Ask HR: What Is a Performance Improvement Plan?
Ask HR: What Is a Performance Improvement Plan?

Ask HR: What Is a Performance Improvement Plan?

You may or not be familiar with these three little letters: PIP. No, we're not talking about a character from Great Expectations. A PIP in the HR industry refers to a "Performance Improvement Plan." As HR professionals know, PIPs can be tricky. Employees don't generally want one, and managers may not want to give one.

Interested in knowing more about what PIPs are and what they entail? Check out this week's Ask HR column from the HR pros at HR Support Center.

Question:

We’re interested in implementing a performance improvement plan for one of our employees. What does it entail?

Answer from Margaret, HR Pro:

A performance improvement plan is a tool that employers can use to help underperforming employees succeed in the organization. The plan allows you to specify the company’s expectations with respect to employee performance and behavior and to define what success looks like going forward.

The plan itself can be detailed on a single-page form. For your convenience, we have a sample performance improvement plan document on the HR Support Center. In the document you will want to note the basic performance issue (e.g. efficiency, attendance), list examples of the employee’s performance deficiencies, and then state what actions you expect from the employee, how they should be accomplished, and in what timeframe they need to be completed. It is recommended that the plan also make it clear what the consequences will be for failing to meet and sustain improved performance.

As you do with every step of this process, document the meeting in which the performance improvement plan is implemented. You may also want to note that the performance plan is not intended to be an employment contract or guarantee of continuing employment.

The performance improvement plan also provides for follow-up meetings to discuss the employee’s progress. Upon the conclusion of the performance improvement plan, the company will make a decision as to the employee’s continued employment. We generally recommend that the life of the plan be two to three months. We also recommend either weekly or bi-weekly progress meetings with the employee.

If the employee continues to underperform or fails to sustain improved performance, you may need to move on to termination. In this case, you will have the documentation to demonstrate that you gave them a chance to improve. This record will make it more difficult for the employee to challenge the reason for a termination.


Margaret, HR ProMargaret holds a Bachelor of Arts degree in Psychology from Portland State University and a Professional Certificate in Human Resources Management. She has worked in a variety of HR roles in a multi-state capacity. Margaret regularly attends seminars and other continuing education courses to stay current with new developments and changes that affect the workplace and is active in local and national Human Resources organizations.


Do you have questions like this? One entire year of HR Support Center is cheaper than just one hour of a typical attorney's time. Ask us instead.

More to Discover

Banker

Paycor + Regions Bank: A Homerun Partnership for the Birmingham Barons

Paycor + Regions Bank: A Homerun Partnership for the Birmingham Barons

Providing fans with an unforgettable experience is paramount for the Birmingham Barons. From sales and ticket takers to concessions and ballpark operations the entire Barons staff plays a vital role in making home games at Regions Field a can’t miss event for the community. And as preparation starts for opening day, hiring takes off. With nearly 700 seasonal employees hired each year, the Barons rely on Paycor to help automate manual HR processes like payroll, reporting and timekeeping.Check out this video to learn how Paycor has increased efficiency and streamlined HR operations for the Barons.

Broker

How to Help Your Clients Prove Their Value to the C-Suite

How to Help Your Clients Prove Their Value to the C-Suite

HR professionals are sitting on a goldmine of data, but they’re constantly fighting an uphill battle when it comes to proving their value to the C-suite. For starters, they aren’t data scientists and often lack the support, resources and budget needed to make sense of the data, let alone measure its financial impact.In 2015, 20% of business leaders trusted HR to use data to anticipate and help fill talent needs. By 2018, that number dropped to only 11%. The problem is twofold: some HR teams (especially if you are a solo practitioner) still spend too much time on transactional HR functions that should be automated. That doesn’t leave a lot of time for much else. Secondly, HR often doesn’t have the tools they need to access or interpret...

Webinar: Meet Paycor Analytics - The Next Generation People Analytics Platform

Webinar: Meet Paycor Analytics - The Next Generation People Analytics Platform

It’s here! Paycor Analytics, the next generation people analytics platform that will transform the way you manage your workforce, is now available. Paycor Analytics provides user-friendly insights to help you answer the right questions about your workforce by transforming complex data into trends, predictions and powerful benchmarking so you can make business critical decisions every day.Give us 15 minutes of your time and we’ll show how Paycor Analytics will change the way you answer important questions about your workforce.

HR

HR Metrics Cheat Sheet

HR Metrics Cheat Sheet

The answers to HR’s most pressing business problems—everything from troubleshooting a recruiting pipeline to predicting labor costs, overtime and turnover—are in their company’s HR, payroll, ATS and time systems. But HR professionals are constantly fighting an uphill battle. They aren’t data scientists and they often lack the support, resources and budget needed to make sense of the data, let alone measure its financial impact. The ONE THING high-performing HR teams do differently. Paycor reviewed proprietary data from nearly 3,000 customers and found that many standard HR and recruiting metrics are tactical, in that they track project management, or, at most, basic dollar-in, dollar-out cost analysis. The most successful HR teams map...