How long should a Performance Improvement Plan be?

By Catherine Ngo Content writer, presenter and podcaster

To assist HR and their stakeholders, we have compiled some frequently asked questions related to the length and initiation of a Performance Improvement Plan (PIP). 

These FAQs address common queries regarding the duration and starting point of a PIP.

First, what exactly is a PIP, and how does it differ from a performance review?

A performance improvement plan (PIP) is designed to assist employees who need to meet their job performance goals. It focuses on specific areas of performance deficiencies, pinpoints skills or training gaps, and clearly outlines expectations for an associate's future conduct. Objectives should be met within a specified timeframe, and failure to do so may result in employment actions such as a formal warning or termination.

HR plays a crucial role in the PIP process by working with managers to assess the suitability of a PIP and providing guidance to both the manager and employee throughout the plan's duration. HR ensures that all parties involved understand the process, their roles, and the desired outcomes, fostering a supportive environment for performance improvement.

A PIP differs from a standard performance review in a few ways:

1. Purpose: A standard performance review is typically conducted to assess an employee's performance over a specific period. It focuses on evaluating the employee's accomplishments, strengths, and weaknesses and providing feedback for development. A PIP, on the other hand, is designed to address specific performance issues that need improvement. It focuses on identifying the root causes of the performance problems, setting clear goals and expectations, and outlining a plan for improvement.

2. Timing: Standard performance reviews are usually conducted annually or semi-annually. A PIP, however, is typically implemented when an employee's performance falls below expectations or when specific areas need improvement. The duration of a PIP varies depending on the severity of the performance issues and the employee's progress in meeting the goals set out in the plan.

3. Level of detail: A standard performance review typically provides a broad overview of an employee's performance. It may include a general assessment of the employee's skills, knowledge, and abilities and feedback on specific projects or tasks. A PIP, on the other hand, is much more detailed. It outlines performance issues, such as consistently missing deadlines, failing to meet quality standards, or poor communication skills. It also provides concrete goals and expectations that the employee must meet to improve their performance.

4. Involvement of HR: Standard performance reviews are typically conducted by the employee's immediate supervisor or manager. HR may be involved in reviewing the performance review and providing guidance, but they are not solely responsible for the review process. 
In contrast, HR is often heavily involved in developing and implementing PIPs. HR may work with the employee's supervisor to identify the performance issues, develop the PIP, and monitor the employee's progress.

5. Potential consequences: Standard performance reviews may result in positive outcomes, such as pay raises, promotions, or bonuses. However, they can also result in negative consequences, such as demotions, pay cuts, or even termination of employment. PIPs are typically implemented with the goal of improving an employee's performance. However, if an employee fails to meet the objectives set out in the PIP, it may lead to disciplinary action, including termination of employment.

Are PIPs just formal documentation?

Typically, formal documents, PIPs outline problems that require attention, establish specific goals for employees to attain, and provide a timeline for achieving those objectives. When implemented effectively and at the appropriate time, a PIP can serve as a valuable resource for employers.

However, providing the employee with a PIP alone is insufficient. Managers must also engage in a dialogue with the employees, addressing their questions and concerns. 

PIP discussions often present challenges, particularly when preserving a positive environment. Despite the leader's efforts to clarify the PIP's purpose, the employee may perceive it as a potential indication of termination, even when it is intended to facilitate their development and advancement.

How do you create a PIP?

Creating a performance improvement plan (PIP) involves several essential steps:

1. Determine the Appropriateness of a PIP:

• Assess if a PIP is suitable for the employee's situation.
• Consider whether informal conversations or termination may be more appropriate.

2. Develop a Plan:

• Collaborate with HR & Business Unit to create a PIP.
• Outline the plan's objectives, desired outcomes, and consequences.

3. Discuss the Plan with the Employee:

• Engage in a conversation with the employee to provide context and purpose for the PIP.
• Address any questions or concerns they may have.

4. Monitor Employee Progress:

• Regularly assess the employee's performance against the PIP's milestones.
• Provide feedback and support throughout the process. Offer EAP services if applicable. 

5. Evaluate Employee Performance:

• Determine whether the employee has met the plan's criteria.
• Decide on the next steps based on the employee's progress.

What is the typical timeframe for a PIP?

A PIP can be anywhere from 30, 60, and 90 days in duration. Improvement is unlikely to occur if it does not happen within 90 to 120 days.

Is a PIP a Sign of Imminent Termination?

Although Performance Improvement Plans (PIPs) frequently precede termination, this is not always the case. If you have been given a PIP, there may still be hope. In some instances, you can address the issues raised in the PIP and retain your employment.

Need advice on an underperforming team member? 

It is important to handle matters sensitively when it comes to performance and productivity. If a team member's performance is a concern, seek guidance from the Workplace Advice Team. Their expertise lies in addressing such issues, and they can offer valuable insights and suggestions on how to navigate the situation effectively. Call 13 29 59.