Creating a successful performance improvement plan

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In any thriving organization, employee performance plays a pivotal role in achieving overall success. However, there may be instances when certain team members face challenges meeting performance expectations. To address these situations constructively, practice managers often turn to performance improvement plans (PIPs).

A PIP is a structured process designed to help employees enhance their performance and align with business goals. It is not intended to be punitive but rather serves as a road map for improvement, fostering a culture of continuous development and growth. Key components of a PIP include the following:

1. Clear performance expectations

Outline specific, measurable, and achievable performance expectations. Clearly communicate what success looks like in terms of job responsibilities, goals, and objectives.

Example: The fictional ABC Animal Hospital does not tolerate absenteeism without excuse. Employees who will be late to or absent from work should notify a supervisor in advance or as soon as practicable in the event of an emergency. Chronic absenteeism may result in disciplinary action.

2. Identification of performance gaps

Pinpoint the areas where the employee is falling short. Whether it’s related to skills, behaviors, or specific tasks, a precise understanding of the performance gaps is crucial for creating a targeted improvement plan.

Example: During the past 4 months, you were scheduled to work 88 shifts and you were late 18 times (20% of scheduled shifts). Additionally, you never notified a supervisor that you would be late.

3. Open communication

Initiate a transparent and open dialogue with the employee. Allow them to share their perspective on the challenges they are facing. This collaborative approach ensures that the plan is tailored to address both organizational expectations and individual needs.

Example: I wanted to discuss these late arrivals with you. Can you share any reasons or challenges you may be facing? (Pause to let the employee discuss their tardiness. The manager must be listening for any hints that it may involve the Family and Medical Leave Act or the Americans with Disabilities Act.)

4. Set SMART goals

Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals. These goals should be realistic and attainable and provide a clear road map for improvement within a defined time frame. The goals may depend on the root cause.

Example: In the case of tardiness:

• To successfully complete this 90-day PIP, you will be expected to reduce the number of days you arrive to work late by 50%.
• If you are late more than 2 times during this 90-day PIP, you must have perfect attendance for the remaining time of your 90-day PIP.

5. Support and resources

Identify the resources, training, or support required for the employee to meet the goals. This could include additional training sessions, mentorship, or access to specific tools and resources.

Example: Depending on the goals and the resources available, options may include additional in-house or online training to acquire the necessary skills, providing coaching and regular feedback on how to improve performance, adjusting workload or responsibilities, assessing equipment or technology needs, promoting an employee assistance program, or considering flexible work arrangements or accommodations.

6. Regular check-ins and feedback

Schedule regular check-ins to monitor progress and provide constructive feedback. These meetings offer an opportunity for ongoing communication and adjustments to the plan if needed. Recognize and acknowledge improvements along the way.

Example: “To help you complete your PIP, we have arranged for you to meet with ___ every Thursday at 3:30 PM to discuss your progress and resolve any issues that may impede it.” Note that recognition and positive reinforcement play a large role in this step. Recognize and celebrate small victories and improvements during the PIP period.

7. Consequences and next steps

Clearly outline the consequences of not meeting the goals. Although the intention is improvement, it is essential to have a plan in place for further actions if the performance does not meet the standards. Consequences may include additional disciplinary action, loss of opportunities for advancement, impact on compensation and benefits, reassignment of duties or responsibilities, and loss of employment.

Example: It is imperative to take proactive steps to address performance issues outlined in this improvement plan and actively collaborate with your manager to achieve the desired level of performance. Failure to do so will result in termination of employment.

8. Document the plan

Record the PIP in writing, ensuring that the employee has a clear understanding of the expectations, goals, and support mechanisms in place. Create a template for your practice so that management remains consistent for any PIP.

When the employee has made genuine progress, the PIP is closed and kept in the employee’s file. Depending on the situation and the employee’s efforts to improve, the PIP may be extended a few weeks. Finally, it may be necessary to terminate the employee who is not improving.

PIPs are a crucial tool for the success of the business. Having a clear method of documenting an employee’s performance deficiency, the specific areas needing improvement, and the expectations for improvement can provide evidence that the employee was given opportunities to address the performance issues before termination. Having a structured PIP demonstrates that the business followed fair and consistent procedures, which can mitigate the risk of potential legal challenges, such as claims of unfair dismissal or discrimination. A well-designed PIP that includes SMART goals provides a basis for evaluating whether the performance has improved to an acceptable level. The PIP process facilitates open communication and establishes regular feedback and progress reviews during the PIP period. In addition, PIPs allow the business to take corrective action before the performance issue escalates and impacts productivity, client satisfaction, or team dynamics.

Creating a PIP is a proactive and positive approach to addressing performance challenges. By focusing on clear communication, collaboration, and providing the necessary support, employees can be empowered to overcome obstacles and contribute to a culture of continuous improvement. When approached with empathy and a commitment to growth, PIPs become powerful tools for fostering a motivated, high-performing workforce.