Drafting an Impactful Performance Improvement Plan

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Performance improvement plans (PIPs) are an essential tool for employers to ensure that their workforce remains productive, compliant and motivated. The Genie AI team is here to explain why PIPs are so important, how they can help businesses succeed, and how anyone can draft high quality legal documents without paying a lawyer.

At the heart of PIPs lies their ability to provide employers with a structured way of addressing any performance issues or misconduct that may arise. Without a PIP, it is difficult for employers to know how best to resolve these issues - creating confusion and uncertainty going forward. By offering an outlining of specific steps needed, as well as formal processes for employers to document and monitor employee progress, PIPs allow businesses the opportunity to address such matters in a clear-cut manner.

Moreover, PIPs give employers an insight into what might be causing any problems - allowing them to effectively tackle underlying systemic issues which may be contributing towards poor performance or misconduct. This could be anything from identifying necessary training or support required for employees in order for them to improve their performance or tackle any misconduct or behavioral concerns - all within the confines of standardized processes which must be followed equally among all employees regardless of seniority.

Crucially, not only do PIPs help protect companies from potential legal challenges arising out of unsatisfactory workplace practices; they also create a more positive working environment by allowing employees the chance to understand both expectations placed upon them and potential solutions should conflict arise - ultimately helping inspire greater motivation amongst staff members.

Finally, at Genie AI we provide free templates that millions of data points have taught us reflect market-standard performance improvement plans. That means anyone can utilize our template library today and customize high quality legal documents without paying lawyer fees! So if you’re looking for step-by-step guidance on drafting your very own impactful Performance Improvement Plan then look no further: read on below!

Definitions (feel free to skip)

Performance Goals and Objectives: Specific results or outcomes that are desired to be achieved.
Scope: The extent of the plan, including all the elements that are included.
Timeline: A schedule of when certain goals and objectives should be achieved.
Stakeholders: People or groups who have an interest in the outcome of the plan.
Criteria for Success: A set of standards that must be met in order to be successful.
Measurable Goals: Goals that can be monitored and tracked over time.
Coaching: An approach used to provide guidance and instruction to help achieve a goal.
Feedback: Information given to evaluate progress and performance.
Resources: The materials, personnel, and other tools available to assist with the plan.
Rewards: Something given in exchange for successful completion of a task or goal.
Incentives: An additional reward given to encourage a desired behavior.
Evaluations: A review of a plan or process in order to assess its effectiveness.

Contents

• Establishing clear performance goals and objectives
• Defining the desired outcomes of the performance plan
• Identifying the scope of the plan and determining the resources needed for its implementation
• Setting realistic expectations and timelines
• Determining the timeline for achieving each goal and the criteria for success
• Establishing measurable goals and ensuring these are communicated to all relevant stakeholders
• Communicating effectively with employees about the plan
• Providing all necessary information to those involved in order to ensure a successful implementation
• Outlining the plan’s expectations and how employees can meet them
• Utilizing data to track progress and measure results
• Developing a system for collecting relevant data and tracking progress
• Analyzing the data to identify areas of improvement and assess progress towards established goals
• Implementing coaching and feedback techniques
• Identifying the best methods for providing feedback and coaching
• Setting up a system for providing regular feedback and coaching on an ongoing basis
• Utilizing any available resources to support the plan
• Researching and assessing the available resources and identifying the ones that will be most beneficial to the plan’s success
• Implementing the identified resources into the plan
• Establishing a timeline for regular reviews and performance assessments
• Creating a timeline for performance reviews and assessments
• Defining the criteria for successful performance and determining how it will be evaluated
• Identifying areas for improvement and creating a plan for addressing them
• Conducting an assessment of the plan to identify areas of improvement
• Developing an action plan for addressing the identified areas of improvement
• Providing rewards or incentives for meeting and exceeding established goals
• Identifying the desired rewards or incentives for meeting or exceeding the established goals
• Implementing a system for providing rewards or incentives as needed
• Evaluating the overall effectiveness of the plan
• Defining the criteria for evaluating the plan’s success
• Conducting regular evaluations to assess progress and identify areas for improvement

