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www.hrgazette.com                          Mary E. Wright, Editor




               How to Administer A
          Performance Improvement Plan


             Your personal shopper for HR news!
• A written plan to improve
 What is a “performance
 improvement plan?”         performance.
 PIP                        – It documents observed
                              performance deficiencies
                              or misconduct of an
                              employee and
                            – Provides guidance as to
                              how the employee is to
                              meet the employer’s
                              expectations of
                              improvement.



www.hrgazette.com                           Mary E. Wright, Editor
Unequivocal Notice to the
 What is a “performance
 improvement plan?”       employee of the
 PIP                      consequences for failure:
                            – to improve and/or
                            – meet those expectations.


                          A PIP is considered an end
                          stage disciplinary action;
                          i.e., improve or leave.



www.hrgazette.com                           Mary E. Wright, Editor
What is the purpose of a   • To:
 “performance
 improvement plan?”           – Provide notice that the
 PIP                            employee is not meeting
                                employer expectations;
                              – Articulate steps or give
                                instruction;
                              – Identify consequences for
                                failure to improve; and
                              – Set deadline for
                                improvement.



www.hrgazette.com                             Mary E. Wright, Editor
No. The PIP need not be
 Must a written or verbal
 warning precede the PIP?   preceded by a verbal or
 PIP                        written warning to the
                            employee unless required
                            by:
                            -- Contract
                            -- Written Policy
                            -- Employer Past Practice




www.hrgazette.com                           Mary E. Wright, Editor
Moreover, if the employee
 Must a written or verbal
 warning precede the PIP?   is “terminable at will,” no
 PIP                        verbal or written warning is
                            required, and no PIP need
                            be administered prior to
                            termination.

                            BUT: Juries like fair
                            treatment = notice and an
                            opportunity to improve.


www.hrgazette.com                             Mary E. Wright, Editor
A PIP should be:
 How is a PIP delivered to
 an employee?                • In writing; and
                             • Delivered in:
 PIP



                               – a face to face;
                               – witnessed; and
                               – private meeting;




www.hrgazette.com                                   Mary E. Wright, Editor
A PIP must:
 What should the PIP
 contain?              • Define the problem
                       • Be particular
 PIP



                       • Identify rule, policy or
                         procedure, standard
                         violated
                       • State whether it is a
                         performance issue or a
                         behavior issue.



www.hrgazette.com                         Mary E. Wright, Editor
A PIP must:
 What should the PIP
 contain?              • Define duties or behaviors
 PIP
                         to be improved;
                       • More than one issue?
                         Establish priority in
                         improvement;
                       • Set immediate, short term
                         and long range goals where
                         appropriate;
                       • Identify consequences.

www.hrgazette.com                        Mary E. Wright, Editor
A PIP must:
 What should the PIP
 contain?              Develop a plan of attack
                       • What steps must be taken?
 PIP



                       • Who will assist?
                       • How and when is progress
                         to be measured?
                       • How is success or failure to
                         be determined and by
                         whom?


www.hrgazette.com                         Mary E. Wright, Editor
There is no specific length
 How long is the PIP to be
 in place?                   defined by law.
 PIP
                             • Long enough to:
                               – realistically achieve stated
                                 goals.
                               – demonstrate employer’s
                                 commitment and good
                                 faith.
                             • Short enough to:
                               – encourage employee
                                diligence.

www.hrgazette.com                                Mary E. Wright, Editor
• Who signs?
 Who signs the PIP?     – Supervisor who delivered
 PIP                      the PIP;
                        – Witness to acknowledge his
                          or her participation;
                        – Human resources rep who
                          created or reviewed PIP
                          before it was given; and




www.hrgazette.com                        Mary E. Wright, Editor
• Who signs?
 Who signs the PIP?     – Employee must be asked to
 PIP                      sign the document.
                        – Supervisor must explain that
                          execution signifies:
                           • receipt of PIP;
                           • explanation given to
                             employee;
                           • Employee’s opportunity to ask
                             for clarification; and
                           • Employee’s commitment to
                             plan.


www.hrgazette.com                           Mary E. Wright, Editor
If the employee refuses to
 Who signs the PIP?   sign the PIP, supervisor
 PIP                  should note:
                        – “Employee Declined to
                          Sign” beside the blank
                          signature line.
                        – Write down the
                          employee’s reason if
                          given.
                      Inform employee of
                      consequences.

www.hrgazette.com                       Mary E. Wright, Editor
• Yes, if it is signed.
 Does the employee get a
 copy of the PIP?
 PIP
                           • No, if it is not signed
                             (unless the employee is
                             covered by a collective
                             bargaining agreement.
                             In that case, employee
                             may show the PIP to the
                             union representative).



www.hrgazette.com                              Mary E. Wright, Editor
• Absolutely
 Should the meeting be
 documented?             • The witness is a note taker.
                         • Record:
 PIP



                           – Date, time, place, attendees
                             and length of meeting
                           – What was said by anyone in
                             the room as close to
                             verbatim as possible
                         • Document is factual not
                           editorial


www.hrgazette.com                            Mary E. Wright, Editor
• The employee’s personnel
 Where is the PIP stored?
                              file.
 PIP
                            • Copy attached to the
                              meeting documentation:
                              – Documentation and copy
                                placed in a file separate
                                from personnel file.
                              – Separate file marked:
                                “Prepared in anticipation of
                                litigation.”
                              – Stored by HR or legal staff.


www.hrgazette.com                               Mary E. Wright, Editor
www.hrgazette.com                                  Mary E. Wright, Editor




                      Of course, nothing in California is that easy.
                      there are all sorts of factual twists that can
                      change the way this material applies in
                      Your particular situation.

