Importance of Performance Improvement Plan PIP In 2022

A performance improvement plan is essential for some employees of every company. It is a strategy used by various managers in the world to enhance the performance of their staff. Join us to explore the importance of the performance improvement plan PIP in 2022 by reading through the whole article.

Importance of Performance Improvement Plan PIP In 2022

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Importance of Performance Improvement Plan PIP In 2022

A performance improvement plan is a tool that helps to improve the performance of employees with honest feedback and actionable steps for improvement.

If this tool is used in the right situation, it can add benefits to the company at large and the personal lives of the employees.

What Is a Performance Improvement Plan?

A performance improvement plan or PIP is a formal document that explains the areas in that an employee needs improvement and gives them clear guidelines to attain it. A Performance improvement plan is implemented when an employee does not meet targets.

The main objective of a PIP is to promote constructive feedback, clarify the company’s expectations and enable the improvement or development of the employees.

This document is often drafted by an employer or an employee’s superior and human resource personnel work as a facilitator between the two. When they receive the PIP, the employee will be given a specified time, generally from one to three months, to grow and meet the objectives of the company.

This is usually the last straw of an unproductive employee.  If they do not improve after this, they could be relieved of their duties, demoted, or transferred.

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Benefits Of a Performance Improvement Plan

There are various benefits that this document brings. Some of them are written below;

Boosts Employees’ Morale

The major focus of a performance improvement plan is to make sure that employees who are not performing well eventually improve rather than demoting or firing them.

This document ensures that the staff who struggle to fulfill their tasks but want to improve are given all the support they need from the company.  With the actionable objectives and support, these staff can be certain that the company wants them to improve.

Minimizes Staff Turnover

Another benefit that the performance improvement plan gives to a company is that it minimizes staff turnover. The process of posting a job opening and granting interviews can take much time and resources.  Instead of doing that, it will be more advisable for a company to improve its already established staff base.

Encourages Accountability and Efficiency

The fact is that employees do need regular feedback to be sure that they are hitting their targets or goals. The PIP helps an employer to communicate gaps and clarify the results expected from the employees. This will help them become accountable and efficient in their work.

 It is Used to Identify the Performance of An Employee

With the standards or expectations already laid down by a PIP, employers will be able to know the current performance of their employees and compare them to the expectations. With this information, they can employ methods to improve the performance of employees if they are not meeting expectations.

Program Development

With the performance improvement plan, a program is developed that is used to work on the performance of the employee. This program will focus on the areas of the employee’s duty that needs improvement.

It is Used to Gather Feedback

A performance improvement plan is used to gather feedback concerning a particular employee’s performance. This feedback may come from the employee being evaluated or from supervisors assigned to monitor the performance of an employee.

Identification of Behaviors

Another importance of a PIP is that it is used to identify the behaviors that are used to achieve his/her results and let them know that they are not meeting expectations. After that, plans are then tailored to address specific performance deficiencies that employees are displaying.

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Helps Employees Identify their Skills and Ability

Another good importance of a performance improvement plan is that it helps employees discover their potential. Even if an employee has been displaying substandard performance, this plan can help employees improve their skills and even gain new ones.

Identifying the Competence of Employees

PIPs are also used to identify how competent an employee is. this will help the employer determine what role an employee should be playing in the company. It could also help employers to be patient with their employees for a stipulated period.

What To Include in A Performance Improvement Plan

Now that we know the various importance of a Performance improvement plan, let’s identify the essential details that must be present In such documents. This information includes;

  • The basic information of an employee such as the name of the employee, designation, and department.
  • A statement summarizing the purpose of the document
  • The areas of the employee’s performance that needs improvement
  • Measurable improvement goals with actionable steps to help them achieve them
  • The expected duration for improvement
  • Address the expectations of the employees and the consequences of failing to meet them.

How To Implement a Performance Improvement Plan

Implementing this plan may not be an easy nut to crack but following these steps could help you achieve your goals;

  • Know if a PIP Is Appropriate
  • Identify the Problems of the employee
  • Define the Objectives, Guidelines, and Consequences
  • Draft and Review the PIP
  • Implement the PIP
  • Monitor the Progress of the employee
  • Conclude the Plan

Illegal Performance Improvement Plan

If you are faced with a performance improvement plan that is unjustified to begin with and impossible to achieve its goals, push it back to a member of your employee’s senior management stating the reasons why you think it is fraud. Here are some major or justifiable reasons why a performance improvement plan for an employee could be fraud;

  • False facts about your performance
  • Omission of the positive achievement, or the goals reached by the employee
  • Conclusions based on wrong or false facts
  • When goals were not clearly explained to the understanding employees
  • Goals without measurable metrics
  • Little time allotted for unreasonably huge goals
  • Insufficient resources provided for goals
  • Lack of instructions or coaching
  • Failure to continually communicate feedback to employees

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Frequently Asked Questions

What Is the Purpose of a Performance Improvement Team?

Performance improvement teams (PITs) are of great importance to the growth of an organization. These teams have helped many businesses resolve workflow or other obstacles impeding efficiency. PITs consist of a multidisciplinary group of personnel associated with a defined process.

How To Write a Performance Improvement Plan

To write a very good performance improvement plan, follow the steps below;

  • Know the right circumstances to employ a performance improvement plan.
  • Describe the problem and the desired goals you want from an employee
  • Lay out the required actions and clear metrics for the success of employees
  • Give details of the available organizational support.
  • Explain milestones for follow-up of each goal

How long should a pip last?

PIPs can last for about 30, 60, or 90 days, depending on how long it will take to improve the specific issues of an employee

What Happens After Performance Improvement Plan?

What happens after a performance improvement plan has been implemented depends on the employee. If the employee has improved performance, he/she may continue playing his/her role. If not, there could be a reassignment, demotion, or transfer.

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