Get started

Establishing clear performance goals and objectives

• Determine the performance gaps that need to be filled and goals that need to be achieved
• Set measurable and achievable goals, based on the performance gaps
• Ensure goals are SMART (Specific, Measurable, Achievable, Relevant and Time-bound)
• Establish objectives to track progress towards the performance goals
• Document all goals and objectives clearly

Checklist:

• Performance gaps identified
• Goals set
• Goals are SMART
• Objectives established
• Goals and objectives documented

Once all of the above are completed, you can move on to the next step of defining the desired outcomes of the performance plan.

Defining the desired outcomes of the performance plan

• Understand the long-term goals for the performance plan and how it will help the employee improve their performance
• Establish measurable objectives that are specific, achievable, relevant, and time-bound (SMART)
• Outline the desired outcome and identify any potential barriers or challenges that may arise
• Determine what resources and/or support may be required to ensure success
• When all desired outcomes are defined and documented, the next step can begin.

Identifying the scope of the plan and determining the resources needed for its implementation

• Identify the scope and objectives of the performance plan and define its purpose.
• Outline the required activities and tasks to attain the objectives and consider the resources needed.
• Analyze the current level of performance and the expected level of performance to identify the gap.
• Assess the capability of the team to achieve the desired performance outcomes.
• Assess the availability of resources and the budget needed to implement the plan.
• Analyze the timeline and set a realistic timeline for the plan.
• Establish the necessary measures and performance indicators to monitor the progress of the plan.

How you’ll know when you can check this off your list and move on to the next step:
Once you have identified the scope, objectives and resources needed to implement the performance plan, you can move on to setting realistic expectations and timelines.

Setting realistic expectations and timelines

• Establish measurable goals and objectives that can be used to gauge the success of the plan.
• Set reasonable timelines for achieving each goal. Consider the resources needed to reach each of the goals and adjust the timeline accordingly.
• Identify the criteria for success.
• Establish deadlines for progress reports to ensure that progress is being made.
• Set expectations for the employee.
• Once expectations, timelines, and criteria for success are established, document them in the Performance Improvement Plan.
• When these steps are completed, you can move on to the next step of the Performance Improvement Plan.

Determining the timeline for achieving each goal and the criteria for success

• Establish a timeline for each goal and make sure it is realistic and achievable
• Develop a timeline that outlines when each goal must be completed
• Agree on criteria for success for each goal and ensure it is measurable
• Document and communicate the timeline and criteria for success to all stakeholders
• Monitor progress and adjust timeline as needed
• When timeline and criteria for success have been agreed upon and communicated to all stakeholders, this step is complete

Establishing measurable goals and ensuring these are communicated to all relevant stakeholders

• Brainstorm and establish measurable goals that are SMART (Specific, Measurable, Achievable, Realistic, and Timely)
• Create a list of all relevant stakeholders who need to be informed of the Performance Improvement Plan
• Communicate the Performance Improvement Plan to all stakeholders in a timely manner
• Provide a timeline for achieving each goal, and the criteria for success
• Ensure that all relevant stakeholders have received, understood, and accepted the Performance Improvement Plan
• Monitor feedback from stakeholders and adjust the plan accordingly

Once all stakeholders have been informed of the Performance Improvement Plan and its goals, you can check off this step and move on to the next step.

Communicating effectively with employees about the plan

• Schedule a meeting with the employee to discuss the plan and provide all necessary information
• Explain the purpose of the plan and how it will benefit the employee and organization
• Outline the goals and objectives of the plan
• Discuss the timeline for completion and any potential obstacles
• Allow for open discussion about any questions or concerns
• Agree on a plan for regular check-ins throughout the process
• Ensure the employee understands their responsibilities and has the resources needed to succeed
• Document the conversation for future reference
• Check off this step when the plan is clearly communicated and understood by the employee.

