The term performance improvement plan refers to a process used by companies to increase the performance of employees not meeting the company's minimum standards for their position. Performance improvement plans can address both behavioral problems as well as productivity.
As part of the performance appraisal process, an employee that is not meeting the minimum requirements of their position may be placed on a performance improvement plan, or PIP. Following an unsatisfactory performance evaluation, the employee may be asked to work with their supervisor to develop their plan, which will clearly outline the agreed-to performance expectations. This includes successfully meeting all of the objectives appearing in the plan.
Since the business is identifying an employee in immediate need of improvement, the plans are typically 30, 60, or 90 days in length. In addition to outlining deliverables, the employee may be asked to modify their behaviors. This is of particular importance when an employee is thought to exhibit behaviors that are disruptive to coworkers.
The steps involved in constructing a performance improvement plan usually include:
Note: If the employee refuses to commit to the objectives outlined in their PIP, the employee may be immediately terminated.
double time pay, back pay, hazard pay, holiday pay, overtime pay, merit increase, performance appraisal