Performance Improvement Plans (PIPs) have been in existence for a long time. The bottom performers of the year are put under the PIP, where tasks are defined for a stipulated time frame and performance of PIP individuals is measured and monitored on a regular basis. After the agreed duration of the PIP, a decision whether to retain or exit out the said individual is taken.
In your experience, do PIPs serve the purpose they are meant to serve?
Employees normally take a dig at the PIP as a tool to red flag the employees either to reduce the cost / standardise the measurement system. The below points would mostly strengthen the case.
The first step to make effective PIPs are is set a culture amongst the organisations practising it to consider it to be developmental and not a negative force helping them to flag the under performers.
– Communicate that the sole purpose of this system and its intent (i.e developmental in nature).
– Structural and organised training & support plan with well defined objectives & expected outcomes during the PIP time (often this makes it different to a normal times)
– Metrics are often handy. (% of the performers who created a positive impact as a result of it and are well on task overtime),
– Creating a panel (incl an HR/Emp Relations/ Mentor) to oversee the employees performance whose called for a PIP.
– Consistent and constant interactions about the acceptability of the system and clarifying the points that called for a PIP.
– Given operational free-hand to the lead for lifting the PIP on specific and special cases (as normal bell-curve lacks the totality as a performance measure in specific aspects)
Unless there is acceptability in the minds of employees and the success rate of having such a system in place, these structures falter to create an impact/momentum leaving it directionless and demotivate other employees.
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