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PIP, PIP, Hooray! The Power Of Performance Improvement Plans
--:-- / --:-- This voice experience is generated by AI. Learn more . This voice experience is generated by AI. Learn more . Summary Performance Improvement Plans (PIPs) are vital tools for leaders addressing struggling employees, aiming for growth rather than mere termination documentation. A well-executed PIP offers personalized guidance, fostering deeper connections and reinforcing company culture, often leading to significant employee transformations. These plans should extend performance reviews, establishing specific, short-term improvement windows with regular check-ins. Key elements include focusing on accountability, maintaining a growth mindset, and clear communication, while managing emotions. Ultimately, PIPs help employees recommit or recognize a mismatch, prompting leaders to act decisively if improvement isn't feasible, sometimes opting for severance over false hope.
It’s hard to prepare leaders for the inevitable challenges they will face with their employees. But if you want to be an entrepreneur, not a solopreneur, some things are just par for the course: You’ll have exemplary employees, you’ll have people who don’t work out, and sometimes, you’ll have something in between—an employee who is struggling or giving a subpar performance, but could potentially improve or get back on track. And that is when a Performance Improvement Plan can come into play.
Some people see PIPs as a way to simply document a future termination, but that never sat well with me. I see initiating a PIP as an opportunity for introspection—not just for the employee but also for our leadership team—a gentle reminder that the employee-employer relationship is not set in stone.
Sometimes, your good and even great employees can slip and lose sight of their purpose and value. Perhaps other aspects of their lives are taking time and attention away from their work responsibilities, and you need to help them get back on track.
While a PIP might seem punitive, when done really well, the process can foster deeper connections and also reinforce your culture. PIPs provide personalized guidance, bridging gaps that might seem insurmountable.
In fact, the process of creating and implementing a PIP can yield profound rewards for both managers and employees. If PIPs are executed effectively, remarkable transformations can occur. Some of the people whom I have put on PIPs because they lost their way momentarily went on to do great work for me. Some even moved on to become executives at future companies!
PIPs should be an extension of a performance review; no need to reinvent the wheel if you already have a general employee review form! The difference between a review and a PIP is that there’s a very specific window of time during which an employee must show improvement—generally four weeks. At the end of each week, you need to review what they did that week to rectify the specific issue.
PIPs are blueprints for empowerment and accountability. Here are some key considerations when developing a PIP:
In my view, we owe it to our employees to invest just as much in their success from the time we hire them until their last day. I see a really good PIP as an opportunity for the employee to reaffirm their commitment to your organization—or not. I’ve had individuals midway through a thirty-day PIP decide our environment was too challenging and quit. I respected their choice and acknowledged that our standards are indeed rigorous. Again, self-selecting out is never a bad thing. Don’t hold on to someone who isn’t in lockstep with you or your organization.
If you know very well that there is no chance you’ll keep someone after they complete their thirty-day PIP, give them a thirty-day severance instead and let them go. And if you know an employee is not a fit before you do a PIP, it’s better to terminate immediately than to offer false hope.
So, what do you do when you need to cut the cord? That’s the topic of our next blog!
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