Guide to Employee Improvement Plans

A performance improvement plan, or PIP, is an approach used by employers to help an employee improve their job performance if they are not meeting their targets adequately. It outlines specific issues, sets clear goals, and provides a timeline for improvement, aiming to support the employee in achieving success in their role.

Contact our experts at Croner for immediate advice on people management. Call us now on 01455 858 132.

As an employer, we understand that it’s crucial to keep an eye on how your employees are performing. Having difficult conversations with an employee who may be underperforming is never easy, but Croner are well-experienced in dealing with it the right way.

While a conversation about performance management can be awkward and even emotionally taxing, they must take place to retain a high-performing and positive workforce. Poor work performance may also have the capacity to influence the rest of your team members and wider business too, so it’s important to deal with the problem early on.  

When conducting these performance reviews, you can put your employees on a performance improvement plan (PIP) to help tackle the root cause of the problem head-on. A PIPs employee performance improvement plan is designed to encourage and develop underperforming employees in a way that encourages them to work to the best of their ability.

• Why would an employee need a performance improvement plan?
• When should a performance improvement plan be implemented?
• How do you create an effective performance improvement plan?
• Advantages of a performance improvement plan
• Disadvantages of a performance improvement plan
• Speak to a Croner HR expert

What is a performance improvement plan?

A performance improvement plan or a performance appraisal is exactly that – a formal document that outlines the existing performance gaps and issues within the business.

This document will also cover goal setting that you may put in place to help improve the work performance of your employees in the both the short term and the long term. There are multiple ways that you can measure the success of the performance plan, such as regular check-ins with employees, training sessions, improved interaction with clients and putting an end to certain types of damaging behaviour.

It's important to remember that performance goals outlined in a performance improvement plan can be for both the employer and the employee.

Why would an employee need a performance improvement plan?

If an employee is on a performance improvement plan, it doesn't mean that they aren't putting in effort or working hard enough. In some cases, it could be because an employee hasn’t been trained or inducted effectively into the business, or if they are returning to work after a long absence.

As their employer, you should always try to work out what is causing the performance issues. They could be for some of the below reasons:

Wellbeing

An employee's performance might have dropped because they are struggling with their wellbeing from their life outside of work. In this case, it’s a good idea to speak to your employee about this and if they feel comfortable sharing with you, you can offer your support. A good idea is to detail your business’ tools for helping with mental wellbeing, such as the EAP (Employee Assistance Programme).

Appreciation

No employer wants to hear that their employees don't feel appreciated at work, but this can cause an employee to perform poorly. Implementing reward schemes will help boost employees' morale and help you avoid implementing a performance improvement plan. Regular constructive feedback and one-to-ones are also hugely beneficial in giving you the chance to recognise any underlying issues before they manifest into a bigger performance problem.

You can download a free appraisal form template here.

Office culture

Anything can disrupt the culture of your business, whether that’s a merger or someone leaving. A change in the office environment can leave employees feeling demoralised and unproductive. If you've started to notice a shift in attitude, take the time to speak to your team and see if you can reach a resolution before implementing a performance improvement plan.

When should a performance improvement plan be implemented?

A performance improvement plan should be used when you notice a consistent change in your employee's performance, or if they start to act inappropriately. For example, if they are consistently late for work, or if the employee fails to meet deadlines.

A performance improvement plan should address the issues and provide a way for the employee and employer to solve them and improve the overall performance of the employee.

How do you create an effective performance improvement plan?

When you've decided to implement an employee performance improvement plan, it's important that you create and document an effective path that will help your employee's performance improve. You can try to implement the following actions:

Start a conversation with your underperforming employee

Starting a difficult conversation may not be easy, but they are crucial in addressing and taking steps to improve the situation. Before you implement a PIP, you should have an open and honest conversation with your employee.

You can then discuss the performance improvement plan you have in mind and highlight the benefits it will provide for both you and the employee. Maintaining a positive attitude throughout will help the employee feel more at ease, comfortable, and likely to engage with the plan.  

Create measurable objectives

When you’re considering your performance improvement plan questions, you should consider any measurable objectives.

The goals you decide on don't have to be number-related, such as the number of sales or phone calls made. They can be anything from meeting deadlines to improving the quality of their work or reducing their absenteeism objectives.

After you’ve both agreed on a mutual goal, you can then plan how your employee can reach it. You could begin with setting smaller targets each week that slowly increase over time until they have reached the end goal.

Support your employees

Throughout the duration of the performance improvement plan, you should ensure that you are checking in regularly with your employees. This will make it easier to check that the entire process is effective and monitor your employee's performance. Throughout these check-ins, you can ask for a performance improvement plan review and receive feedback from your employees on how to refine it.  

You should ensure that your employee has clear expectations of what is expected of them throughout the plan so that they feel more comfortable, productive, and less concerned. You can also offer your employee additional resources and training opportunities so that they can develop their skills too.

Performance review and effectiveness

Throughout the plan, you should sit down with your employee to review whether the plan is effective. This conversation should include the employee's input on what is working and importantly, what isn't working. You can implement training here and look at the objectives outlined to give your employee more clarity.

When you have completed the performance reviews, you should analyse the results and consider ways in which they can improve further.

Advantages of a performance improvement plan

PIPs can encourage your employee to take ownership of their performance at work and take action to improve. Depending on the employee's attitude to the plan, it can make their performance stronger than their counterparts.

If the employee doesn't improve and their employment is terminated, a performance improve plan can reduce your risk of facing litigation as you will have a documented process of how you've supported your employee to improve.

Disadvantages of a performance improvement plan

One of the disadvantages of a performance improvement plan is that it can prompt a difficult and sometimes negative conversation. These conversations about an employee’s performance can often be uncomfortable for both you and your employee.

Another disadvantage of being put on a PIP plan can include running the risk of the employee may believe that they are on their ‘last chance’ and are close to termination. This could incentivise the employee to resign or begin looking for other roles.

However, it’s important to reassure the employee that the constructive feedback is there to help them improve in their role.

Speak to a Croner HR expert

If you are considering what the best course of action is when it comes to an appraisal or a disciplinary, Croner are here to provide you with expert and professional advice.

Croner has a team of award-winning, HR consultants who are specialists in their field. We've been helping businesses for over 80 years, and our advice line is open 365 days a year, 24 hours a day. Call us now on 01455 858 132.