Performance improvement plan template and guidance

Creating the PIP

The PIP process generally begins with drafting the plan. Typically, HR will ask the employee’s manager to draft a plan and submit it to HR for review. To help guide the employee’s manager, it’s extremely important that they have a good template to work from. Managers should be careful to:

• Identify specific performance issues
• Include clear, objective goals for the employee to meet
• Lay out a plan of action for the employee to follow
• Include available resources, training and other support for the employee
• Set a timeline

Set SMART goals

“SMART” stands for specific, measurable, achievable, relevant and time bound. Managers and HR should ensure that each goal in the PIP follows the “SMART” format. So, instead of including one deadline for the employee, include reasonable deadlines for each performance goal.

HR review

Once the manager has drafted the plan, review the plan to ensure it is appropriate. For example, you’ll want to review the plan’s goals against the employee’s yearly objectives. Additionally, ensure the deadlines set are reasonable enough that the employee should be able to achieve the PIP’s goals in the time given.

The review is also an opportunity to ensure that the plan does not increase liability exposure. Ensure that the PIP’s requirements are objective and not discriminatory. The PIP should also comply with local labor laws and not create an unintentional employment contract.

If you have in-house counsel, be sure that they have an opportunity to review the PIP. If you don’t, consult local counsel.

Presenting the PIP to the employee

Once HR has approved the PIP, the employee’s manager should schedule a meeting to present the PIP to the employee. Employees often see the PIP as a precursor to termination. So, it’s important that managers plan these meetings carefully.

To help make these meetings a success, all managers should receive appropriate training. They should know how to handle difficult conversations and, specifically, how to navigate conversations related to poor performance.

Also, the manager should inform the employee that they have an opportunity to review the PIP and provide feedback. Allowing the employee to participate in the process can help them feel more comfortable and engaged in the process. Once the employee has provided their feedback, HR and the manager should review the PIP and make final adjustments.

Once the PIP is ready, the employee and manager can sign it to indicate their agreement.

Check-ins

While the PIP is in progress, managers should schedule regular check-ins with the employee to discuss:

• What progress they’ve made
• Any hurdles they’ve encountered
• Additional support and resources that may assist the employee

Regular check-ins can catch any potential blockers preventing the employee from achieving their goals. Based on the information managers receive, they may make adjustments to the plan.

Documenting progress

If used properly, a PIP is an excellent way to accurately document an employee’s underperformance and progress. HR should keep a PIP in an employee’s personnel file. Be sure to keep any documents relevant to the PIP as well. Failing to keep good records of the process can lead to liability risks.

Additionally, document what the manager learns in check-ins and what adjustments they make. Documentation will help the employee understand their responsibilities, and it will protect the company from liability.

When the employee doesn’t meet all their goals…

If, by the end of the PIP’s timeline, the employee shows improvement in some areas but not all, then consider extending the PIP. Though some employees may benefit from an extension, PIPs shouldn’t last forever. If the employee fails to meet their goals and is showing no signs of continuous improvement, it may be time to take disciplinary action.

Performance Improvement Plan Form*

Confidential

Based on concerns regarding your performance, you are being placed on a written improvement plan. The purpose of this Performance Improvement Plan (PIP) is to address concerns with your job performance, to confirm [Employer Name]‘s expectations and to allow you to collaborate in planning and goal-setting to improve performance deficiencies or behavioral issues.

Summary of Concerns

[Describe the areas needing improvement and any performance deficiencies in clear statements, with specific examples (perhaps bulleted or listed) that detail objective facts. For example:

As of [DATE], you have not been following the customer service procedures as listed in the CSR Manual. These deficiencies include:

• Failing to greet customers upon arrival at the store;
• Failing to introduce yourself by name; and
• On [DATE], when a customer came to you with a concern about a listed price, you told the customer to “get over it.”]

[Include any previous conversations, coaching or counseling that addressed the performance concerns at issue. Reference any relevant documents – such as a mid-year performance review.]

Improvement Goals

[Identify areas of improvement. May be listed in bullet form.]

[Example: Being courteous to customers.]

Action Plan

[List goals, desired results, activities that would accomplish desired results, and a projected completion date for activities. These could be listed in bullet points or in a table format.]

Resources and Support

[Employer Name] has the following resources and support available for you during this time:

• [List employer-provided resources in a bulleted format. For example, Customer Service Training; Coaching; Employee Assistance Program (for certain behavioral issues).]

This organization continues to implement the Open Door Policy, so that it is available for you to discuss any concerns that you may have regarding this process.

Schedule (Timeline) for Improvement

The duration of this PIP is [30, 60, 90 or other time period] days. [Employee Representative] will review your progress on each of the performance goals on a [daily, weekly] basis [or alternate time].

The PIP does not alter the employment-at-will relationship.

Failure to show improvement in performance for the duration of the PIP, or failure to sustain improvement after successful completion of the PIP, may result in disciplinary action up to and including termination of employment.

Signatures

Print Employee Name:

Employee Signature:

Date:

Print Supervisor/Manager Name:

Supervisor/Manager Signature:

Date:

*This document is a template and should be customized to fit your specific needs. Please consult local counsel to ensure compliance with any local legal requirements related to performance improvement plans.