2022

Performance Improvement Plan

Fastinfo
Fastinfo
5/19/2022
 Performance Improvement Plan

WHAT IS A PERFORMANCE IMPROVEMENT PLAN?

A performance improvement plan (PIP) is a documented process for addressing employee performance
issues. A formal plan lets managers and HR partner with employees so the latter can step up to their role
and keep their good standing with the company.

A PIP communicates the action or solutions that will correct the poor performance. It also includes
resources for helping employees take that action, and a defined timeline for achieving the needed change.

Objective
PIPs help you create a culture of learning and improvement that inspires employees and communicates
your company values. Creating a plan for improvement instead of immediately letting an employee go
when there are performance issues creates problem both for the employee and the organization.

Feedback and guidance help employees feel engaged and valued. Specific, actionable feedback also
boosts morale. Employees know you’re invested in them and are willing to help them succeed, and that
gives them more job satisfaction. When your employees are engaged and happy, company profits. You
decrease employee turnover, which translates into higher productivity and reduced costs.

A good plan will also help you know exactly what action to take as you work through productivity issues.
A performance improvement plan intends to fix problems and close knowledge and skill gaps. If you don’t
see improvement after implementing a PIP, it can be an indicator that there’s a larger training gap. It may
also reveal obstacles that a straightforward plan can’t remedy. In that case, your PIP may then result in
termination or some other job change like transfer or demotion.

Eligibility

All the employees (Permanent/probationer/interns/consultant) are eligible for Performance

Improvement Plan those who have completed 3 months in the Company.

When And how to use a Performance Improvement Plan

The key role of HR and management is determining when a PIP is necessary. They need to decide what
scenarios merit using a performance improvement plan, and then work together to implement it.

DEVELOPING YOUR PERFORMANCE IMPROVEMENT PLAN STEP-BY-STEP

Knowing how to develop a PIP will prepare you to step up and address performance issues in your
company before they escalate.

1. Determine the goals of the PIP

If you don’t define what you want to achieve, you likely won’t see the change you need. It’s important to
analyze the reason for the plan and clarify what exactly needs to change to reach success.
 Performance Improvement Plan

2. Make a plan

Determine what steps will get you to success. Formal training? A new pattern of checking in regularly on
certain assignments or behaviors? Your PIP should include measurable outcomes and goals that will help
you reach them. You should define your timeline, as well as whether and when there’ll be any check-ins.

Don’t forget to specify what will happen when the plan is successful, as well as how you’ll proceed if the
employee doesn’t achieve the goals.

3. Communicate the plan and the anticipated goals with your employee

It’s important that you sit down with the employee and clarify the purposes and the desired outcomes of
the PIP. This is a collaboration, and the employee needs to understand their part of it. Share what success
looks like and how the steps outlined will lead to success.

4. Implement and track the progress of your PIP

Once you’ve communicated the plan to your employee and they understand what’s expected of them and
why, put the plan into action. Start working toward the specific goals and timelines set, checking in
regularly to see how your employee is getting on. Uphold the timeline you set in the plan.

PIP Format
Performance Improvement Plan

Employee's name: Start date:

Job title: End date:
Department: Check-in date(s): *optional
Manager:

Task or area of reponsibility Improvement Expected outcome Resources / Support

Write down the specific, measurable Mention any resources or support
#1 issue (related to productivity, role
Describe your goal criteria based on which you'll you'll provide (e.g. training courses,
objective, job behavior, etc.)
determine if the plan was successful coaching from manager, etc.)

#2 issue (if applicable)

etc.

 Task or area of responsibility: This area covers the issue have been detected that the PIP aims to
fix. It could be a productivity issue, a job behavior that needs to be changed, or a KPI that was
missed. For example, one can mention that your employee is regularly missing deadlines or that
they fail to complete their tasks successfully. This need to be as specific as possible. If there are
multiple issues, it’s best to create different entries for each of them, so performance
improvement can be measured separately.

 Improvement: Here, describe the end goal. Again, it’s important to be specific to use this at the
end of the performance improvement plan to determine whether your employee has successfully
reached that goal.
 Performance Improvement Plan

 Expected outcome: This is where all the measurable outcomes that is written what is expected
from the employee. Consider these outcomes as a guide: employees will build an action plan and
try to reach those outcomes instead of having one generic target.

 Resources / Support: As mentioned, the performance improvement plan is not a way to punish
employees. It’s a plan to help them improve their productivity. And to do so, it’s up to you to give
all employees the tools they need.

5. Tracking the PIP- Step by Step Process:-

The 1st process is after discussion with the Reporting Manager regarding the performance, the reporting
Manager will send a mail to respective employee with copy to HR & HOD, by stating that “following PIP is
starting from today onwards, at least 10% improvement is required as per parameter defined for the
employee. As per the performance rating PIP will be closed orelse this will be closed or else extended to HR
PIP”. In mail attachment, PIP scan copy should be attached with the acknowledgement of respective
employee.

 The 1st PIP will be Ops PIP. In this PIP the improvement will be measured by Reporting Manager
since the date of PIP issued till 15days. Minimum improvement should be 10% as per the Target
set in respective parameters. For example if one sales person target is fixed for quality
improvement then the 10% improvement should be shown in Quality.

 2nd PIP- During this process the Respective Reporting Manager, TL, Department Head will sit
together & review the performance containing 3 months data. Explain the employee regarding
the improvement plan for coming 15 days.

 3rd PIP- This PIP will start on the 31 day & this should be the final PIP i.e. HR PIP. During this process
HR, RM & HOD will discuss regarding the improvement for last 1 month’s time. As this is the last
PIP, HR will evaluate the Training need, continuous training to be given to the employees by
Reporting Manager & HR. Training duration will be 2 hours in each week including Technical
Training, on the job training. Training feedback will be taken in hardcopy.

6. Evaluate the results and decide on the next steps

When reach the agreed-upon deadline, determine whether the goals have been reached. Meet with the
employee to discuss the final results. This is why it’s important to set measurable goals in the beginning.

If employee has reached their goals, can retire the plan and discuss what support they need to maintain
their success. If they haven’t met the criteria, it’s time to move to the next steps. This may mean
termination or some other change in their working situation.

Note

Performance Improvement plan will be applicable for all employees including permanent staff also.

For the new joinees PIP will start post completion of 3 months duration in the company.
 Performance Improvement Plan

During PIP, Long leaves (More than 3 days) will not be considered. For example- If employee is on long
Leave then the PIP period may extend. During PIP there are lots of training and quality sessions which
needs to be attended hence long leaves are not allowed.

If anyone getting out of PIP then he has to continue his performance till 15 days or else next level PIP can
be initiated.

PIP Initiation will be through Hardcopy of PIP prescribed format not on mail.

Total duration of PIP will be 45 days(only including working days).

Lastly, Performance improvement plans are a key piece of the puzzle of unlocking employees’ potential
and helping them reach their goals and business objectives. The PIP plans shouldn’t pose a threat to
employees or create a sense of fear and insecurity about their future in the company. Instead, they should
communicate your company’s willingness to support them and create engagement

Failure of PIP Process:-

If someone fails to deliver during the PIP as per the defined expectation, then after completion of PIP
period the person will be going through separation process decided by the Management. The process will
be Termination. There will be no further notice period to be given in case of Termination.

Timeline:-

All the HOD’s to submit the PIP report by 12th of every month to Business HR & PIP initiation will be start
by 15th of that respective month.

Exception:-

Any exception in the Policy that will be as per Management discretion.