common Mistakes Employers Make
- Using a PIP as a disciplinary sanction.
- Setting unrealistic objectives.
- Failing to provide adequate support.
- Making timescales too short.
- Not holding regular review meetings.
- Failing to document discussions and progress.
- Predetermining the outcome.
A Performance Improvement Plan should be a genuine opportunity for improvement rather than a procedural exercise.
PIPs And Capability Procedures
A Performance Improvement Plan is not the same as a capability procedure. A PIP is often used before formal capability action is considered and is designed to help employees improve performance through structured support and monitoring.
Where performance concerns continue despite appropriate support, employers may eventually need to consider formal capability procedures.
How Kea HR Can Help
Kea HR provides practical support with Performance Improvement Plans, performance management and capability processes. We can help employers create realistic improvement plans, support managers through review meetings and ensure performance concerns are managed fairly and consistently.
Do You Need HR Support?
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Whether you are managing an employee through a performance improvement process or are considering implementing one, we can help you manage the process fairly, consistently and in line with employment law. Speak directly with our CIPD-qualified HR expert with 30+ years’ experience. |
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