With a performance improvement plan (PIP) template, you have a tool to create an individualized, action-orientated, step-by-step plan to improve the performance of employees who are either not meeting their manager or supervisor’s expectations or would benefit from a more structured action plan.
Download the performance improvement template as a Word doc, and Excel sheet, or an editable PDF. Read on to discover how HR can implement and support the use of PIPs for positive results.
A performance improvement plan (PIP) is a document that helps employees understand their skills, identifies training gaps, and sets clear expectations for job roles. It is typically used when an employee is failing to meet job expectations. However, if implemented correctly, it can be a positive tool to align management and employees, improving job performance as well as job satisfaction.
Each PIP is unique to the needs of an employee. It identifies and lists gaps as well as the action steps that will lead directly to improvements aligned with job roles and expectations. This is not a one-size-fits-all approach and should be created with input from managers and supervisors, the employees themselves, and HR.
Traditionally, a performance improvement plan (PIP) has been used as a last resort when an employee has failed to meet job performance goals. This has led employees, managers, and even HR professionals to view PIPs as the first step toward firing someone.
However, a PIP can also be a powerful communication tool that supports a growth-mindset culture of continuous learning and improvement based on a clearly defined process that identifies gaps between employee skills and performance and job roles. This gives employees a clear path on how to improve the quality of their work and assists them in goal setting and meeting growth numbers. It’s also a valuable tool for anyone who transitions into a new role.
If PIPs are only used to address performance failures, there will always be a negative connotation associated with identifying performance gaps instead of promoting a positive culture that supports personal improvement.
On the other hand, employees will accept and expect PIPs if it’s the organization’s culture is to implement a performance improvement plan as soon as a performance issue is identified and employees are empowered to take control of their improvement.
Bear in mind that productive employees who feel like they are adding value to their organizations are happier employees. When someone knows what is expected of them, they can naturally be more productive. Gartner research reveals that employees want their value recognized on a human level.
Purpose-driven work, a strong sense of community, and deeper relationships are important. If a valued employee is not meeting expectations, you have an ideal opportunity to turn the situation around through a targeted PIP that identifies the issues and highlights a plan of action.
There are few things more challenging for most managers than addressing poor performance. However, hoping that performance will improve without a plan of action rarely (if ever) works. This is where HR can play a valuable role in supporting both employees and managers.
The PIP must be an individualized plan. So, for example, if a valued employee has historically been a good performer and is suddenly missing deadlines or seems distracted, a PIP could identify the problem so that it can be quickly resolved. It’s a targeted approach that will only identify the areas for improvement, acknowledging areas where the employee is performing well.
A PIP can also be extremely valuable if an employee does not clearly understand their job or what is expected of them or if they could be adding more value with the right support.
Use this simple checklist when creating your performance improvement plan:
PIPs take time to design, implement and follow and they distract from regular workflows.
If these questions answer ‘yes’, then a performance improvement plan may be your best bet.
Performance improvement plans should empower employees. Involving them in the entire process is an important step because it gets their buy-in from the beginning. They are invested in the outcome of the PIP and in meeting the objectives and deadlines you collectively set.
Outline the expected performance of a specific role, highlight where there are areas of improvement required, and ask the employee how they believe their performance can be improved, as well as what support they believe they need.
The free performance improvement plan template is also available as an editable PDF and in an Excel sheet.
Performance improvement plans are all about defining the problem, the solution, and the action points that will result in success. It’s, therefore, imperative for managers to track employee performance through the right metrics.
| Goal: | Reduce absenteeism |
| Objectives: | No absences for 8 weeks, arrive on time for shifts |
| Problem: | To achieve the above objective, the PIP should clearly demonstrate to the employee how their absences and late arrivals are impacting their colleagues and the businesses. Next, the root cause for the absence should be determined – for example, is it a transport or childcare issue? |
| Plan: | Based on the challenges an employee is facing, a support structure can be put in place. For example, perhaps this employee needs access to more reliable transport, or perhaps they need to switch shifts to be able to look after a child. |
| Check-ins: | Every Monday at 9 am for the next 8 weeks |
| Metrics: | Tracking whether an employee arrives for each shift on time. |
| Goal: | To ensure deadlines are met |
| Objectives: | To ensure that a graphic designer meets their design deadlines and that social media campaigns can go live on time as a result. |
| Problem: | The employee is an excellent designer who is unable to meet deadlines, resulting in social media marketing campaigns that are presented after the due date. As a product-based business, this results in lost sales. The problem is determined to be time management and an unnecessary focus on detail. It is determined that time management training will be beneficial and that an art director will make quick decisions to support the sign-off of artwork. |
| Plan: | Define how long each job should take so that the designer understands the expectations of speed versus delivery. Support the designer with time management training and time tracking tools so that they know how long to spend on jobs. Adjust the process so that the art director will give approvals earlier (according to a schedule) so that the designer does not need to worry that they could have done a better job. |
