Why you Should Implement Performance Improvement Plans for Your Employees

Most of us have come across those workers who are either stubborn or incompetent. No matter how many times we have talked to these workers we come to find that they are either continuing to do something wrong or they refuse to "get with the program". Managers and business owners sometimes must resort to the Performance Improvement Plan (PIP) to get the ball rolling.

The Performance Improvement Plan has a many uses but the primary reasons include documentation, constant feedback for improvement, training, and for legal protection. Each of these aspects of the Performance Improvement Plan make it very effective for getting the job done in terms of either improving overall performance or showing the failed employee the door.

Documentation: The Performance Improvement Plan details precisely the strengths and weaknesses of the employee. In most cases the PIP is simply a performance appraisal that is labeled on the top "90 day PIP". The manager has the opportunity to document all of the strengths and shortcomings of the worker, obtain the worker's signature and file away this PIP to compare against their 90 day PIP review.

Constant Feedback: The PIP is usually laid out into performance issues, team work, professional development, and/or enforcement sections. Each of these sections gives the worker an adequate holistic view of how well they are doing. For example if the employee is great at producing widgets but never comes in time the PIP should say so. It is difficult for employees to improve unless they are given constant feedback.

Training: The PIP is also the time to invest in some training with the employee. Part of the employee's problem might be related to how well the organization trained him or her or a misinterpretation of the organization's expectations. The PIP is a tool to be used in training to measure the effectiveness and improvement the training causes.

Legal Protection: Unfortunately there comes a time when every manager or business owner must terminate someone's employment. The employee simply doesn't know what they are doing, is costing the organization money and no more time can be wasted. In these cases your PIP becomes a useful legal document that can defend you against lawsuits.

The key to using a PIP correctly is to be honest in its application. Make sure you are not using it as a tool to simply get rid of the employee. The manager or business owner should go into the PIP with the mindset "I am going to help this employee improve". If that doesn't happen in the end then let the PIP speak for itself.