How to make performance improvement plans more effective?

Though it is usual to witness changes in employee performance graphs occasionally, a continually degrading work quality can be worrisome. If the employee consistently fails to meet performance expectations, it can be concerning for overall business productivity and thus should be addressed as a priority. A performance improvement plan (PIP) is an effective tool that helps businesses deal with the rising concern of decaying employee performance.

PIPs are created to give employees a chance to prove themselves despite poor performance, they are often seen as the beginning of the firing process. But it’s time to change the perception. Every company wants to develop a PIP that actually works but most don’t succeed because of the lack of meticulous planning, transparency, sensitivity and collaborative spirit.

It is a part of talent performance management and should be seen as a coaching opportunity to nurture talent and reduce employee turnover. Let’s check out some top ways to improve employee performance using PIP.

What are performance improvement plans?

Performance improvement plans (PIPs) are designed to help employees who are struggling to meet their performance goals. A PIP is a formal process that outlines specific steps an employee must take to improve their performance. While a PIP can be a useful tool, it can also be ineffective if not implemented correctly. Here are some ways to make PIPs more effective:

Set Clear Goals and Expectations

The first step in creating an effective PIP is to set clear goals and expectations. The employee should understand exactly what they need to do to improve their performance. Be specific about what needs to be improved, how much improvement is expected, and when the improvement needs to be achieved.

Set Timelines

To set achievable timelines for each goal, take into consideration the specific goal and the employee's circumstances. A helpful template, to begin with, is the 30-60-90 day plan utilized during new employee onboarding. It's important to include markers and checkpoints throughout the PIP period to ensure the employee stays on track. Avoid making timelines too strict though.

Avoid Biases

To prevent biases from influencing the creation of a Performance Improvement Plan (PIP), it's important to approach the process objectively. This can be achieved by using measurable criteria to assess performance, focusing on specific areas of improvement, and involving the employee in goal-setting. Additionally, it's essential to avoid any personal opinions or assumptions about the employee's work and to base evaluations solely on factual evidence.

Provide Resources and Training

Once you have identified the areas of performance that need improvement, work with the employee to identify specific actions they can take to improve. The actions should be practical, achievable, and measurable. Identify the resources and support the employee needs to take these actions. If needed, give the required training before letting them start on the plan.

Provide Ongoing Feedback and Support

Effective PIPs require ongoing feedback and support from managers. Managers should meet regularly with employees to provide feedback, answer questions, and provide guidance. This feedback should be specific and focused on the areas that need improvement.

Monitor Progress and Make Adjustments

As employee takes steps to improve their performance, it is important to monitor their progress. If the employee is not making progress, it may be necessary to make adjustments to the plan. Leaders should be flexible and willing to modify the PIP as needed to ensure that it is effective.

Provide Incentives for Improvement

Providing incentives can be a powerful motivator for employees who are struggling to improve their performance. These rewards could be in the form of bonuses, promotions, or increments and can be tied directly to the specific goals identified in the PIP.

Create a Positive Environment

Creating a positive work environment is critical to the success of PIPs. Employees should feel supported and encouraged throughout the process. Managers should focus on the employee's strengths and accomplishments, and provide constructive feedback that is focused on improving performance.

Follow Up

Once the PIP is completed, it is important to follow up with the employee to ensure that the improvements are maintained. The employee should continue to receive feedback and support, and managers should continue to monitor performance to ensure that the improvements are sustained.

In conclusion, PIPs can be an effective tool for improving employee performance, but only if they are implemented correctly. It’s important to avoid being too harsh with employees who are put on PIP or it can have a negative effect. One should note that PIPs are created to give employees the best chance to showcase their skills and do some self-analysis in terms of their growth. It should not be treated as a stepping stone to eventually firing the employee. PIPs designed using data provided by performance management software like entomo can help set achievable objectives and bring the best out of your underachieving employees.

entomo is a people experience platform built for the digital world of work. Powering 30mn+ users and workplaces world-wide, entomo enables workforce experiences that transform performance, engagement and talent development using hyper personalized insights and nudges. entomo’s clients include Fortune 500 and other large enterprises, as well as forward thinking Governments who have embarked on enterprise, industry or national scale transformation initiatives. entomo is also voted as a leader in G2 software marketplace across multiple categories. To know more, visithttps://entomo.co/request-demo/