Performance Improvement Plan – Good Reasons to Use It for Your Business (8 Amazing Example)

When it comes to the discussion of improving the employees’ performance, there are many things that can contribute to it, one of them is a performance improvement plan. This can be a very valuable assistant that will help business owners or managers to get to the bottom things why the workers’ performance less impressive. In this way, the managers and business owners can formulate the best methods to upgrade the performance of the employees in the workplace.

Performance Improvement Plan – What Is It Actually?

A performance improvement plan (PIP) is also popular with another term, a performance action plan. As the name suggests, this tool is generally applied when employees show low performance and complete their tasks under satisfactory standards at the workplace. This PIP will help you to reach out the past performance at the past time while giving them the opportunity and assists needed to succeed in the future. The performance action plan will give a valuable assistant for your team members or workers to increase their performance as well as improve their behavior in the office. There will be some outcomes that can be resulted by the performance action plan such as demotion, termination, recognition of skill gaps or training, transfer, and the employees’ improvement in overall performance. There are many kinds of PIP form that are available for you to opt. You can also easily find the samples of performance improvement plan template and performance improvement plan letter that might fit best with your company’s need. The managers or business owners can use this PIP to help them communicate and discuss the performance they expect from the employees as the alternative. There are several objectives of the performance action plan that you should know.

• Determine the reasons behavior as well as performance that wasn’t up to the mark yet.
• Define what the managers and business owners expect from the workers in the future clearly.
• Communicate to the workers that their behavior or performance wasn’t up to the mark.
• Define what can’t be accepted from workers’ performance in the future.
• Make it clear for the workers that they will have adverse consequences if their behavior and performance can’t be improved in the future.

Why Do You Need the Performance Improvement Plan?

There are many reasons why this performance action plan can be very important to the continuity of your company.

1. Identification

The first common reason why you need to develop the performance action plan is that it can help you to identify your employees’ substandard performance. In this way, you will be able to help your employees to recognize their performance and behavior are under the company’s expectation. Commonly, the plan is specially designed to target specific performance deficiencies that are displayed by the workers. In addition, the performance improvement plan also provides a method that is tailored to build a systematic improvement program such as on-the-job training and formal coaching.

2. Documentation

The performance action plan will also make it possible for you to collect important information needed to document the substandard performance. This is because the workers aren’t always in a position to allow them to know the weaknesses as well as the strengths displayed by a particular employee. There should be the rightest strategy aimed to design a plan that can help you to document employees’ performance at a specific period of time. In this way, the managers and business owners will be able to map a particular problem should be resolved easily. They can also gather feedback related to the performance of a particular worker in more effective ways by using the PIP. It can be taken from the evaluation made by supervisors specially assigned to monitor the performance of the employees.

3. Behaviors

The plan for performance improvement can also be used to identify the behaviors of the workers that influence the decrease in work performance. For instance, a worker might have a bad habit in which he or she often comes late to the workplace or do not attend the training sessions required by the company. The performance improvement plan can also be applied whenever managers or business owners intend to put the workers on fair plan signals to other in which the company sets a plan to maintain the job performance on the acceptable levels. If you leave the substandard performance of your employees unchecked, it has the potential to spread to all parts of your company.

4. Skills and Ability

Another good reason why you need to use the performance action plan is that it can help your workers to realize their own potential and talent. The plan can still be used to help the workers to improve their skills and ability even though they have been showing less impressive performance. With the plan made, the employees will be given the opportunity to show the workers can reach their highest potential. The performance action plan can also be applied to help the managers and business owners to identify the skills owned by the employees to complete their jobs. It may contribute to help the managers or business owners to identify what they actually need to reassign the workers to a duty that they are better suited for. In this way, you will be able to put the right person for the right job.

5. Bottom Line

Last but not least, applying the performance improvement plan will allow you to make sure the effort and every single thing needed to improve the performance of your employees. It can be done in the ways required by the contract made by the business owners or other legal requirements that meet the satisfaction of both parties before you let your workers go out of your company. The plan which is well-documented can be a good weapon to protect the business owners from a lawsuit. In this way, the workers will complete their jobs at their optimum performance level for the sake of your company.