Providing all necessary information to those involved in order to ensure a successful implementation

• Compile all relevant documents and materials (such as job descriptions, goals, and objectives)
• Prepare a comprehensive outline of the performance improvement plan
• Schedule meetings with all stakeholders involved to discuss the plan and its implementation
• Provide clear and concise instructions to all parties involved
• Clarify any questions or concerns that may arise during the implementation process

When you have provided all necessary information to those involved in order to ensure a successful implementation, you can move on to the next step of outlining the plan’s expectations and how employees can meet them.

Outlining the plan’s expectations and how employees can meet them

• Define what success looks like for the employee(s) and the organization.
• Outline clear expectations for the employee’s performance and the timeline for improvement.
• Provide the employee with resources to help them meet those expectations.
• Identify any support or help that the employee may need to meet the expectations.
• Make sure to communicate the expectations and timeline in a clear and concise manner.

Once the expectations and timeline are established, the employee should have a clear understanding of what is expected of them and how they can meet those expectations.

Utilizing data to track progress and measure results

• Identify the key performance indicators (KPIs) that you will use to measure progress
• Develop a system to track progress against the KPIs, such as a spreadsheet or tracking tool
• Ensure the system is updated regularly with the relevant data
• Set up regular check-ins with employees to review progress against the KPIs
• Develop a process to analyze the data to identify areas of success and areas of improvement
• When the system is in place and the data is being tracked, you can check off this step and move on to the next step.

Developing a system for collecting relevant data and tracking progress

• Establish a system for collecting data that is relevant to the performance improvement plan.
• Define the type of data to be collected and the frequency of data collection.
• Establish a system for tracking progress.
• Identify and document goals and objectives, which will serve as milestones in the performance improvement plan.
• Test the tracking system to ensure it is accurate and efficient.

You can check this off your list and move on to the next step when the system for collecting relevant data and tracking progress is fully established and tested.

Analyzing the data to identify areas of improvement and assess progress towards established goals

• Collect the data that has been tracked and compiled
• Analyze the data to identify areas of improvement
• Compare the collected data to established goals
• Identify any discrepancies between the data and goals
• Develop strategies to address discrepancies and achieve goals
• When you have a clear understanding of areas of improvement and progress towards established goals, you can move on to implementing coaching and feedback techniques.

Implementing coaching and feedback techniques

• Develop a clear plan for how to provide feedback and coaching to the employee, including a timeline and specific objectives
• Utilize a variety of feedback and coaching techniques, such as observation, questioning, and providing feedback on progress
• Ensure that the employee is engaged in the conversation and empowered to make changes to their performance
• Offer resources and guidance to help the employee succeed in their goals
• Monitor the employee’s progress and adjust the coaching and feedback plan as needed
• Evaluate the efficacy of the coaching and feedback techniques to ensure they are working

Once the plan is in place and the employee is receiving coaching and feedback, this step can be checked off the list and the next step can be completed.

Identifying the best methods for providing feedback and coaching

• Research best practices for providing feedback and coaching and identify which methods will work best for your particular situation
• Consider the type of feedback and coaching that will best help the employee reach the desired performance goals
• Ask for input from the employee to help tailor the feedback and coaching approach to their individual needs
• Once you have chosen the best methods for providing feedback and coaching, you can check this step off your list and move on to setting up a system for providing regular feedback and coaching on an ongoing basis.

Setting up a system for providing regular feedback and coaching on an ongoing basis

• Establish a schedule for feedback and coaching sessions that is suitable for both the employee and manager
• Determine the frequency of the meetings and set objectives for each session
• Create a plan for tracking the progress of the employee against the objectives set
• Ensure that the feedback and coaching sessions are conducted in a private setting
• Document the feedback and coaching sessions to ensure that both parties are on the same page
• Establish a system of rewards and recognition to motivate employees

Once the above steps are completed, you can move on to the next step of utilizing any available resources to support the plan.

