6 Steps to an Effective PIP An effective PIP includes the following six elements.
• Identification of specific incidents where the employee’s performance has fallen short. General terms such as “poor attendance” or “poor sales performance” are not helpful. Rather, highlight specific examples, such as “no-call/no-show on 11/24, 11/30, 12/2 and 12/3,” or “You failed to meet your sales targets in September, October and November,” or “You were late in submitting your weekly sales reports in eight of the last 10 weeks.” • Specific instructions for how the employee’s performance must improve. Examples include “You must call your supervisor at least two hours before the start of your shift if you must be absent,” or “You must convert at least X% of your sales leads to closed sales.” Even where desired performance might be less quantifiable, you can still provide specific requirements such as “Avoid any further use of profanity or insults when addressing your subordinates,” or “Come to board meetings fully prepared with all necessary documents.” The goals set for the employee must be reasonable and attainable, and they must track the examples of shortcomings provided in the PIP. Do not add other areas for improvement. • A reasonable period of time to improve performance. The employee should be given 30 or 60 days to show improvement. Less than 30 days’ time is not enough. More than 90 days is usually too long. The duration of the PIP may be extended, however, in the event the employee shows some improvement but is not yet fully meeting expectations, or where the employee takes a leave of absence during the PIP period. • Notice of the consequences of failing to complete the PIP successfully. If the consequence of an unsuccessful PIP will be termination of employment, it should be so stated. Regardless of the stated duration of the PIP, however, the document should state that management reserves the right to terminate the PIP sooner. The PIP also should state that it does not affect the at-will nature of the employment relationship, which may be terminated at any time by either party without cause or prior notice. • The employee’s signature to confirm receipt of the PIP. If the employee refuses to sign, write “employee refused to sign” on the document and have two members of management sign it. The PIP is no less binding should the employee refuse to sign it. Similarly, should the employee write a statement disputing the PIP, simply accept the statement and put it in employee’s personnel file. The PIP will still apply regardless of the employee’s protest. • Regular check-ins with the employee’s manager or supervisor. Feedback during the PIP period is essential. You should schedule these check-in meetings ahead of time, and you should follow them by providing a written account of the meeting to the employee. If a supervisor is not
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