Step 1: Determine if a Performance Improvement Plan (PIP) is appropriate

A PIP should be used when there is a commitment to help the employee improve, not as a way for a frustrated manager to start the termination process. With assistance from OPR, you need to assess if a structured plan with time-sensitive goals is the appropriate next step, or if a PIP will be more of a detriment than an aid.

• Is there an actual performance or behavioral issue that can be substantiated? Create a list of the performance deficiencies, including dates, specific data or detailed explanations, and any previous guidance given to the employee. Review the most recent performance appraisal to see if the issue is new or ongoing.
• Are you committed to helping the employee succeed? Managing includes supporting and developing employees.
• Is it likely that the issue can be "fixed" through a formal improvement plan? Problems with meeting goals, quality, quantity objectives and similar issues may be well-suited to a structured plan that helps identify why the deficiencies occur. Insubordinate and insolent behaviors, on the other hand, might not lend themselves to improvement using the goal-oriented process of a PIP.
• Does it appear the employee has received proper training to succeed at the task? Additional training may be warranted to correct the oversight.
• Is there a known personal issue that may be affecting the employee's performance? When personal difficulties strike, employees may have a dip in performance that employers often accommodate. If the reasonable time frame for accommodation has ended, a PIP may serve to help a capable employee get refocused and back on track.

Step 2: Develop a Draft Plan

Once the need for a PIP has been established, create a draft of the plan for OPR to review. An improvement plan should include:

• Information on what acceptable performance levels are and how the employee's current performance is deficient. Specifics regarding the unacceptable performance should be given, including dates, data and detailed explanations. Attach the job description and any relevant employer policies to further clarify expectations.
• Specific and measurable objectives that are achievable, relevant and time-bound (otherwise known as SMART goals). PIPs usually last 30, 60 or 90 days, depending on how long it would reasonably take to improve the specific issue. Examples might be:
  • In May, June and July, Jane Smith's quality errors must not exceed 3 percent each month, and she must produce at least 150 units each month.
  • During this 90-day performance evaluation, John Smith must have perfect attendance, with the exception of approved medical or family absences. This means that he must clock in and be ready for work by the start of each scheduled shift, return from all scheduled breaks on time and remain at work for his entire shift.
• Guidance on what management will do or provide to assist the employee in achieving these goals, such as additional resources, training or coaching.
• Details on how often the manager and employee will meet to discuss progress. This is often done once a week, but may vary depending on the circumstances.
• Clearly stated consequences for not meeting the objectives of the plan. Options may include demotion, transfer to a different position or termination.

Step 3: Review the Plan

OPR should review the plan with a focus on removing any bias against the employee. Is the performance issue clearly stated and well-substantiated? Are the objectives fair and the time frames reasonable? Is the employee being given the proper tools and training needed to improve? If it's a relatively new employee, was an adequate onboarding effort in place to help the employee become acclimated? The key to this step is to ensure that the plan is attainable and fair and not just a means to terminate an employee.

Step 4: Implement the Plan

It's time to meet with the employee to discuss the plan and expectations. While not the most pleasant of meetings, it helps if the manager conveys their own commitment to the plan and to the employee's success. Employee feedback should be encouraged to help identify areas of confusion and to help foster ownership. Be open to changes based on the employee's input; the perspective of a valued employee (one worth the time and effort of a PIP), is no less valuable here and may lead to a more-effective plan.

After fully discussing the plan, the manager may make modifications based on employee feedback. The final plan should be signed by both manager and employee and forwarded to OPR.

If the employee is unable to commit to the PIP process at this point, the manager will need to determine what other action would be appropriate.

Step 5: Monitor Plan Progression

The manager should ensure all progress meetings are scheduled and occur on time. Cancelling meetings or showing up late would convey a lack of importance and commitment on the manager's part. Progress toward goals should be documented and discussed, seeking to identify why improvements have or have not been made. If gaps in training or required tools become apparent, provide those as soon as possible. Encourage employees to lead these meetings, to self-report on how they believe they are doing and what realizations they might have made, or what else they feel they need to succeed.

Successful progress made toward the goal should be recognized as a means of motivating the employee to continued improvement.

Step 6: Plan Conclusion

When the employee has responded positively by meeting plan objectives, possibly before the expiration date of the plan, the employer should formally close the PIP, recognize the employee's success and allow the employee to continue employment. While a positive occasion for the employee, the manager must be sure the employee understands that continued good performance is expected.

If an employee is unable to improve or if their performance worsens, the PIP should be closed, and a possible disciplinary action, reassignment, demotion or termination should be considered, based on the specific circumstances.

When the employee is committed to improvement, makes some improvement, but falls short of meeting all the objectives within the established timeline, it may be worthwhile to extend the plan to give them a bit more time to succeed. Additionally, if objectives were found, in retrospect, to not be realistic or fully within the employee's control, the plan might be ended successfully, based on the improvements achieved.