Utilizing any available resources to support the plan

• Create a list of available resources that may be beneficial to the plan’s success, such as workshops, books, webinars, and/or seminars.
• Research and assess the available resources and identify the ones that are most relevant and applicable to the plan.
• Determine the best way to access the resources and make sure that you have the necessary resources and tools to take advantage of them.
• Determine the cost of any resources that are needed and make sure that you have the budget and financial means to acquire them.
• Once you have identified the available resources, create a plan for how they will be utilized and integrated into the performance improvement plan.
• You will know that you have completed this step when you have identified the available resources and have a plan for how to access and utilize them.

Researching and assessing the available resources and identifying the ones that will be most beneficial to the plan’s success

• Gather all relevant data and metrics related to the performance issue.
• Identify any existing resources that could be of help.
• Research and assess the available resources and identify the ones that will be most beneficial to the plan’s success.
• Take the time to review the resources and determine which ones are the most effective and efficient for the plan.
• Document which resources will be implemented and how they will be used in the plan.
• Assess the cost and time of the resources in order to determine their feasibility.

You’ll know you can check this off your list and move on to the next step when all the resources that are necessary to support the plan have been identified and documented.

Implementing the identified resources into the plan

• Determine the roles and responsibilities of each team member in executing the plan
• Assign tasks to each team member and ensure they understand their role
• Decide on the timeline for the implementation of the resources
• Set up regular check-ins to track progress and address issues
• Communicate the plan to the team, ensuring everyone’s buy-in
• Use the resources to train and coach the team to ensure successful implementation

Once all the tasks have been assigned, the timeline set, and the plan communicated to the team, you can check this step off your list and move on to establishing a timeline for regular reviews and performance assessments.

Establishing a timeline for regular reviews and performance assessments

• Identify the frequency of performance reviews and assessments - these can be done monthly, quarterly or annually
• Create deadlines for when performance reviews and assessments need to be completed - these can be based on specific dates or milestones
• Assign a manager or supervisor to oversee the performance reviews and assessments - this person should have the authority to provide feedback
• Communicate the timeline to both the employee and the supervisor - this will help ensure that performance reviews and assessments are completed on time
• Track progress on performance reviews and assessments - this will help monitor progress and ensure that goals are being met

How you’ll know when you can check this off your list and move on to the next step:

• When you have identified the frequency, created deadlines, assigned a manager or supervisor, communicated the timeline and tracked progress on performance reviews and assessments, you can check this off your list and move on to the next step.

Creating a timeline for performance reviews and assessments

• Decide on a set timeline for when performance reviews will take place (e.g. quarterly, bi-annually, etc.)
• Determine how long the performance reviews will last (e.g. 1 hour, 2 hour, etc.)
• Schedule when and where the performance reviews will take place
• Establish a timeline for when performance assessments should be conducted
• Schedule the performance assessments
• Set up a reminder or calendar entry for the performance reviews and assessments

You know you can check this off your list and move on to the next step when you have created the timeline for performance reviews and assessments and scheduled them accordingly.

Defining the criteria for successful performance and determining how it will be evaluated

• Brainstorm the criteria that should be used to measure success in the role
• Consider what resources are available to assess the criteria (e.g. observations, interviews, surveys, etc.)
• Discuss the criteria and resources with the employee and manager
• Agree on the criteria and resources that should be used to assess performance
• Document the agreed-upon criteria and resources
• Check off this step when the criteria and resources have been documented.

Identifying areas for improvement and creating a plan for addressing them

• Identify the areas of improvement based on the criteria established in the previous step.
• Develop a plan of action to address each area of improvement.
• Ensure that the plan is realistic and achievable.
• Consider the resources that will be needed to implement the plan.
• Determine the timeline for implementing the plan.
• When you have identified the areas for improvement and created a plan for addressing them, you can move on to the next step.

