Performance Improvement Plan Template: Use PIPs Right

A performance improvement plan (PIP) is a document that helps your employees understand what skills they need and discover their training and career gaps. Moreover, these PIP templates are pretty beneficial in setting clear expectations for different job roles. However, you need to implement them correctly. With correct implementation, it functions as a positive tool for aligning your employees and management. It improves both your job performance and satisfaction. 

Each performance improvement plan template is crafted uniquely for the individual employees. It helps identify and list gaps and action steps that lead to direct improvements aligning with their jobs' roles and expectations. A well-structured PIP helps address and improve your employees' work performance. It outlines the specific improvement areas, defines clear goals, and creates a realistic timeline to achieve them. 

What is a Performance Improvement Plan (PIP)?

Performance improvement plans, or PIPs, help employees define a clear path to improvement. They empower employees to understand their performance issues and work towards improvement. PIPs create accountability for individual performance by setting clear expectations and providing a track record of their performance issues and efforts for improvement. They also identify their skill gaps and the scope for developing new skills. 

Key Components of a PIP:

• Identifies performance gaps with specific examples
• Sets measurable improvement goals aligned with job expectations
• Establishes timelines and check-in schedules for tracking progress
• Outlines support resources such as training or mentorship
• Defines potential outcomes based on the employee's progress

In this blog, we will explain a performance improvement plan (PIP) and provide a detailed step-by-step template for your employees. 

When Should a Performance Improvement Plan Be Used?

A performance improvement plan or PIP is better suited in scenarios where your employee is underperforming but has a good scope to improve. It requires a clear set of attainable goals present for each employee. Here are some of the instances where you need a performance improvement plan: 

• When an employee struggles to meet performance expectations.
• When an employee has potential but needs structured coaching.
• When previous feedback and informal coaching haven't worked.
• When organizations want to provide a fair, documented process before making further decisions

Step-by-Step Guide to Creating a Performance Improvement Plan Template

You do not need to design a performance improvement plan to make your employees follow a disciplined approach. You need it for your employees as an opportunity to better their performance with each passing day. Here are some steps to drafting a robust performance improvement plan template: 

A. Define the Performance Issues

A PIP is a document highlighting the areas where your employees fall short of their job performance goals. It covers specific performance deficient areas and identifies skills and training gaps. To define the performance issue of your employees, you majorly need to focus on two main things: 

Gather objective data: Use past performance reports and feedback

Identify key areas of underperformance: Clearly outline where expectations aren't met

B. Set Clear and Measurable Goals 

A sample performance improvement plan template suggests setting clear and measurable goals. The SMART framework has been entirely supplementary in this scenario. It ensures that your individual employee goals align with the company's objectives to provide a roadmap for continued success and improvement. You need to: 

• Use SMART goals: Ensure goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
• Define success metrics: Employees should understand what's expected.

C. Provide Support and Resources

After defining the goals with the SMART approach, your employees will need your constant support and resources to overcome their performance shortcomings. You can offer training or mentorship assistance to your potential employees. At the same time, ensure that your employees have access to the necessary tools for their performance improvement. You can even schedule regular feedback sessions with your employees to discuss their clear path of progress and focus more on collaboration and empowerment. 

D. Set a Timeline and Check-in Points

Once your employees have a clear understanding of their performance loopholes, goals, and the resources available for their performance improvement, you should schedule a timeline and check-ins. You can choose a 30-day or 90-day performance improvement plan template. 

• 30-day PIP Template: For short-term improvements with immediate impact.
• 90-day PIP Template: For employees requiring long-term development.

E. Document and Communicate the Plan

Document your performance improvement plan or PIP by considering input from managers, employees, and HR professionals. Here are some key steps to consider while drafting your PIP: 

• Agree on the acceptable parameters.
• Understand how a specific performance has met or not this criterion.
• Do the root cause analysis of the performance issue. 
• Create objectives that are clear and measurable. 
• List down the requirements and deadlines.

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Performance Improvement Plan Template 

Use this simple template for a performance improvement plan to start with the performance assessment of your employees. 

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Common Mistakes to Avoid When Using a PIP Template

While using a PIP, there are inevitable common mistakes you should avoid. It is crucial that the PIP is effectively implemented and has no legal issues. A well-crafted performance improvement plan template or PIP understands the expectations and offers a structured path for your employees to improve. 

• Vague goals with no apparent success criteria
• Unrealistic expectations that set employees up for failure
• Lack of manager involvement in coaching and support
• No structured check-ins, leading to missed opportunities for improvement
• Using a PIP as a termination formality rather than an actual improvement plan

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30-Day vs. 90-Day Performance Improvement Plan Templates: Which One to Use? 

Choosing between the 30-day and 90-day performance improvement plans could be tricky. While the first is ideal for short-term correctable issues, the second is suitable for long-term persistent performance issues. 

Here's a gist of both the templates: 

30-Day PIP Template

• Suitable for urgent performance issues that require quick action.
• Focuses on immediate, short-term goals.
• Used for minor performance gaps that can be fixed quickly.

90-Day PIP Template

• Ideal for long-term skill development and behavioural changes.
• Suitable for high-potential employees who need structured guidance.
• Allows more time for coaching, training, and measurable growth.

How to Ensure a PIP Template is Fair and Effective

To ensure your PIP template is effective, you need to focus on setting clear and attainable goals with realistic deadlines. You should consistently receive feedback across your organization. Here is a more detailed breakdown of steps to ensure that your PIP template is fair and effective:

• Align the PIP with company policies and HR best practices.
• Ensure goals are realistic, achievable, and not biased.
• Provide adequate resources and training.
• Foster an open and supportive discussion around the PIP.