                      Send questions or comments to:
                      Mary Wright, Editor, HR Gazette



             Your personal shopper for HR news!
www.hrgazette.com                                        Mary E. Wright, Editor




                     Ubiquitous Disclaimer
                     HR Gazette does not provide legal advice.
                     The content of this slide deck is for
                     informational purposes only. Before using
                     this information – or any information you
                     get over the Internet – consult your lawyer.

                         Nothing takes the place of advice from a
                         lawyer who knows you and your business,
                         and who understands the laws of the state
                         in which your business is located.




             Your personal shopper for HR news!

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How to Administer a Performance Improvement Plan

  • 1. www.hrgazette.com Mary E. Wright, Editor How to Administer A Performance Improvement Plan Your personal shopper for HR news!
  • 2. • A written plan to improve What is a “performance improvement plan?” performance. PIP – It documents observed performance deficiencies or misconduct of an employee and – Provides guidance as to how the employee is to meet the employer’s expectations of improvement. www.hrgazette.com Mary E. Wright, Editor
  • 3. Unequivocal Notice to the What is a “performance improvement plan?” employee of the PIP consequences for failure: – to improve and/or – meet those expectations. A PIP is considered an end stage disciplinary action; i.e., improve or leave. www.hrgazette.com Mary E. Wright, Editor
  • 4. What is the purpose of a • To: “performance improvement plan?” – Provide notice that the PIP employee is not meeting employer expectations; – Articulate steps or give instruction; – Identify consequences for failure to improve; and – Set deadline for improvement. www.hrgazette.com Mary E. Wright, Editor
  • 5. No. The PIP need not be Must a written or verbal warning precede the PIP? preceded by a verbal or PIP written warning to the employee unless required by: -- Contract -- Written Policy -- Employer Past Practice www.hrgazette.com Mary E. Wright, Editor
  • 6. Moreover, if the employee Must a written or verbal warning precede the PIP? is “terminable at will,” no PIP verbal or written warning is required, and no PIP need be administered prior to termination. BUT: Juries like fair treatment = notice and an opportunity to improve. www.hrgazette.com Mary E. Wright, Editor
  • 7. A PIP should be: How is a PIP delivered to an employee? • In writing; and • Delivered in: PIP – a face to face; – witnessed; and – private meeting; www.hrgazette.com Mary E. Wright, Editor
  • 8. A PIP must: What should the PIP contain? • Define the problem • Be particular PIP • Identify rule, policy or procedure, standard violated • State whether it is a performance issue or a behavior issue. www.hrgazette.com Mary E. Wright, Editor
  • 9. A PIP must: What should the PIP contain? • Define duties or behaviors PIP to be improved; • More than one issue? Establish priority in improvement; • Set immediate, short term and long range goals where appropriate; • Identify consequences. www.hrgazette.com Mary E. Wright, Editor
  • 10. A PIP must: What should the PIP contain? Develop a plan of attack • What steps must be taken? PIP • Who will assist? • How and when is progress to be measured? • How is success or failure to be determined and by whom? www.hrgazette.com Mary E. Wright, Editor
  • 11. There is no specific length How long is the PIP to be in place? defined by law. PIP • Long enough to: – realistically achieve stated goals. – demonstrate employer’s commitment and good faith. • Short enough to: – encourage employee diligence. www.hrgazette.com Mary E. Wright, Editor
  • 12. • Who signs? Who signs the PIP? – Supervisor who delivered PIP the PIP; – Witness to acknowledge his or her participation; – Human resources rep who created or reviewed PIP before it was given; and www.hrgazette.com Mary E. Wright, Editor
  • 13. • Who signs? Who signs the PIP? – Employee must be asked to PIP sign the document. – Supervisor must explain that execution signifies: • receipt of PIP; • explanation given to employee; • Employee’s opportunity to ask for clarification; and • Employee’s commitment to plan. www.hrgazette.com Mary E. Wright, Editor
  • 14. If the employee refuses to Who signs the PIP? sign the PIP, supervisor PIP should note: – “Employee Declined to Sign” beside the blank signature line. – Write down the employee’s reason if given. Inform employee of consequences. www.hrgazette.com Mary E. Wright, Editor
  • 15. • Yes, if it is signed. Does the employee get a copy of the PIP? PIP • No, if it is not signed (unless the employee is covered by a collective bargaining agreement. In that case, employee may show the PIP to the union representative). www.hrgazette.com Mary E. Wright, Editor
  • 16. • Absolutely Should the meeting be documented? • The witness is a note taker. • Record: PIP – Date, time, place, attendees and length of meeting – What was said by anyone in the room as close to verbatim as possible • Document is factual not editorial www.hrgazette.com Mary E. Wright, Editor
  • 17. • The employee’s personnel Where is the PIP stored? file. PIP • Copy attached to the meeting documentation: – Documentation and copy placed in a file separate from personnel file. – Separate file marked: “Prepared in anticipation of litigation.” – Stored by HR or legal staff. www.hrgazette.com Mary E. Wright, Editor
  • 18. www.hrgazette.com Mary E. Wright, Editor Of course, nothing in California is that easy. there are all sorts of factual twists that can change the way this material applies in Your particular situation. Send questions or comments to: Mary Wright, Editor, HR Gazette Your personal shopper for HR news!
  • 19. www.hrgazette.com Mary E. Wright, Editor Ubiquitous Disclaimer HR Gazette does not provide legal advice. The content of this slide deck is for informational purposes only. Before using this information – or any information you get over the Internet – consult your lawyer. Nothing takes the place of advice from a lawyer who knows you and your business, and who understands the laws of the state in which your business is located. Your personal shopper for HR news!