Let’s face it, not every business is going to be filled with star employees who always meet or exceed their job accountabilities.  So, what about those other employees who need help to boost their performance? The responsibility for that often falls on their manager.

A popular tool to set them on the right path is a performance improvement plan. This document sets expectations with the goal of helping the employee improve their performance.  To get the most out of a performance improvement plan, managers need to have a clear understanding of what it is, what to include in it and how to develop it.

But before we explore this further, let’s take a minute to think about how performance improvement plans make people feel.

Dreaded by managers because they are awkward.

 Employees likely feel embarrassed, anxious and hurt.

Yet, as uncomfortable as these conversations may be, they are sometimes necessary.  They can help the employee succeed and positively affect your company.

What Is a Performance Improvement Plan?

A performance improvement plan is a process and a document that communicates corrective actions, provides resources, and assigns a timeline of expected results to an underperforming employee.  It is a corrective action plan for addressing employee performance, not employee behaviour.  A performance improvement plan shifts the responsibility for improving performance, so that it is mutually shared with the manager, the employee, and the company.

Employees struggling to reach a satisfactory standard of performance based on job description, company goals, organizational changes, or other performance management initiatives are held accountable by the performance improvement plan.  If the expectations assigned in the performance improvement plan are not achieved within the documented timeline and the employee fails to improve work performance, the performance improvement plan provides clear consequences, including termination of employment.

When to use a Performance Improvement Plan?

Lots of organizations use performance improvement plans following an unsatisfactory performance review.  However, this is the least effective time to implement them.  The chances of employee success are much greater when a performance improvement plan is put in place once unsatisfactory performance occurs more than once in one or more performance areas, rather than waiting until the end of an annual performance review period.

A performance improvement plan is not an ideal tool to address issues such as attendance and tardiness.  These should be addressed using a company’s disciplinary procedure.  In addition, when an issue has a low likelihood of correction (e.g. when an employee’s competencies are significantly misaligned with the job requirements), a performance improvement plan is not an appropriate solution.

What Is the Purpose of a Performance Improvement Plan?

The objectives and outcomes of a performance improvement plan vary depending on a variety of factors but often serve to accomplish many things.  They:

• Guide one-on-one meetings between the manager and the employee.
• Describe workplace performance expectations and open dialogue with the employee.
• Communicate issues about specific workplace performance.
• Set goals and follow up on progress with review sessions to measure success.
• Indicate to all parties involved the expectations for future action and improvement.
• Provide notice to underperforming employees that there are consequences for not correcting the areas of poor performance.
• Serve as legal documentation to protect the employer and manager involved in workplace disputes or lawsuits.

What to Include in a Performance Plan?

The performance improvement plan is a concise form, typically one to two pages long.  It is a confidential document that typically presents the main topics using formal language and tone.  While the performance improvement plan forms may vary, there is a common framework of information to cover when crafting a performance improvement plan.  Performance improvement plans often include but are not limited to the following:

• A list of names, positions, and departments of everyone involved in the performance improvement plan meeting and the process including the employee, supervisor, management, and HR representatives, if applicable.
• Key dates, including when the performance issues occurred, and the time period covered in the action plan.
• Details about the employee’s performance issues. Include any previous discussions with the employee related to these concerns and the specific work that needs improvement or issues to rectify.
• A summary of goals and what the employees needs to achieve. Follow the SMART methodology for establishing each goal (specific, measurable, attainable, relevant, and time sensitive).
• The resources you will provide to the employee to support improvement, including any additional training, materials, and outside resources.
• Description of the specific expectations you have for the employee over the predetermined period of time. Document and state the consequences for not achieving those expectations.
• Specific actions the employee needs to implement to achieve the goals and details on how you’ll measure this progress.
• The names and signatures of everyone present at the performance improvement plan meeting and the date.

A well-planned and well-written performance improvement plan is a valuable tool.  Anyone who reads the performance improvement plan should be able to clearly understand the concerns, the actions in place, and the desired outcomes.  If you decide to implement a performance improvement plan, the conversation should be a one-on-one with you and your direct report.

In addition to our article, use our template to prepare your own performance improvement plan.  Click here to build your own performance improvement plan that clearly outlines your required goals and the means for accomplishing them.

Your HR Solution

At First Avenue Consulting, we know that the efforts your organization makes to ensure a positive employee-employer relationship are critical to providing a positive employee experience and retaining top talent.  Strong employee relations also contribute to high levels of employee productivity, morale, and overall company performance.

Schedule a complimentary consultation by contacting us at info@firstavehr.ca or 647-406-4476.

Follow us on LinkedIn.  Check out our website.

Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. People & Performance Insight articles are read by a world-wide audience and employment laws and regulations vary from country to country.  Please seek legal assistance from federal, provincial or international governmental resources, to make certain your legal interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.