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Reed Business Information, a division of Reed Elsevier Inc.

How to Prepare a PIP





This Guide Covers:
Step 1: Meet With the Employee Prior to Drafting the PIP
Step 2: Identify the Issue(s) Requiring Improvement
Step 3: Explain the Requirements of the PIP
Step 4: Describe Resources Available to Assist the Employee
Step 5: Set a Time Period for the PIP
Step 6: Review the PIP With the Employee









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Reed Business Information, a division of Reed Elsevier Inc.
Introduction
Author: Wayne D. Garris
On many occasions, an employee's performance will not meet an employer's expectations. As an
alternative to immediate disciplinary action, an employer may elect to place an employee on a
performance improvement plan (PIP). A PIP is helpful when a supervisor has noticed a specific area or
areas of underperformance and sets specific goals for the employee to attain in order to improve
performance.
The PIP is an ongoing process that requires monitoring and feedback from the supervisor. This guide will
assist employers in preparing a PIP.
Step 1: Meet With the Employee Prior to Drafting the PIP
Before drafting the PIP, it is important to meet with the employee to discuss expectations, poor
performance and the plan to move forward. A meeting will prevent the employee from being caught by
surprise when receiving a PIP. Additionally, the employee may begin to demonstrate improved
performance shortly after an informal discussion in order to maintain employment, in which case a PIP
may not be necessary.
During this meeting, the supervisor should explain how and why the employee's performance is failing to
meet expectations. Whenever possible, the supervisor should provide clear and specific examples of
when the employee's performance was poor.
For example, telling the employee that others have complained about him or her being rude to customers
does not give them much guidance. On the other hand, saying that on a specific date an employee
overheard him or her tell a customer that the customer should "get over it" is a specific example of
unprofessional conduct that provides guidance to the employee of what not to do.
The supervisor should provide the employee with clear guidance on how to meet expectations as well as
inform the employee of the consequences of failing to improve performance. The supervisor should
document the discussions had at this meeting and request that the employee sign the document. After
the meeting, the supervisor should prepare the PIP.
Step 2: Identify the Issue(s) Requiring Improvement
Clearly state the deficiency that needs to be corrected and whether the issue is performance or
behavioral. This is called a deficiency statement. Each problem should be stated separately. Examples of
deficiency statements are:
Employee fails to complete work assignments in a timely manner.
Employee is rude and discourteous towards supervisors and co-workers.
When possible, the PIP should list specific facts or events in which the problem occurred. Additionally, if
the employee received any counseling or discipline related to the specific issues, this information should
be included in the PIP. This section should be clear, objective and factual. There should be no opinions,
hearsay or workplace gossip included in the PIP.
Reed Business Information, a division of Reed Elsevier Inc.
Step 3: Explain the Requirements of the PIP
Next, the PIP should explain what the employee is required to do in order to demonstrate satisfactory
performance. This section should list clear, quantifiable objectives for the employee to show
improvement. List the specific work requirement that needs improvement and how the employee's
progress will be measured. The PIP should consist of both short-term and long-term goals.
Set a deadline by which the employee must satisfy the requirements of the PIP.
The length of the deadline may vary depending on the level of improvement needed and how long it
might take to measure improvement. However, the employee should be able to realistically achieve the
goals in the length of time specified.
The PIP should also set consequences for failure to improve. If the issue is behavioral, the employee could
be subject to discipline. If the issue concerns performance, the consequence may be demotion.
Step 4: Describe Resources Available to Assist the Employee
The PIP should identify and provide information on how to obtain the resources, materials, training and
coaching that the employee can use to meet expectations. Commonly used resources include:
Training seminars;
Coaching by a supervisor or experienced employee; or
Employee Assistance Program (typically for behavioral issues).
Step 5: Set a Time Period for the PIP
The PIP must clearly set a deadline for the employee to display some evidence of improvement.
Depending on the severity of the employee's poor performance or misconduct, and the length of time it
might take for additional training if that applies, the time period for a PIP can be several days to several
months. However, it is in the employer's best interest to limit the length of the PIP in the event that the
employee shows no signs of improvement and needs to be dismissed.
Supervisors should not ignore the employee's progress until the last day of the PIP. The supervisor should
meet with the employee regularly to check on progress and provide assistance if needed. The purpose of
the PIP is to help an employee become more successful, so the employer will have to use time and
resources to improve the employee's chance of success.
Step 6: Review the PIP With the Employee
Once the supervisor has prepared the PIP, the supervisor should meet with the employee to review the
final document. The supervisor should read through the entire PIP to ensure that the employee
understands what the expectations are, how the employee failed to meet expectations, and what is
required of the employee in order to improve performance. The employee should also be given an
opportunity to ask any questions about the PIP. After review, the supervisor should have the employee
sign the PIP.
Reed Business Information, a division of Reed Elsevier Inc.
Although this information should be included in the PIP, the supervisor should review the consequences
for failure to meet the requirements of the PIP. The employee may be subject to discipline, or the
supervisor may have the discretion to extend the time period for the PIP, depending on the nature of the
problem.
An issue that may occur is that an employee may meet the requirements of the PIP to avoid undesirable
consequences, but then resume the poor performance or behavior shortly thereafter. If an employer
suspects that this may be an issue, a clause can be added to the PIP requiring the employee to maintain
satisfactory performance or risk termination.
Supervisors should be clear that the purpose of the PIP is not to punish, but to help the employee be
successful by providing clear goals for improvement.
Additional Resources
Employee Management > Employee Discipline
Employee Management > Performance Appraisals
Employee Management > Employee Handbooks - Work Rules - Employee Conduct
Progressive Discipline Policy









Reed Business Information, a division of Reed Elsevier Inc.





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