How to Write a Performance Improvement Plan (PIP) Effectively: Step-by-Step Guide

A performance improvement plan or PIP is a formal communication process designed for organizations to accomplish their specific performance standards. Knowing how to write a performance improvement plan for a manager is beneficial in:

• Clearly defining the goals and objectives for each individual. 
• A defined timeline for improving the areas of concern.
• Extending support in the form of mentorship, training, and offering regular feedback. 

Your employees must understand that your PIP or performance improvement plan is not your warning statement. Moreover, it is a structured process defining how they should improve their performance by setting clear and measurable goals. As part of an individual PIP, you can even suggest resources for improvement and offer regular feedback and support. 

The ultimate goal of a good PIP is to offer additional structure, guidance, and support to your employees in improving their performance issues. This blog will discuss six steps to crafting a well-structured performance improvement plan. 

When Should You Write a Performance Improvement Plan?

Before moving on to how to write a performance improvement plan for an employee, let us explore when you should write it. 

Your PIP or performance improvement plan should ideally follow a series of verbal and documented conversations. It should reflect the performance issues you identify in your team members and provide measures or resources for addressing them. 

If you are not sure about when it is the right time to craft a performance improvement plan, check on the below points for drafting an ideal one: 

• When an employee consistently underperforms despite previous feedback.
• When an employee needs structured coaching to meet expectations.
• When misalignment in performance needs to be addressed with clear objectives.
• When termination is not the first option, but structured improvement is necessary.

How to Write a Performance Improvement Plan in 6 Steps

After exploring when to write, let us quickly look at how to write a good performance improvement plan. While drafting a perfect PIP for your employees, there are certain elements you should critically consider. A few of them describe why PIP is necessary, identify the problem, create measurable objectives, come up with a schedule, and state the consequences, among others. Let's explore each step now: 

Step 1: Identify the Performance Issues 

The first step in how to write a good performance improvement plan is identifying the performance issues. This is the essential purpose of why you are working on this performance improvement plan today. It helps you define the problems you identify in your team member's performance, clarify expectations, and define opportunity areas. Step 1 includes:

1. Gather performance data: use past evaluations, feedback, and project reports.
2. Specify the exact issue: avoid vague descriptions like "needs improvement".

Step 2: Set Clear and Measurable Goals

Your performance improvement plan or PIP is incomplete without a clear and actionable goal. Leverage the SMART framework for this step. These goals are crucial for guiding your employees through what the organization expects. Aligning individual goals with company goals using OKRs adds a sense of purpose and accountability to your PIP. Step 2 is again a two-step process: 

1. Use SMART goals: goals should be Specific, Measurable, Achievable, Relevant, and Time-bound.
2. Provide success criteria: define what improvement looks like.

Step 3: Outline the Support and Resources Available

While defining your performance improvement plan, you cannot just identify the performance issues. You must also thoroughly guide your team members with the critical support they need to achieve their PIP goals and objectives. It could include suggestions for additional training programs, tools, or guidance. Offering the right resources demonstrates that you also care for your team members' growth. Step 3 can be achieved in two steps: 

1. Assign mentors or coaches: ensure employees get guidance.
2. Provide additional training: offer learning resources, tools, or workshops.

Step 4: Define a Realistic Timeline 

Step 4 in how to write a performance improvement plan for a manager is about defining a realistic timeline. You cannot jot down the performance issues in your employees and expect them to change overnight. Improvement is a progressive phase and needs a realistic timeline for each actionable point. Setting defined timelines ensures that you and your team members have clear expectations for progressing and providing a structured improvement approach. Step 4 can be divided into two steps: 

1. Choose between a 30-day, 60-day, or 90-day PIP.
2. Set milestones and check-ins: track progress at specific intervals.

Step 5: Document Everything Clearly

Drafting your performance improvement plan or PIP is crucial for being legally compliant. It is an efficient and well-appreciated way of professional communication as it demonstrates a commitment to improving the employees. A well-documented performance improvement plan is crucial for legal protection, clear communication and expectation, demonstrating support and coaching, evidence of efforts, facilitating evaluation of objectives, and setting realistic SMART goals. Step 5 includes: 

1. Write PIP in a structured, professional format: keep it clear and objective.
2. Ensure HR and leadership alignment: get sign-offs before implementing.

Step 6: Communicate the Plan Transparently

Communicating your performance improvement plan or PIP with your team members is crucial for being specific and objective. It is an excellent way of aligning on an actionable plan by acknowledging all potential outcomes. Here's how you can do it: 

1. Explain the PIP in a one-on-one meeting: ensure clarity and commitment.
2. Encourage employee participation: allow them to ask questions and provide input.

Performance Improvement Plan Template 

Below is how to write a performance improvement plan example: 

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Common Mistakes to Avoid When Writing a PIP

You may make common mistakes when you sit down to write your first PIP. Here are a few common mistakes people make while drafting an effective PIP for their employees or team members: 

• Vague expectations: goals must be specific and measurable.
• Unrealistic targets: a PIP should be achievable, not punitive.
• Lack of managerial involvement: regular coaching and feedback are critical.
• Failure to track progress: without follow-ups, a PIP is ineffective.
• Using PIPs only as a termination tool: the goal should be an improvement, not an exit strategy.

How to Ensure a PIP is Fair and Effective

A fair and effective performance improvement plan, or PIP, is crucial for fostering a constructive dialogue between you and your team members. It offers your team a chance to improve and collectively build a stronger and more productive working relationship. Here’s how you can ensure that your PIP is both fair and effective: 

• Make the process collaborative: encourage employee input.
• Use a structured format: keep the PIP consistent across cases.
• Align it with company policies: ensure legal and HR compliance.
• Offer genuine support, not just demands: provide coaching, tools, and resources.

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