Conducting an assessment of the plan to identify areas of improvement

• Gather feedback from employees, supervisors, and other stakeholders to assess the effectiveness of the performance improvement plan
• Consider the areas identified in the plan and any new ones that have arisen
• Review the plan to determine if it is comprehensive and effective in addressing the areas
• Analyze data related to the plan (i.e. employee performance metrics, feedback, etc.)
• Identify any areas that need further improvement

You can check off this step when you have identified all areas for improvement and have an understanding of what needs to be done to make the plan more effective.

Developing an action plan for addressing the identified areas of improvement

• Brainstorm with the employee to determine the necessary steps to address the areas of improvement identified
• Consider the employee’s strengths, weaknesses, and interests, and incorporate these into the action plan
• Construct a timeline for the action plan that outlines when the goals should be achieved
• Make sure the action plan is specific, achievable, measurable and time-bound
• Ensure the action plan is documented and understood by the employee
• Check in with the employee on a regular basis to review progress and make adjustments to the action plan as necessary

When you can check this off your list:

• When the action plan is documented and both the employee and supervisor understand it
• When the timeline for the action plan is established and agreed upon by both parties

Providing rewards or incentives for meeting and exceeding established goals

• Identify the desired rewards or incentives for meeting or exceeding the established goals, such as a bonus, a gift card, or a public recognition.
• Analyze the potential rewards or incentives and determine whether they are achievable and reasonable.
• Establish a timeline for when the rewards or incentives will be given out.
• Discuss the rewards or incentives with the employee and ensure they understand and agree to the terms.
• Document the rewards or incentives and create a contract that both parties sign.
• Check off this step when you have successfully established rewards or incentives for meeting or exceeding the established goals.

Identifying the desired rewards or incentives for meeting or exceeding the established goals

• Determine the desired rewards that will motivate employees to meet or exceed the established goals
• Consider rewards that are meaningful to employees, such as recognition, additional vacation time, or monetary bonuses
• Think about what type of reward system would work best for your organization and the goals you’ve set
• Create a plan for how the rewards or incentives will be distributed
• Determine the criteria that must be met to receive a reward
• When the plan is finalized, you’ll know you can move on to the next step of implementing the reward system.

Implementing a system for providing rewards or incentives as needed

• Establish a system for providing rewards or incentives to employees who meet or exceed the established goals.
• Consider the best rewards or incentives for employee motivation based on the desired outcomes.
• Utilize a combination of tangible and intangible rewards to increase motivation and performance.
• Set a timeline for providing rewards or incentives to ensure that employees are aware of the potential consequences for their performance.
• Create an evaluation system for determining when rewards or incentives should be provided.
• Make sure employees understand how the rewards or incentives system works.

How you’ll know when you can check this off your list and move on to the next step: When the system for providing rewards or incentives has been established and communicated to the employees.

Evaluating the overall effectiveness of the plan

• Gather feedback from team members and stakeholders to ensure that the plan is meeting its objectives
• Analyze the data collected to determine whether the plan is achieving the desired results
• Identify areas that need improvement and potential solutions
• Develop a timeline for review and evaluation of the plan
• When you are satisfied that the plan is meeting its goals and objectives, you can move on to the next step.

Defining the criteria for evaluating the plan’s success

• Establish measurable objectives, such as improved customer satisfaction or increased production
• Establish deadlines by which the objectives should be met
• Designate a team to monitor progress and provide feedback
• Outline the criteria and process for assessing the plan’s effectiveness
• Set up a system of regular meetings or check-ins to review progress and make necessary adjustments
• Once the criteria and process for assessing the plan’s effectiveness has been established, this step can be marked as complete.

Conducting regular evaluations to assess progress and identify areas for improvement

• Schedule regular meetings with the employee to discuss how they are progressing towards the performance objectives
• Ensure that the employee is aware of the plan and the expectations for improvement
• Discuss the progress made and identify any areas where improvement is needed
• Monitor performance over time to assess progress and identify any further areas for improvement
• When the employee has met the set criteria for success, check off this step and move on to the next.

