Performance Management

Performance Management is the process of managing employee performance through continuous communication and feedback between the employee and the supervisor/manager. To streamline the performance management processes, companies need to figure out how to manage poor performance. This will positively impact the team’s overall productivity and effectiveness.

One of the ways of managing poor performance is through the Performance Improvement Plan (PIP). A PIP is a structured tool that is used to monitor and evaluate the performance of an employee whose performance falls below expectations. The PIP process entails the following:

Communicating the decision to the employee – This is done after reviewing the performance of the employee and determining that they are underperforming in certain areas. The process begins with writing a letter to the employee informing them that their performance has been unsatisfactory and hence the need for placing them on PIP. The letter should contain the following:

The reasons for placement on PIP.
The effective date and the duration of the PIP.
The areas of improvement identified.
The possible outcomes of the PIP.

Setting of performance expectations – The performance targets must be set and communicated to the employee in written form through a PIP review form. This ensures that the employee understands the level of performance that is expected of them.
Holding regular PIP review meetings with the employee -During PIP, the manager should have regular PIP review meetings with the employee (preferably within 1-2 weeks). This way, feedback is shared hence enabling the employee to improve. The PIP review meetings should be documented through the PIP Review Form that should be duly signed by the employee, the manager, and the HR representative (if present in the meeting) at the end of each meeting.
Providing support to the employee – The PIP process should be fair. For this reason, it is the responsibility of the company to demonstrate that they provided the support required by the employee to improve. This can be achieved by providing training, coaching, and mentorship, as well as the necessary equipment and resources to reach the set objectives.
Outcome of PIP – At the end of the PIP period, the company shall communicate the outcome of the process to the employee in writing. This can either be:

Completion of the PIP process proving a successful end of the PIP period.
Extension of the PIP if there is a need for further review.
Termination of employment if there are no signs of improvement. In this case, the labour laws governing termination process must be followed.

Important Notes:

An ideal PIP period should be within 3-6 months and should not exceed 9 months. Having very long periods of PIP can be quite demotivating to both the employee on PIP and the entire team.
Managing poor performance requires a delicate balance between supporting employees’ growth and ensuring organizational success. Employers can promote continuous improvement by following the above steps for managing the PIP process.

Do you need help managing poor performance? Virtual Human Resources Services can help transform your company through effective performance management.