Elements of Employee Performance Improvement Plan

Introduction

Have you wondered what will happen to your organization if your employees achieve stagnancy? They might be doing well and achieving their targets. But, if you do not challenge them to get out of their comfort zones and push themselves beyond their boundaries to learn and grow, they will get complacent. It is a danger zone. No matter how skilled the staff is, self-satisfaction curbs growth.

Growth is a continuous process that requires conscious efforts.

A performance Improvement Plan, also known as PIP, is a tool to enhance employee performance and drive company growth. HR creates these plans in collaboration with the staff to help them achieve personal and career growth, resulting in the development of the enterprise.

Elements of a Successful Performance Improvement Plan (PIP)

The success of a performance improvement plan for employees is assured when all the elements are taken care of. Here are some must-haves in a PIP:

1. Clear goals and objectives
2. Employee involvement
3. Quantifiable success metrics
4. Timelines to achieve objectives
5. Required resources and tools
6. Consequence of unsuccess 
7. Frequent communication

1. Clear goals and objectives

Set the objectives right at the beginning and clearly communicate what is expected from the employee. It helps them know where they have to reach and are mentally prepared for the same. These objectives need to be realistic and yet optimistic. It must be challenging enough to motivate the employees to learn and strive for it. However, it should not be out of reach as the same can demotivate the employees and adversely affect the results.

2. Employee involvement

Performance Improvement is a merged effort of the company and the employees. While the HR lays the foundation by sharing the vision and goals and providing the means to achieve the same, employees’ consensus on the same is crucial. They must approve the set goals, and agree to give their best to reach those milestones. Hence, they should be equally engaged when making the plan, and setting the goals.

3. Quantifiable success metrics

Measuring performance becomes easy when the metrics are quantifiable. Create success metrics that have no ambiguity and are easy to measure. It provides clarity to the employees and those who will measure improvement by the end of the plan period.

4. Timelines to achieve objectives

A plan is not complete without deadlines. With the objectives and resources, HR must chalk out the expected timelines for reaching the milestones. Timelines push the staff to keep moving in the direction without stopping in the middle. It helps them plan their efforts for upskilling and training so as to reach the goals in the stipulated time.

5. Required resources and tools

It is the focal point of any Performance Improvement Plan (PIP). A PIP must include training modules, courses, internship/on-the-job training opportunities, and all the resources that help the employees achieve the desired performance outcomes. It equips them with the tools they need to improve their work. The role of HR is not just to lay down expectations but also to provide a helping hand for growth. All that employee needs to do is execute the PIP and strive to achieve the set objectives.

6. Consequence of unsuccess

While success comes with rewards, unfulfillment must be penalized by consequences. These consequences may be monetary, reflecting on the increment or performance-linked incentives. It may also be non-monetary and reflect on the designation, team size, etc. While the rewards will pull employees towards it, the fear of consequences will push them to deliver. 

7.  Frequent communication

It is probably the most neglected element of a Performance Improvement Plan. Frequent communication between the manager, staff, and HR ensures there is no gap or hurdles in the plan. It helps in smooth implementation and timely execution. It is the responsibility of HR to conduct continuous feedback and review sessions to understand the success of a PIP on the go.

Conclusion

Employees are more than excited to work on their PIP and grow in their careers. However, there will always be some underperformers or laid-back employees that are happy where they are and do not want to progress. HR needs to identify such workers and decide with the management how they can be motivated to grow and contribute to organizational development.