How to Establish a Performance Improvement Plan

How to Establish a Performance Improvement Plan
This week’s Fierce resource was originally published by SHRM and explains how organizations can establish a performance improvement plan to give struggling employees a chance to succeed.

A performance improvement plan (PIP) enables managers to address a team performance issue and holds the employee accountable for turning around their performance. There are dozens of reasons why an employee may have poor performance. It could be a personal issue they are dealing with at home that is bleeding over into their work, or a miscommunication on expectations of the role.

Per SHRM, there is a six-step process that when followed will help identify gaps in training and skills, create recognition of the performance issue, and will result in performance either turning around or not. If it is the latter, actions such as demotion, job transfer, or termination can result with no surprises.

1. Document performance issues. By documenting the areas that need improvement, clarity around expectations are set.

2. Develop an action plan. The manager should establish an action plan for how the employee can turn around their performance. Creating this plan in collaboration with the employee will eliminate confusion and ensure expectations are understood.

3. Review the performance plan closely. Prior to sharing the final plan with the employee, the manager should consult with his or her supervisor or an HR professional to ensure everything is stated clearly.

Read the other six steps and the entire article here.

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