Performance Improvement Plan: How to Create a PIP

A performance improvement plan (PIP) is a formal document a manager or human resources professional gives employees to address areas to improve at work. A PIP gives employees specific steps or actions to take to regain satisfactory standing at work. A good PIP identifies the causes of poor performance, encourages employees to improve, and measures progress over a set period. Issuing PIPs can positively support company culture and employee retention rate.

Managers or human resources representatives should issue a performance action plan, often a step-by-step guide, if an employee receives a less-than-satisfactory rating in a midyear or end-of-year employee evaluation. If an employee is consistently failing to meet goals or is taking more time off, it can be helpful to set up a performance improvement plan they can work on before their next performance review.

If you are an employer looking to create a performance improvement plan, or PIP, follow these steps:

1. 1. Identify areas of improvement. Be specific about the employee’s areas of improvement, such as communication skills, productivity, or teamwork. Make a list of ways the employee can improve their performance or behavior at work, such as additional training or behavioral workshops.
2. 2. List actionable steps. Get specific about what the employee can do to change their performance. Include specific steps or actions they should take and provide examples in the PIP.
3. 3. Measure for success. Clearly outline the goal and timeframe of the performance improvement plan. Set metrics to track progress at specific intervals, such as three-month or six-month periods.
4. 4. Outline the consequences of a lack of improvement. Include information about any disciplinary action (like a demotion or other employment actions) you will take if the employee does not meet the objectives.
5. 5. Set a schedule for check-ins. It’s essential to check in with your employee throughout the improvement process continually. Include your communication plans in the PIP to encourage the employee.

Follow these tips to create an effective performance improvement plan for your team member:

1. 1. Be positive. It is essential to be encouraging and supportive throughout the performance improvement plan process. Be sure to recognize the employee’s efforts.
2. 2. Check in often. Have open communication with your employee and hold regular check-ins throughout their improvement period.
3. 3. Listen to your employee’s needs. Your employee might have a different perspective on the root cause of their performance issues (such as personal issues or other problems at work), and it's essential to make sure they feel heard at the start. When creating a PIP, consider how the plan can help support a healthy work-life balance.
4. 4. Set specific improvement goals. When creating the goals and steps for your employee, ensure they are precise and realistic so that your employee feels like they are attainable.

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