| Check-ins: | Fridays at 10 am to review the week’s deadlines. |
| Metrics: | Time spent on jobs, deployment of assets within deadlines. |
| Goal: | Improve the general motivation and morale of a mid-manager |
| Objectives: | To help a mid-manager inspire their team to greater productivity by developing their own motivation and positive attitude. |
| Problem: | It has been identified by a team supervisor that one of the teams in their business unit is underperforming versus the other teams in the unit. The problem is the manager, who appears unmotivated, negative, and is not on top of team reports and feedback sessions. As the team was previously a top-performing team, the first step is to identify changes in the manager’s life and outlook so that an action plan can be put in place. It is also important to show – through data – how their recent change in attitude is impacting the entire team. |
| Plan: | To address the issue, management training will be implemented, a mentor assigned to address motivation and negativity, and key performance metrics put in place linked to performance bonuses. |
| Check-ins: | Wednesdays at 2 pm to review the week’s performance wins and upcoming goals. |
| Metrics: | Team productivity and customer satisfaction |
| Goal: | Improve the level of service customers receive |
| Objectives: | To achieve better customer retention and engagement. |
| Problem: | Clients are complaining about the lack of support they receive from a particular employee, and the business is receiving negative reviews and ratings online. What caused the problem? Is it an attitude issue, or does the employee lack the knowledge to support customers? It is also determined that this call center agent spends 5 minutes per call when the average call time is 15 minutes. Is the employee rushing through calls, or do they lack the product knowledge to offer real support? |
| Plan: | Product training and customer service training, with clear instructions to increase average call times to 15 minutes. If this is an issue, additional product training will be undertaken. |
| Check-ins: | Fridays at 10 am to review call logs. |
| Metrics: | Call duration, net promoter scores, and customer churn rate. |
| Goal: | To increase closed deals by 40% |
| Objectives: | To improve overall sales targets and revenue |
| Problem: | A sales rep is consistently missing sales targets, even though they project that they will close their deals. Budgets are based on these sales projections. It is determined that the problem is that the sales rep is not adding enough new customers to their pipeline and does not put the required effort into deals to ensure they are closed. |
| Plan: | The sales rep must spend 10 hours per week cold calling in order to set up 6 meetings per week with new clients. They should also have 4 meetings per week with retention clients and 2 meetings with clients at the end of the sales funnel |
| Check-ins: | Monday mornings at 8 am for the next 6 months. |
| Metrics: | Sales calls, meetings booked, deals closed. |
Here is a sample view of a performance improvement plan based on the above example to provide you with an idea of how to complete your PIP document:
This article has unpacked when to use a PIP, and its benefits and provided you with some examples. But, successful PIPs come down to the details.
Here are some key tips to ensure your PIPs add real value to employees, managers, and the organization:
1. Initiate an open dialogue: Before implementing a PIP, have a candid conversation with the employee about observed performance issues. Encourage them to share their perspective and listen actively to understand their side.
2. Make sure the PIP is worth the effort: What is causing the poor performance? Can it be fixed, and will the resultant outcomes add value to everyone involved? Yes? Excellent, then pull the trigger.
3. Create measurable objectives: SMART goals are a great way to ensure that employees know exactly what they are working towards and how success will be measured.
4. Provide the necessary resources and training: Offer tools, training, or resources needed to address skill gaps or performance barriers. This could include workshops, mentoring, or access to learning materials.
5. Focus on support: PIPs are just documents that highlight problems, list objectives, and then send employees on their way. They should clearly unpack what support the employee will receive, why that level of support (this is linked to root cause analysis), and how outcomes will be measured.
6. Take a collaborative approach: Performance improvement plans should empower employees and be collaborative. Set up regular check-ins to track progress and address any issues that might crop up. Employees should not feel like they are going at it alone.
7. Be clear about the consequences: The goal is to shift and improve behavior, so you want to keep your PIP positive and highlight the benefits of improvement, but the consequences of not achieving goals should also be clear. Transparency and communication are key. The secret is to focus on improvement and not punishment, however.
HR plays an important role in determining whether a performance improvement plan is necessary, as well as whether it can be used effectively to bring about positive change. When done right, a PIP can be a tool to help employees make positive improvements that can benefit the business.
A performance improvement plan (PIP) process involves any actions taken by management and HR to improve an employee’s performance. This is because they are not meeting the minimum performance criteria for their jobs or an aspect of their jobs. These actions include determining what the cause of the issue is, defining objectives and goals, and highlighting key metrics that will be used to track changes and improvements in behaviors.
How do you write a strong PIP?1. Clearly define acceptable performance in relation to the job role.
2. Use a SMART framework to define measurable objectives
3. Outline the support an employee who is under review will receive
4. Keep things positive – highlight how improvements will benefit everyone rather than focusing on punishments
5. Be clear on what consequences the employee faces if they do not meet the stated objectives
The ideal length of time for a PIP is 12 weeks. This gives the employee enough time to have suitable training, mentorship, and support and to correct behaviors without spending too long on activities that are detracting from their core roles and responsibilities. If the employee achieves and sustains their goals quicker, you may choose to end the PIP earlier.