FAQ:

Q: How do I begin drafting a performance improvement plan?

Asked by Sarah on 8th January 2022.
A: The first step in drafting an impactful performance improvement plan is to have a clear understanding of your organization’s current performance and the desired improvements. This includes understanding the key objectives of the organization and the job roles of its employees. Once you have identified these goals, you can begin to develop a strategy to reach them. This strategy should include specific goals, milestones, and measurable results. Additionally, it should provide guidance on how to create an environment that encourages creativity and collaboration, as well as how to effectively monitor progress and make necessary adjustments.

Q: What laws should I consider when creating a performance improvement plan?

Asked by Robert on 28th April 2022.
A: Laws related to performance improvement plans vary between countries, states, and sectors. In the US, the Fair Labor Standards Act (FLSA) and Equal Employment Opportunity Commission (EEOC) are two of the most important laws that must be considered when creating a performance improvement plan. The FLSA regulates wages, hours worked, overtime pay, recordkeeping, and child labor laws in the US while the EEOC sets standards for non-discrimination in hiring, firing, promotion, compensation, and other employment decisions. Depending on your organization’s sector or business model (SaaS, technology or B2B for example), there may be additional laws that you need to consider when drafting a performance improvement plan.

Q: How can I ensure my performance improvement plan is effective?

Asked by John on 20th September 2022.
A: An effective performance improvement plan should be tailored to meet the needs of your organization and its employees. It should include clear objectives that are achievable and measurable over a set period of time. Additionally, the plan should provide guidance on how to create an environment that encourages creativity and collaboration while also providing feedback loops for employees. To ensure effectiveness, it is important to regularly monitor progress against objectives and make necessary adjustments as needed. Additionally, it is important to communicate with your team throughout each stage of the process so they are aware of their responsibilities and understand what is expected of them.

Q: How do I measure success when creating a performance improvement plan?

Asked by Maria on 18th December 2022.
A: When measuring success with a performance improvement plan it is important to create measurable objectives that are realistic and achievable within the allotted timeframe. These objectives should be set in consultation with key stakeholders in your organization such as managers and team members so everyone is aware of what needs to be accomplished in order for success to be achieved. Once these objectives have been established it is then important to regularly measure progress against them in order to determine if any adjustments need to be made along the way in order for success to be achieved.

Q: What steps must I take when introducing a performance improvement plan?

Asked by Joseph on 24th February 2022.
A: When introducing a performance improvement plan it is important to first ensure that you have clearly defined objectives which are achievable and measurable over a set period of time. It is also important to ensure that you have consulted with key stakeholders in your organization such as managers and team members so everyone understands what needs to be accomplished in order for success to be achieved. Additionally, it is important to provide guidance on how to create an environment that encourages creativity and collaboration while also providing feedback loops for employees so they can understand their progress against goals. Once these steps have been completed it is then important to communicate with your team throughout each stage of the process so they understand what is expected of them and can provide input into how best to achieve success with the plan.

Example dispute

Lawsuits Involving Performance Improvement Plans

• A plaintiff may raise a lawsuit referencing a performance improvement plan if they believe the plan has been implemented in an unfair or discriminatory manner.
• The plaintiff may claim that they were not given sufficient time to improve their performance or that they were not given proper training or resources to do so.
• The plaintiff may also claim that the plan was applied in a way that was biased against them due to their race, gender, or other protected characteristics.
• The plaintiff may also allege that they were retaliated against for raising complaints or grievances related to the performance improvement plan.
• The plaintiff may seek damages such as lost wages, attorney’s fees, and emotional distress.
• If the plaintiff is able to prove their case, the court may award damages and/or order the employer to change their policies and practices related to the performance improvement plan.

Templates available (free to use)

Employee Performance Improvement Plan Pip

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